According to current regulations, insurance business people must establish an enterprise. What is the procedure for setting up an insurance business? Let’s find out with Lawyer X.
Legal grounds
Consolidation document No. 06/VBHN-VPQH
Consolidation document No. 08/VBHN-BTC
Conditions for establishing an insurance business
An insurance company is a limited liability company
To establish an insurance limited liability company, in addition to meeting the general conditions when participating in the registration of insurance business, the following conditions must also be met:
For foreign organizations:
– Being a foreign insurance enterprise licensed by a foreign competent authority to conduct business in the field it intends to conduct in Vietnam or a subsidiary specialized in performing the function of outward investment of the enterprise a foreign insurance company authorized by a foreign insurance enterprise to contribute capital to establish an insurance enterprise in Vietnam;
– Having at least 7 years of working experience in the field to be carried out in Vietnam;
– Having total assets of at least US$2 billion in the year immediately preceding the year in which the application for a License is submitted;
– No serious violations of the law on insurance business activities of the country where the enterprise is headquartered within 03 consecutive years preceding the year in which the application for a license is submitted.
– For Vietnamese organizations:
– Having total assets of at least VND 2,000 billion in the year immediately preceding the year in which the application for a license is submitted.
An insurance company is a joint-stock company
To successfully establish insurance shares, in addition to meeting the general conditions when participating in the registration of insurance business, the following conditions must also be met:
There are at least 02 organizational shareholders that satisfy the conditions specified in Clause 1, Article 7 of this Decree and these two shareholders must jointly own at least 20% of the shares of the expected joint-stock insurance company. established.
Dossier for registration of insurance business
An application file for an establishment and operation license includes:
+ Above all, an application for an establishment and operation license;
+ Draft charter of the enterprise;
+ Then, operational plan for the first five years, clearly stating the method of setting up professional reserves, reinsurance program, capital investment, business efficiency, the solvency of the insurer, and business interests. economics of setting up a business;
+ List, curriculum vitae, documents proving the capacity, professional qualifications, and skills of the administrator or operator of the enterprise;
+ Moreover, amount of capital contribution and method of capital contribution, list of organizations and individuals accounting for 10% or more of the charter capital; financial situation and other information related to those organizations and individuals;
+ Rules, terms, fee schedule, insurance commission of the type of insurance product to carry out.
Procedures for business registration
Prepare profile
– The dossier of application for a license making in 3 sets, of which 1 is the original and 2 is a copy.
+ Vietnamese copies and translations from foreign languages into Vietnamese must be certified by a Vietnamese notary public by the law on notarization.
– For the application file for a license of a foreign organization or individual, each set includes 01 copy in Vietnamese and 01 copy in English.
+ Documents with foreign signatures, titles, and seals in the license application dossier must consular legalize.
Apply to the application-receiving agency of the Ministry of Finance.
Processing records
+ Within 21 working days from the date of receipt of the application for a license, if the application is incomplete and invalid, then the Ministry of Finance shall notify in writing of the request for supplementation or modification of the application.
+ The maximum time limit for supplementing or amending the investor’s dossier is 6 months from the date of notification.
Issuing a license to operate
+ Within 60 days from the date of receipt of complete and valid dossiers, the Ministry of Finance shall grant a license to the insurance enterprise.
+ In case of refusal to issue a license, the Ministry of Finance shall issue a written explanation clearly explaining the reason.
Procedures after being granted an operating license
Within 60 days from the date of issuance of the license
– Within 30 days from the date of issuance of the License, the insurance enterprise must publish daily in 05 consecutive issues of the newspaper with the following main contents:
+ Firstly, name and address of the head office, branch, and representative office of the insurance enterprise or insurance brokerage enterprise; name and address of the foreign branch;
+ Content, scope, and duration of operation;
+ Thirdly, level of charter capital and contributed charter capital of insurance enterprises and insurance brokerage enterprises; allocated capital of the foreign branch;
+ Then, the full name of the legal representative of the insurance enterprise, foreign branch, or insurance brokerage enterprise;
+ License number and date;
+ Particularly, licensed insurance and insurance brokerage operations.
– Within 60 days from the date of issuance of the License, the insurance enterprise must use part of the contributed charter capital or the allocated capital to deposit at a commercial bank operating in Vietnam. The deposit level is equal to 2% of the legal capital.
Within 12 months from the date of issuance of the license
Within 12 months from the date of issuance of the License, the insurer must complete the following procedures to officially operate:
+ Convert the capital deposited in the escrow account into charter capital (or allocated capital);
+ Secondly, register seal samples, register tax identification numbers, open transaction accounts at banks by the law;
+ Establishing a system of information technology infrastructure, equipment, and software to meet the requirements of corporate governance and state management of insurance business activities;
+ Then, carry out procedures to request the Ministry of Finance to approve the method of setting up professional reserves, approve and register insurance products, and approve administrative and executive positions;
+ Lastly, issuing procedures for exploitation, assessment, compensation, internal control, financial and investment management, reinsurance program management.
See more:
Conditions for establishing an insurance business in Vietnam
Legal capital of enterprises in the field of insurance in Vietnam
Frequently asked questions
Under Clause 2, Article 15 of Document No. 08/VBHN-BTC; In case the investor fails to supplement or amend the dossier within the prescribed time limit, the Ministry of Finance shall issue a written refusal to consider and grant the License.
Under Clause 3, Article 15 of Document No. 08/VBHN-BTC; The Ministry of Finance may refuse to grant a license only when the organization or individual contributing capital or the insurance enterprise to be established does not fully satisfy the conditions for licensing as prescribed in this Decree.
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