Company Registration in Zug

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Introduction

Zug attracts entrepreneurs with its unique advantages. Firstly, Zug is known for its low tax tariffs. With a corporate tax rate of just 11.8%, Zug provides favorable conditions for international investors.

The procedure for registering a company in Zug is relatively quick, taking only 2–4 weeks. This entails the compilation and filing of requisite documentation, official verification, and enrollment within the trade registry. Such an expedited process allows entrepreneurs to swiftly commence their business activities.

Management flexibility is another advantage of Zug. Local managing executives can be appointed here, relieving international investors from the need to be physically present in Switzerland. Renting virtual offices and providing a legal address make remote business operations even more convenient.

Zug is also attractive with its developed infrastructure and access to highly qualified labor. Centrally located in Switzerland, Zug offers excellent transport links and logistics. Numerous business incubators and angel investors support innovative startups and foster their development.

Thus, registering a company in Zug offers tax advantages, legal flexibility, and access to high-quality resources for successful business operations.

Legal forms of companies in Zug

Legal Form	Description	Characteristics
GmbH (Limited Liability Company)	GmbH represents limited liability and management flexibility. Think of it as reliable Swiss business clockwork, allowing easy adaptation to market changes.	Initial share capital: 20,000 Swiss francs. Directors can be either locals or foreigners. Enrollment in the commercial register and notarization of documentation are required.
AG (Public Limited Company)	AG is a powerful tool for large enterprises and public entities where capital is divided into shares. Suitable for those looking to attract significant investments and elevate their business.	Initial equity capital: 100,000 CHF, with a minimum of 50,000 CHF required at registration. It involves a sophisticated administrative framework with a directorate. Entry into the commercial register, formal certification, and announcement in the Swiss Official Gazette of Commerce are mandatory.
Sole Proprietorship	A sole proprietorship structure offers complete operational autonomy. The proprietor assumes sole liability for all financial commitments of the enterprise.	No need for initial share capital. It is only necessary to enroll in the business register if the yearly sales are above 100,000 CHF. A local address is needed.
Branch Office	A branch office of an international company in Zug is like opening a door to Switzerland for your international business.	No need for initial share capital as the branch is part of the foreign organization. Registration in the commercial register, providing parent company documents, and appointing a local representative are required.

Selecting the optimal enterprise structure hinges on the dimensions of your operation, its internal organization, and long-range objectives. Independent of the designated form, it's crucial to contemplate the legal and financial commitments accompanying your commercial venture.

Company registration procedure

Creating an entity in Zug is akin to entering the world of Swiss stability. The enrollment procedure entails distinct phases, each characterized by its own unique requirements.

Document preparation

Based on the company's selected legal structure (GmbH, AG, branch, etc.), a certain set of paperwork should be gathered in order to launch a company in Zug.

Articles of Incorporation: for GmbH and AG, a charter outlining the company’s objectives, management structure, and shareholder rights and responsibilities is required. This acts like your business passport, defining the company’s legal foundation.
Application for registration: includes main details about the organization, such as name, legal address, share capital, and founders' information. The company name must be unique and attractive.
Certificate of deposit: proof of the share capital deposit in a bank account as evidence of your financial reliability.
Identification documents of founders and directors: copies of passports and proof of residence for the company’s founders and directors. This set is submitted to establish the identity and residency of key company figures.
Consent to act as director: written consent from those appointed to directorship positions. Directors may either reside within Switzerland or be non-residents, but it is mandatory for at least one director to possess the legal right to live in Switzerland.

Application submission and commercial register enrollment

In Zug, submitting the application to the commercial register is the next step towards creating a corporation:

Submission of the application: The commercial registration of the Zug canton receives the prepared document collection. This may be completed online with a platform that lets you track the progress of your application and significantly speeds up the registration procedure, or on paper.
Verification of data: the register ensures that the papers provided meet all legal criteria. You might need to submit further information in the form of explanations or supporting evidence if more inquiries are made. Verification often takes two to four weeks, depending on how complicated the case is and how comprehensive the supplied documentation is.
Enrollment: following a successful verification procedure, the business is registered in the commercial register, as attested to by the relevant certificate. This certificate, which attests to the company's legal competence and permits it to begin activities, is your formal ticket to the market.

Notarization

Incorporating a business in Zug requires notarization of several documents.

