About International Credit Unions

Now the Credit Union is usable again, again, with the 1000 member limit, but 100% clear a deposit taking entity registered in a EU country, and without capital requirements. This entity is registered in the form of a "Economic Association" and financial services can be offered to members only. The Economic Association is exempted from bank license requirement if; "financial services are offered to a group of entrepreneurs with a common financial interest". The common financial interest is established by making the entrepreneur a member of the association. This entity can be used as deposit taking institution, to offer loans, issue guarantees and other financial instruments. Any potential customer can automatically become a member when opening and account, applying for a loan or engaging any other service of the Credit Union.
The name of a Credit Union cannot include the name "bank" for obvious reasons, but names including words such as "Credit Union", "Savings & Loan", "Trust" etc are all allowed.
Members can be of any nationality, and there is no requirement to report the identity of members to any a uthority. Directors (minimum 3) can also be of any nationality, although at least 50% of the board of directors must have a mailing address within the European Union. We can arrange for maildrop addresses for this purpose if required.
The Swedish Credit Union serves as a excellent tool for raising capital through international deposit taking (issuing of CD´s etc) and for engaging in savings & loan activities in general.

Main Advantages:

This entity is registered in Sweden, a full European Union member and a highly respected jurisdiction. There are no annual license fee to pay, since the entity is exempted from license requirement. There are no qualification or paid up capital requirements.

Main Disadvantages:

High tax levels. Sweden is not a tax haven, and the association would have to pay 30% tax on any reported profit.It is highly recommended to use this entity together with a Panamanian licensed payment processing company, in order to accumulate profits in Panama rather than in Sweden.

Document Requirements:

Directors must provide photocopies of government issued photo ID. Half or more of the directors must provide aEuropean Union mailing address.

We can offer a complete Credit Union formation package, including:

CU certificates and bylaws in Swedish and English, both with Apostille

Certificate of deposit taking and lending status with Apostille

Assistance with account opening for the CU in Sweden

Assistance with third party debit card issuing, including private label cards

Assistance with acquiring custom software for Internet banking

We also include all relevant supporting documentation, such as the Swedish banking act complete with certified English translation and apostille.

Time frame for the establishment of a new Credit Union is currently 4-6 weeks. Total cost including all legal fees and registration costs is USD 34,500.00. There are no further capital requirements as long as the CU comply with the membership limitation.

A Credit Union, also known as Savings & Loan association or "sparkassa" in Swedish, is exempted from supervision and license requirements as long as it is properly formed and registered and comply with the membership limit of maximum 1000 members at all times. The exemption from license requirement is included in chapter 2, section 7 of the Swedish law (2004:297) regulating banking and financial activities.
Swedish Banking Act