Illustrative image (Source: VNA) Hanoi (VNA) - The Ministry of Finance (MoF) has proposed slashing 38business conditions and simplifying 40 administrative procedures in thesecurities sector in its law review this year.
The securities sector will witness the largest streamlining process if theministry’s proposal is accepted.
The finance ministry currently manages 370 business conditions. It hasrecommended getting rid of 99 conditions and reforming 94 administrativeprocedures in many sectors, including banking-finance, customs, securities,insurance, accounting and auditing as well as tax as per the Government’sorder.
In the securities sector, the ministry said it was assigned to oversee the draftingof the revised Securities Law, which is included in the law-making programme in2018 and will be submitted to the National Assembly for approval in 2019.
The abolition and simplification of administrative procedures in the securitiessector will, therefore, be comprehensively studied in the process of draftingthe law and guiding documents this year.
The business conditions mentioned in the review include the capital requirementfor establishing securities companies (100 billion VND, or 4.4 million USD, fora self-trading securities company and 165 billion VND for an underwritingcompany). Conditions related to personnel such as full civil act capacity,offices, working facilities and equipment are also under review.
In the insurance sector, the ministry has proposed eliminating the conditionthat requires capital contribution in cash because the current Enterprise Lawallows investors to contribute capital in various forms.
Instead, it only requires investors to contribute their own capital, comply withthe law and ensure that their capital contribution does not affect theirbusiness activities.
For the establishment of insurance companies, insurance brokerage enterprisesand foreign branches, the ministry has suggested removing the condition ofspecifying forms for enterprises, charter of the company (for insurance andinsurance brokerage firms) and regulations on organisation and operations (forforeign branches).
Regarding limited liability companies, the ministry has proposed eliminatingthe requirement that Vietnamese investors must operate in the fields offinance, banking and insurance to attract more investors to invest in theinsurance market.
For foreign investors, the ministry suggested eradicating the condition thatrequires foreign investors to be insurance companies.
To set up an insurance joint stock company, the ministry has proposedabolishing the condition that founding shareholders must jointly hold at least50 percent of ordinary shares of the company in the first three years since theissuance of business licence.
Late in April, the Ministry of Industry and Trade also decided to simplifybusiness conditions and administrative procedures in 10 sectors under itsmanagement.-VNA
VNA
