The distinction between private limited companies (sdn bhd) and public limited companies (bhd) exists so that company owners can incorporate their companies in the most suitable form to meet their needs at each point of their corporate journey.
Sendirian Berhad (SDN BHD)
When the size and needs of a corporation outgrow those of a sole proprietorship or a partnership, most small to medium enterprises (SMEs) would opt to incorporate as a private limited company (Sdn Bhd). The desire to shield shareholders from personal responsibility, as well as the need to collect funds from outside investors, are also reasons for doing so. Large corporations may opt to remain private in order to move more quickly and implement changes away from public scrutiny, or, in the case of family businesses, to keep ownership of the company within the family.
Berhad(BHD)
Companies, on the other hand, normally go public and are listed on a stock exchange to raise additional funds from public markets or to enable founders and current investors to sell all or part of their stakes in an initial public offering. There are a variety of reasons why some businesses chose to stay private and others go public. The decision will be based on the business’s, company’s, and shareholders’ needs at the time.