Example of Private Limited Companies in Malaysia

Example of Private Limited Companies in Malaysia

There is a huge opportunity to set up a Private Limited Companies in Malaysia. This country has a good economy. The government of Malaysia also promotes entrepreneurship, competition, and innovation in the workforce. If you are a foreigner then you are also allowed to set up a business in Malaysia.

There are different business entities in Malaysia. The most preferred business entity is a Private Limited Company.

Private Limited Companies in Malaysia

A private limited company in Malaysia is called ‘Sendirian Berhad’. Commonly known as Sdn Bhd. Citizens can set up different types of entities of companies in Malaysia. But if you are a foreigner then a Private limited company is the only type of company you can set up. Foreigners are not allowed to set up a public limited company.

The shares of these companies are privately issued to the owner. The minimum number of shareholders required for a private limited company is 1. The maximum number allowed is 50. The minimum number of directors allowed is 1. If you don’t want then you can hide your financial report of the company. There is no need to hold an annual general meeting.

Sdn Bhd is typically a small or medium-sized enterprise with a straightforward registration process costing only RM1060. The company can own assets, bind contracts as well as sue other entities in court under its own name. This type of entity allows entrepreneurs to keep their finances and assets separately from the business. They are only liable for the amount they have invested.

Why incorporate a Private Limited Company in Malaysia?

In Malaysia, there are a lot of advantages to incorporate a private limited company. Some of the advantages are given below:

  • Separate Legal Entity
  • Owning Property
  • Ease of transfer of ownership
  • Better access to funding
  • Great corporate tax advantages

Separate Legal Entity

A Private Limited Company is considered a legal person. So it can purchase assets under its name, bind contract as well as sue another entity in court. Stakeholders’ personal wealth is safe as the debts of the business do not affect the personal assets or finances.

Owning Property

A private limited company can purchase assets such as buildings, land, vehicles, and many more under its name. Stakeholders have no right to claim assets owned by the company.

Ease of transfer of ownership

Shareholders can purchase, sell or transfer their shares to other existing shareholders or potential investors. If there is any change in shareholders, it does not change the companies daily operations.

Better access to funding

Private Limited Company can open bank accounts and get loan facilities. It is also possible to get third-party investors to fund the business by offering their shares and planning the dividend.

Great Corporate tax advantages

Incentives like investment tax, pioneer status, and SME Digitalization Grant Scheme are offered to Private Limited Company in Malaysia. It will be a profit-based tax. For the first RM 600000, 17% and a further 24% on the subsequent balance.

Companies in Malaysia

There is a large number of businesses and companies registered every day. The list keeps increasing daily as new companies get registered under Sdn Bhd. It is possible to be unable to search for a company. You can search for a specific company in an appropriate business directory. A business company directory is an official website where all the names can be seen. You can search a company by its name or the nature of the business. Official and government websites are considered to be the best source.

The list of the top 20 Private Limited Companies in Malaysia are provided below:

  1. Salcon Berhad, Sector- Utilities
  2. Q & M Dental Group (Malaysia Sdn Bhd), Sector- Healthcare Services
  3. KFit Asia Sdn Bhd, Sector- Internet Software and Services
  4. Petroliam Nasional Berhad (Petronas), Sector- Oil/Gas Exploration
  5. Astro All Asia Networks, Sector- Media
  6. Astro Holdings Sdn Bhd, Sector- Media
  7. Axiata Group Bhd, Sector- Communications
  8. Beaupass, Sector- Internet Software and Services
  9. Public Bank Berhad, Sector- Finance
  10. AMMB Holdings Berhad, Sector- Finance
  11. CIMB Group Holdings Berhad, Sector- Finance
  12. Hong Leong Bank Berhad, Sector- Finance
  13. Digi.com Berhad, Sector- Telecommunication
  14. Telekom Malaysia Berhad, Sector- Telecommunication
  15. Maxis Berhad, Sector- Telecommunication
  16. Hap Seng Consolidated Berhad, Sector- Conglomerate
  17. IJM Corporation Berhad, Sector- Conglomerate
  18. Genting Berhad, Sector- Conglomerate
  19. IOI Berhad, Sector- Conglomerate
  20. Sime Darby Berhad, Sector- Conglomerate

Conclusion

Examples of a private limited company in Malaysia can be huge in number. This only shows what Malaysia is capable of. Its vast economy and facilities make it a good option for business. There is a diverse category of companies in Malaysia. Every company is able to grow because of the facilities the government gives.

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