Founding documents: notarization is primarily needed for the articles of incorporation and registration application. This verification confirms the legitimacy and regulatory adherence of the documentation. The notary verifies the correctness of the package and certifies it with their signature and seal.
Consent to act as director: written consent from those appointed as directors is required to confirm their voluntary acceptance of the director's duties.

Services for mailing and legal address

For company registration, having an address located in Zug is a compulsory prerequisite.

Corporate workspace acquisition: to establish a legal domicile, businesses can either lease conventional office space or leverage virtual office solutions. The workspace should align with the stated industry and adhere to all relevant local legal requirements.
Postal services: to facilitate business operations, companies can use postal services, including receiving and forwarding correspondence. These services ensure timely receipt of important documentation and business correspondence.
Legal address services: numerous legal and consulting firms provide options for establishing a legal domicile, enabling foreign investors to circumvent the necessity for physical presence in Zug. A legal domicile is essential for receiving official notifications and adhering to tax legislation requirements.

In Zug, incorporating a business requires completing certain procedures and following established legal rules. To legally form a corporation in Switzerland, the necessary paperwork must be organized, the application for enrollment should be filed, notarization should be acquired, and a valid business address must be established. The swift establishment of a business in Zug can be greatly expedited by quickly completing all required steps and enlisting skilled experts who can ensure the company's enduring success and prosperity.

Zug tax system

Zug is a sought-after region for business proprietors and global enterprises due to its attractive fiscal benefits. In this segment, we will explore the fundamental aspects of Switzerland’s taxation framework, highlighting corporate tax evaluations, favorable tax regulations, federal, cantonal, and municipal levies, along with other components of this area’s tax architecture.

General overview of the Swiss Tax System

Switzerland's fiscal framework comprises three tiers: federal, cantonal, and municipal. Every tier possesses its own revenue authorities, fostering a decentralized and adaptable framework that empowers the canton of Zug to establish its competitive tax levies.

At the federal level, the following main rates apply:

CIT: levied on corporate income at a tariff of 8.5%.
VAT: the standard rate is 7.7%, with minimized rates of 2.5% and 3.7% on certain goods and services.
Payroll tax: employers are required to withhold taxes from their employees' wages.

Federal, Cantonal, and Municipal Taxes

Similar to all Swiss cantons, Zug possesses the authority to establish its own tax rates and levy supplementary taxes. The primary regional and municipal taxes include:

Cantonal Corporate Tax: in Zug, this tax has a particularly low rate of 11.8% on corporate income, making it attractive for businesses.
Municipal property tax: the taxation amount hinges on the company's geographic location and can vary greatly across different localities.
Municipal profit tax: additional taxes levied by municipalities can increase the overall tax burden on companies.

To determine the total tax rate in Zug, one must consider the combined rates of federal, cantonal, and municipal levies.

Tax advantages and exemptions

Zug presents a wide range of tax advantages and exemptions, making business registration here especially attractive:

Holding companies: entities receiving a significant portion of their income in the form of dividends from subsidiaries or capital gains may be exempt from cantonal corporate tax. This provides substantial financial benefits and strengthens their market position.
Innovative and research projects: businesses involved in pioneering and investigational work can gain from fiscal benefits and waivers. These benefits help reduce the tax burden and stimulate the development of high-tech industries, supporting technological progress and attracting smart investments to the region.
Double taxation treaties: Switzerland has signed over 100 treaties to avoid double taxation, significantly reducing the tax burden on international companies operating in Zug. This makes Zug an excellent starting point for global business, lowering costs and improving financial results.

Consequently, incorporating a business entity in Zug unlocks a comprehensive suite of tax incentives and optimizations. Zug's fiscal framework fosters an advantageous environment for enterprise growth and the acquisition of foreign investment, empowering companies to streamline their tax obligations and achieve cost efficiencies.

Establishing a business banking account for companies incorporated in Switzerland

Setting up a corporate banking account is crucial for efficiently managing a business in Switzerland. This process involves several critical steps, each with specific criteria to meet and documentation to provide.

Steps for opening an account

Document preparation

To open a commercial banking account for a company located in Zug, the necessary paperwork includes:

Founding documentation: the company's charter, registration certificate, minutes of the founders' meetings confirming the appointment of directors and other key individuals. These documents function as your credentials for entry into the Swiss corporate landscape, verifying the legality and framework of your organization.
Identification documents of directors and beneficiaries: copies of passports and proof of residence for the company's key figures. This documentation verifies the identification and legal standing of the personnel assuming liability for the company's functionalities.
Business plan: certain financial institutions might require a comprehensive business plan that delineates the company's operations, revenue streams, and projected financial metrics. A business plan serves as your strategic roadmap, effectively showcasing an institution's growth trajectory and operational framework of your venture.
Financial disclosures: established corporations might need to furnish financial statements spanning several years. These papers demonstrate the monetary solidity and openness of your organization.

