Open a Company in Italy

Do you want to open a company in Italy? All you need to know is here.

Italy is one of the largest states in the European Union and among the most important for the greatest attraction of foreign investments.
The Italian know-how and the Made in Italy are the essential resources of the country, together with a cultural and landscape heritage among the most important in the world.
The middle of the Mediterranean Sea location allows the country to be a gateway to the East and Africa.

Which company model you can choose.

Italian law allows the opening of:

• SRL or SRLS Limited Liability Company or Simplified Limited Company
• SPA Public Limited Company or Stockholding Company
• SAPA Limited Partnership with a share
• SNC General Partnership
• SC Cooperatives
• DI Sole-trader

The first two types are the most used and preferred, thanks to the limited responsibility of the members and the ease of use for any business.

The S.r.l. is the type of company most frequently chosen by small and medium enterprises.
You can choose to set up a multi-person or single-person SRL depending on whether there are one or more partners.

The members can also be persons or companies, including foreign ones.
The share capital can be paid starting from one euro upwards (Banks will look more favourably at companies with significant share capital to assess the real propensity to the business and the opening of a credit report).

The S.r.l. is the preferred form in the case of a foreign company that wants to create a subsidiary or a permanent establishment.

What you need to do to open a company in Italy.

Whether you are an individual or a foreign company, our lawyers will guide you along the process to open a company in Italy and start a business in just a few steps:

• We will prepare all the necessary documents such as the articles of association and memorandum of understanding, the company directors’ specimen signatures, affidavits, due diligence, documentation translations etc.
• You will give us a power of attorney to represent you in front of the notary who will stipulate the public deed of incorporation.
• We will instruct the accountant to prepare the accounting activities necessary for the company, including the registered office, bookkeeping, VAT and TAX code.
• We will assist you in completing all the necessary documentation for the opening of a current account

If you want further assistance from us we can also:

• assist you in finding the ideal location for your business
• assist in drafting commercial contracts, rental contracts, agency agreements, acquisitions, etc.
• assist on international tax law matter
• assist you in Corporate law, M&A and Private Equity;
• assist you in drafting request for benefits and funds provided by the Government.

Are you a foreign citizen or a foreign company and do you want to incorporate a company in Italy?

You can choose different forms to do business, some of these, such as the simplified company and the start-up, allow you to get tax benefits and reductions.

A foreign company that wants to choose to settle in Italy can do so through one:

• Branch: which depends entirely on the international company and which must carry out activities strictly connected with the parent company;
• Soft-Branch: which depends entirely on the foreign company and which must carry out only preparatory or auxiliary activities to the main activity carried out abroad;
• Subsidiary: is a company with full powers controlled by the foreign mother that can carry out any business;
• Representative office: useful if the international company wishes to entertain relations of representation (e.g. product demonstration, market analysis etc.

Both in the case of persons and the case of foreign companies, the directors do not have an obligation to reside in Italy.

Nevertheless, it is increasingly common for countries to challenge directors who manage companies abroad just to save money due to low taxation (Treaty shopping).

Therefore, it will be the case to assess the country of origin’s requirements or appoint a local director.

Average Costs of the incorporation of an SRL.

• Legal Assistance and Notary fees: start from €1,000; fees may vary depending on the complexity of the activity and type of company chosen;
• Translation service (if required): start from €500; fees may vary depending on the complexity of the activity;
• Taxes for incorporation: about €600
• Accountant fees: start from €100-200 per month; fees may vary depending on the activity’s complexity.

FAQ.

1. Q: I am a foreign company, can I set up a Simplified SRL? A: No, the simplified company can only be made up of individuals.
2. Q: I want to open a Simplified SRL, can I adopt Articles of Association and Memorandum of Understanding that is right for me? A: No, in the case of SSRL, AoA and MoU are established by the Ministry of Economic Development and cannot be modified.
3. Q: In case of Simplified Limited Liability Company, shall I pay the Notary? A: No, in that case, Notary’s assistance is free.
4. Q: I’m a foreign company which sells to mixed (Italian) clients (privates and companies) with an estimated turnover above 35.000€. Do I need to open an Italian Subsidiary? A: No you don’t, in this case, you must open just a tax position in Italy and get an accountant.
5. Q: Can I open an Italian Company from abroad? A: Yes you can by giving us a Power of Attorney notarized and apostilled from your local Consulate or with an affidavit from your lawyer in English.
6. Q: If I open a branch of a foreign company do I need the Notary and the Accountant? A: Yes, the formation and the management of a branch is the same as a Limited Liability Company.

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