The domicile address in the canton of Zug — regulations and useful information for companies

The canton of Zug is for numerous reasons one of the most popular locations for companies worldwide. It's no wonder that many companies choose to have their headquarters in the heart of Switzerland. It is also not surprising that there are numerous providers for company domicile addresses. However, not every provider is legally compliant, and the services and prices can vary significantly.

In this article, we explain what you should consider when choosing your official company domicile, which legal regulations must be complied with, and how to avoid unexpected extra costs.

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Legal basis for domicile addresses in Switzerland

The basis for the regulation of legal domiciles for legal entities is the Commercial Register Ordinance (HRegV). Key provisions can be found in article 117, which determines what information a legal domicile must contain and which requirements apply for the domicile address with and without c/o in Switzerland.

Definition of company domicile

A company domicile, also known as legal domicile or registered office, is the address at which a legal entity can be reached at. Every Swiss company is obliged have such an address.

Tip: From the very first step in the incorporation process of a Swiss business, namely when opening a share capital account, you need to provide this legal company domicile address.

Legal domicile requirements

In accordance with article 117, paragraph 2 HRegV the domicile address for legal entities in Switzerland must contain the following information:

• street
• house number
• zip code
• municipality name

This information ensures that the company can be clearly located and that messages of all types can be delivered. A pure P.O. Box address does not meet these requirements.

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Own offices vs. c/o addresses

Official business addresses may be the legal entity's own offices or a c/o (“in care of”) address. An own office means premises that the legal entity actually has access to and which forms the center of the firm's administrative activity.

If, on the other hand, a company does not have its own offices, it must provide a c/o address. This address is provided by a domicile provider. It is important that the domicile provider must make a declaration that grants the legal entity a domicile. It is also important that the domicile recipient, Sample LLC, always provides her address accordingly, as Sample LLC does not have to be identified on the respective mailbox. Letters to Sample LLC must therefore be addressed with c/o to the name and address of the domicile provider. You can read here how to address mail to c/o addresses correctly, including examples.

Role of the domicile provider

Domicile providers can be both natural and legal persons. Its main task is to provide the registered legal entity with an address that can be registered as a legal domicile. When entered in the commercial register, a declaration from the domicile provider must be submitted, which confirms that the legal entity can be reached at this address.

Special rules in case of suspicion of false information

If the commercial registry office suspects that an address registered as a legal domicile is actually a c/o address without being declared as such, it may ask the company to provide appropriate evidence. These can be rental contracts or land register extracts that prove that the domicile address represents an actual office the company has access to.

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How much does a corporate domicile address in Zug cost?

For addresses with c/o as legal domicile, there are numerous very low-priced offers in Zug. These are available starting at around CHF 70 per month. However, beware, as this often does not include mail forwarding, which you absolutely depend on for this type of company headquarters. Legitimate providers therefore start at around CHF 130 per month for this type of address.

The offers for domiciliation addresses with the provision of office spaces, and your company name on the mailbox, range from around CHF 200 to CHF 800 per month. You should be skeptical about cheaper offers, as either:

• No actual office space exists or they are not made available to you
• Numerous extra costs, e.g. for the digital forwarding of company mail, are not yet included in the price and will be added
• Other extra costs, expected to be listed in fine print, will be added
• The availability and reliability of providers may be poor. We know many stories, first- and second hand, from providers who are rarely on site, which can lead to poor access to your company mail and cause you headaches and complications. The loss of company mail by these 'discounter domicile providers' also doesn't seem rare.

At the upper end of the price range for company domicile addresses in Zug, you will find large international service providers, such as Regus, or socalled 'Treuhand-offices'. In the latter case, these are qualified experts who charge correspondingly high hourly rates for their services.

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How to make the right choice for your company domicile in Zug

Apart from the price, it's worth considering the following aspects to ensure that you choose a reputable and reliable domicile address provider:

1. In the case of a domicile address without c/o, will I be issued a rental contract?
2. Will meeting rooms be provided for shareholder meetings and similar occasions, which should always be held at the company headquarters?
3. Is mail received and forwarded reliably when you are not present yourself?
4. Can you also come by spontaneously and expect to receive your company mail?
5. Does the provider already have hundreds of business customers at this address?

While these basic questions are of course the most important ones, we at Office Group Zug recommend that you consider something else, because a domicile address can also be more than your official place of incorporation under organizational law.

The ideal provider of your domicile address can also help you with many questions and concerns. He is your point of contact for all corporate, accounting and legal questions. It is a place where you like to be, that promotes your productivity and helps the growth of your company.

Our team at Office Group Zug consists of entrepreneurs who have already done everything from incorporation, accounting, tax return, transfer of registered office to liquidation. Although we are not legal advisors (nor do we charge as such), we have a lot of experience and even more relevant contacts in our network, which we are happy to make available to our clients.

So don't hesitate. Let's get in touch and design your ideal company setup in the canton of Zug.