Things to note when using Sdn Bhd for Finaning
Regulatory Requirement
- According to the Securities Commission (SC), both Sdn Bhd and Berhad must submit an Information Memorandum (IM) when raising funds
Fundraising Restrictions
- A Sdn Bhd cannot raise funds from the public
- As a private limited company, it can only raise funds from people it knows (e.g., relatives, friends, or close contacts)
Shareholder Limit
- A Sdn Bhd can have a maximum of 50 shareholders
- If it exceeds 50 shareholders, it must be converted into a Berhad
- A Berhad has no limit on the number of shareholders