Insurance business, an activity of an insurance enterprise for profit purposes, whereby the insurer accepts the risk of the insured, on the basis that the insurance buyer pays the insurance premium for the insurance enterprise to pay insurance to the beneficiary or indemnify the insured upon the occurrence of the insured event. Nowadays, this kind of business attracts many investors because of its promising future. However, to establish a business, you have to carry out certain procedures prescribed by the law. If you do not understand clearly the regulation regarding the establishment of insurance business, it may confuse you. So, in this article, LSX legal firm provides: “Procedures for setting up an insurance company in Vietnam”
Conditions for establishing an insurance company
The law allows an investor to establish an insurance enterprise with 2 types: a limited liability company or a joint-stock company.
Requirements for the establishment of insurance enterprises organized as a limited liability business
founding investors of an insurance enterprise organized as a limited liability business must be organizations that meet the following requirements:
a) Foreign organizations:
- Firstly, trade in insurance abroad and have been permitted by foreign competent authorities to conduct expected business lines in Vietnam, or act as an outward investing subsidiary of a foreign insurance enterprise and have been mandated by the foreign insurance enterprise to invest in the incorporation of an insurance enterprise in Vietnam.
- Secondly, have operated for at least 10 years in the sector of business in which they intend to engage in Vietnam;
- Thirdly, have a total worth of assets of at least 02 billion US dollars in the year immediately preceding the year that the application for licensing submitted;
- Fourthly, have not seriously violated any laws on the insurance business and other legal regulations of the home country for 03 consecutive years immediately preceding the year that the application for licensing submitted.
b) Vietnamese organizations:
- Firstly, trade in finance, banking, or insurance;
- Secondly, have a total worth of assets of at least 2,000 billion Vietnam dongs in the year immediately preceding the year that the application for licensing submitted.
Requirements for the establishment of insurance enterprises organized as a joint-stock business
An insurance enterprise organized as a joint-stock business must meet the following requirements:
- At least 02 of its founding shareholders are organizations, which meet the requirements stated in Section 1, Article 7 of Decree 73/2016/ND-CP and together hold at least 20% of shares in the insurance joint-stock company to be incorporated;
- In 03 years after licensing, founding shareholders must together hold at least 50% of authorized ordinary shares in the insurance joint-stock company.
Procedures for setting up an insurance company
Step 1: Prepare dossiers and submit them to the Department of Planning and Investment
- Firstly, an application (made according to the standard form).
- Secondly, the company’s charter.
- Thirdly, copies of citizen identification cards, people’s identity cards, household registration, or other lawful personal identification of members or founding shareholders; A copy of the company’s establishment decision, enterprise registration certificate, or other equivalent documents of the organization; a copy of the valid ID card or passport of the legal representative of the organization;
- Other papers (if any).
After submitting the dossier to the Department of Planning and Investment where the enterprise’s head office located, within 03 working days, if the dossier valid and complete, the Department of Planning and Investment will issue a certificate of registration.
Step 2: Announce business registration information
After being granted the enterprise registration certificate, an enterprise must make a public announcement on the National Business Registration Portal according to the order and procedures within 30 days from the date of publication.
The contents of the announcement include Contents of the enterprise registration certificate; Business lines; list of founding shareholders.
Step 3: Engrave the seal and announce the seal sample
Enterprises have the right to decide for themselves on the form, quantity, and content of their seals. Enterprises can also authorize or self-engrave the seal and notify the seal sample to the Department of Planning and Investment.
After receiving the notice on the seal sample, the Business Registration Office hands over the receipt to the enterprise publishes the enterprise’s notice on the national business registration portal, then issues notice on the publication of information about the enterprise’s seal sample to the enterprise.
Step 4: Apply for an insurance establishment and operation license
The dossiers include:
- Firstly, an application (made according to the standard form).
- Secondly, draft of the Company’s charter.
- Thirdly, a suitable operation plan for the first 5 years for the business line to which the business register. In which, The plan states the target market; distribution channels; backup method; reinsurance program; capital investments; business efficiency; solvency of the insurance company.
- Fourthly, copy of citizen identification, ID card, passport or other legal personal identification, Criminal record, background, copies of licenses and certificates of the person expected to be appointed as the President of the Company or the Chairman of the Board of Members, General Director, the actuary, solvency, chief accounting.
- Equally important, records of state agencies that the capital contribution of a Vietnamese organization satisfied financial safety conditions, allowance to contribute capital to establish insurance enterprises under the law.
- Rules, terms, and premium table of insurance products expected to deploy are also required.
- Then, the bank’s confirmation of the allowance to operate in Vietnam on the charter capital deposited in an escrow account opened at the bank.
- Minutes of authorizing an individual or organization on behalf of the shareholders to be responsible for carrying out the registration procedures.
- Lastly, minutes of the meeting of shareholders: Agreements to contribute capital to establish an insurance joint-stock company, list of founding shareholders. Also, approval of the draft of the company’s charter.
Legal service of LSX Legal Firm
LSX legal firm provides legal services to clients in various legal areas. To make your case convenient, LSX will perform:
- Legal advice related to new regulations;
- Representing in drafting and editing documents;
- We commit the papers to be valid, and legal for use in all cases;
- Represent to submit documents, receive results, and hand them over to customers.
With a team of experienced, reputable, and professional consultants; The firm is always ready to support and work with clients to solve legal difficulties.
Furthermore, using our service, you do not need to do the paperwork yourself; We guarantee to help you prepare documents effectively and legally.
Also, you will not have to waste time preparing the application, submitting application, or receiving results. At those stages, we will help you do it smoothly.
After all, LSX provides the service with the desire that customers can experience it the best way. Additionally, we guarantee the cost to be the most suitable and economical for customers.
Related articles
- Dossier of licensing of insurance LLC establishment in Vietnam
- Conditions for establishing an insurance business in Vietnam
- Insurance regime of foreigners when participating in labor in Vietnam
Related questions
Insurance business, reinsurance business;
Preventing and limiting risks and losses;
Damage assessment;
Loss assessment agency, considering compensation settlement, requesting a third party to reimburse;
Fund management and capital investment;
Others operations prescribed by the law.
An insurance joint-stock company is not allowed to conduct business in life insurance and non-life insurance at the same time. Except for the case of a life insurance joint-stock company providing health insurance business; and personal accident insurance to support life insurance.
Firstly, register the investment project
Secondly, apply for Certificate of investment registration
Thirdly, apply for the certificate of business registration
Fourthly, publish the content of the business registration
Then, registered business stamp
Next, notice of use of stamp
Equally important, open bank account
After all, the post licensing procedures
Contact LSX
Finally, hope this article is useful for you to answer the question about “Procedures for setting up an insurance company in Vietnam”. If you need any further information, please contact LSX Law firm: +84846175333 or Email: [email protected]
Conclusion: So the above is Procedures for setting up an insurance company in Vietnam. Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com
