What Is BHD (Berhad)?

BHD is a suffix for Berhad, which is used in Malaysia to identify a public limited company. Berhad, BHD, or Bhd after a company’s name indicates that it is a Malaysian public limited company (PLC) while the ext꧂ended suffix Sendirian Berhad (SDN BHD) denotes that it is a private limited company.

Share Issue and BHD

Both BHD and SDN BHD companies are classified as those that issue shares, which is the most common type of business entity in Malaysia. Such companies have a limited number of shares, and the 澳洲幸运5官方开奖结果体彩网:liability of their 澳洲幸运5官方开奖结果体彩网:shareholders is restricted to the𒈔 amount specified on their unpaid shares.

Other types of companies in Malaysia are companies limited by guarantees, such as 澳洲幸运5官方开奖结果体彩网:nonprofit organizations, public societies, and unlimited liabili🌸ty corporations (UL🀅C).

BHD Versus SDN BHD

A BHD company must have a minimum of two shareholders, and the maximum is unlimited; an SDN BHD company can have two to 50 shareholders. SDN BHD companies are typically 澳洲幸运5官方开奖结果体彩网:small or midsized enterprises (SME) while BHD companies are the largest comp𒐪anies in Malaysia. BHD companies have stricter financial reporting standards than SDN BHD companies because they must disclose their financial🗹 statements to the public. BHD firms also have greater access to capital than SDN BHD companies because they can access public equity and debt financing when they require funding. 

Although the process of incorporation for both types of companies is substantially similar, an SDN BHD company has some stringent stipulations in its 澳洲幸运5官方开奖结果体彩网:Articles of Association. These include restrictions on transfers of the company’s shares, a maximum of 50 shareholders, a prohibition on public subscriptions to the company’s shares or 澳洲幸运5官方开奖结果体彩网:debentures, 💞;and on collecting public deposits. Although most BHD companies list their shares and trade on a stock market, it is not a mandatory requirement. Therefore, they can choose to stay unlisted.

Real-World Example

In 2018, the included 13 Malaysian BHD companies. According to the Forbes ranking—which is based on a combination of sales, profits, assets, and 澳洲幸运5官方开奖结果体彩网:market value—the largest companies in Malaysia include:

1. Maybank Bhd (#394)
2. Tenaga Nasional Bhd (#503)
3. CIMB Group Holdings Bhd (#620)
4. Public Bank Bhd (#646)
5. Petronas Chemicals Group Bhd (#1268)
6. RHB Bank Bhd (#1448)
7. Axiata Group Bhd (#1508)
8. Sime Darby Bhd (#1535)
9. Hong Leong Financial Group Bhd (#1568)
10. Sime Darby Plantation Bhd (#1624)
11. Maxis Bhd (#1779)
12. Genting Bhd (#1811)
13. AmBank Group Bhd (#1911)