Insurance business casualty in Vietnam are increasingly growing. Therefore, Vietnam is a potential market for the development of this industry. Foreign enterprises meet the legal conditions? The content below will help the process of implementing procedures, learn, apply for business licenses in Vietnam for business more advantageous.
1. Legal grounds for implementation
– Insurance Business Law 2000
– Law amending and supplementing the Law on Insurance Business in 2010
– Decree No. 73/2016 / ND-CP enforcement insurance business
– Circular No. 50/2017 / TT-BTC
– Circular No. 194/2014 / TT-BTC
2. Foreign enterprises trading in non-life insurance VN should:
a) Non-life insurance under the legislation VN.
Article 3.18, Insurance Law 2000, as amended and supplemented in 2010 defined “non-life insurance is a type of business property insurance, civil liability and insurance operations other than life insurance.”
Article 7.2, Insurance Law 2000 amended and supplemented in 2010 specified types of non-life insurance include:
– Property insurance and damage insurance;
– Insurance of goods transported by road, sea, inland waterway, rail and air;
– Aviation insurance;
– Motor vehicle insurance;
– Fire insurance;
– Hull insurance and civil liability of shipowners;
– Liability insurance;
– Credit insurance and financial risks;
– Insurance business losses;
– Agricultural Insurance.
b) Conditions for non-life insurance companies:
– Having its head office in the country where Vietnam and that country have signed international treaties on trade, including agreements on the establishment of branches of foreign non-life insurance enterprises in Vietnam.
– Having been legally operating in non-life insurance business for at least 10 years in the country where the enterprise is headquartered, up to the time of submitting the dossier of application for a license for establishment and operation of a branch in Vietnam.
– Having total assets of at least USD 2 billion in the financial year preceding the year of submission of dossiers of application for establishment licenses and operation of branches in Vietnam
– Business operation profitable in three consecutive fiscal years before submission of dossiers of application for the establishment and operation license of a branch in Vietnam
– Not seriously violating the regulations on insurance business activities and other legal provisions of the country where the enterprise is headquartered within 3 years in the year of submission of the dossier of application for the establishment and operation license Branch in vietnam
– To be licensed by the State management agency in charge of foreign insurance where the head office of the enterprise is headquartered to operate in Vietnam in order to operate within the scope of the insurance business in which the enterprise is permitted to conduct business; Not to limit the non-life insurance business to supplement capital granted to branches in Vietnam and to ensure the supervision of all activities of non-life insurance enterprises.
– The State management agency in charge of foreign insurance where the head office of the enterprise has its head office has signed a memorandum of cooperation agreement with the Ministry of Finance of Vietnam on the management and supervision of the operation of the branch of the non-life insurance enterprise life in Vietnam
– Non-life insurance enterprises shall make written commitments to take responsibility for all obligations and commitments of their branches in Vietnam and authorize their directors to take responsibility before Vietnamese law. About all activities of the branch
– Having dossiers of application for establishment and operation licenses as prescribed.
c) Conditions for branches established in Vietnam:
– The allocated capital is not lower than the legal capital of 200 billion VND
– Having a regulation on organization and operation in accordance with the provisions of law
– Funds to establish branches must be legal sources; Not to use loan or investment trust in any form to establish a branch
– Organization of business operations of the branch in accordance with regulations
– Administrators and executives of branches having professional qualifications and administrative and managerial capabilities satisfying the prescribed conditions
– Having infrastructure and information technology system meeting the conditions set by the Ministry of Finance
If you are looking for legal advice, please feel free to contact Kim Huc for more information!
KIM HUC CONSULT AND TRADING COMPANY LIMITED
Add: C36-TT8, Van Quan, Dist Ha Dong, Ha Noi, Viet Nam
Tel: 024.3225.2641 Fax: 024.3225.2640
Hotline: 024.3225.2641/ 0943.980.222
Email: consultant@kimhuc.com
