Perks Of Doing Business in the Banking and Insurance Sector of Thailand
Thailand is one of the few Southeast Asian countries that are making continuous efforts to develop a more conducive environment for domestic startups as well as foreign investors. The banking and insurance sector are pioneers in creating the environment for business, which makes Thailand an excellent place for doing business.
Also, this is the reason that in the third quarter of the financial year 2019-2020, Thailand was raised by six spots from 27 (in FY 2018-2019) to 21 in the World Bank 2020 Ease of Doing Business Rankings, as per the Thailand Board of Investment (BOI).
Start-Up In The Field Of Banking And Insurance Industry In Thailand
Thailand is one of the Asian countries that provide a plethora of business opportunities for young aspirants and investors. Thailand has excellent internet and mobile penetration rate, which creates excellent opportunities for internet-based banking and insurance startups, which are internet-based. The global average of internet-based banking activities is 41% while Thailand registers far better than this average and land at more than 74%, well ahead of many developed countries.
Eligibility Criteria and Requirements For Setting Up An Insurance Company In Thailand
Since the insurance industry is one of the most clustered business sectors in Thailand, therefore here, you get plenty of alternatives for startups in this field as a foreign investor as well.
- As a foreign investor, your first step will be to get your insurance company registered under the Ministry of Finance. Here you need to have a registered firm as a public limited company; only then your company may be accepted as an established insurance company as per Thai law.
- Once your insurance company gets privileged as the insurance company of Thailand, you need to deposit specific capital within six months as soon as your company gets incorporated.
- The minimum capital requirement to set up a reinsurance and life insurance company is 500 million TBH. However, if you want to open a standard or general reinsurance or life insurance company, then a considerable capital of 300 million TBH is necessary. It is recommended to check for the latest requirement for the website before applying.
Process For Company Registration of a Thai Insurance Company
The establishment, along with its inauguration of a Thai insurance or reinsurance company, adhered to Thai company formation procedures. And it is subject to being registered in the trade register and the approval of TBH and the OIC. This is as per the terms and conditions of the Ministry of Finance. These are two specialized organizations that will look after the Thai insurance company’s possibilities of risks.
As a foreign investor, you should know that for opening an insurance company in Thailand, payments related to your insurance contract must not exceed one million at any cost. To avoid such mishaps, you must look into the detailed guide of the terms and conditions to open a Thai insurance company. Also, your insurance company must be subject to having a resolving margin that holds about 140% of the capital based on the risks.
If you own a Thai insurance company as a foreign investor that you have held in a ratio of 25%, then you may not require approval from the Bank of Thailand (BOT) and Office Insurance Commission (OIC).
Accelerators for Assistance to your startups in Thailand
Thailand, the 2nd largest economy in Southeast Asia after Indonesia, gives startups an excellent opportunity to start and grow their business. Startups here get support from accelerators- a type of program which provides mentorship, connections, and investment. These accelerators take startups to the next level by creating opportunities.
Why are accelerators important for startups in Thailand? The answer is for any business to run progressive training is essential, but startups lack training due to time constraints, and they cannot attend the class for training. Therefore they need the best mentor and connections to excel in their ideas.
If you are planning to do business in Thailand, especially in the banking and insurance sector, you must know about some top accelerators who can take you to the next level. Some of the top accelerators are highlighted as below, which are looking for Fin tech-related startups.
Bangkok Bank InnoHub
This is one of the largest accelerators in Thailand and comprises Bangkok Bank and Nest, an innovation provider and international venture firm from Hong Kong.
They are looking for Fintech startups.
It doesn’t mean you need to have financial expertise. But you will learn there about creative visions and inspiring solutions in automation, digitalization, specialized customer experience, innovative payment, future SME solution, and discovering top-notch technology.
If you have a product or functioning prototype and you are looking for authenticity from the market or if you’re a revenue venerating startup, these accelerators are looking for you.
The accelerators offer you three months (12 weeks) programs. You can have the guidance of financial experts from Bauluang ventures and Bangkok bank. After completing training from here, you may have a chance to get an investment offer from Bangkok bank itself.
Digital Ventures Accelerators (DVA)
This accelerator is run by Siam commercial bank (SCB) looking to drive change in the banking and insurance industry. This accelerator offers the program for six months. It also looks for Fintech startups. You may have the opportunity to receive approximately 0.3 Baht grant and seed funding of at least 1 million baht for 4 – 6 % of capital after completion of the program.
Another accelerator looking for Fintech startups is run by Bank of Ayudhya, the fifth-largest bank in the country, and runs Thailand’s oldest Fintech startup accelerators. It also offers three months (12 weeks) program, and in the end, you may get a chance of getting 30 million USD.
Please, read more about the market research information about Banking and Insurance Industry here.
The banking and insurance sector of the country played a significant role in achieving this milestone. Apart from that, starting a business, construction permits, getting electricity, and resolving insolvency are the prime reasons for this jump in ranking. The following rankings encourage startups and other businesses to make their contribution towards creating a more conducive environment for doing business and investment.
Few More Interesting Blogs :
- Why Thailand Is A Good Business Destination
- Business in Thailand – How Different it is from Rest of the World
- Thailand reforming itself for doing business easier in Thailand
- What you should consider before doing business in SE Asia
- A Challenging Baht for the Thai Economy in 2020
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