The foundations for the establishment of RUAG were laid in 1997 when the Federal Act on Federal Armaments Companies (FArmCA) was passed. This law authorizes the Swiss Confederation to operate armaments companies and, for this purpose, to found, buy or acquire a stake in joint-stock corporations in order to secure the supply of equipment to the armed forces. In 2020, following the unbundling of the business areas performing services for the Swiss armed forces into a separate holding, RUAG International Holding AG has become an international oriented group focusing on the aerospace business. In 2022 the companies of RUAG International Holding AG focusing on space business have rebranded into Beyond Gravity.
The Swiss Confederation, which holds all the equity capital of RUAG International Holding AG, exercises its interests in the RUAG Group through the Federal Council. As part of its "owner's strategy" (Strategic objectives of the Federal Council for RUAG International Holding Ltd), the latter formulates its expectations of the RUAG Group over a period of four years at a time.
In addition to specifying the legal form, registered office, purpose and capital of the company and of the RUAG Group, the Articles of Association of RUAG International Holding Ltd also define their organizational structure, tasks and competencies in particular.