Insurance Business Foundation

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Insurance Business Foundation

The following article will provide individuals and organizations crucial information about conditions as well as procedures for establishing an insurance company in accordance with the law in force.

Conditions for insurance business foundation

To commercialize advantageously, the enterprise must satisfy the following conditions:

  • The expected administrator and operator of the foreign branch insurance enterprise has to fully satisfy the conditions prescribed by law
  • Organizations and individuals contributing capital to establish the insurance enterprise must have sufficient financial capacity and the evidence of lawful financial source when contributing capital to establish the enterprise
  • The contributed charter capital amount is not lower than the legal capital prescribed by the government
  • Having application dossier for foundation and operation licenses prescribed by law
  • Having the type of business and its regulations in accordance with the provisions of Law
  • Not being the banned object under the provisions of Clause 2, Article 18 of the Enterprise Law 2014.

Procedure for Insurance business foundation

Step 1: Document preparation

  • Proposal for business registration
  • Regulations of company
  • The copy of citizen’s identity card or National identity card, passport or other legal personal identification certificate of members or founding shareholder. The copy of the company establishment decision, Certificate for business registration or organization’s other equivalent document; the copy of national identify card; The organization’s law representative’s ID card or passport in force.
  • Other necessary papers (if any)
  • Commission letter

Note: It is required the list of the company’s members or shareholders in case of the limited liability company with two or more members or the joint-stock company,

The dossier will be submitted to the Department of Planning and Investment which is the headquarter of the enterprise. Within 3 working days, at Department of Planning and Investment will issue a Certificate of business registration in case of a valid dossier.

Step 2: Business registration information announcement

Department of Planning and Investment will issue a Certificate of business registration in case of a valid dossier. Then, the enterprise must inform publicly the content of the business registration certificate, business sector, the list of founding shareholders on the National Business registration portal in order within 30 days from the date of publishing.

If the enterprise doesn’t publish or doesn’t publish in the prescribed time about the content of business registration on the National Business registration portal, this enterprise will be fined from one to two million VND according to Clause 1, Article 26 of Decree 50/2016/ND-CP.

Insurance Business Foundation

Step 3: Seal engraving and seal sample announcement

The enterprise will engrave the seal and inform the seal sample for the Department of Planning and Investment

After that, Business Registration Office awards the receipt for the enterprise, posts the business announcement on the National Business registration portal, and concurrently issues the announcement about the seal sample information publishment of the company

Step 4: Apply for foundation and operation license

Documents of Applying for foundation and operation license at competent agency involves:

  • Draft of the enterprise regulations
  • An application for establishment and operation license
  • List of curriculum vitae, the proof diploma of the business administrators and operators’ capacity and qualifications
  • Capital level and capital contribution method, 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
  • Operation plans for the first 5 years: professional provision method, reinsurance program, capital investment, business efficiency, the solvency of the insurance enterprise and the economic benefits of the enterprise establishment
  • Regulations, terms, tariff, insurance commission of the expected insurance product type

Ministry of Finance will license or refuse to license within 60 days from getting fully the dossier of Apply for foundation and operation license.

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