Holding companies in Zug

The word is derived from the English word "to hold" that in this case means "to possess". The holding companies are in fact born with the objective to hold quotas to other local or foreign companies.

The term "Holding" means those companies the main objective of wich is long-lasting management of investments of the other enterprises. Despite the other Swiss Cantons, the Canton Zug does not demand that the Holding should be established only as a company managing the other companies. It's enough that the activities of Holding consist mostly of investments and of profits prevalently coming from the investments income.

Switzerland, the Luxembourg, Spain and United Kingdom are only four examples of jurisdictions that offer extremely interesting fiscal advantages for the holding companies.

OTHER ADVANTAGES OF THE HOLDING COMPANIES

One more advantage is offered by the more flexible money use. Any holding can in fact become the safe of a company. As in the theory of the communicating vessels, the excessive "liquid" of one company can be used in favour of the other companies using the method of the mutually beneficial management basing on the fiscal advantage system.

The Canton Zug offers a good governmental support and valid administrative infrastructures. Many famous companies have the own head office in Zug, and they prefer the Canton of Zug for the low fiscal aliquots and favourable business climate.

The Holding and the domiciled companies (so-called companies with the head-quarters wich do not have commercial activities in Switzerland) pay annually only the cantonal and local taxes deducted from a nominal capital (share capital registred at Chamber of Commerce is assumed as the initial capital). The interest is about 0.24%. This means that a campany with a registered (authorized) capital of CHF 100'000 pays both cantonal and local taxes which are intotal about CHF 240 (EURO 150). The company does not pay taxes from the profit.

At the federal level, the holding and the domiciled companies in Zug are equivalent to the other companies and pay 8,5% of the profit, while there is no tax paid on the nominal capital.

To get such fiscal benefits, a company must carry out its activities (for example, import-export operations) mainly outside Switzerland.

The holdings registered in canton Ticino, now have the special conditions of the taxation equated to the offshore companies. Their taxation leaves in total CHF 1'000.-- in a year.

Concerning the international relationships, the holding companies have the right to refund the foreign taxes from a foreign source on the base of international trade agreements to avoid the double imposition to a limited interests and dividends and on the other income as they are imposed like tax profits.

We can constitute a new holding for you in approximately one week, for a very fair honorarium. If you need further assistance, which of the Swiss directors, management or fiscal consultants, real estate services, residential permissions, we will be glad to supply you the best available professionals.