From January 1, 2023, the new Law on Insurance Business has officially come into effect. Adjustments in the new Law on Insurance Business No. 08/2022/QH15 aim to make positive changes and create conditions for businesses in the insurance sector to develop; at the same time, demonstrating Vietnam's steps in implementing international commitments on improving the legal environment.
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Law on Insurance Business No. 08/2022/QH15, passed on June 16, 2022, and includes 07 chapters and 157 articles. Among them, there are many positive changes and reforms, one of the notable points can be mentioned that the Law on Insurance Business has added a regulation that affirms that foreign investors are allowed to own shares and contributed capital up to 100% of charter capital of insurance and reinsurance enterprises.
Photo 1. Under the new Insurance Law, foreign investors can contribute up to 100% of charter capital_ Hotline: 0972118764
An insurance enterprise means an enterprise established, organized, and operating under the provisions of the Law on Insurance Business and other relevant laws for the insurance business, reinsurance business, and reinsurance transfer. Insurance enterprises include life insurance enterprises, non-life insurance enterprises, and health insurance enterprises.
Reinsurance enterprise means an enterprise established, organized, and operating in accordance with the Law on Insurance Business and other relevant laws to carry out reinsurance business and ceded reinsurance.
Photo 2. Under the new Insurance Law, foreign investors can contribute up to 100% of charter capital_ Hotline: 0972118764
Previously, the Law on Insurance Business 2000, amended and supplemented in 2010, did not specify the legal ownership ratio of foreign investors in insurance enterprises and reinsurance enterprises. However, the new law clearly added that: "Foreign investors are entitled to own shares and contributed capital up to 100% of charter capital of insurance enterprises and reinsurance enterprises".
The above regulation has created clarity, in line with Vietnam's commitments to open the market for foreign investors at the WTO and signed free trade agreements. From now on, the new Law on Insurance Business has created a stronger legal basis to protect the interests of foreign investors when participating in capital contributions and investment in the insurance field in Vietnam.
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Socio-Economic General Department – TLK Law Firm
According to baochinhphu.vn
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