Company Formation

Welcome to Zug: The Perfect Business Hub

Zug Canton, situated in central Switzerland, is more than just a picturesque location—it's a powerhouse for international business. Known for its low taxes, thriving economy, and strong infrastructure, Zug attracts entrepreneurs, multinational corporations, and tech startups alike. Whether you’re launching a startup, expanding your business, or seeking a tax-efficient headquarters, Zug offers a world-class business environment.

Switzerland is renowned for its stable and reliable banking system, making it an ideal destination for both Swiss and foreign companies looking to open business bank accounts. Traditionally, Swiss banks primarily served companies based in Switzerland; however, they are now accommodating businesses from around the globe. Whether you plan to incorporate your business in Switzerland or are seeking a secure banking solution for your operations, understanding how to open a Swiss bank account is crucial.

On December 10, 2024, the Council of the European Union approved the FASTER directive (Faster and Safer Tax Relief of Excess Withholding Taxes), which aims to reform the withholding tax refund system. This initiative's main goals are to enhance transparency, reduce administrative burdens, simplify tax regulations for investors, and combat tax abuse. These new rules will create a more favorable environment for cross-border investments while protecting national budgets across EU member states. Key Changes Introduced by the Directive are following:

Digital Platform Taxation

Starting January 1, 2025, Switzerland is implementing a fundamental transformation in how digital platforms are taxed. Under the new regulations, digital platforms facilitating sales of goods will be considered the direct supplier for VAT purposes, creating a dual-transaction system where platforms act as intermediaries between sellers and buyers.

Introduction

Crowdfunding has become a popular way to fund projects, support startups, and connect with investors worldwide. In 2022 alone, global crowdfunding platforms raised over $17 billion, demonstrating the growing importance of this financing method. Switzerland, known for its financial stability and innovation, is no exception to this trend. In this guide, we will explore what crowdfunding is, how it works in Switzerland, the different models available, and the legal framework governing this fast-growing sector. 

Switzerland's extensive network of Double Tax Treaties (DTTs) plays a vital role in international business operations, making it an attractive jurisdiction for global companies. Here's what you need to know about Switzerland's approach to preventing double taxation and facilitating cross-border business activities.

1. Overview of Swiss Double Tax Treaties

Switzerland maintains one of the world's most comprehensive networks of double taxation agreements, with:

In the complex landscape of Swiss business operations, managing payroll requires careful attention to detail and thorough understanding of local regulations. Whether you're a company expanding into Switzerland or an organization looking to optimize your existing payroll processes, here's what you need to know.
The Swiss payroll system is known for its emphasis on personal responsibility and relatively low burden of social contributions compared to other countries. It operates through a sophisticated structure that ensures both employee security and employer compliance.

Switzerland's corporate tax system includes federal and cantonal taxes. The total corporate tax rate includes federal income tax, cantonal income tax, and capital taxes. 

Federal Taxation

Legal entities for tax purposes are divided into two categories: 

1. Corporations (including stock corporations, partnerships limited by shares, limited liability companies), cooperatives, and SICAFs. 
2. Associations, foundations, legal entities, and collective investment schemes with direct real estate ownership.