Registration of a company in Italy

Italy is a good European jurisdiction for doing business. The country presents numerous opportunities for entrepreneurs in various industries, and it is also comparatively easy to open a company in Italy. This jurisdiction may be especially suitable for European businessmen or those who want to enter European markets. Prifinance specialists have prepared for you the condensed information about the state.

Major Types of Companies:

• Italian limited liability company (SRL) – the most popular and simple option for setting up a business in this country, including for non-residents. The liability of shareholders is limited to the amount of their contributions only. The minimum amount of the share capital – EUR 10 000.
• Simplified limited liability company is similar to SRL, but it is more flexible for small businesses as it should be governed by more simplified requirements to its operation.
• Joint-stock company (SPA) is more suitable for medium and large businesses who want to enter in stock markets. The minimum amount of the share capital – EUR 50 000.
• Limited partnership (SAPA) – should have one partner whose liability is unlimited and operates the business in whole and at least one partner whose liability is limited to the amount of one’s contribution to the partnership but who doesn’t take primary decisions concerning the company operation.

Requirements and Incorporation Steps

If you think about setting up a company in Italy, here is how the company formation procedure preliminary looks:

1. Making a business plan with the list of activities of the future entity (necessary for the overall clarity of the incorporation process and choosing the most beneficial tax regime for certain transactions).
2. Collection of information about founders.
3. Opening a bank account for depositing the share capital amount of the future company.
4. Preparing company bylaws and their notarization by a public notary.
5. Completing registration documents.
6. Submission of the registration documents to the Chamber of Commerce – company registration in the Italian Business Register.
7. Registration as a taxpayer – receiving a fiscal code and VAT number.
8. Registering as the payer of social security contributions to hire employees by the newly formed company in the future.

Legal and Regulatory Background

The registration and further operation of an Italian company are regulated by the Civil Code of Italy and related legislation. The recent tendency shows – this country improves its business legislation for making the company formation procedure easier and faster.

Taxation Peculiarities

The exact taxation regime and incentives vary depending on the type of activity. These are major highlights of the Italian tax system you may need to know now:

• VAT rate – 22 %
• Corporate income tax rate – 24 %
• A diverse range of tax rates for financial, banking, and insurance activities.

The exact rate depends on the type and peculiarities of a certain business. Prifinance specialists will consult you more precisely about that.

Possible Advantages of the Jurisdiction

After starting a company in Italy you may enjoy these advantages the jurisdiction has:

• The openness of the major European markets
• Proficient and flexible workforce
• Beneficial and flexible taxation
• Developed and comparatively stable corporate and other legislation
• Comparatively low incorporation expenses

Prifinance specialist can consult you about the company incorporation in Italy and any other country that may be suitable for your business. This assistance may cover not only standard registration procedures but also choosing the most favourable tax regime, opening a bank account, formalizing relations with employees, and dealing with other matters. Reach us shortly for discussing any matters that interest you in detail.