Malaysia’s 3 Main Business Registration Types – Why Do Most Choose Sdn. Bhd.?

If you plan to start a business in Malaysia, you have three main business structures to choose from:

1 Sole Proprietorship ()
2 Partnership ()
3 Private Limited Company (Sdn. Bhd.) ()

Each option has its own advantages and disadvantages. Your decision should be based on your business goals, ownership status, and future plans.

Which Business Type Should You Choose?

If you are running a small business alone, a Sole Proprietorship is the simplest and cheapest option.
If you have a partner, you can choose a Partnership.
If you want to expand nationwide or internationally, then
setting up a Private Limited Company (Sdn. Bhd.) is the best option.

Why Do Most Business Owners Choose Sdn. Bhd.?

Limited Liability Protection – Shareholders are not personally liable for the company’s debts.

Better Business Credibility – Banks, investors, and suppliers trust Sdn. Bhd. companies more.

Lower Tax Rates – Sdn. Bhd. enjoys corporate tax benefits (max 24%) compared to personal tax (max 28%).

Easier to Attract Investors – Many investors only invest in Sdn. Bhd. companies.

Can Be 100% Foreign-Owned – Unlike Sole Proprietorships & Partnerships, which only Malaysians & PR holders can register, Sdn. Bhd. is open to foreign investors.

For entrepreneurs looking to grow their business, expand overseas, or secure funding, Sdn. Bhd. is the best choice!

3Sdn Bhd

3 Sdn Bhd

Sdn Bhd LLP