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The Pico Microfinance with Limited Company is explained here with the microfinance registration requirements. Likewise also see the Pico license for a partnership in Thailand. The reason for the license was because the Thai government wanted to move loan sharks out of the economy. The Pico license is based on a provincial bases. So you can only lend money in the province where the license is for. The licensing process is the legal framework for those who don’t have access to the banking system. Hence this gives access to those who don’t have access to the mainstream banking system to formal credit with a controlled interest rate. Likewise see the main article on the Pico finance on here. Lastly also see the what is a Pico license on here as well.
The introduction of provincial-level micro-lending businesses under supervision, known as Pico Finance and Pico Plus loans was created for this. These businesses are designed to provide accessible and quick funding to individuals within the same province, reducing management costs and ensuring effective local lending. Lastly read more on the Pico microfinance with limited company below.
– Credit Limit: Up to 50,000 baht per person
Interest Rates:
– With collateral: Up to 33% per year
– Without collateral: Up to 36% per year
Those with collateral get lower interest rates as they have assets in the event of a default. This is the standard Pico loan lender. Those who have more paid up capital are Pico Plus lenders. You can see below what those limits are from those lenders.
– Credit Limit: Up to 100,000 baht per person
Interest Rates:
– For amounts up to 50,000 baht:
– With collateral: Up to 33% per year
– Without collateral: Up to 36% per year (With collateral the interest rates are lower)
– For amounts exceeding 50,000 baht:
– Both with and without collateral: Up to 28% per year
Lastly note that once the loan is above 50,000 THB the interest rates are even lower. This with or without collateral. You can see this from the listing above.
The government regulated framework states that to start a microlending business you will need the permission of the Minister of Finance. The Fiscal Policy Office (FPO) oversees the application process. Speak to us about the registration process. It is better to seek legal advice as mistakes can cause massive delays. So let’s look at the application criteria as well as what is needed. Speak to our Thai lawyers for more information on the Pico microfinance with limited company options.
Application Criteria
1. Legal Entity: Note that you must be a registered limited company.
2. Registered Capital: Likewise the minimum paid-up capital is 5 million baht.
3. Business Nature: You must not be involved in personal loans or professional micro-loans.
4. Management and Shareholders: Must not have prohibited characteristics.*
* Insolvency, bankruptcy, criminal convictions, or revocations of similar business permissions.
1. Legal Entity: Likewise you must be a limited company.
2. Registered Capital: The minimum paid-up capital of 10 million baht for the Plus version license.
3. Business Nature: Same as Pico Finance Loans.
4. Management and Shareholders: Same as Pico Finance Loans.*
– Announcement of the Revolutionary Council No. 58 (1972)
– Ministry of Finance Announcements (2019, 2021)
Likewise also see the qualifications of microfinance customers as well.
Channels
1. In Person:
– Fiscal Policy Office, Ministry of Finance
– Provincial Treasury Offices
– Government Savings Bank branches
– Bank for Agriculture and Agricultural Cooperatives branches
2. Electronic:
– Email: saraban@fpo.go.th
– Submit PDF documents online.
1. Application Form: Request for permission to operate a provincial-level microfinance business.
2. Company Registration Certificate: Certified by the Ministry of Commerce.
3. Memorandum of Association: Complete versions.
4. Shareholder Registration Copies.
5. Director and Shareholder Qualification Certifications.
6. Auditor’s Information and License Copies.
7. Financial Statements or Bank Deposit Certificate: Recent and certified.
8. Company Meeting Minutes: Approval for microfinance business operation.
9. Operation Plan: Detailed plan according to FPO guidelines.
10. Office Photographs and Location Maps.
11. Identification and Address Proofs: For directors, managers, and shareholders.
Total Duration: 60 business days from the complete and correct submission of the application and documents.
– Steps:
1. Preliminary check by FPO (5 business days).
2. Detailed verification and memorandum preparation (15 business days).
3. Director of FPO’s opinion submission to the Minister of Finance (10 business days).
4. Minister of Finance’s decision and notification (30 business days).
Contact Information
For further inquiries, contact the Public Financial System Development Policy Division at the Fiscal Policy Office:
– Phone: 0 2169 7130 to 36
– Hotline: 1359
– Email: saraban@fpo.go.th
This handbook aims to guide interested parties through the process of obtaining permission to operate a provincial-level microfinance business under supervision, ensuring compliance with all regulatory requirements. These are all the microfinance registration requirements.
Before applying for permission to operate a provincial-level microfinance business, ensure you have the following documents and evidence ready:
1. Request Form: Request for permission to operate a provincial-level microfinance business.
– Submission Method: Electronically at saraban@fpo.go.th
– Note: Must be signed by the company (if applicable) on every page, with the government agency that issued the document.
2. Company Registration Certificate: 2 copies
– Issuing Authority: Provincial-level micro-loans under supervision, dated 23 September.
