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中文 (中国)charter capital of insurance enterprise is legal content that readers often need to check carefully before implementing it in practice. This article has been systematized by ANT Legal in an easy-to-understand way, helping individuals and businesses understand the main problems, common risks and appropriate solutions.
What is the charter capital of an insurance enterprise? Does the charter capital of an insurance enterprise have to be deposited with a bank? This article shares in detail the regulations surrounding the charter capital of insurance enterprises according to current law.
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CSPL: Clause 34, Article 4 of the Law on Enterprises 2020
Clause 1 Article 94, 96 Insurance Business Law 2022
Article 35 of Decree 46/2023/ND-CP
1. charter capital of insurance enterprises
– According to the provisions of Clause 34, Article 4 of the Law on Enterprises 2020 on the definition of charter capital:
Article 4. Explanation of terms
34. charter capital is the total value of assets contributed or committed to be contributed by company members and owners when establishing a limited liability company or partnership; is the total par value of shares sold or registered to buy when establishing a joint stock company.
– Besides, according to the provisions of Clause 1, Article 94 of the Law on Insurance Business 2022
Article 94. Capital
1. charter capital is the total amount of money contributed or committed to be contributed by members when establishing a limited liability company, is the total face value of shares sold or registered to buy when establishing a joint stock company and recorded in the charter of the insurance enterprise or reinsurance enterprise.
Accordingly, the charter capital of an insurance company is understood as the total amount of money contributed or committed to be contributed by members when establishing a limited liability company, which is the total value Par value of shares sold or registered to buy when establishing a joint stock company and recorded in the charter of the insurance enterprise.
2. The charter capital of an insurance enterprise must be deposited at the bank
– Deposit regulations for the charter capital of insurance enterprises are stipulated in Article 96 of the Law on Insurance Business 2022 as follows:
Article 96. Deposit
1. Insurance enterprises, reinsurance enterprises, foreign branches in Vietnam must use a part of the charter capital, allocated capital to deposit money at a commercial bank operating in Vietnam.
2. The deposit level is equal to 02% of the minimum charter capital, minimum allocated capital at the time of establishment of the insurance enterprise, reinsurance enterprise, branch foreign in Vietnam.
3. Insurance enterprises, reinsurance enterprises, and foreign branches in Vietnam may only use deposits to meet commitments to insurance buyers when there is a lack of solvency and must be approved in writing by the Ministry of Finance. Within 90 days from the date of using the deposit, insurance enterprises, reinsurance enterprises, and foreign branches in Vietnam are responsible for replenishing the used deposit.
4. Insurance enterprises, reinsurance enterprises, and foreign branches in Vietnam are only allowed to withdraw all deposits when terminating operations.
Conclude:Comparing with legal regulations, insurance companies only need to use a part of charter capital to deposit at commercial banks operating in Vietnam.
3. Minimum charter capital for insurance enterprises
According to the provisions of Article 35 of Decree 46/2023/ND-CP, the minimum charter capital of insurance enterprises is as follows:
– Minimum charter capital of a life insurance enterprise:
+ Life insurance business (except unit-linked insurance, pension insurance) and health insurance: 750 billion VND;
+ Life insurance business (except unit-linked insurance, pension insurance) and health insurance and unit-linked insurance or pension insurance: 1,000 billion VND;
+ Life insurance business (except unit-linked insurance, pension insurance) and health insurance, unit-linked insurance and pension insurance: 1,300 billion VND.
– Minimum charter capital of non-life insurance enterprises:
+ Non-life insurance business (except aviation insurance, satellite insurance) and health insurance: 400 billion VND;
+ Non-life insurance business (except aviation insurance, satellite insurance) and health insurance and aviation insurance or satellite insurance: 450 billion VND;
+ Non-life insurance business (except aviation insurance, satellite insurance) and health insurance, aviation insurance and satellite insurance: 500 billion VND.
– Minimum charter capital of a health insurance enterprise: 400 billion VND.
– Minimum charter capital of a reinsurance enterprise:
+ Reinsurance business, accepting non-life reinsurance concessions or both types of non-life reinsurance and health reinsurance: VND 500 billion;
+ Reinsurance business, accepting life reinsurance concessions or both types of life reinsurance and health reinsurance: VND 900 billion;
+ Reinsurance business, accepting reinsurance concessions for all three types of life reinsurance, non-life reinsurance and health reinsurance: 1,400 billion VND.
Note on Applying Current Legal Regulations
This article belongs to the Business & M&A group and is presented for reference purposes, helping readers understand the legal issue at an overview level before preparing a dossier or carrying out a transaction.
Legal regulations may vary depending on the timing, locality, type of dossier and specific circumstances. If you need to determine the exact legal basis applicable to your case, you should contact ANT Legal’s lawyers at 0966.475.966 for review and advice before proceeding.
Common Legal Risks to Note
- Applying legal instruments that have been amended, supplemented or replaced.
- Preparing an incomplete set of documents, materials or necessary evidence.
- Misunderstanding the conditions, procedure, timeline or competent authority.
- Signing, submitting a dossier or carrying out a transaction before fully assessing legal risks.
How Can ANT Legal Support You?
ANT Legal can review the specific circumstances, examine the dossier, identify the applicable legal basis, advise on an appropriate handling plan and represent clients in working with individuals, organizations or competent authorities where necessary.
For prompt advice, you may contact a lawyer at 0966.475.966.
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Practical points to review
For the topic “charter capital of an insurance enterprise”, readers should compare the legal rule with the actual documents, parties involved, timeline and evidence before choosing a course of action.
- Identify the legal relationship, signing authority and documents creating rights or obligations.
- Check deadlines, notices, payment records, approvals and evidence that may affect the legal position.
- Assess whether negotiation, document correction, complaint, arbitration, court proceedings or another route is suitable.
Documents to prepare
- Contracts, annexes, decisions, notices, emails, messages, payment records and handover/acceptance minutes where relevant.
- Enterprise, asset, license or identity documents connected to the matter.
- A short timeline of key events and the outcome expected from the review.
When to seek legal advice
If the matter has high value, strict deadlines, multiple parties, unclear evidence or potential dispute risk, consider discussing the file with ANT Legal before signing, responding or filing a claim.
Related service: ANT Legal services. You may also contact ANT Legal through the official website.
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