Under the Law on Insurance Business, organizations and companies operating in the insurance sector must obtain a license issued by the State. To be eligible for licensing, such entities must satisfy requirements regarding charter capital, premium rates, and maintain a professional workforce possessing relevant practicing certificates. Furthermore, insurance companies are required to comply with regulations on registration, financial reporting, and tax declarations.

I. Legal basis

• Amended Law on Insurance Business 2025
• Law on Insurance Business 2022

II. What is an insurance enterprise?

Pursuant to Clause 17, Article 4 of the Law on Insurance Business 2022, an insurance enterprise means an enterprise established, organized, and operating in accordance with the provisions of the Law on Insurance Business 2022 and other relevant laws to conduct insurance business, reinsurance business, and outward reinsurance. Insurance enterprises shall include life insurance enterprises, non-life insurance enterprises, and health insurance enterprises.

III. Regulations on Licensing for Insurance Business

Pursuant to Clause 3, Article 1 of the Law on Amendments to the Law on Insurance Business 2025, No. 139/2025/QH15, amending Article 73 of the Law on Insurance Business 2022 as follows:

• Insurance enterprises, reinsurance enterprises, and Vietnam-based branches of foreign insurance enterprises shall officially commence operations within a period of 12 months from the date of issuance of the License for Establishment and Operation.

In the event of force majeure or objective impediments, the enterprise:

• The enterprise shall provide a written report;
• And any extension shall only be granted upon the written approval of the Ministry of Finance;
• The maximum extension period shall be 12 months.

Prior to the official commencement of operations, the enterprise shall be responsible for completing all mandatory requirements, including:

• Fully contribute the charter capital or allocated capital;
• Elect and appoint the legal representative and management positions that have received the Ministry of Finance’s approval in principle;
• Establish the organizational management structure, internal control system, and internal audit system;
• Promulgate internal processes and regulations in accordance with the law;
• Fully execute the security deposit at a commercial bank operating in Vietnam.

The enterprise shall notify the Ministry of Finance at least 15 days prior to the date of official commencement of operations. In the event that the aforementioned conditions are not fully satisfied, the Ministry of Finance reserves the right to suspend such official commencement of operations.

Compared to the Law on Insurance Business 2022, the 2025 Law maintains the 12-month period while tightening all pre-operational procedures and introducing more stringent control mechanisms and clearer legal liabilities for enterprises.

IV. Statutory conditions for the Issuance of Licenses for the Establishment of Insurance Business Enterprises

Article 64 of the Law on Insurance Business 2022 stipulates the conditions for the issuance of licenses for the establishment and operation of insurance enterprises as follows:

1. Conditions concerning shareholders and members contributing capital for the establishment

• Organizations and individuals shall have the right to establish and manage enterprises in Vietnam in accordance with the provisions of the Law on Enterprises;
• Organizations must possess legal entity status and be in lawful operation; in the event of contributing 10% or more of the charter capital, such organizations must have conducted profitable business operations for the three (03) consecutive fiscal years immediately preceding the date of application for the license, and satisfy financial conditions as prescribed by the Government.
• Any insurance enterprise already licensed for establishment and operation in Vietnam that contributes capital to establish a new insurance or reinsurance enterprise must have conducted profitable business operations for the three (03) consecutive fiscal years immediately preceding the date of application for the license, and satisfy the capital adequacy ratio as prescribed by this Law.

2. Capital requirements

• Charter capital shall be contributed in Vietnamese Dong and must not be lower than the minimum amount prescribed by the Government;
• Shareholders and capital-contributing members shall be prohibited from using loans or entrusted investment capital from other organizations or individuals for their capital contributions.

3. Human resources requirements

The enterprise shall have a Chairman of the Board of Directors or Chairman of the Members’ Council, a Director or General Director, a legal representative, and a prospective Appointed Actuary who are expected to satisfy the requirements and standards regarding managerial competence, experience, and professional expertise as stipulated in Article 81 of this Law.

4. Requirements for the organizational and operational form

The enterprise shall adopt an organizational and operational form in accordance with the provisions of this Law and possess a draft Charter that complies with the Law on Enterprises.

V. Insurance brokerage enterprises shall be subject to investment activity restrictions effective from 2026

Pursuant to Clause 3a, Article 138 of the Law on Insurance Business (as supplemented by Clause 11, Article 1 of Law No. 139/2025/QH15), insurance brokerage enterprises shall ensure safety, liquidity, and efficiency while complying with the law and assuming self-responsibility for their investment activities.

The 2025 Law explicitly stipulates that insurance brokerage enterprises are prohibited from making any form of investment in: Shareholders; Capital-contributing members; and Related persons as defined under the Law on Enterprises. The sole exception is depositing funds with shareholders or members that are credit institutions. Notably, the 2022 Law did not contain specific provisions regulating the investment activities of insurance brokerage enterprises.

VI. About Us, Hankuk Law Firm

■ Hankuk Law Firm – Introduction

The goal of the legal services provided by HANKUK LAW FIRM is to support businesses, investors, and people. Our organization employs skilled Korean lawyers, partners, and professionals to provide legal services to businesses related to corporations and litigation.

To support the startup process, our lawyers and staff provide a wide range of services, including business law consulting, tax and immigration law consulting, real estate services, business consulting, marketing and communications, human resources, product distribution, franchise options, etc. We provide expert advice on every aspect of your business needs.

To protect the legitimate rights and interests of our clients and achieve the best results, we provide legal advice and participate in civil lawsuits related to business, labor, marriage, family, and inheritance.

■ Contact us now

For reliable and effective legal advice, please contact HANKUK LAW FIRM now. We are committed to providing you with the best possible answers and our team of experienced lawyers has extensive knowledge in many legal fields. We are always here to provide the most competent and dedicated support, whether you are dealing with contractual issues, commercial disputes or need guidance on foreign investment. HANKUK LAW FIRM is honored to have assisted hundreds of domestic and international clients in skillfully resolving complex legal issues as their trusted legal partner. Do not let legal issues hinder your success. Let us accompany you towards legal achievement and comfort. For prompt guidance and support to ensure your rights are always maintained at the highest standards, contact HANKUK LAW FIRM now.

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