Pico Finance and Pico Plus
Licensing Services
Pico Finance is a regulated provincial microfinance scheme in Thailand. Businesses seeking to operate under the scheme must meet the applicable licensing, capital and lending requirements. Loans may be secured or unsecured. The Pico Finance type may lend no more than 50,000 baht per borrower and requires paid-up capital of at least 5 million baht, while the Pico Plus type may lend no more than 100,000 baht per borrower and requires paid-up capital of at least 10 million baht.
Content reviewed by Surapa Jamjang, Certified Public Accountant (CPA)
Last reviewed November 2026
Over 30 Years of Experience
More Than 700 Clients Served
Service fee starting at 50,000 baht
(excluding government fees)
Qualifications of every director and shareholder
verified before filing
Opening a Pico Finance company involves more than registering the company and paying in the full capital. Every director, manager and shareholder must pass a qualification review and a criminal record check, you must have a business operation plan in the form prescribed by the Fiscal Policy Office (FPO), and you must select the province of your head office to match your target customers, because you may lend only to people in that province. Greenpro KSP’s Pico Finance Licence service covers both Pico Finance and Pico Plus licences, from structuring the shareholders and capital, registering the company, and preparing the documents and business plan, through filing the application and responding to officials’ enquiries, until you receive the licence letter and are prepared to commence operations.
What Is Pico Finance, and Who Needs a Licence?
The Ministry of Finance introduced Pico Finance lending as a formal alternative to informal loans. Ordinary lenders may charge interest of no more than 15% per year under the Civil and Commercial Code, but those licensed to operate a Pico Finance business may charge interest, including fees, above that rate, within the ceiling set by the Ministry of Finance. Anyone who intends to lend in this manner as a regular business must therefore first obtain a licence from the Minister of Finance, with the FPO acting as the supervisory authority.
According to FPO data as of August 2026, a cumulative total of 1,209 operators had been licensed in 75 provinces, and 1,195 had commenced operations. The provinces with the most operating businesses are Nakhon Ratchasima (115 operators) and Bangkok (104 operators).
How Do Pico Finance and Pico Plus Differ?
| Criteria | Pico Finance | Pico Plus |
|---|---|---|
|
Applicant |
A limited company or a partnership that is a juristic person |
A limited company or a partnership that is a juristic person |
|
Minimum capital |
Paid-up registered capital (for partnerships, partners’ contributions) of at least 5 million baht |
At least 10 million baht |
|
Loan limit per borrower |
Up to 50,000 baht (all contracts combined) |
Up to 100,000 baht (all contracts combined) |
|
Interest ceiling including fees (effective rate, reducing balance) |
Secured: up to 33% per year · Unsecured: up to 36% per year |
First 50,000 baht: secured 33% · unsecured 36% per year · Portion above 50,000 baht: up to 28% per year |
|
Loan contract |
In the form prescribed by the FPO |
Separate contracts for the first 50,000 baht and for the portion above it |
|
Service area |
Only the province where the head office is located |
Only the province where the head office is located |
The ceilings above cover everything charged to the borrower: interest, lending profit margins, default interest, penalties, service charges and other fees (except debt-collection expenses, which have a separate cap set out under the post-licence duties below), calculated on an effective-rate (reducing balance) basis. A secured loan is one backed by a personal guarantor, a registered land mortgage or business collateral. Depositing a land title deed without registering a mortgage, depositing a vehicle registration book, and loans with no collateral at all are classified as unsecured.
If you begin with Pico Finance and later wish to expand to Pico Plus, you must increase your capital to 10 million baht and then file a new application. Our team can handle the capital increase registration and the application on your behalf.
Qualifications of a Pico Finance Licence Applicant
- Must be a limited company or a partnership already registered as a juristic person. Individuals cannot apply for a licence.
- Paid-up registered capital or partners’ contributions must meet the threshold on the application date (5 or 10 million baht). For a business that is already operating, shareholders’ equity in the latest annual financial statements must be no lower than the same threshold.
- Must not already be an operator of supervised personal loans or of microloans for occupational purposes (nano finance)
- Every director, manager, person with management authority and shareholder must have none of the disqualifications listed below
- Being or having been bankrupt
- Having been sentenced to imprisonment by a final judgment for an offence against property committed dishonestly
- Having been a director, manager, managing partner or person with management authority of a Pico Finance operator whose licence was revoked
- Having any other disqualification prescribed by FPO notification
Every shareholder must meet these criteria, not only the directors. Our team therefore verifies the list of shareholders before registering the company or admitting new shareholders, so that no restructuring is required after the application has been filed. Read about the differences between types of juristic person in our article on how companies and partnerships differ.
