Insurance company registration

Insurance company registration: how to do it right

Insurance activities are very popular among both service users and company owners. The essence of the operation of such an enterprise is

Protection of the property interests of individuals and legal entities, if they are under threat. But opening an insurance company is not so easy without qualified assistance, because there are many legal nuances. In today's guide, you will find out which ones and why you should seek the services of experienced professionals.

What is the benefit of creating an insurance company

The purpose of an insurance company may be to provide both classical insurance and its voluntary types.

Specific threats, which are insured events, are indicated in the contract, which is concluded between the client and the company. And payments are made at the expense of funds, which are formed from insurance payments and income from the placement of funds.

In addition to these services, firms provide other services:

• Formation, placement and management of reserves.
• Classic insurance
• Reinsurance

Financial institutions that have at least three members and are licensed, as well as registered permanent establishments in the form of foreign branches, can engage in the provision of these services. But the creation of insurance companies requires not only licensing for activities, but also registration of a legal entity, bringing finances to the standards and entering the company into the register of financial institutions. In addition, the company must meet all the requirements for its creation.

Registration of insurance companies: requirements

In order for your company to operate successfully and efficiently in accordance with all applicable laws, it must meet a number of requirements:

• Registration of insurance companies is possible only if a legal entity is registered. 
• Share capital is required and must be at least ten million euros for life insurance funds. If the activity is related to other types of work, a share capital of one million euros is sufficient.
• You can also form an authorized capital with the help of securities, but their size should not exceed 25%.

If all these conditions are met, you can safely proceed to the official launch.

How to register an insurance company

The procedure is complex and responsible. And in order for the company to function successfully, it must be properly designed:

• It must be registered as a legal entity, having previously determined the type of fund. 
• After registering a legal entity, it is required to enter the company in the state register of financial institutions, because it provides financial services.
• After that, you need to obtain a license to carry out legal activities.
• The next step should be to rent or buy an office that regulators can visit to monitor actions.
• Promissory notes, reserves, or budgetary and credit funds cannot be used to form the authorized capital.
• Funds cannot be reclassified as insurance funds simply by amending their statutory documents.

Since there are many nuances and there is a risk of making a mistake in any of them, it is best to entrust the registration process to experienced lawyers. After all, work is impossible without a license, and it still needs to be obtained.

How to open an insurance company and get a license

A license is an official document that allows a company to operate. But the nuance is that the license obliges to perform clearly specified services, so it must be regularly confirmed and renewed, otherwise it can be taken away for non-compliance with the licensing conditions. Let's take a closer look at this point:

• If funds are in life insurance, they cannot be in other types of insurance. But the main advantage of such a license is that they are perpetual.
• Ukrainian insurers cannot contribute more than 30% of their own capital to the authorized capital. But non-life insurance companies do not have to meet these requirements.
• The firm is required to comply with the insurer's solvency conditions and only reinsure for those types of insurance for which it is licensed.
• Funds that insure operators of nuclear installations are required to establish a nuclear pool or be active members of it.
• If the fund is engaged in civil aviation insurance, it must be registered with the executive authority in the field of civil aviation.

So, if you want to start an insurance company and keep it afloat, then you should think carefully about whether you can comply with all of the above conditions. If all these nuances only cause you a headache, entrust the matter to professionals.

Why register an insurance company with us

This is exactly what you will find in CRYSTAL TAX. We have been dealing with the registration of various types of enterprises for many years, so you can safely rely on our experience and qualifications. In addition, not one, but a whole team of trained lawyers, HRs, financiers and accountants will work for you, whose assistance includes:

• Detailed advice regarding your individual situation and the search for the best options for implementing the desired idea.
• Analysis of documentation, inventory and personnel to ensure that a license has been obtained.
• Registration of the legal entity and the firm itself so that you can apply for licensing.
• Development of templates for insurance contracts and technical documentation for your company.

In addition, the help of our team will save you time, effort, nerves and relieve you of the headache that will definitely arise if you need to decide everything on your own. Instead, it is better to entrust the receipt of the desired result to experienced specialists from CRYSTAL TAX and they will do everything quickly and efficiently. And the price of services is fully consistent with their quality. To make sure of this, sign up for a consultation with us and we will lead you to the desired result!