Berhad (BHD)


Berhad (BHD) is a term commonly used in Malaysia to denote a public limited company. It is a type of corporate entity that has gained significant popularity in the country due to its numerous advantages and benefits. In this article, we will explore the concept of Berhad (BHD) in detail, discussing its features, advantages, and how it operates within the Malaysian business landscape.

What is Berhad (BHD)?

Berhad (BHD) is a term derived from the Malay language, which translates to “limited” in English. It is used to identify a public limited company in Malaysia. A public limited company is a corporate entity that offers its shares to the public and is listed on a stock exchange. This means that the company's shares can be bought and sold by individual and institutional investors.

One of the key characteristics of a Berhad (BHD) is that it has a separate legal identity from its shareholders. This means that the company can enter into contracts, own assets, and sue or be sued in its own name. The liability of the shareholders is limited to the amount they have invested in the company, protecting their personal assets from the company's debts and obligations.

Advantages of Berhad (BHD)

There are several advantages associated with operating as a Berhad (BHD) in Malaysia:

  • Access to Capital: Being a public limited company allows Berhad (BHD) to raise capital by issuing shares to the public. This provides a significant advantage in terms of funding expansion plans, research and development, and other strategic initiatives.
  • Enhanced Credibility: Being listed on a stock exchange and having a large number of shareholders can enhance the credibility and reputation of a company. This can attract more customers, business partners, and investors.
  • Limited Liability: Shareholders of a Berhad (BHD) have limited liability, meaning their personal assets are protected from the company's debts and obligations. This provides a sense of security for investors and encourages them to invest in the company.
  • Transferability of Shares: Shares of a Berhad (BHD) can be easily bought and sold on the stock exchange, providing liquidity to shareholders. This allows investors to easily exit their investment if needed.
  • Professional Management: Berhad (BHD) companies often attract professional managers who have the expertise and experience to run large organizations. This can lead to better decision-making and overall performance of the company.

How Berhad (BHD) Operates

Operating as a Berhad (BHD) involves several key steps and requirements:

  1. Incorporation: The first step in establishing a Berhad (BHD) is to incorporate the company with the Companies Commission of Malaysia (SSM). This involves submitting the necessary documents, such as the memorandum and articles of association, and paying the required fees.
  2. Minimum Share Capital: A Berhad (BHD) is required to have a minimum share capital of RM 500,000. This capital can be raised through the issuance of shares to the public.
  3. Appointment of Directors: A Berhad (BHD) must have at least two directors, who are responsible for managing the company's affairs. These directors must be Malaysian residents and have no disqualifications under the Companies Act 2016.
  4. Listing on Stock Exchange: To become a public limited company, a Berhad (BHD) must apply for listing on a stock exchange. This involves meeting the listing requirements, such as having a certain number of shareholders and a minimum level of share capital.
  5. Compliance and Reporting: Once listed, a Berhad (BHD) is required to comply with various regulations and reporting requirements. This includes filing annual financial statements, holding annual general meetings, and disclosing material information to the public.

Case Study: Berhad (BHD) Success Story

A notable example of a successful Berhad (BHD) in Malaysia is Public Bank Berhad. Public Bank is one of the largest banks in Malaysia and has been listed on the Bursa Malaysia stock exchange since 1967. The bank has consistently delivered strong financial performance and has a solid reputation for its customer-centric approach.

Public Bank's status as a Berhad (BHD) has played a crucial role in its success. By being listed on the stock exchange, the bank has been able to raise significant capital to fund its expansion plans and invest in technology and infrastructure. The bank's shares are actively traded on the stock exchange, providing liquidity to its shareholders.

Furthermore, Public Bank's Berhad (BHD) status has enhanced its credibility and reputation in the market. The bank's strong corporate governance practices and transparent reporting have earned the trust of investors and customers alike. This has contributed to the bank's continued growth and success over the years.


Berhad (BHD) is a popular corporate entity in Malaysia, offering numerous advantages to companies that choose to operate as public limited companies. The ability to raise capital from the public, limited liability for shareholders, and enhanced credibility are just a few of the benefits associated with being a Berhad (BHD).

Operating as a Berhad (BHD) involves incorporating the company, meeting minimum share capital requirements, appointing directors, and listing on a stock exchange. Once listed, compliance with regulations and reporting requirements is essential.

Public Bank Berhad serves as a prime example of a successful Berhad (BHD) in Malaysia. Its listing on the stock exchange has allowed the bank to raise capital, enhance its credibility, and deliver strong financial performance.

In conclusion, Berhad (BHD) provides a robust framework for companies to thrive in the Malaysian business landscape, offering opportunities for growth, access to capital, and protection for shareholders.

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