Recently Thailand has adopted very encouraging regulations regarding the setup of insurance companies by foreign investors. From last year on, the government had allowed foreign entrepreneurs to own up to 100% of an insurance company, without any requirements regarding a partnership with a local Thai collaborator. Our attorneys in Thailand can offer you more information on the legal system in this country and on the company formation regulations connected to the setup of an insurance company in Thailand.
First steps in opening an insurance company in Thailand
If you intend to open an insurance company in Thailand it is important to elaborate the articles of association, to make a name reservation and to start a registration procedure with the Department of Business Development. In order to be able to establish an insurance company you should first obtain an insurance license, as provided in the Insurance Act. This license can be issued for a specific legal form, PLC (public limited company). Other forms which are eligible for an insurance license are the branches and the mutual societies.
You can discuss with our Thai lawyers the key aspects of the local legislation in order to be sure which documents you need for the registration of your insurance company in Thailand.
More aspects concerning insurance legislation in Thailand
The flexible policy concerning foreign ownership in Thailand, was introduced in 2016 by the main authority in this area, the Office of Insurance Commission (OIC). Entrepreneurs who decide to open a company inThailand in the insurance sector should be informed on this particular topic of the legislation.
Foreign investors can hold up to 100% of an insurance firm in this country if their home origin has a commercial bilateral agreement with Thailand. The foreign investor who owns over 50% of an insurance company in Thailand will have to ensure the stability in the insurance sector and will have to be careful to the new liabilities imposed to the directors in the Draft Insurance Acts.
Feel free to contact our law firm in Thailand in order to clarify any question you might have on the functioning of insurance companies in this country.