Choose a Head Office Province That Matches Your Customers
A Pico Finance operator may provide services only in the province where its head office is located, and may lend only to people whose domicile or residence is in that province. Branch offices must also be in the same province. For example, if your head office is in Bangkok, you may lend only to people who reside in Bangkok. You should therefore determine the province before registering the company, because the head office location must match the company affidavit and the business plan you file, and moving the head office later requires approval from the FPO.
Pico Finance Licence Application Steps, Documents and Timeline
You may file the application at the FPO in person or by post, submit PDF files to the FPO’s email address, or file through Provincial Treasury Offices and any branch of the Government Savings Bank or the Bank for Agriculture and Agricultural Cooperatives (BAAC) nationwide. There is no fee to apply. Once the application and documents are complete and correct, the review by the FPO and the Minister of Finance takes no more than 60 business days in total.
1.
Select the type (Pico Finance or Pico Plus) and the province, and verify the qualifications of every director, manager and shareholder
2.
Register a new company or increase capital so that it is fully paid up to the threshold, and ensure that the company affidavit states the objective of operating a supervised provincial microfinance business
3.
Hold a meeting and pass a unanimous resolution, obtain criminal record checks, prepare the business operation plan through the FPO’s online system, and prepare a bank deposit certificate or the latest annual financial statements
4.
File the application together with the documents listed below. There is no fee.
Timeline: Filing date
5.
If anything is incomplete, the FPO will notify you to make corrections within a specified period. If you do not submit by the deadline, the application is deemed abandoned.
Timeline: 5 business days
6.
Officials may request additional documents or explanations, then submit an opinion to the Director-General of the FPO
Timeline: 15 business days
7.
The FPO submits its opinion to the Minister of Finance
Timeline: 10 business days
8.
The FPO notifies the result within 7 days after the review is completed. The licensee receives the licence letter at the FPO.
Timeline: 30 business days
The FPO and Minister stages take no more than 60 business days in total from the date on which the documents are complete and correct. The entire process generally takes 4–6 months, depending on whether a new company must be registered and the readiness of the directors’ and shareholders’ documents.
Pico Finance Licence Documents (Limited Companies)
- Application for a licence to operate a supervised provincial microfinance business (FPO form for companies)
- Copy of the company registration certificate
- Memorandum of Association
- Company affidavit issued no more than 1 month before the filing date, showing the objective of operating a supervised provincial microfinance business
- Copy of the shareholder register (Form B.O.J.5, list of shareholders)
- Articles of Association and/or the incorporation registration particulars (Form B.O.J.3)
- Qualification certification forms for every director, manager, managing partner and person with management authority
- Qualification certification forms for every shareholder
- The auditor’s name, address and contact number, a record of audits of at least 5 companies, and a copy of the auditor’s licence
- The latest annual financial statements certified by an auditor, or a deposit certificate from a commercial bank for no less than 5 or 10 million baht, issued no more than 15 days before the filing date
- Minutes of a meeting with a unanimous resolution to operate this business, stating the type of loan and the province of operation
- Business operation plan in the FPO’s form
- Photos of the head office and branches (if any), with a detailed location map
- Copies of the ID cards and house registrations of every director, manager, person with management authority and shareholder
- Fingerprint-based criminal record check results for the same persons, issued no more than 1 month before the filing date
For a partnership, use the partnership application form, the partnership affidavit and the partnership registration certification, the registration particulars (Form H.S.2), Form S.S.Ch.1 (statistical information form), and qualification certification forms for every partner, in place of the company documents. The capital of 5 or 10 million baht is the business’s own capital, not a fee. Read more about how registered capital differs from paid-up capital.
Obligations After Obtaining a Pico Finance Licence
- Within 1 year from the date the Minister signs, notify the FPO in writing that you have commenced operations. If you do not notify the FPO within the deadline, the licence lapses.
- Post details of interest, penalties, service charges and fees at the head office and branches. Any change that adversely affects customers requires the customers’ consent or an announcement at least 30 days in advance.
- Execute loan contracts, send billing statements at least once a month, issue a receipt each time a payment is received, and send the debtor a warning letter at least 20 days in advance before legally enforcing collection of the debt
- Debt-collection fees may total no more than 50 baht per borrower per month, and may be charged only when the debtor’s accumulated overdue debt exceeds 1,000 baht
- Notify the FPO at least 15 days before opening a branch and at least 30 days before moving or closing a branch. Notify any change of directors or persons with management authority within 15 days.
