What is the application for a license for establishment and operation of a foreign branch in Vietnam of a foreign reinsurer?
- What is the application for a license for establishment and operation of a foreign branch in Vietnam of a foreign reinsurer under the latest Decree?
- What are the conditions for the application for a license for establishment and operation of a foreign branch in Vietnam of a foreign reinsurer?
- What are the steps to apply for a license for establishment and operation of foreign reinsurers?
What is the application for a license for establishment and operation of a foreign branch in Vietnam of a foreign reinsurer under the latest Decree?
An application for a license for establishment and operation of a foreign branch in Vietnam specified in Article 14 of Decree No. 46/2023/ND-CP includes:
- An application for a license made according to the form specified in Appendix I issued with Decree No. 46/2023/ND-CP.
- Draft Regulations on organization and operation of foreign branches in Vietnam approved by foreign non-life insurers and reinsurers.
- The operation plan for the first 5 years suitable to the business field for which the license is requested, clearly stating the operations expected to be deployed in the target market, distribution channel, method of setting up professional reserves, reinsurance program, capital investment, business efficiency, solvency, internal control, internal audit, risk management, information technology of foreign branches in Vietnam.
- A copy of the citizen identity card or identity card or passport; judicial record card according to the form or equivalent document of a foreigner as prescribed by foreign law; curriculum vitae, copies of diplomas, certificates and other documents proving the satisfaction of conditions and standards of the person expected to be appointed as a Director, Legal Representative, Actuary of foreign branches in Vietnam.
- Documents on non-life insurers and foreign reinsurers:
+ A copy of the establishment decision or business registration certificate or other equivalent document.
+ A copy of the company's charter.
+ A document issued by the competent authority of the foreign non-life insurer or foreign financial insurer to decide on the establishment of a branch in Vietnam.
+ Written authorization, a copy of the citizen's identity card or people's identity card or passport of the authorized representative of the foreign non-life insurer or foreign reinsurer.
+ A copy of the audited financial statement for the three consecutive financial years preceding the year in which the application for a license is submitted.
+ A written commitment of the foreign non-life insurer or reinsurer to be responsible for all obligations incurred by the branch in Vietnam.
+ Documents proving that the foreign non-life insurer or foreign reinsurer contributes capital to meet the requirements at Point b, Clause 1, Article 66 of the 2022 Law on Insurance Business of Vietnam.
- Confirmation of the bank licensed to operate in Vietnam that the amount of capital allocated to the escrow account opened at the bank is not lower than the minimum level of allocated capital specified in Article 36 of this Decree. In which, clearly state the amount of capital contribution, blockade amount, blockade purpose, blockade duration and conditions for opening blockade.
- A document from the foreign insurance state management agency where the foreign non-life insurer or foreign reinsurer is located, certifying that:
+ Foreign non-life insurance and reinsurers are allowed to set up branches in Vietnam and are operating in the field they plan to conduct operations in Vietnam.
+ Foreign non-life insurers and foreign reinsurers are in a healthy financial position and fully meet the management requirements in the country where the enterprise is headquartered.
+ Foreign non-life insurers and foreign reinsurers have not seriously violated the provisions of the law on insurance business of the country where the enterprise is headquartered within the latest 03 consecutive years up to the time of submitting the application for the establishment and operation license.
- The written commitment of the foreign non-life insurer or reinsurer meeting the provisions of Clause 2, Article 11 of this Decree and Clauses 1 and 2, Article 67 of the 2022 Law on Insurance Business of Vietnam.
- A document proving that the organization participating in the capital contribution operates in the business lines that require the minimum legal capital or charter capital or the minimum capital that meets the requirements specified at Point a, Clause 2, Article 11 of Decree No. 46/2023/ND-CP.
What is the application for a license for establishment and operation of a foreign branch in Vietnam of a foreign reinsurer?
What are the conditions for the application for a license for establishment and operation of a foreign branch in Vietnam of a foreign reinsurer?
