At the beginning of 2015 Thailand renewed its Life and Non-Life Insurance Laws in order to provide for improved conditions for foreign participation in insurance companies. Under the new law, foreign investors setting up insurance companies in Thailand can now own 25% of the shares in the company, if the company is registered as a public limited liability company under the Foreign Business Act. Also, the Thai insurance company owned in a proportion of 25% by foreign investors, is not subject to approval from the Office of Insurance Commission (OIC) and the Bank of Thailand (BOT). Also, foreign subsidiaries of Thai banks may own 95% of the shares in an insurance company.
Our Thai company formation experts can offer more information on the new insurance legislation in this country.
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Requirements to set up a Thai insurance company
Foreign investors seeking to open a company in Thailand in the insurance industry have plenty of options, as this is one of the most developed clusters of the banking sector. However, they will be subject to several requirements. First of all, foreign investors must register the insurance company with the Companies Register and with the Ministry of Finance. The only form accepted by the law is the public limited company. Secondly, the Thai insurance company must have a certain capital which must be deposited within 6 months from the incorporation of the company. The minimum capital required to set up a life insurance/reinsurance company in Thailand is 500 million TBH, while for the general insurance/reinsurance company a minimum capital of 300 TBH is necessary. It should also be noted that only individuals are allowed to act as insurance agents in Thailand.
Our company registration agents in Thailand can offer more information on the requirements for establishing an insurance company.
Company registration process of a Thai insurance business
As mentioned above, the Thai company formation procedure for an insurance or reinsurance business is subject to registration with the Trade Register and to the approval of the OIC and the TBH. The two specialized bodies will assess the Thai insurance company’s risks. Foreign investors who want to open a company in Thailand in the insurance sector must know that payments related to an insurance contract may not exceed 1 million TBH. The company is also subject to a solvency margin which represents 140% of the risk-based capital.
For complete information and assistance with the company registration process of an insurance company in Thailand, please contact us.