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Swedish credit union
Swedish Credit Union Incorporation Special Offer
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. The name of the entity cannot include the word "bank", but names including "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 authority. 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.
Financial services can only be offered to members and such financial services are normally restricted to the accepting of deposits and the making of loans to its members. In other words it would typically be expected to operate as a traditional savings and loan institution with the capitalization originating through member "contributions". However, it is feasible that such an entity could also issue guarantees (c.dâs for example) as well as other financial instruments that could provide the leverage and capitalization to launch other additional off-balance sheet business and investment activities.
The Swedish Credit Union serves as an excellent vehicle for international deposit taking and lending since there are no restrictions as to the nationalities nor the countries of residence of the members. The Credit Union can offer deposits repayable to the customer by order, such as checking accounts and instant access savings accounts as well as fixed term deposits (or Certificates of Deposit) repayable at maturity. The name of a Credit Union cannot include the word "bank", but names including words such as "Credit Union", "Savings & Loan", "Trust" , "Sparkasse" , "Caja de Ahorro" , "Building Society" etc are all allowed.
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. 50% or more of the directors must provide European Union mailing address.