Are you planning to start a finance business in Thailand? Now is the perfect time to steadfast your planning process and register your company in Thailand. If banking, derivatives, securities, digital assets, or insurance are the sectors you are planning to focus on, the “Ignite Finance” initiative is for you.
Announced by the Honorable Prime Minister of Thailand on July 19, 2024, the “Ignite Finance” initiative is targeting global investors to transform Thailand into a Global Financial Hub.
Ignite Finance: Thailand’s Vision for a Global Financial Hub
The Ignite Finance initiative is a part of the “Ignite Thailand” scheme. Ignite Thailand has to date successfully implemented promotional measures to boost foreign direct investments in the tourism, wellness and medical, agriculture and food, aviation, logistics, future mobility, and digital industries. Now it is focusing on the Finance industry.
Now a question may trigger your senses – why the finance industry? The most probable set of answers are as follows:
- There is a worldwide digital growth in the finance industry. As Thailand has already started boosting its digital ecosystem, this can be a plan to enhance its involvement in the finance sector of the kingdom.
- The dependency of Thai consumers has increased greatly on digital payment and purchase interfaces. This calls for the implementation of a more developed and secure digital ecosystem in the Thai finance industry.
- Ever since the discontinuance of the COVID lockdown, the global tourism footfall in Thailand has witnessed a year-on-year increase. International tourists may face issues in making international transactions with limited financial systems and infrastructure in place. Therefore, a boost in these segments is necessary to cater to their requirements and make their stay pleasant in Thailand.
- The greatest reason is that the Board of Investment of Thailand has opened doors to innovative and creative projects in almost all industries. The Finance Industry was lagging in the queue. This initiative can place the same in a position of priority.
Read our article on the importance of BOI Thailand promotions for global investors.
Aren’t the reasons interesting? Then certainly you are now interested in knowing about the benefits of the “Ignite Finance” scheme. These privileges will certainly inspire you to boost your preparations to start a finance business in Thailand. However, there are certain strategic reasons in place to illuminate better trajectories behind the announcement of “Ignite Thailand”, which are as follows:
- To strengthen Thailand as a “global financial hub”, it is targeting the implementation of regulatory reforms, incentives, and a productive ecosystem.
- Expansion of financial accessibility for underserved communities and small businesses in Thailand.
- Developing a nation as a global financial hub automatically brings in a positive change in the economic structure without any investment budget.
- Attracting foreign direct investment, investors, and skilled professionals will automatically add to the returns with new ideas and knowledge in the kingdom.
Benefits of the “Ignite Finance” initiative
As announced by the PM of Thailand, Mr. Srettha Thavisin, and Deputy PM-cum-Finance Minister, Mr. Pichai Chunhavajira, the scheme mainly focuses on the following three points:
Bring reforms in the regulatory system of the finance business
This key element is going to be of great advantage for foreign investors planning to start a finance business in Thailand. Various Thai protocols often restrict global investors from exercising their full business idea in Thailand. A reformation of these existing regulations can give some relief.
As stated by Mr. Pichai Chunhavajira, the thought process is actively planning the introduction of a new financial business law. The goal of this law will be to facilitate foreign direct investment in Thailand in the finance sector. This will certainly help in making the process of incorporation and continuity of business in Thailand easy for foreign investors.
Introduce new forms of incentives
These incentives can be both tax and non-tax in category. Some of the already-announced benefits include easing of work permit issuance process and disbursement of additional incentives in the form of grants.
Implementation of this key element will make the process of bringing in skilled professionals to Thailand easier. Furthermore, the tax incentives will certainly reduce the annual financial liabilities of foreign companies in Thailand.
Empowering the finance ecosystem favorable for business operations
This key element includes the implementation of modern and innovative solutions to ease the process of financial business operations. Aiming towards a seamless transactional, procurement, and disbursal mechanism, this seeks a robust digital infrastructure.
This key element is going to increase the ease of operations of finance companies in Thailand, Additionally, this will extend opportunities to the key players of other industries in the digital and information technology domain.
Types of Finance Businesses to benefit from “Ignite Thailand”
The initiative targets the entire financial industry as a whole. However, if you try to understand the pattern of the benefits announced, the following types of finance businesses can avail greater advantages:
- Equity, Derivative, and Debt Security Services
- Digital Wallets or Payment Gateways
- Tourist/Travel Insurance Services
- Digital Currency or Commodity Trading Platforms
- Digital Asset Procurement and Protection Platforms
- Insurance Services of all categories
This isn’t any exclusive list. The scheme has great potential to support any type of business in the Thai finance industry. Therefore, this is the correct time if you want to start a fintech business in Thailand as well. It is because you can now gain access to a more developed digital ecosystem through the implementation of the “Ignite Thailand” initiative.
Starting a finance business in Thailand offers a wealth of opportunities, particularly with the support of the “Ignite Finance” program. By leveraging its benefits, you can establish a successful finance business in Thailand and tap into the dynamic Southeast Asian market.
Embrace this opportunity to ignite your financial venture in the Land of Smiles. Email us at [email protected] to get in touch with our updated corporate law professionals and avail the benefits of “Ignite Thailand”.
