Berhad (BHD)

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BHD (Berhad): Definition, What It Indicates and Example Companies

Definition

Berhad (abbreviated Bhd or BHD) is the suffix used in Malaysia to designate a public limited company. It indicates a company that issues shares and is subject to public financial reporting requirements. The suffix Sendirian Berhad (Sdn Bhd or SDN BHD) denotes a private limited company.

Key characteristics of Bhd companies

  • Public limited company status — can have an unlimited number of shareholders (minimum two).
  • Stricter disclosure — required to publish financial statements for public inspection.
  • Capital access — greater ability to raise funds via public equity and debt markets.
  • Listing optional — many Bhd companies list on a stock exchange, but listing is not mandatory.

Share issuance and shareholder liability

  • Both Bhd and Sdn Bhd companies issue shares.
  • Shareholders’ liability is limited to any unpaid amount on their shares.
  • Other Malaysian company forms include companies limited by guarantee (often nonprofits), public societies, and unlimited liability corporations (ULC).

Bhd vs Sdn Bhd (private limited)

  • Shareholder limits:
  • Bhd: minimum 2 shareholders, no maximum.
  • Sdn Bhd: 2–50 shareholders.
  • Reporting and public access:
  • Bhd: must disclose financial statements publicly.
  • Sdn Bhd: reporting requirements are less stringent.
  • Transfer and capital restrictions (common for Sdn Bhd):
  • Articles of Association often restrict share transfers.
  • Sdn Bhd cannot invite public subscriptions for shares or debentures or collect public deposits.
  • Typical company sizes:
  • Sdn Bhd: often small to mid-sized enterprises.
  • Bhd: typically larger corporations.

Real-world examples

Several Malaysian Bhd companies appear on global company rankings. Examples include:
* Maybank Bhd
* Tenaga Nasional Bhd
* CIMB Group Holdings Bhd
* Public Bank Bhd
* Petronas Chemicals Group Bhd
* RHB Bank Bhd
* Axiata Group Bhd
* Sime Darby Bhd
* Hong Leong Financial Group Bhd
* Sime Darby Plantation Bhd
* Maxis Bhd
* Genting Bhd
* AmBank Group Bhd

Takeaways

  • Bhd (Berhad) denotes a Malaysian public limited company with stronger disclosure obligations and broader access to capital than a Sdn Bhd (private limited company).
  • Sdn Bhd companies are typically more restricted in shareholder numbers and public fundraising.
  • Choosing between Bhd and Sdn Bhd affects governance, reporting, capital-raising options, and shareholder restrictions.