Individuals contributing capital successfully What is the minimum amount of money required to set up an insurance business to meet the conditions?

What minimum amount of money must an individual contributing capital to establish an insurance business have to meet the conditions?

How much money must an individual contributing capital to establish an insurance enterprise have, based on Article 65 Law on Insurance Business 2022 regulates:

Conditions for members contributing capital to establish an insurance enterprise or a reinsurance enterprise in the form of a limited liability company

Members contributing capital to establish an insurance enterprise or a reinsurance enterprise in the form of a limited liability company must be an organization that meets the general conditions specified in Article 64 of this Law and the following conditions: following conditions:

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2. Conditions for economic organizations established under the provisions of Vietnamese law: have total assets not less than 2,000 billion VND in the year immediately preceding the year of submitting the application for license;

3. Pursuant to the provisions of Point d, Clause 1 and Clause 2 of this Article, the Government specifically stipulates the minimum total assets level appropriate for each period.

From the above regulations, it can be seen that the condition to contribute capital to establish an insurance enterprise is that capital contributing members must be an organization and have total assets of not less than 2,000 billion VND in the year immediately preceding the year of submitting the application for license (for economic organizations established under the provisions of Vietnamese law).

Therefore, individuals cannot contribute capital to establish an insurance enterprise.

Can foreign investors own shares, capital contributions up to 100% of the charter capital of an insurance enterprise?

Can foreign investors own shares, capital contributions up to 100% of the charter capital of an insurance enterprise, according to Article 68 of the Law on Insurance Business 2022. regulations:

Ownership ratio of foreign investors

Foreign investors are allowed to own shares and capital contributions of up to 100% of the charter capital of insurance enterprises and reinsurance enterprises.

Accordingly, foreign investors are allowed to own shares and capital contributions of up to 100% of the charter capital of insurance enterprises.

When must an insurance enterprise officially operate?

Insurance enterprises must officially operate according to Clause 1, Article 73 of the Law on Insurance Business 2022 stipulating:

Conditions before officially operating

1. Insurance enterprises, reinsurance enterprises, and foreign branches in Vietnam must officially operate within 12 months from the date of issuance of the license for establishment and operation, unless there is a force majeure event or objective obstacle. In cases of force majeure or objective obstacles, insurance enterprises, reinsurance enterprises, and foreign branches in Vietnam must report in writing and obtain written approval from the Ministry of Finance on the extension of official operating time; Maximum extension period is 12 months.

2. Insurance enterprises, reinsurance enterprises, and foreign branches in Vietnam must meet the following regulations to officially operate:

a) Convert capital deposited in frozen accounts into charter capital or allocated capital;

b) Build organizational structure, management apparatus, internal control, internal audit, and risk management system in accordance with the form of operation according to regulations of the Government. This Law and other relevant legal provisions; elect and appoint legal representatives; elect and appoint positions that have been approved by the Ministry of Finance in principle as prescribed in Clause 2, Article 70 of this Law;

c) Issue internal management regulations on organization and operation, internal regulations on risk management and basic operational processes in accordance with the law;

d) Make full deposits according to the provisions of this Law at commercial banks operating in Vietnam Male;

dd) Have headquarters, facilities, techniques, and technological systems in accordance with the professional process of insurance business;

e) Announce the content of the license for establishment and operation specified in Clause 2, Article 72 of this Law.

3. Insurance enterprises, reinsurance enterprises, and foreign branches in Vietnam must notify the Ministry of Finance about meeting the regulations in Clause 2 of this Article at least 15 days before the official date of operation. The Ministry of Finance has the right to suspend the official operation of insurance enterprises, reinsurance enterprises, and foreign branches in Vietnam when they have not met the regulations in Clause 2 of this Article.

4. Insurance enterprises, reinsurance enterprises, and foreign branches in Vietnam are not allowed to conduct insurance business activities before the official date of operation.

Accordingly, insurance enterprises must officially operate within 12 months from the date of issuance of the license for establishment and operation, unless there is a force majeure event or objective obstacle.

In case of force majeure or objective obstacles, the insurance enterprise must report in writing and obtain written approval from the Ministry of Finance regarding the extension of the official operating time; Maximum extension period is 12 months.