Buy an Italian company is the best way to invest in the Italian market growing your business worldwide.
Made in Italy has always been among the top targets of foreign investors thanks to the quality of the products and services that Italy offers on the world market.
Investing in an Italian company is undoubtedly an excellent opportunity to attack those sectors such as food, fashion, and high-tech that have always been the spearheads of Italian trade in the world.
Companies in Italy.
Italy’s company market is mainly composed of SME of the SRL type (Private Limited Companies or Limited Liability Companies).
More rare and used due to their considerable size are the SPAs (Public Limited Companies).
The SRL company form is the most used in Italy, even by companies with significant business volumes.
The characteristics of the SRL are:
– Share capital starting from EUR 1 divided into shares;
– Possibility of only one director, even foreign, natural, or legal entity;
– Possibility of a single shareholder, even abroad;
– Limited liability for debts incurred by the company;
– No limits for corporate purpose and purpose;
– Possibility of establishing the company without a notary in the simplified form.
Foreign investors can rely on the SRL if they do not need to introduce their business to the regulated market.
Find out more information about Italian company’s formation.
How to invest in the Italian Market
There are many ways to invest in the Italian market. For example, it is possible to enter into Joint-Venture contracts or carry out private equity transactions such as Venture Capital. Still, the solution most used by foreign investors is to acquire an Italian company by taking over its shares.
Buy an Italian Company – quick step’s guide.
It is important to identify the key points to buy a company in Italy. Advice from a Business Lawyer will be helpful to go through the process correctly.
What is the procedure for acquiring an Italian company?
1. Identify the target company to invest in;
2. Draw up a Non-Disclosure Agreement in order to process the necessary information;
3. Propose a Letter of Intent to the target company;
4. Draw up a Memorandum of Understanding;
5. Do legal, accounting, tax, and environmental due diligence;
6. Draw up a preliminary contract with covenants and representations and warranties;
7. Start the final Closing and post-closing acquisition procedure.
The long and complex process must also provide a careful assessment of the new corporate governance and aspects related to employees and management relations.
Tax Benefit of investing in the Italian Companies.
In order to incentivize investments in Italian companies with high growth potential, the Italian Government has provided for a tax reduction on income for subjects who participate directly in these companies.
For natural persons who invest in the company, the deduction varies from 19 to 30% for a maximum amount of EUR 1,000,000.
On the other hand, the deduction for a company that invests will be from 20 to 30% for a maximum of EUR 1,800,000.
The investor must be a natural person or company resident or active in Italy.
Those who invest in companies with high IP potential will also be entitled to benefit from the Patent box made available by the Government, which provides for deductions of up to 50% of the income generated by exploiting trademarks and patents.
Therefore, an opportunity is not to be missed because of the benefits that the Italian tax system recognizes to innovative companies and those that continue to invest in the area.