(1) A person who wants to establish a company in accordance with Section 25 for the operation of insurance business shall submit an application to the Authority for pre-approval along with the prescribed fee and attach the following documents:-
(a) Memorandum and Articles of Association of the Proposed Insurance Company,
(B) Feasibility Study Report and Infrastructure Details of Insurance Business,
(c) Personal details of the founders in the format prescribed by the authority, (d) If there is any agreement between the founders prior to the establishment of the proposed insurance company, a certified copy of such agreement - and its summary,
(e) Proof of payment of taxes by the founder for the previous financial year immediately before applying for pre-approval,
(f) If any organization has applied, the following details:-
(1) Decision of the Board of Directors regarding the establishment of an insurance _company,
(2) Memorandum and Articles of Association of the respective company,
(3) The specified documents that confirm the ability to invest,
(4) If there is an organization that conducts business or business that is regulated according to the prevailing law, permission given by the regulatory body of such organization to invest in insurance business.
(g) Other details and documents determined by the Authority.
(2) Any foreign insurance company may establish a joint venture insurance company or open a branch office in Nepal after taking the prior approval of the authority with any organized organization of Nepal or a Nepali citizen.
(3) According to sub-section (2), if a foreign insurance company wants to establish a joint venture insurance company or open a branch office in Nepal, it must submit an application to the authority along with the prescribed fee for pre-approval.
(4) According to subsection (3); While submitting the application, the applicant should also attach the following documents in addition to the details mentioned in sub-section (1):-
(a) In the concerned country: Copy of license obtained to carry on insurance business,
(B) Proof of updated and renewed license to do insurance business in the respective country,
(c) EqRelated - Proof of approval to open a branch office in Nepal from the regulatory body of the country,
(d) The decision of the board of directors of the respective insurance company regarding the establishment of a joint venture insurance company in Nepal or the opening of a branch office,
(e) the audit report of the last five financial years of such company showing financial capability, (f) the list of directors of foreign organizations and the ratio of share ownership and the details of organizations with financial interests,
(g) Other details and documents determined by the authority.
(5) Upon examining the application received under sub-section (1) or (3), give pre-approval to such insurance company or foreign insurance company to establish a joint venture insurance company or open a branch office in Nepal. If deemed appropriate, the authority shall give pre-approval to the applicant in the prescribed format within sixty days of receipt of the application.
(6) If the insurer has to amend the articles of association or regulations of his company, he shall take the prior approval of the authority.