– Certification: Must be signed to certify authenticity, along with the official seal.
– Submission Method: Electronically at saraban@fpo.go.th
3. Memorandum of Association: All versions
– Submission Method: Electronically at saraban@fpo.go.th
– Note: Show the objectives of the juristic person.
4. Director Qualification Certification Form: 5 copies
– Issuing Authority: Department of Business Development
– Submission Method: Electronically at saraban@fpo.go.th
5. Shareholder Registration Copies: 2 copies
– Document Name: Requesting permission according to Section 5 of the Revolutionary Council Announcement No. 58
– Submission Method: Electronically at saraban@fpo.go.th
6. Photographs of Main and Branch Offices: 14 copies
– Submission Method: Electronically at saraban@fpo.go.th
– Note: Clearly display detailed location maps and nearby places.
7. Results of Criminal Background Check: 1 copy
– Issuing Authority: Royal Thai Police Office, Forensic Evidence Center
– Submission Method: Electronically at saraban@fpo.go.th
8. Other Supporting Documents: Such as lists, amendments, special resolutions, trial results, etc.
– Submission Method: Electronically at saraban@fpo.go.th
Ensure all documents are submitted in the specified format and through the appropriate channels for a smooth processing of your request.
Request for permission to operate a sub-provincial level credit business in the southern provinces under supervision
Type: Microfinance Plus
Date ……….. Month ………………………. Year ……………
To: Director of the Economic Affairs and Treasury Office
Proposal ………………………………………………………………………………………………..
Located at ……………………………………………………………………………………………………….
…………………………………………………………………………………………………………….. ………………………………………….
Telephone: …………………………………. Fax: …………………………………. Email (if any): ……………………………….
And there are branch offices ……………………………………… by attaching details of the names of branch offices
Location of branch offices and telephone numbers as attached. The intention is to request permission to operate a sub-provincial level credit business
In accordance with the regulations of the Ministry of Finance regarding activities that require permission
According to Article 5 of the Revolutionary Council Resolution No. 58 (Sub-provincial level credit business operation
Under supervision) dated March 27, 2019, and further amendments
Attached herewith are documents and details, including:
1. Certificate of Incorporation (with certified copies)
2. Articles of Association
3. Certificate of Approval from the Ministry of Commerce (valid for not more than 1 month before the application date)
4. Shareholder Register
5. Regulations or Articles of Incorporation (Form 3) (if the company does not have articles of incorporation)
6. Qualification Certification Form for Directors, Shareholders, and/or Executives
All of whom do not have characteristics prohibited under Article 17 of the Ministry of Finance Regulation on activities requiring permission
According to Article 5 of Revolutionary Council Resolution No. 58 (Sub-provincial level credit business operation
Under supervision) dated March 27, 2019 (according to the specified form)
7. Qualification Certification Form for all shareholders, with no characteristics prohibited under Article 17 of the Ministry of Finance Regulation
Regarding activities requiring permission according to Article 5 of Revolutionary Council Resolution No. 58
(Sub-provincial level credit business operation under supervision) dated March 27, 2019 (according to the specified form)
8. Current address, telephone number of the auditor for the company’s background check, along with the auditor’s certification.
9. Financial statement…
(Legal entity name)
(Company)
9. Financial statement audited by the auditor for the latest fiscal year, with registered capital fully paid and shareholder’s portion
Not less than 5 million baht or not less than 10 million baht, or a certificate of deposit of commercial bank money
Amounting to less than 5 million baht or not less than 10 million baht, as the case may be
(valid for not more than 15 days before the application date)
10. Minutes of company meetings approving the company to operate a sub-provincial level credit business under supervision (with certified copies)
11. Business operation plan for providing sub-provincial level credit in the southern provinces under supervision (as specified)
12. Headquarters and branch office layout (if any) with detailed maps
13. ID card, house registration, and name change certificate (if any) of all directors, executives, and shareholders (with certified copies)
14. Results of a criminal record check by fingerprinting of all directors, executives, and shareholders (valid for not more than 1 month before the application date)
If the Economic Affairs and Treasury Office finds that the documents submitted for permission are incorrect or incomplete,
The office will inform the applicant within the specified time. Upon receiving permission, the applicant agrees to comply with any conditions set forth by the Minister of Finance
Or the Economic Affairs and Treasury Office or as stipulated in the permission letter in all cases
I certify that the above details are correct, complete, and true. If there is any inspection later on,
If it is found that the documents used are incorrect, the application for permission shall be invalidated.
Signed ………………………………………….
( )
Position …………………………………………..
(Corporate seal)
For the unit …………………………………………………….. Office ……………………………………
Authorized signatory ……………………………………………………..
( )
Application No. ……………………………………….
Date ………………………………………………
(Office seal)
The information contained in our website is for general information purposes only and does not constitute legal advices. For further information, please contact us.
