# What are the disadvantages of a Sdn Bhd? — Robo Company Secretary
URL: https://robocompanysecretary.com/answers/disadvantages-of-a-sdn-bhd/

## What are the disadvantages of a Sdn Bhd?

Last updated: 14 October 2026 Answer from Robo Company Secretary How we write answers

Honestly: ongoing cost and formality. A Sdn Bhd must keep a licensed secretary, file an annual return, prepare financial statements (audited unless exempt), and file corporate tax — typically several thousand ringgit a year even when small. Money also leaves the company formally, through salary or dividends, not by treating the account as your wallet.

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Sources: Companies Act 2016

The incorporation and yearly prices on this page are for foreign founders, permanent residents and companies with a foreign director or shareholder. All directors and shareholders Malaysian citizens? See the one yearly price →

Also asked as: disadvantages of sdn bhd; keburukan sdn bhd; downside private limited company; sdn bhd worth it ke.

That's the trade for limited liability, SME tax tiers and corporate credibility. Our own recurring lines are published rather than quoted on request — retainer RM 1,296, registered office RM 324, BO declaration RM 324, annual return RM 636 — because an owner who incorporates knowing the costs stays a client, and one who discovers them in month three doesn't.

### Key facts

- Recurring compliance: secretary, s.68 return, accounts, tax
- Formal profit extraction (salary/dividend)
- Typical small-company upkeep ~RM3k–8k/yr

Call +60 10-383 5988 (a licensed secretary replies within one working hour (Mon–Fri 8:30am–5:30pm MYT; outside hours, first thing next working day)) or walk in at J-3A-15, Solaris Mont Kiara.

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### Related questions

- What does a Sdn Bhd cost per year to maintain?
- Sole proprietorship or Sdn Bhd — what's the difference?
- Can my Sdn Bhd pay me a salary?

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