Selection of the form and submission of the application:

In Switzerland, selecting a financial institution is more than a mere procedural step; it's a deliberate choice. The nation hosts a diverse array of banking establishments, ranging from prominent global leaders to the local banks of Zug's canton.

Reputation and sustainability: find a bank with an impeccable reputation and a stable monetary position. Such a bank will be your reliable partner in the world of finance, ensuring the security of your funds and the stability of operations.
Terms of service: learn about corporate account rates, online banking and access to various banking services. Comfortable and affordable conditions of service will simplify the management of finances and allow you to concentrate on the development of the business.
Specialization of the bank: some banks offer specialized services for specific industries, such as foreign trade or innovative technologies. These offers can be an added benefit to your business by providing unique solutions and support.
Application for account registration: after choosing a bank, you should apply for the opening of a corporate account. You can do this personally in the office of the bank, through its representative office or use the online form, which will allow you to choose the most convenient way of interaction.

With these in mind, you have the freedom to select the bank that aligns perfectly with your business requirements and will help you to successfully develop your entity in Switzerland.

Conducting an interview:

Many Swiss banks require the personal presence of the company's founders or representatives to conduct an interview. It's like a high-level interview: the bank wants to verify the legitimacy of the business, its purposes and sources of funding. During the interview, questions can be asked about the company's activities, structure and monetary operations.

Document verification and conformance with KYC and AML requirements:

Opening an account in Switzerland is strictly regulated by AML legislation and the KYC protocols. The Bank shall carefully verify the documentation received for compliance with these requirements. Additional documents or clarifications may be requested during the verification process.

Establishing an account and granting access:

After successfully passing all checks, the bank opens a corporate account. The client gets access to the account and the ability to conduct financial transactions. The following services may be provided at this stage:

Remote finance management: the ability to manage the account over the Internet provides convenience and speed of execution of transactions.
Corporate bank cards: the issuance of credit and debit cards for the employees of the company facilitates the running of the business and simplifies the settlements.
Advanced banking services: banks can offer you comprehensive solutions, including asset management, investment advice and currency exchange services, helping you to plan and develop your business more effectively.

Establishing a business in Switzerland necessitates thorough planning and adherence to all guidelines. The smooth beginning and running of a business in Zug depends on each and every stage, from paperwork preparation to interviewing and account opening. Zug is a popular destination for global business travelers because of its excellent banking services and tax structure, which make it an ideal place to register a business.

TOP-5 banks for business in Switzerland

When establishing a business in Switzerland, selecting a bank is a crucial step towards effective financial administration. Among the many financial institutions offering services to corporate clients, there are five leading banks renowned globally for their stellar reputation and extensive array of services ideally tailored to diverse business requirements.

UBS (Union Bank of Switzerland)

UBS stands not only as a cornerstone of the Swiss banking sector but also as an emblematic provider of top-tier financial services. Renowned for its pioneering approaches and advanced technological solutions, the institution simplifies and enhances financial management with unparalleled efficiency.

International reputation: UBS serves customers worldwide, guaranteeing a high level of security and privacy.
With a wide range of services, from asset management to investment products, loans and currency transactions, UBS offers everything you need for a comprehensive financial service.
Innovation and technology: sophisticated solutions in digital banking and mobile apps streamline access to banking services, enhancing convenience and efficiency in financial management.

Credit Suisse is another Swiss banking giant known for its powerful investment services and asset management. This financial institution will prove invaluable to firms aiming for strategic advancement and global expansion.

Investment banking: securities issuance, mergers and acquisitions, strategic consultancy.
Asset management: premium offerings catering to personal and corporate clientele.
Global presence: a wide network of branches and offices worldwide.

Julius Baer is synonymous with the Swiss banking tradition focused on the asset management of wealthy customers. The Bank also offers corporate banking services tailored to business needs.

Asset management: an individual approach to each client.
Confidentiality and security: high standards of customer data protection.
Emphasize innovation: consistently introducing fresh technologies and services.

Zürcher Kantonalbank is the biggest canton bank in Switzerland, offering reputable and stable monetary solutions to both private and corporate clients.

