Over the past two weeks, I have received inquiries from several clients seeking advice on obtaining a license to operate Pico Finance businesses. To assist those interested in this field, I would like to share essential information about this business model, which requires a starting investment of just 5 million baht.
Pico Finance is a regulated small-scale provincial loan business categorized into two types:
(1) Pico Finance: Offers loans of up to 50,000 baht per borrower.
(2) Pico Plus: Offers loans of up to 100,000 baht per borrower.
Both categories can charge interest, penalties, service fees, and other charges, with a combined annual rate not exceeding 36%.
Since this business closely resembles banking operations, it requires proper licensing and adherence to regulations set by the Ministry of Finance, under the supervision of the Fiscal Policy Office (FPO).
#Requirements and Application Process
1) Registered Legal Entity: The applicant must be a legally registered company or partnership.
2) Minimum Registered Capital:
2.1_Pico Finance: 5 million baht (fully paid).
2.2_Pico Plus: 10 million baht (fully paid).
3) Business Location: The business must operate within the area specified in the license and comply with zoning laws.
4) Management Background: Directors, executives, and shareholders must not have criminal records related to financial crimes or fraud.
5) Compliance with Laws: The business must adhere to consumer protection and anti-money laundering regulations.
#Required Documents
1. Business registration certificate.
2. Details of shareholders and directors.
3. Proof of registered capital.
4. Financial statements (if available).
5. A comprehensive business plan detailing loan management, risk assessment, and repayment policies.
6. Lease agreement or proof of ownership for the office location.
#Application Process
1. Submit the Application:
2. Submit all required documents to the Ministry of Finance or the designated regulatory authority.
3. Pay the necessary application fee.
#Review of Application:
Authorities will verify the completeness and accuracy of the application, which may take at least 60 business days.
#Site Inspection:
An on-site inspection may be conducted to ensure the office meets operational standards.
1. Upon successful review and inspection, the business will receive its operating license.
2. Ongoing Compliance: Licensed businesses must regularly submit reports and maintain compliance with regulatory standards.
#Regulatory Authorities
The Ministry of Finance or designated provincial financial authorities oversee the licensing process.
If you’re interested in starting a Pico Finance or Pico Plus business and need further guidance, feel free to contact us at +66 82 391 6170.
We are here to support you every step of the way to ensure your business launch is successful!
