Switzerland has long been synonymous with financial stability, innovation, and business-friendly governance. Among its 26 cantons, Zug stands out as a preferred jurisdiction for technology companies, including startups, scale-ups, and blockchain pioneers. Here’s why Zug is a strategic destination to register a Société à responsabilité limitée (SARL), along with legal, regulatory, and tax insights.
Zug: The Swiss Tech and Crypto Valley
Zug earned the nickname “Crypto Valley” due to its early adoption of blockchain regulations and its ability to attract major players like Ethereum Foundation, Cardano, and Tezos. However, Zug is not just a crypto haven—it is a thriving ecosystem for fintech, AI, IoT, digital health, and clean tech.
Key advantages of Zug for tech companies include:
- Access to skilled multilingual talent (local + cross-border)
- Business-friendly authorities with fast processing times
- Central location in Europe with proximity to Zurich
- Favorable regulatory climate, especially for emerging technologies
- Predictable legal framework rooted in civil law tradition
Legal Form: SARL (Société à responsabilité limitée)
The SARL is the most commonly used legal form for SMEs and tech startups in Zug. It is similar to an LLC or Ltd. and offers founders limited liability protection.
Key Legal Features of a Swiss SARL in Zug:
- Minimum share capital: CHF 20,000 (fully paid in cash or contribution in kind)
- Minimum shareholders: 1 individual or legal entity
- Registered office: Must be located in Zug
- Director requirement: At least one Swiss-resident director with signatory authority
- Public register: Names of shareholders and directors are disclosed in the commercial register
Tech founders often set up a Swiss SARL in Zug to gain credibility with European investors and clients while maintaining a lean corporate structure.
Step-by-Step: How to Register a SARL in Zug
- Choose a company name and verify availability via the Swiss Federal Commercial Registry.
- Prepare founding documents, including:
- Articles of Association
- Public deed of incorporation (signed before a Swiss notary)
- Shareholder resolutions
- Deposit the capital (CHF 20,000) into a blocked bank account
- Sign notarized documents in Switzerland (or by apostille abroad)
- Register the company with the Zug Commercial Register (Handelsregisteramt)
- Obtain a business identification number (UID) and register for VAT if annual turnover exceeds CHF 100,000
- Appoint a fiduciary or accountant for ongoing bookkeeping and tax filings
Damalion facilitates these steps through our network of local Swiss fiduciaries and notaries.
Zug Tax Regime: One of the Lowest in Switzerland
Zug is particularly attractive due to its competitive tax environment. The combined effective corporate tax rate (federal, cantonal, communal) in Zug is approximately 11.85%, among the lowest in Switzerland and across Western Europe.
Tax Breakdown for a SARL in Zug:
| Level | Type of Tax | Rate (%) |
|---|---|---|
| Federal | Corporate income tax | 8.5% |
| Cantonal/Local | Effective Zug tax | ~3.35% |
| Total | Effective tax burden | ~11.85% |
Other Tax Advantages:
- No withholding tax on dividends to Swiss-resident shareholders (35% for non-residents, reduced via double tax treaties)
- Full participation exemption on capital gains and dividends from qualifying subsidiaries
- Patent box regime and R&D super deductions under FATR III tax reform
- No capital duty on contributions up to CHF 1 million
- VAT rate of only 8.1%, below the EU average
Many tech companies also benefit from inter-cantonal tax rulings and IP licensing strategies tailored to Swiss law.
Zug: A Strategic Gateway for Tech Scale-Ups
For technology entrepreneurs, Zug offers a low-risk, high-trust jurisdiction with legal certainty, access to global capital, and favorable exit options through Swiss or international M&A.
Notably, many companies begin in Zug as holding or IP companies and later scale operations across the EU or globally. Zug SARLs are often used as:
- IP and royalty management entities
- European headquarters for global software companies
- Investment vehicles for VCs and family offices
Ready to Register a Tech Company in Zug?
Damalion assists international tech entrepreneurs and investors in registering their Zug SARL efficiently. We support Swiss bank account opening, Swiss fiduciary introductions, legal coordination, and post-incorporation support tailored to your sector. Please contact your Damalion expert now.
10 best hotels to book in Zug during your 24 hour business trip!
For busy professionals visiting Zug, Switzerland, efficiency and comfort are key. Here are the top 10 hotels perfect for a 24-hour business trip—each offering quality, convenience, and business-friendly amenities. Click on any hotel name to visit its official website.
- Park Hotel Zug – A 4.5-star hotel in the heart of Zug with modern business facilities, wellness amenities, and excellent dining options.
- City-Hotel Ochsen Zug – Centrally located at Kolinplatz, this classic business hotel offers comfort, high-speed WiFi, and great service.
- Hotel Löwen am See – Overlooking Lake Zug, ideal for business travelers seeking relaxation after meetings.
- Hotel Zugertor – Conveniently located near the train station and old town, offering spacious rooms and professional ambiance.
- City Garden Hotel – A boutique 4-star property offering sleek rooms, business services, and proximity to financial offices.
- SwissEver Hotel Zug – Located in nearby Cham, this hotel is budget-friendly and features conference rooms and a brasserie.
- Hotel APART – A stylish design hotel with modern meeting facilities, ideal for short business stays.
- Guggital Hotel & Restaurant – Located on Zugerberg hillside, combining panoramic views with quiet business retreat vibes.
- La Colombe Boutique Hotel – A charming and elegant boutique hotel in Zug’s old town, offering privacy and calm work spaces.
- Gubelhof Suites – Luxury serviced apartments perfect for business travelers needing space, flexibility, and central access.
