In the meantime, Hagelin increasingly grew irritated by the restrictive laws and high tax burden in Sweden. It was his intention to sell machines to countries like Indonesia, Turkey and Egypt, but the Swedish intelligence service FRA did not approve them. After a short business escapade in 1949 with Dr. Edgar Gretener in Switzerland — they jointly developed the TKG-35 — he decided to move his business there. It would bring him closer to the action with fewer export restrictions.



In 1948, Hagelin had bought a villa in Zug (Switzerland) to which he had moved with his family prior to starting the cooperation with Dr. Edgar Gretener . The joint venture with Gretener did not last, and was terminated in less than a year. Hagelin then started developing new machines from his house in Zug, using two engineers: Lindmark – the primary engineer of the Stockholm factory – and Oskar Stürzinger – Gretener's main engineer – whom he had been able to lure away.



For the time being, new machines, like the C-52 and CX-52 , were developed in Switzerland and manufactured in Sweden. In 1952, Crypto AG was officially opened, with Oskar Stürzinger and his wife Emmy as the first two employees. Over the next couple of years, additonal buildings were added and in 1956 Sture Nyberg moved with his family from Stockholm to Sweden to become the new plant manager in Zug. In 1958, the old AB Cryptoteknik in Sweden was officially liquidated.





In the following years, business went well for Crypto AG CX-52 was well-received and sales figures were on the rise. Boris's son – Bo Hagelin jr. – would soon move the USA to handle sales in North and South America. By 1966, the premises in Zug would have become too small.