Form Your Own Berhad Company

4 Steps to Build Your Public Company

A Berhad company is a public company. Every Berhad company has the abbreviation “Bhd.” at the end of its name (e.g., DEF Growth Bhd).

If you’re starting from zero, the process would be the same as incorporating a private (Sdn Bhd) company. The main difference is that, for a public company, there will be more documents to submit to SSM in order to complete the application process.

If you already have private company, you may convert it into a public company.

Cheng & Co_4Steps to form a Sdn Bhd

The Process: An Overview

Whichever of the two mentioned route you take, the journey with us is the same. The series of steps are as follows:

  1. Meet and speak with Us
  2. Sign and Return Our Quotation
  3. Settle Your Application
  4. Settle Everything Else

Step 1: Meet and Speak with Us

That’s right. It starts with your first call to us. You’ll meet with us, and tell us everything about what you have in mind. You’ll also provide us with all details and documents pertinent to the application.

Step 2: Sign and Return Our Quotation

After Step 1, we’ll review your request, and issue you a quotation, listing our price. If you agree, you’re to sign and return the quotation to us.

Step 3: Settle Your Application

After Step 2 is done, we’ll help you prepare your forms and supporting documents, and submit them to SSM, along with settling all applicable application fees.

Step 4: Settle Everything Else

If you’re incorporating a public company anew (i.e., not converting from a private company), once your application is approved, you’ll need to appoint a company secretary within 30 days. Furthermore, you’re advised to get all other business licenses needed before your company begins operating. If you’d like, we could help you with those as well.

How is pricing determined for this service?

For incorporating a public company, the incorporation fee, subject to SST, is dependent on the amount payable for statutory incorporation charges to SSM, amount payable for each name (shareholder or director) searched, and a fee for our assistance in drafting your company’s constitution. A company’s constitution is, while good to have, is not mandatory. Therefore the charges for drafting it is optional. In addition, the fee should also include other services if requested, such as for helping your company to get needed business licenses.

Cheng & Co_Forming Berhad Pricing

Incorporate A Berhad Co. Now

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Frequently Asked Questions

How long would the process take?

It would depend how quickly we could get all important details and documents for the submissions. SSM takes only a day to review and approve an application. The submission of your application is done online, and therefore, would not take up too much time.

Why would anyone want to convert a private company into a public Company?

Well, among the advantages of being a public company is a follows:

it can have more than 50 shareholders; and
it, provided that it has met all relevant requirements, may be able to list on the stock market.

Basically, it boils down to one thing, getting potentially better access to more capital for expansion. In addition to more investors, a public company would more likely be able to secure bigger loans from banks.

What is the difference between incorporating a private company and a public company?

It’s mainly the amount of documents that you must submit during your application. In addition to the same set of documents that you need to submit for a private company, you’ll also need to, for example, submit a prospectus for your public company to SSM.

In order to convert to a public company, what would I have to pay and submit?

In order to convert your private company into a public company, you’ll need to submit the following to SSM:

a) a Notice of Conversion from private to public company, to be passed by special resolution by shareholders, which must:
– specify any change in name;
– that the company has complied with all applicable rules;
b) issue a statement in lieu of prospectus;
c) a statutory declaration verifying that, before commencing any business as a public company, every director has paid in full for the shares that own in the company;
d) an application fee; and
e) your company’s original Notification of Registration or Certificate of Incorporation.