SET UP IN BUSINESS IN ITALY
Introduction to the benefits of Italian incorporation
Still battling to shake off its reputation as an economic slow starter, Italy has recently taken new steps to position itself as a welcoming home for foreign investment. The result is that Italy is slowly emerging as a land of opportunity, although you will need specialist local advice to help navigate your way through the bureaucracy. We are experts at Italian company formation and Italy company registration, so please contact us if you require further information on how to set up business in Italy.
What are the main types of Italian company formation?
There are three major kinds of Italian incorporation for foreign investors, and they are as follows:
limited liability company (SrL)
joint stock company (SpA)
branches
What are the main features of an SrL?
most popular format for small to medium businesses
minimum share capital is €10,000
no restrictions on foreign shareholders
audited accounts to be filed annually
What is the minimum number of directors of an SrL?
One director is required for a Srl. It is, however, best to have a minimum of two shareholders otherwise if using just one shareholder only, the company will have to have the words ‘Società Uninominale’ in its title and liability will be deemed to be unlimited.
What are the main features of an SpA joint stock company?
main format for medium to large companies
minimum share capital is €120,000
minimum number of directors is one
no restrictions on foreign shareholders
audited accounts to be filed with the Registrar of Companies
What are the main features of a branch?
foreign parent responsible for all liabilities of Italian branch
minimum of one director required
accounts to be maintained but no reporting requirements
Is it complicated to set up business in Italy?
Establishing a company in Italy can be more complicated than other European countries, but like anything else, it is a matter of mastering the procedure. The formalities include the following:
arrange articles of association and memorandum of association
executive articles of association before a public notary
obtain an Italian tax code and identity document
open a local bank account
register for VAT
file with the Registrar of Companies
secure approval by a local tribunal
We are experts in Italy company registration, so please contact us to help you every step of the way, if you wish to set up business in Italy.
Italian Incorporation
How easy is it to recruit staff in Italy?
As a rule, it is easier to recruit staff in the underdeveloped south, where unemployment is high, compared to the wealthier north of the country. Recruitment agencies for permanent and temporary staff abound, however, and the workforce is generally of a high calibre. Labour laws strongly favour the employee and it is essential to take advice before entering into a contractual arrangement – we have a network of local experts who will be happy to help you on this point.
What is the regulatory environment like?
Much more liberal than it used to be. Capital and dividends can be freely repatriated in line with EU rules and Italy has a number of double taxation treaties. However, public authorities are weighed down with bureaucracy and the legal system is slow. Foreign ownership is permitted in all industries except for defence-related areas such as aviation and shipping. Certain restrictions apply in the telecommunications sector.
Italy Company Registration
Are there financial incentives available for Italy company registration?
Italy offers a variety of incentives for foreign and local investors alike. These include:
corporation and local tax breaks for ten years in areas of high unemployment
research and development grants covering up to 50% of total R&D costs
low-interest loans for enterprises that encourage exports of Italian goods
And what about banking facilities?
Milan is one of Europe’s foremost financial capitals and banking facilities across Italy are generally good. Efforts are underway to rationalise the many hundreds of independent local banks and facilities are expected to improve further once this process is complete. We will be happy to help you to open a bank account in Italy.
How can I get more information on Italian incorporation?
Our Italian company formation service makes it easy for you to set up business in Italy, so please contact us for further details.
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