Reputation and legitimacy

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Zug's business model depends on the acceptance of its companies by the societies in which they operate and by the Swiss public. That acceptance has been challenged repeatedly. Non-governmental organisations have criticised the commodity traders for their conduct in producing countries. The corruption cases against Glencore and other traders confirmed some of the criticism. The Russian sanctions linked the canton to an aggressor state, while the crypto boom associated it with speculation and fraud. The low taxes of the canton have been criticised by other countries as a form of tax competition that deprives them of revenue.

The canton and its companies have responded by improving their governance and compliance, by supporting transparency initiatives and by emphasising the substance and contribution of their activities. The Responsible Business Initiative of 2020, which would have made Swiss companies liable for human rights and environmental violations abroad, won a popular majority but failed to win a majority of the cantons, Zug among those that rejected it.¹ The counter-proposal introduced due diligence and reporting obligations for large companies. A new initiative on corporate responsibility was launched in 2025.² The legitimacy of the canton's business model will remain a subject of political debate in the coming decade.

Notes

Swissvotes, vote no. 636 "Konzernverantwortungsinitiative", swissvotes.ch: vote of 29 November 2020, 50.73 per cent Yes, accepted in 9.5 cantons and rejected in 13.5, among them Zug; failed for lack of a majority of the cantons. ↩
Koalition für Konzernverantwortung, "Geschichte", konzernverantwortung.ch/geschichte: new initiative launched on 7 January 2025 and submitted to the Federal Chancellery on 27 May 2025 with more than 287,000 signatures; SRF, "Neue Konzernverantwortungsinitiative ist eingereicht", 27 May 2025, srf.ch: submission with over 287,000 signatures, 183,661 collected within 14 days. ↩

For general information only. This article does not constitute legal or tax advice, does not replace advice on an individual case and creates no lawyer-client relationship. It reflects the legal position as of September 2025.

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Dr Alexander Ressos, TEP

Rechtsanwalt/Attorney-at-Law

I am a Swiss attorney-at-law and also admitted as a solicitor in Hong Kong and in England & Wales, with almost 25 years of experience.

Together with my multilingual team, including Chinese, Japanese, Korean, Russian, Ukrainian and French native speakers, I advise companies and their owners from around the world on the full range of banking, corporate, commercial and tax law matters in Switzerland, including international tax planning, fiduciary services, and legal family office services including immigration & relocation or real estate investments. My practice has a particular focus on clients from growth and frontier markets in Greater China, Central Asia and the Caucasus, the rest of Asia, the Middle East, Africa and Latin America, and I equally advise clients from Europe and North America. Through an affiliated Swiss trust company, we also take care of the incorporation and ongoing administration of their companies and other structures, including accounting, tax returns and corporate secretarial services, and I serve as a professional director where required. With the support of a network of first-class cooperation partners, I also implement solutions worldwide.

My approach is to act as a trusted advisor who works directly with decision-makers, on an equal footing: I start from what you want to achieve and shape every structure, contract and tax decision around your commercial goals and how it improves your after-tax return. As “lawyers who make it happen”, my team and I stay involved until your company is set up, your structure is in place and your transaction has closed, and we remain available for any follow-on work that may be required. You benefit from bespoke solutions and personal attention, and sound, friendly and practical advice. We are not the lowest-cost provider in the market, nor do we intend to be; our aim is to deliver well-founded, proper solutions and excellent value for money.

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Reputation and legitimacy

Notes

Setting up or expanding in Switzerland?