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Enumerate all words $w_i$ on two generators in a free pro-p group. Choose powers $p^{e_i}$ so large that ${\sum }_i{\tau }^{p^{e_i}}<2\tau -1$ for some $1/2<\tau <1$, and impose the closed normal relations $w_i^{p^{e_i}}=1$. The Golod-Shafarevich infinitude criterion for pro-p groups makes the resulting pro-$p$ group infinite. Its abstract subgroup generated by the two generator images is dense and infinite; each element is represented by an enumerated word and has finite order. The ambient finite quotients separate its elements, so it is also a residually finite group. The abstract subgroup, rather than the whole topological group, is the desired finitely generated torsion group.

We construct an infinite residually finite torsion group using the Golod-Shafarevich infinitude criterion for pro-p groups. Its useful form says that a pro-$p$ presentation on $d$ generators with relators $r_i$ gives an infinite pro-p group wheneverHere $D$ is the Magnus degree of a free pro-p group element: map each generator to $1+X_j$ in a noncommutative power-series algebra over ${\mathbb{F}}_p$, and take the lowest degree of $w-1$. The criterion permits infinitely many relators with a convergent weight sum. It is a consequence of the Golod-Shafarevich inequality for the completed group algebra; see Ershov's survey, Theorem 3.1.

Take $p=2$, $d=2$, and $\tau =3/4$. Let $F$ be the free pro-p group on $a,b$, and enumerate all ordinary finite words $w_1,w_2,\dots$ in these generators and their inverses. Choose integers $e_i$ sufficiently large thatForm the quotient pro-p groupwhere the bar means the closed normal closure. If the Magnus image of $w_i$ is $1+v_i$, characteristic two givesfor nonidentity $w_i$; identity relators contribute zero weight. It follows thatThus the Golod-Shafarevich infinitude criterion for pro-p groups proves that $P$ is infinite.

Let $G=⟨\bar{a},\bar{b}⟩$ be the abstract subgroup generated by the two images inside $P$. This subgroup is dense because the two images topologically generate the quotient, and it is infinite: a finite subgroup of a Hausdorff profinite group is closed, so could not be dense in infinite $P$. Every element of $G$ is the image of some ordinary word $w_i$, and the imposed relation makes its order divide $2^{e_i}$. Therefore $G$ is a two-generated torsion group. Finally $P$ is an inverse limit of finite 2-groups. Any nonidentity element of $G$ is nonidentity in $P$ and hence has a nonidentity image in one of those finite groups. Restricting that map to $G$ proves that it is a residually finite group. We have obtainedThe abstract subgroup $G$ is essential here: the argument establishes finite order for ordinary words, not for every topological limit in the ambient pro-p group.

There is no surjective homomorphism from this group to an infinite soluble group. In fact finitely generated soluble torsion groups are finite. To prove this, let $S$ be finitely generated, soluble and torsion, and induct on its derived length. In the abelian case, finitely many generators of finite orders generate a finite group. In general the abelianization $S/S^{\prime }$ is a finitely generated abelian torsion group, hence finite. Its kernel $S^{\prime }$ therefore has finite index and is finitely generated by Schreier's lemma. Explicitly, for a finite coset transversal $T$ containing $1$ and a finite symmetric generating set $X$, the finitely many elements $tx{\overline{tx}}^{-1}$ generate the finite-index subgroup, where the bar denotes the chosen representative of the coset. Now $S^{\prime }$ is torsion and has smaller derived length, so induction makes it finite. Hence $S$ is finite as well. Every quotient of $G$ is finitely generated and torsion, so any soluble quotient must be finite.