What kind of services can credit union formed on Sweden offer?
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.d’s for example) as well as other financial instruments.
What are the Swedish legal requirements for the formation of a credit union?
The CU is exempted from regulation and supervision as long as it has less than 1000 members at all times. There are no actual reporting requirements regarding members. You need to file an annual tax return, and the tax is 30% on reported profit. There are no annual license fees to pay.
What statutory protection is there for member confidentiality? Does a list of members have to be provided to public authorities?
There is no reporting of members to any authority, only names of directors are available in the registry.
What tax is payable by non-Swedish resident members on interest paid on deposits?
There are no requirements for the CU to withhold any taxes on interest paid, regardless of which country the member would be a resident of. It would be the responsibility of the client to pay any taxes he/she would be liable to.
Can Swedish credit union offer any brokerage services?
For other services such as securities offering, brokerage, Forex, we recommend you to be offered from other jurisdictions without too much regulatory requirements and without the tax burden of Sweden.
Does Swedish credit union require local presence in Sweden?
No, but we can arrange you virtual office services so that you entity has look like that it is doing business from Sweden.
Are there any restrictions or limitations on the size of each member’s contribution/deposits to the Credit Union ?
No.