Forms of insurance brokerage activities of foreign investors in Vietnam

Insurance brokerage activities of foreign investors in Vietnam performed in many different forms. Foreign investors can participate in the Vietnamese insurance market through establishing a business, opening a branch or representative office. Each form has its own legal requirements and procedures. This article will analyze in detail the conditions, procedures and processes for implementing insurance brokerage activities of foreign investors in Vietnam.

What is insurance brokerage?

Insurance brokerage activities are the activities of providing consulting services, introducing, arranging the conclusion of insurance contracts and other services related to insurance contracts. Insurance brokers act as intermediaries between customers and insurance companies.

Insurance brokerage activities include the following main contents:

• Consulting, introducing, and selling insurance to customers
• Arrange the conclusion of insurance contracts between insurance companies and customers
• Provide information about insurance objects and insurance conditions to the parties
• Support customers in the process of implementing insurance contracts

Insurance brokerage enterprises must be granted an establishment and operation license by the Ministry of Finance. Individuals who directly perform insurance brokerage must have a training certificate in insurance brokerage.

Reference content: Article 131, Law on Insurance Business 2022.

Conditions for insurance brokerage activities of foreign investors in Vietnam

Conditions for shareholders and capital contributing members include:

• Organizations and individuals have the right to establish and manage businesses in Vietnam according to the provisions of the Enterprise Law.
• The organization has legal status, is operating legally and meets financial conditions according to Government regulations.

Capital conditions include:

• Charter capital is contributed in Vietnam Dong and is not lower than the minimum level as prescribed by the Government;
• Shareholders and capital contributing members are not allowed to use loan capital or investment trust capital from other organizations or individuals to contribute capital.

Personnel conditions: have a Chairman of the Board of Directors or Chairman of the Board of Members, Director or General Director, legal representative expected to meet the conditions and standards of management capacity, experience and professional expertise as prescribed in Article 138 of this Law.

Have an organizational and operational form according to the provisions of this Law and have a draft charter consistent with the provisions of the Enterprise Law.

Organizations established under foreign law that contribute capital to establish, purchase shares, or contribute capital of 10% or more of the charter capital of an insurance brokerage enterprise must meet the following conditions:

• Is an organization established under foreign law that is directly carrying out or has a subsidiary carrying out insurance brokerage activities for the most recent 5 consecutive years up to the time of submitting the application for an establishment license. and operations;
• Permitted by a foreign competent authority to establish an insurance brokerage business in Vietnam and confirmed not to seriously violate the laws on insurance brokerage of the country where the organization is headquartered. for the last 3 consecutive years up to the time of submitting the application for establishment and operation license.

Reference content: Article 133, Law on Insurance Business 2022.

Procedures for applying for a license to establish and operate insurance brokerage for foreign investors

Profile components

Dossier to apply for a license to establish and operate a foreign-invested insurance brokerage enterprise includes:

• Application for issuance of License for establishment and operation
• Draft corporate charter
• Operational plan for the first 5 years
• List, curriculum vitae, diplomas and certificates of administrators and executives
• Charter capital level, capital contribution method
• Business processes, internal control processes
• Copy of the Establishment License of the parent enterprise abroad
• Document from foreign competent authority committing to unified supervision
• Other documents as prescribed

Reference content: Article 134, Law on Insurance Business 2022; Article 64, Decree 46/2023/ND-CP.

Execution order

Pursuant to Article 65 of Decree 46/2023/ND-CP regulating the process of licensing the establishment and operation of foreign-invested insurance brokerage enterprises, including the following steps:

Step 1: Submit application

Submit application to the Ministry of Finance through one of the following forms:

• Submit directly
• Post office
• Online public service system

Step 2: Appraisal of documents

• Within 30 days from the date of receipt of the license application dossier, if the dossier is not complete and valid, the Ministry of Finance shall notify in writing a request to supplement or amend the dossier. The maximum time limit for supplementing and amending the investor’s documents is 06 months from the date of notification. In case the investor does not supplement or amend the dossier within the prescribed time limit, the Ministry of Finance will refuse to consider granting the License.
• The total time for organizations and individuals to supplement and amend records is maximum 12 months from the date of the first notification by the Ministry of Finance. Past the above time limit, if organizations or individuals do not complete records and documents, the Ministry of Finance has the right to refuse to consider granting a License.

Step 3: Issue License

• The Ministry of Finance issues the License within 60 days from the date of receipt of complete and valid documents

Support and consulting services on insurance brokerage activities of foreign investors in Long Phan

Long Phan provides comprehensive consulting services for foreign investors in the insurance brokerage field in Vietnam. Our team of experts has a deep understanding of insurance law and has extensive experience supporting foreign businesses entering the market.

Long Phan’s main services include:

• Consulting on investment strategies, choosing appropriate investment forms
• Consulting on insurance brokerage operating conditions
• Support in preparing documents to apply for establishment and operation licenses
• Instructions on procedures for applying for a license to establish and operate an insurance brokerage enterprise
• Investor representatives work with state management agencies
• Consulting on compliance with legal regulations on insurance business
• Support business registration procedures and opening operations
• Consulting on building professional processes and internal controls

With many years of experience and extensive knowledge, Long Phan is committed to providing professional and effective consulting solutions for foreign investors who want to participate in the Vietnamese insurance brokerage market.

Insurance brokerage activities of foreign investors in Vietnam require compliance with many complex legal regulations. To implement an investment project effectively, investors need to be carefully prepared and deeply understand the business environment. Please contact Long Phan immediately via Hotline: 0906735386 for detailed advice on investment processes and procedures in the field of insurance brokerage in Vietnam.