What is the application for ceased operation of foreign reinsurers’ branches in Vietnam?
- What is the application for ceased operation of foreign reinsurers’ branches in Vietnam?
- What are supporting documents on that fact that the foreign reinsurers’ branch in Vietnam has paid all the debts, property obligations?
- How long does the Ministry of Finance issue a decision for ceased operation of foreign reinsurers’ branches in Vietnam?
What is the application for ceased operation of foreign reinsurers’ branches in Vietnam?
Pursuant to Clause 3, Article 55 of Decree 46/2023/ND-CP as follows:
Requirements, application, and procedures for dissolution of insurers, reinsurers, ceased operation of foreign branches in Vietnam
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3. When all the debts specified in clause 2 hereof have been fully paid, the insurer or reinsurer shall send an application for dissolution, or the foreign branch in Vietnam shall send an application for ceased operation to the Ministry of Finance. The application for dissolution of insurer, reinsurer, application for ceased operation of foreign branch in Vietnam includes:
a) An application form for dissolution or ceased operation signed by the legal representative, which states the reason for dissolution or ceased operation as specified in Appendix XIX issued herewith;
b) A competent authority's decision as prescribed in the company's charter (for insurer or reinsurer) or Regulation on organization and operation (for foreign branch in Vietnam);
c) A written revocation of establishment and operation license, as for point c, clause 1, Article 115 of the Law on Insurance Business, or a written termination of control measure, as for point d, clause 1, Article 115 of the Law on Insurance Business;
d) Supporting documents on that fact that the insurer, reinsurer, or foreign branch in Vietnam has paid all the debts, property obligations and has committed not to be in the process of settling disputes in court or arbitration as prescribed in clause 4 hereof;
dd) The establishment and operation license.
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Thus, according to regulations, The application for dissolution of insurer, reinsurer, application for ceased operation of foreign branch in Vietnam includes:
(1) An application form for dissolution or ceased operation signed by the legal representative, which states the reason for dissolution or ceased operation as specified in Appendix XIX issued herewith;
(2) A competent authority's decision as prescribed in the company's charter (for insurer or reinsurer) or Regulation on organization and operation (for foreign branch in Vietnam);
(3) A written revocation of establishment and operation license, as for point c, clause 1, Article 115 of the Law on Insurance Business, or a written termination of control measure, as for point d, clause 1, Article 115 of the Law on Insurance Business;
(4) Supporting documents on that fact that the insurer, reinsurer, or foreign branch in Vietnam has paid all the debts, property obligations and has committed not to be in the process of settling disputes in court or arbitration as prescribed in clause 4 hereof;
(5) The establishment and operation license.
What is the application for ceased operation of foreign reinsurers’ branches in Vietnam?
What are supporting documents on that fact that the foreign reinsurers’ branch in Vietnam has paid all the debts, property obligations?
Evidence proving the fulfillment of all debts and property obligations specified in Clause 4, Article 55 of Decree 46/2023/ND-CP is as follows:
Requirements, application, and procedures for dissolution of insurers, reinsurers, ceased operation of foreign branches in Vietnam
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4. Supporting documents on that fact that the insurer, reinsurer, or foreign branch in Vietnam has paid all the debts, property obligations and has committed not to be in the process of settling disputes in court or arbitration include:
a) Report on the payment of financial obligations to employees as prescribed by law;
b) Report on the payment of liabilities to the insurance policyholders, including payment of due liabilities under the insurance policies and the transfer of insurance policies as prescribed (for the insurer or foreign branch in Vietnam);
c) Report on payment of liabilities to the State and other creditors;
d) A notarized copy of the tax authority's certification that tax obligations have been fulfilled;
dd) Other supporting documents (if any).
5. Members of the Board of Directors, members of the Members' Council, the Director or General Director, and the legal representative of the insurer, reinsurer or foreign branch in Vietnam shall be responsible for the truthfulness and accuracy of the documentation.
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Thus, evidence proving that the foreign reinsurance enterprise's branch has fulfilled all debts and property obligations includes the following documents:
(1) Report on the implementation of obligations towards employees according to the provisions of law;
(2) Report on the performance of debt obligations to the insurance buyer, including payment of obligations due under the insurance contract and transfer of insurance contract according to regulations;
(3) Report on the performance of obligations to the state and other creditors;
(4) Notarized copy of the tax authority's confirmation of completion of tax obligations;
(5) Other supporting documents (if any).
How long does the Ministry of Finance issue a decision for ceased operation of foreign reinsurers’ branches in Vietnam?
Pursuant to Clause 6, Article 55 of Decree 46/2023/ND-CP has the following content:
Requirements, application, and procedures for dissolution of insurers, reinsurers, ceased operation of foreign branches in Vietnam
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5. Members of the Board of Directors, members of the Members' Council, the Director or General Director, and the legal representative of the insurer, reinsurer or foreign branch in Vietnam shall be responsible for the truthfulness and accuracy of the documentation.
6. Within 20 days of receiving a complete and valid application, the Ministry of Finance shall issue a decision on dissolution of the insurer or reinsurer; terminate the operation of the foreign branch in Vietnam.
7. In case the application for dissolution or ceased operation is inaccurate or forged, the persons specified in Clause 5 of this Article shall be held jointly and severally liable for payment of financial obligations to employees and unpaid taxes, other unpaid debts, and be personally responsible before law for the consequences arising within 5 years from the date of submitting the application for dissolution or ceased operation to the Ministry of Finance.
Thus, Within 20 days of receiving a complete and valid application, the Ministry of Finance shall issue a decision on dissolution of the insurer or reinsurer; terminate the operation of the foreign branch in Vietnam
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