Tiếng Việt
中文How much money must an individual have at minimum to be eligible to contribute capital to establish an insurance enterprise?
How much money an individual must have at minimum to contribute capital to establish an insurance enterprise is determined under Article 65 of the 2022 Law on Insurance Business:
Conditions for founding contributing members of insurance enterprises and reinsurance enterprises in the form of limited liability companies
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Founding contributing members of insurance enterprises and reinsurance enterprises in the form of limited liability companies must be organizations, satisfying the general conditions prescribed in Article 64 of this Law and the following conditions:
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2. Conditions for economic organizations established under Vietnamese law: having total assets of no less than VND 2,000 billion in the year immediately preceding the year of submission of the license application dossier;
3. Pursuant to Point d, Clause 1 and Clause 2 of this Article, the Government shall specify the minimum total asset levels appropriate to each period.
From the above regulations, it can be seen that the conditions for contributing capital to establish an insurance enterprise are that the contributing member must be an organization with total assets of no less than VND 2,000 billion in the year immediately preceding the year of submission of the license application dossier (for economic organizations established under Vietnamese law).
Therefore, individuals cannot contribute capital to establish an insurance enterprise.
May foreign investors own shares or contributed capital of up to 100% of the charter capital of an insurance enterprise?
Whether foreign investors may own shares or contributed capital of up to 100% of the charter capital of an insurance enterprise is prescribed in Article 68 of the 2022 Law on Insurance Business:
Foreign investors’ ownership ratio
Foreign investors may own shares or contributed capital of up to 100% of the charter capital of insurance enterprises and reinsurance enterprises.
Accordingly, foreign investors may own shares or contributed capital of up to 100% of the charter capital of an insurance enterprise.
When must an insurance enterprise officially commence operations?
When an insurance enterprise must officially commence operations is prescribed in Clause 1, Article 73 of the 2022 Law on Insurance Business:
Conditions before officially commencing operations
1. Insurance enterprises, reinsurance enterprises, and foreign branches in Vietnam must officially commence operations within 12 months from the date of issuance of the establishment and operation license, except in cases of force majeure or objective obstacles. In cases of force majeure or objective obstacles, the insurance enterprise, reinsurance enterprise, or foreign branch in Vietnam must report in writing and obtain the written approval of the Ministry of Finance for an extension of the official commencement time; the maximum extension period is 12 months.
2. Insurance enterprises, reinsurance enterprises, and foreign branches in Vietnam must satisfy the following regulations to officially commence operations:
a) Converting the amount deposited in the blocked account into charter capital or granted capital;
b) Establishing an organizational structure, management apparatus, internal control, internal audit, and a risk management system appropriate to the form of operation as prescribed by this Law and other relevant laws; electing and appointing the legal representative; electing and appointing the positions approved in principle by the Ministry of Finance as prescribed in Clause 2, Article 70 of this Law;
c) Promulgating internal regulations on organizational operations, internal regulations on risk management, and basic professional procedures as prescribed by law;
d) Making full deposits as prescribed by this Law at a commercial bank operating in Vietnam;
d) Having head office, physical facilities, technical equipment, and technology systems appropriate to the professional procedures of insurance business;
e) Publishing the content of the establishment and operation license as prescribed in Clause 2, Article 72 of this Law.
3. Insurance enterprises, reinsurance enterprises, and foreign branches in Vietnam must notify the Ministry of Finance of their satisfaction of the regulations in Clause 2 of this Article at least 15 days before the official commencement date. The Ministry of Finance has the right to suspend the official commencement of operations of an insurance enterprise, reinsurance enterprise, or foreign branch in Vietnam that has not satisfied the regulations in Clause 2 of this Article.
4. Insurance enterprises, reinsurance enterprises, and foreign branches in Vietnam may not conduct insurance business before the official commencement date.
Accordingly, an insurance enterprise must officially commence operations within 12 months from the date of issuance of the establishment and operation license, except in cases of force majeure or objective obstacles.
In cases of force majeure or objective obstacles, the insurance enterprise must report in writing and obtain the written approval of the Ministry of Finance for an extension of the official commencement time; the maximum extension period is 12 months.
Notes on Applying Current Legal Regulations
This article belongs to the Corporate & M&A Knowledge series and is presented for reference purposes, helping readers understand the legal issue at an overview level before preparing dossiers or carrying out transactions.
Legal regulations may change over time, by locality, dossier type, and specific circumstances. If you need to determine the exact legal basis applicable to your dossier, please contact an ANT Legal lawyer at 0966.475.966 for verification and advice before proceeding.
Common Risks to Watch Out For
- Applying legal instruments that have been amended, supplemented, or replaced.
- Preparing incomplete dossiers, documents, or evidence.
- Misunderstanding the conditions, procedures, time limits, or competent authority.
- Signing, filing, or carrying out transactions without fully assessing legal risks.
How Can ANT Legal Help?
ANT Legal helps review your specific situation, check dossiers, determine the applicable legal basis, advise on handling plans, and represent clients in dealings with individuals, organizations, or competent authorities when necessary.
For quick advice, please contact our lawyers at 0966.475.966.
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May an individual contribute capital to establish an insurance enterprise?
No. Under Article 65 of the 2022 Law on Insurance Business, founding contributing members of insurance enterprises and reinsurance enterprises in the form of limited liability companies must be organizations. Therefore, individuals cannot contribute capital to establish an insurance enterprise.
What financial conditions must a Vietnamese economic organization satisfy to contribute capital to establish an insurance enterprise?
Under Article 65 of the 2022 Law on Insurance Business, an economic organization established under Vietnamese law must have total assets of no less than VND 2,000 billion in the year immediately preceding the year of submission of the license application dossier.
What is the maximum charter capital ownership ratio for foreign investors in an insurance enterprise?
Under Article 68 of the 2022 Law on Insurance Business, foreign investors may own shares or contributed capital of up to 100% of the charter capital of insurance enterprises and reinsurance enterprises.
Within what time limit must an insurance enterprise officially commence operations?
Under Clause 1, Article 73 of the 2022 Law on Insurance Business, an insurance enterprise must officially commence operations within 12 months from the date of issuance of the establishment and operation license, except in cases of force majeure or objective obstacles. In such cases, the enterprise must report in writing and obtain the written approval of the Ministry of Finance for an extension; the maximum extension period is 12 months.
Contributing capital to establish an insurance enterprise requires investors to satisfy strict conditions on qualifications and financial capacity under the Law on Insurance Business. To have your conditions reviewed and receive advice on the license application dossier, please contact ANT Legal.
