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August 21, 2010

COMPANY LIMITED BY SHARES

The most common type of company incorporated for purposes of carrying on business is a company limited by shares. A company limited by shares may be incorporated as a:

  • Private Limited Company – identified through the words ‘Sendirian Berhad’ or abbreviation ‘Sdn. Bhd’ as part of the company’s name.
  • Public Limited Company – identified through the words ‘Berhad’ or abbreviation ‘Bhd’ as part of the company’s name.

The requirements to form a local company are:

(i) A minimum of two (2) subscribers to the shares of the company (section 14 of the CA);

(ii) A minimum of two (2) directors (section of the 122 CA); and

(iii) A company secretary who can either be:

(a) an individual who is a member of a professional body prescribed by the Minister of Domestic Trade and Consumer Affairs; or

(b) an individual licensed by SSM.

Both the director and company secretary shall have their principal or only place of residence within
Malaysia (sections 122 and 139 of the CA respectively).

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