The registration of a Credit Union

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On this page you can acquaint yourself with such services as:

Registration of the credit union, to purchase a credit union, licensing of credit union.

The COLARES Law Company offers the services of the establishment and registration of a credit union, beginning with the establishment of a legal entity and ending with the registration in the Register of financial institutions of the State Commission for Regulation of Financial Service Markets.

The registration of a credit union includes the following steps:

  1. the registration of the credit union as a legal entity;
  2. the registration of a credit union in the Register of financial institutions of the State Commission for Regulation of Financial Services.

The credit union is to obtain such licenses as:

  1. License for attraction of contributions (deposits) of the members of the credit union on deposit accounts and using of these funds for provision of credits to credit union members (license for deposits);
  2. license for the provision of financial credits from attracted funds, except for the contributions (deposits) of the members of the credit union on their deposit accounts (license for credit provision).

Attracted (borrowed) funds are the funds that are attracted by credit unions from banks and other institutions and organizations.

Attracted funds are not the funds of the united credit unions, attracted by the credit unions, which are considered to be their members, as well as the funds of joint financial funds of the credit union associations that are established by their members.

Contributions from members of the credit union, which form the capital of credit unions, also are not considered as attracted funds of the credit union.

The activities of credit unions on provision of credits from the capital of the credit union, credit union associations raised by the credit union that is a member of the association, attracted by the credit unions, which are considered to be their members, as well as the funds of joint financial funds of the credit union associations that are established by their members, are not subject to licensing.

It should be noted that the credit union is a nonprofit organization whose founders may be individuals or trade unions, their associations on a cooperative basis.

The purpose of the registration of a credit union is meeting the needs of the founders of the credit union in a joint credit provision and financial services from the united financial contributions of the members of the credit union.

The establishment and registration of a credit union can be conducted only on the basis of the decision of the members of the constituent assembly.

The number of members of the credit union is at least 50 people.

The members of the credit union may be residents and non-residents of Ukraine if these persons:

  • Live in the same region (village, town, city, district, region);
  • have a full civil capacity;
  • belong to trade unions, associations of trade unions or other public or religious organization;
  • do not be deprived of their liberty and have no outstanding convictions for acquisitive crime.

A credit union is a financial institution which can provide financial services provided for by the Law of Ukraine “On credit unions”.

Credit unions are allowed to carry out only those activities provided for the Law of Ukraine “On credit unions”, that is:

  • to provide credits to their members on the terms of payment, maturity and security in both cash and non-cash;
  • to take the deposits, fees and other contributions from members of the credit union;
  • to be guarantor third party liable for the fulfillment of obligations of the credit union to third parties;
  • to attract the financial contributions of its members on deposit accounts in cash and non-cash on a contractual basis;
  • provide credits to other credit unions;
  • to attract the credits of the united credit unions, banks, other establishments only to the members of their credit union on a contractual basis;
  • to be the member of the payment system and provide services for the transfer of funds;
  • to pay on behalf of its members for the cost of goods, works and services provided within their credit funds;
  • to perform charitable activities at the costs attracted for this activity.

For inclusion into the Register of financial institutions, the credit union must meet the following requirements:

  • undergo the state registration of the credit union;
  • have a separate, special room with restricted access, and a strongbox to store the documents and money, eliminating their stealing or damage;
  • have internal regulations of the credit union in accordance with the regulations of the current legislation of Ukraine: The regulation on the supervisory board of the credit union, Regulations on the Audit Committee of the credit union, the Regulation on the Credit Committee of the credit union, the Regulation on the management of the credit union; Regulations on the other bodies of the credit Union;
  • the charter and the establishment of the credit union must meet the standards and requirements of the legislation of Ukraine;
  • have special software and technical equipment, which is connected with the implementation of financial services, as well as meet the requirements of regulatory authorities;
  • all the founders of the credit union must pay the entrance fee and a mandatory mutual contributions;
  • the director and chief accountant of the credit union must meet the qualification requirements.

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