- Submit loan reports in the form prescribed by the FPO every month, within 30 days after the end of the month, and submit auditor-certified financial statements within 150 days after the end of the financial year
After you commence operations, our accounting team can continue to handle your accounting and financial statements through our Audit Services.
Pico Finance Licence Service Fees and Government Fees
Pico Finance licence service fees start at 50,000 baht, excluding government fees. The price depends on the licence type (Pico Finance or Pico Plus), whether a new company must be registered or an existing one adjusted, and the number of directors and shareholders whose documents must be prepared. The entire process generally takes 4–6 months.
Excluding government fees
| Government costs | Rate | Notes |
|---|---|---|
|
Pico Finance licence application fee |
No fee |
Per the FPO’s Citizen’s Manual |
|
Company, partnership or capital increase registration fees (if any) |
At the rates of the Department of Business Development (DBD) |
Depends on the items to be registered |
Case Example: A Business Owner in Eastern Thailand Opens a Pico Finance Company in Their Own Province
A business owner in eastern Thailand wished to establish a lawful microlending business in the province where they reside, but did not yet have a juristic person.
We registered a limited company with the full required paid-up capital of 5 million baht, verified the qualifications of the directors and shareholders, prepared a lending policy and a loan agreement template, and then filed the application with the Ministry of Finance.
The company was licensed to operate a Pico Finance lending business.
Frequently Asked Questions About Pico Finance Licences
What is Pico Finance?
It is provincial microfinance lending supervised by the Ministry of Finance. The lender must be a licensed juristic person and may lend only to individuals whose domicile or residence is in the same province as the lender’s head office. The limit is no more than 50,000 baht per borrower (no more than 100,000 baht for Pico Plus), and interest including fees may not exceed the set ceiling, which is at most 36% per year on an effective-rate (reducing balance) basis.
How much capital is required to open a Pico Finance company?
Pico Finance requires paid-up registered capital (for partnerships, partners’ contributions) of at least 5 million baht, and Pico Plus at least 10 million baht. A newly established company uses a deposit certificate from a commercial bank, while a company that is already operating must have shareholders’ equity in its latest annual financial statements no lower than the same threshold.
Pico Finance or Pico Plus: which should you apply for?
If most of the loan amounts that your customers require are no more than 50,000 baht, Pico Finance requires less capital, namely 5 million baht. If you wish to lend up to 100,000 baht per borrower, you must apply for Pico Plus and hold capital of 10 million baht; the portion of a loan above 50,000 baht may carry interest, including fees, of no more than 28% per year and requires a separate contract. Alternatively, you may begin with Pico Finance and increase your capital later in order to apply for Pico Plus.
How long does it take to obtain a Pico Finance licence?
The FPO and Minister stages take no more than 60 business days in total from the date the application and documents are complete and correct. When company registration, background checks and preparation of the business plan are included, the entire process generally takes 4–6 months.
Where do you apply for a Pico Finance licence, and is there a fee?
You may file at the FPO in person or by post, submit the files to the FPO’s email address, or file at a Provincial Treasury Office, the Government Savings Bank or BAAC. There is no fee to apply. Greenpro KSP’s licence service fee starts at 50,000 baht.
Can a Pico Finance company set up in Bangkok lend to people in other provinces?
No. An operator may lend only to people whose domicile or residence is in the province where its head office is located, and branches must be in the same province. Therefore, if the head office is in Bangkok, the company may serve only people in Bangkok.
Can an individual or a partnership apply for a Pico Finance licence?
Individuals cannot apply. The applicant must be a limited company or a partnership that is a juristic person, with capital that meets the threshold. For partnerships, partners’ contributions count instead of paid-up capital, and every partner must pass the same qualification review as a company’s shareholders.
What must you do after obtaining the licence?
Within 1 year from the date the Minister signs, you must notify the FPO that you have commenced operations; if you do not notify within the deadline, the licence lapses. After opening, you must post interest rates and fees at your office, submit loan reports every month within 30 days, and submit auditor-certified financial statements within 150 days after the end of the financial year.
How can you verify whether a Pico Finance lender is licensed?
You may view the list of licensees, including those that have been suspended, have had their licences revoked or have ceased business, on the FPO’s website 1359.go.th, or call the 1359 hotline.
Related Services
Services You May Need Next
Upgrading to Pico Plus
Financial statements due to the FPO within 150 days
Send Us Your Details for a Free Pico Finance Readiness Assessment
Please tell us the type you are interested in (Pico Finance or Pico Plus), the province for your head office, whether you already have a company, your current paid-up capital, and the number of directors and shareholders. Our registration team will reply with what you must prepare, approximately how long it will take, and the estimated service fee.
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