Dossiers to establish an insurance Joint-stock company in Vietnam

Currently, many businesses orienting to perform the insurance business. This business line with a promising future attracts entrepreneurs with a profitable industry. However, the Vietnamese legislation regulates strictly on this conditional business line. The law allows only a few types of businesses to do insurance business. One of them is the joint-stock company. So, in this article, LSX legal firm will provide you with information about: “Dossiers to establish an insurance Joint-stock company in Vietnam”

Legal ground

• Law on Enterprise 2020

Joint-stock company

According to Article 111 of the Law on Enterprise 2020:

Article 111. Joint-stock companies

1. A joint stock company is an enterprise in which:
a) The charter capital is divided into units of equal value called shares;
b) Shareholders can be organizations and individuals; the minimum number of shareholders is 03; there is no limit on the maximum number of shareholders;
a) A shareholder’s liability for the company’s debts and liabilities is equal to the amount of capital contributed to the company by the shareholder;
d) Shareholders may transfer their shares to other persons except for the cases specified in Clause 3 Article 120 and Clause 1 Article 127 of this Law.
2. A joint stock company has the status of a juridical person from the day on which the Certificate of Enterprise Registration is issued.
3. A joint stock company may issue shares, bonds and other kinds of securities.

Operations of an insurance Joint-stock company

Firstly, business operations of an insurance Joint-stock company include:

• 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.

Dossiers to prepare for insurance Joint-stock company establishment

Application for the company establishment

• Firstly, an application (made according to the standard form).
• Secondly, draft of Company’s charter.
• Thirdly, 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, 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.

List of founding shareholders

Individuals:

• Copy of citizen identification; ID card; passport; or other legal personal identification; criminal record (standard form prescribed by law).
• Bank’s confirmation of the cash balance of VND; or freely convertible foreign currency deposited at the bank.

Organizations:

• A copy of the establishment decision, business registration certificate, or other equivalent documents; for foreign organizations, the copy must be consular legalized;
• Company’s charter
• Document of the competent authority of the organization members deciding on the participation in capital contribution to establish the insurance company.
• Authorization documents as well as copy of ID card, passport, or other legal personal identification of the authorized representative of the capital contributing organization.
• Audited financial statements for 03 preceding years before the application.

Insurance company is foreign organization

Document of the competent authority of the country where the insurance enterprise is located, certifying:

• Foreign insurance enterprise is allowed to establish insurance enterprise in Vietnam. In case the regulations of the country where the enterprise is headquartered do not require written approval, there must be evidence to confirm this;
• The foreign insurance enterprise is operating in the lines it intends to conduct operations in Vietnam;
• The foreign insurance enterprise is in good financial health and fully satisfy the management requirements in the country where the enterprise is headquartered;

Also, the enterprise has not seriously violated the regulations on insurance business operations of the country where the foreign organization is headquartered within 03 preceding years before the application.

LSX legal firm’s service on company establishment

When establishing a company, people must carry out the procedure following the law at the competent business registration authority (under the Law on Enterprise 2020). The process of establishing a business includes many different steps and phases. If you are not familiar with the law, this process may take a lot of time.
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.

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Contact LSX

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