Dossier and documents submitted to the Ministry of Finance must satisfy the provisions of Clause 2, Article 15 of Decree No. 46/2023/ND-CP as follows:
- Documents with foreign signatures, titles and seals of foreign organizations and individuals in the application file must be consularly legalized in accordance with law within 12 months from the date of submission of application, except for the following documents: A written request for a license; copy of citizen identity card or identity card or passport; documents of competent authorities of the enterprise; authorization documents; commitment text.
- In case the dossier contains documents that are copies, they must be copies from the original books or be authenticated;
- For dossiers of application for establishment and operation licenses of foreign organizations and individuals, each set includes 01 copy in Vietnamese and 01 copy in English, except for the original Vietnamese documents (or copy from the Vietnamese original) made in Vietnam;
Documents made in a foreign language must be accompanied by a certified translation into Vietnamese by a competent authority. Translations of financial statements must be certified by organizations or individuals licensed to practice translation in accordance with law;
- A judicial record card according to the form or an equivalent document of a foreigner as prescribed by foreign law and issued by a competent authority no later than 12 months before the date of submission of the application, in which there must be sufficient information on criminal record status and information on the prohibition from holding certain positions, establishing and managing enterprises or cooperatives;
- Curriculum Vitae must be made no more than 06 months before the date of application submission;
- Bank's confirmations on the balance of VND or freely convertible foreign currencies deposited at banks licensed to operate in Vietnam specified in this Decree must be made no later than the date of application submission. 06 months.
- There must be a list of documents in each dossier set.
Organizations and individuals participating in the process of making dossiers and documents must take responsibility before law for the accuracy, truthfulness and completeness of dossiers and documents. In case an organization or individual falsifies information in the application file for a license to be eligible for a license, within 5 years from the time of detecting fraudulent acts, the Ministry of Finance has the right to refuse to consider granting licenses to these organizations and individuals.
When the documents on the background and identity of Vietnamese citizens that are part of the dossier specified in this Decree have been integrated in the National Population Database, the Citizen Identity Database, the Ministry of Finance is responsible for exploiting and using information in the National Population Database and Citizen Identity Database on the basis of information exchange and provision between state management agencies.
What are the steps to apply for a license for establishment and operation of foreign reinsurers?
The procedures for applying for an establishment and operation license are specified in Article 16 of Decree No. 46/2023/ND-CP:
- Organizations and individuals applying for establishment and operation licenses shall prepare dossiers according to the provisions of this Decree; submitted directly at the Ministry of Finance or sent by post or through the online public service system if eligible to apply.
- Within 30 days from the date of receipt of the application for a license, if the application is incomplete and invalid, the Ministry of Finance shall notify in writing of the request for supplementation or modification of the application. The maximum time limit for supplementing or amending the investor's dossier is 06 months from the date of notification. In case the investor fails to supplement or amend the dossier within the prescribed time limit, the Ministry of Finance will refuse to consider and grant the License.
The maximum time for organizations and individuals to supplement or amend their dossiers is 12 months from the date of the first notice by the Ministry of Finance. Past the above time limit, if organizations or individuals fail to complete dossiers and documents, the Ministry of Finance has the right to refuse to consider and grant licenses.
- Within 60 days from the date of receipt of complete and valid dossiers, the Ministry of Finance shall grant establishment and operation licenses to insurers, reinsurers and foreign branches in Vietnam according to Appendix II promulgated together with this Decree.
In case of refusal to grant a License, the Ministry of Finance shall issue a written explanation clearly explaining the reasons therefor. The Ministry of Finance may only refuse to grant a License when the organization or individual contributing capital or the insurer, reinsurer or foreign branch to be established in Vietnam does not fully satisfy the conditions, application for a license under the provisions of this Decree or an organization or individual that cheats or forges papers and documents specified in Clause 3, Article 15 of Decree No. 46/2023/ND-CP.
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