Regional stability: support for the canton government of Zurich.
Comprehensive banking services: lending, investment, asset management and insurance.
Support for small and medium-sized: special programs and services.

Raiffeisen Switzerland

Raiffeisen is the third largest banking group in Switzerland, known for its cooperative principles and strong national support.

Cooperative framework: a unique model of bank management and ownership.
Local support: extensive network of branches across the country.
Focus on sustainability: investment and lending based on environmental and social criteria.

When registering a company in Switzerland, the choice of a suitable bank for corporate finance is an important step. Zug offers unique opportunities thanks to advanced banking services provided by such leaders as UBS, Credit Suisse, Julius Baer, Zürcher Kantonalbank and Raiffeisen Switzerland. These banks provide high-quality solutions and a wide range of services, which contributes to the successful operation and development of your business.

Extra obligations

Opening a business in Zug requires compliance with a number of additional requirements stipulated by Swiss law. These obligations include accounting, financial statements, the submission of annual tax returns, the holding of board meetings and confidentiality and publication of shareholder information. This section discusses each of these aspects in detail to provide an understanding of the key commitments for the successful operation of the company in Switzerland.

Accounting and financial reporting

Business in Zug, as in all of Switzerland, starts with the organization of competent accounting and timely preparation of financial statements. It is not just a bureaucratic necessity, but the basis for strategic planning and management of the company. Every financial transaction, whether it involves income, spending, possessions, or debts, should be meticulously recorded to ensure a comprehensive grasp of the business's financial standing.

Swiss firms have the option to select either the International Financial Reporting Standards (IFRS) or Swiss GAAP. Their yearly financial reports must encompass:

Balance: reflects the current financial position of the company.
Profit and loss report: shows how a company deals with profits and losses over a given period.
Cash flow report: provides a detailed picture of cash flows.
Explanatory note: supplements the main reports by providing additional explanations and details.

It is required that all documentation be prepared in one of the official languages of Switzerland or in English and be kept on file for ten years or longer.

Mandatory monetary statement audits are obligatory for certain business entities such as GmbHs and AGs. Entities exceeding specified thresholds in revenue, assets, or workforce are subject to these conditions. The Swiss audit supervisory authority ensures the impartiality and correctness of monetary information, necessitating audits conducted by independent auditors registered with them.

Annual tax declaration

Zug also requires registration and the filing of an annual tax return. Federal, cantonal, and municipal reporting are mandated for all registered businesses. The typical tax rate in Zug falls within the range of 12 to 14 percent. Local and cantonal taxes exhibit variability, while the federal income tax stands at 8.5 percent. As a result, Zug's overall corporation tax rate typically ranges from 20 to 22 percent.

The yearly tax return must be finished within six months of the business's fiscal year ending. This report includes the calculation of taxable earnings along with a breakdown of all revenue and expenses. Companies may choose to request an extension for filing as long as they ask for it in advance and have good justification for doing so.

Shareholder disclosure and confidentiality

A company should also adhere to Zug's rules concerning privacy and the disclosure of shareholder data in order to complete its registration. According to Swiss legislation, AGs must maintain a register of shareholders encompassing details on the shareholders and their shares. To uphold strict confidentiality, this information is exclusively accessible to governmental officials and approved personnel within the entity. They are not, however, publicly available.

In addition, companies are required to provide information about beneficiary owners (persons who actually control the company) to the relevant registration authorities. These data are also not publicly available, but must be available for verification by tax and law enforcement authorities upon request.

Respecting all of these rules—from tax returns and secrecy to accounting and financial reporting—not only guarantees the legality and transparency of the company's activities, but it also contributes to its long-term development and prosperity in the Swiss market.

Conclusion

Choosing to start a business in Zug gives you access to opportunities such as stable political conditions, low tax tariffs, and worldwide marketplaces that are hard to obtain elsewhere. Although establishing a business here might appear challenging, it provides a strong basis for your firm to succeed in Switzerland.

Preparing all necessary documentation, such as component papers and the certificate confirming the deposit of authorized capital, marks the initial phase. It's akin to laying the foundation stone for constructing your commercial realm. Subsequent tasks involve opening a corporate bank account, confirming the company's legal address, submitting to the Commercial Register, and authenticating documents. These steps are essential for your company to actively engage in the Swiss market.

Our specialists are ready to assist you at every stage of company registration in Zug. We offer a full range of services – from document preparation to tax and administrative advice. Contact us through the "Contact" section on our website and together we will make your business in Switzerland a reality.