Italy has recently taken new steps to position itself as a welcoming home for foreign investment. The result is that Italy is emerging as a land of opportunity, although you will need specialist local advice to help navigate your way through the bureaucracy.
If you’re considering how to set up an Italian company then please contact us for expert advice and information.
A summary of Italian Corporate Taxes is available here.
Frequently Asked Questions about Italy
What are the most common types of formation in Italy?
The following forms of entities are the most popular to incorporate in Cyprus:
– Limited Liability Company (SrL)
– Private Limited Liability Company (SpA)
– Branch
What are the main features of a Italian Limited Liability Company (SrL)?
– The most popular format for small to medium businesses
– The minimum share capital is €10,000
– There are 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, however it is best to have a minimum of two shareholders.
Otherwise the company will have to have the words ‘Società Uninominale’ in its title, and its liability will be automatically deemed to be unlimited.
What are the main features of a Private Limited Liability Company (SpA)?
– This is the main format for medium to large companies
– The minimum share capital is €120,000
– The minimum number of directors is one
– There are no restrictions on foreign shareholders
– Audited accounts should be filed with the Registrar of Companies
What are the main features of a Branch in Italy?
– The foreign parent is responsible for all liabilities of the Italian Branch
– A minimum of one director is required
– Accounts must be maintained but there are no reporting requirements
How easy is it to set-up a Company or Branch 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
– Execute 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 Italian Company and Branch registration and will help you every step of the way, so please contact us.
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 are in abundance, 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 with this.
What is the regulatory environment in Italy like?
Capital and dividends can be freely repatriated in line with EU rules and there are 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 also apply in the telecommunications sector.
How easy is it to close and Italian Company or Branch?
Please contact us if you’re looking to close your existing Company or Branch in Italy.
What about banking facilities in Italy?
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.
For assistance with opening a bank account in Italy, please contact us.
Are there any financial available for Italian Company or Branch 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 the total costs
– Low-interest loans for enterprises that encourage exports of Italian goods
