Writing insurance in the Gelephu Mindfulness City means fitting your business to a licensing regime built around defined activities and classes, where the difference between effecting cover, carrying it out and merely arranging it decides what you can do. Basnet Law Pte. Ltd. is the first law firm incorporated in GMC. We advise insurers, reinsurers, captives, intermediaries and insurance managers on the insurance provisions of the Financial Services Act 2025, the prudential and captive rulebooks applied in GMC, and the licensing process run by GFSO. This page explains how insurance is regulated here and how we get a carrier or intermediary licensed.
How we help
- Licensing insurers and reinsurers for Effecting Contracts of Insurance and Carrying Out Contracts of Insurance as Principal, which must be carried on by a body corporate.
- Broker and agency licensing under Insurance Intermediation, including advising on and arranging contracts of insurance, and the incidental-basis exclusion.
- Insurance Management permissions for firms "providing management services or exercising managerial functions for an insurer".
- Captive structuring under the Captive Insurance Business Rules and Prudential (PIN) rules applied by Schedule B to the Application of Laws Act 2024.
- Protected cell and incorporated cell companies, which cannot be established without the Regulator's consent and need approval for each new cell.
- Class mapping across the seven life classes and nine non-life classes.
- Policy wordings and reinsurance treaties under GMC law, noting that insurance contracts are exempt from the Unfair Contract Terms Act 2026 under its First Schedule.
How GMC insurance law works, in plain terms
A Contract of Insurance "means any contract of insurance or contract of reinsurance", so reinsurers are regulated alongside direct writers. Effecting a contract of insurance as principal and carrying it out as principal are separate specified activities, and a contract of insurance is itself a specified investment. Carrying on either by way of business in GMC without a licence breaches the General Prohibition in the Financial Services Act 2025.
The classes follow the Act. The life classes run from Class 1 life and annuity to Class 7 pension fund management. The nine non-life classes cover accident (109), sickness (110), land vehicles (111), marine, aviation and transport (112), fire and other property damage (113), liability (114), credit (115), suretyship (116) and other (117). A licence specifies the permitted activities in the manner the Regulator considers appropriate.
Intermediaries are caught by Insurance Intermediation, which covers advising on contracts of insurance and acting as agent in relation to buying or selling them. Insurance Management, meaning management services for an insurer, is a distinct activity, and it is the permission a captive manager needs.
Governance rules are in the GEN Rulebook 2026. Insurers must appoint an Approved Person as Finance Officer in addition to the Senior Executive Officer, Compliance Officer and Money Laundering Reporting Officer. Cell structures are available to insurers, but "A Protected Cell Company and an Incorporated Cell Company cannot be established in GMC without the consent of the Regulator". On tax, the Income Tax Act 2025 provides a concessionary rate for approved insurance brokers, but that provision is listed as commencing on a date to be appointed by Gazette notification.
Who this is for
- International insurers and reinsurers establishing a GMC carrier or branch.
- Corporate groups considering a GMC captive.
- Brokers, agents and managing general agents.
- Captive managers and insurance management firms.
How an engagement runs
- Class and activity mapping. We confirm which activities and which classes you need, so the licence matches the book you intend to write.
- Structure. We choose the company, branch, captive or cell company and test it against the GEN Rulebook.
- Application. We prepare the business plan, the capital position under the prudential rules and the Approved Persons.
- Conditions. We manage incorporation, bank account, capital, office and staff before the licence issues.
- Documentation. We draft the policy wordings, treaties and intermediary agreements under GMC law.
Frequently asked questions
Is reinsurance a regulated activity in GMC?
Yes. A Contract of Insurance includes a contract of reinsurance, so effecting or carrying out reinsurance as principal is a regulated activity. We license reinsurers on the same footing as direct writers.
Can I set up a captive in GMC?
Yes. The Captive Insurance Business Rules and Prudential rules are applied by Schedule B to the Application of Laws Act 2024, and the GEN Rulebook 2026 provides for protected cell and incorporated cell companies with the Regulator's consent. Capital requirements are set in those rules, not the Act, and we confirm them for you.
Do brokers need a licence?
Advising on or arranging contracts of insurance is Insurance Intermediation. The incidental-basis exclusion may cover a business whose main activity is elsewhere, and we test whether it applies to you.
Must an insurer be a company?
Yes. An applicant for Effecting or Carrying Out Contracts of Insurance must be a body corporate, with its head office in GMC.
Is there a tax incentive for insurance brokers?
The Income Tax Act 2025 provides for a concessionary rate for approved insurance brokers, but it commences only on a date appointed by Gazette notification. We tell you whether it is in force before you rely on it.
Talk to GMC counsel on the ground
Basnet Law Pte. Ltd. is the first law firm incorporated in the Gelephu Mindfulness City. A short conversation early in a matter usually saves time and cost later. Write to basnet@basnetgmc.com or office@basnetgmc.com with a few lines about your plans, and we will tell you plainly what is needed, how long it takes, and whether we are the right fit.
You may contact Basnet Law at basnet@basnetgmc.com or office@basnetgmc.com for any legal queries related to GMC.
