Advantages of a private

limited company

Limited liabilities
Seperate legal entities from shareholders and
director’s
Confidentialy and privacy business information
Control over business ownership

Characteristics of a Private Limited

Definition OPEN
Company: NAME OF LEGAL
FORMALITIES
COMPANY

Private Limited Company, is known as Sdn Bhd. It NUMBERS OF

is the most common business entity in Malaysia. A
MEMBERS DIRECTORS The legal fomalities in the
A private company
private company is considered as a separate legal formation of private limited
entity. It can sue or be sued, buy or sell any must include the words
" The act provides that a private The Act provides that a companies are less compared
property, perform any transactions in its own name
private limited company
“Private Limited” or ”
as well as having a perpertual succession. A private limited company must have a to the formation of public
must have a minimum of Pvt.Ltd”h in their
limited company is regulated by the Companies Act minimum of two members, while limited companies
names

2 3 4 5
2016. The liability of its member is limited where the two directors, while the
the maximum members limit is
shareholders will not be personally liable for the maximum number of
200
debts of the company. director is 15