What is Private Limited Company (Sdn. Bhd.)?
Private Limited Company (Sdn. Bhd.) registration is one of the popular legal business structure option in Malaysia. Private Limited Company (Sdn. Bhd) is governed by Companies Commission of Malaysia (Suruhanjaya Syarikat Malaysia) and Companies Act 2016. To register a Private Limited Company (Sdn. Bhd.), a minimum 1 member (shareholder) and 1 director (ordinarily reside in Malaysia by having a principal place of residence in Malaysia) are required. A natural person can be both a director and shareholder, while a corporate legal entity can only be shareholder.
Unique features of a Private Limited Company (Sdn. Bhd.) like limited liability protection to shareholders and directors, lower income tax rate, corporate identity and branding, separate legal entity status and perpetual existence make it the most recommended type of business entity for millions of small and medium sized businesses.
Advantages of Private Limited Company (Sdn. Bhd.)
There are multiple reasons to choose private limited company:
Factors to Consider in Private Limited Company (Sdn. Bhd.) Name Selection
The name of your company is very important. It is the first impression to your buyers, suppliers and stakeholders. It should, therefore, be relevant, suggestive and attractive. There are various factors that you should keep in mind while naming for your company
Short & Simple
The name should be concise and not be too long. People should be able to pronounce it easily and they should be able to remember your company’s name the first time they hear or read it.
The name of your company should be related to your business. It should fit the company’s branding and corporate identity.
Name of your company should not be same or identical to an existing company or trademark. You can go to www.ssm-einfo.my to check if your company name is identical to others. You should ideally avoid plural or changing just letter Case, spacing or punctuation marks in an existing company name.
The name of your company should end with the suffix “Sdn. Bhd.” in a case of a Limited Liability Partnership (PLT.) and “Sdn. Bhd.” is a case of a Private Limited Company (Sdn. Bhd.). and “PLT.” is a case of a limited liability partnership.
Should not be illegal / offensive
The name of your company should not be against law. It should not be abusive or against the customs and beliefs of any religion.