rEGISTER A BERHAD COMPANY
What is Berhad (BHD) ?
A Berhad (Bhd) company denotes a Malaysian Public Limited Company (PLC). Unlike a private Sendirian Berhad (Sdn Bhd), a Public Limited Company is typically designed for larger businesses intending to raise capital from the general public.
Limited Liability & Separate Legal Entity
Similar to a Sdn Bhd, the liability of shareholders in a Berhad company is limited to their capital investment. Personal assets are protected even in the event of company insolvency. The company exists as a separate legal entity, capable of owning assets, entering into contracts, and suing or being sued in its own name.
Public Shares & Listing (Important Notice)
Shares of a Berhad company can be offered to the public. While many Berhad companies eventually list on Bursa Malaysia (formerly KLSE), listing is a separate process regulated by the Securities Commission Malaysia (SCM).
Disclaimer: Our services are strictly limited to the incorporation of the Berhad entity with SSM. We do not provide IPO, stock listing consultation, or investment advice.
Mandatory Compliance (Companies Act 2016)
Berhad companies are subject to stricter governance standards to ensure transparency. Under the Companies Act 2016, a Berhad company must:
Appoint a qualified Company Secretary.
Prepare audited financial statements and circulate them to all members.
Hold an Annual General Meeting (AGM) annually.
Lodge Annual Returns and Audited Financial Statements to the Suruhanjaya Syarikat Malaysia (SSM).
Failure to comply with these statutory requirements may result in compound penalties issued by SSM against the company and its directors.
Perpetual Succession
A Berhad company enjoys perpetual succession. This means the business continues to exist regardless of the death, resignation, or bankruptcy of its shareholders or directors, ensuring long-term business continuity until formally dissolved.
What is the differences between Sdn Bhd and Berhad?
Below are the differences.
Financial Reporting Standards
One of the main differences between the two types of companies would lie in the financial reporting standards required of them. Public companies are required to maintain high standards of transparency and disclose financial statements in accordance with Companies Act 2016 regulations.
Maximum Number Of Shareholders
Private limited companies (SDN BHD) can only have a maximum of 50 shareholders whereas public companies (BHD) can have an unlimited amount of shareholders.
Publicly Available Financial Information
Public companies (BHD) are required to make their financial information publicly available for the public to access. If they are a public listed company, they would also be required to hold quarterly earning calls and answer any questions that their public shareholders might have for them.
Publicly Available Shares
The public can freely subscribe to shares of public companies (BHD) while public individuals can only own shares in a private limited company through a shareholders’ agreement with the approval of existing shareholders of the private company.
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