Open a Company in Italy

At Iacovazzi Global Business Lawyers, we empower entrepreneurs, startups, and established businesses to establish their presence in Italy, offering expert guidance on Italian company formation.

Whether you’re a startup or an established multinational corporation, establishing your business presence in Italy offers significant opportunities. The country’s robust workforce, combined with numerous incentives, makes it an appealing base for businesses looking to expand into European markets.

Italian Company law allows the opening of:

1. SRL Società responsabilità limitata (Limited Liability Company)

2. SRL Semplificata (Simplified Limited Company)

3. SPA Società per Azioni (Public Limited Company or Stockholding Company)

4. SAPA Società in accomandita per azioni (Limited Partnership with a share)

5. SNC Società in nome collettivo (General Partnership)

6. SAS Società in accomanda semplice (General partnership with share)

7. Società Cooperativa (Cooperative)

8. Ditta individuale (Sole-trader/sole proprietorship)

9. Benefit Corporation

10. Non-Profit Organization

11. Innovative Startup

The SRL and SPA are the most used and preferred, thanks to their members’ limited liability and ease of use for any business.

S.R.L. is the type of company most frequently chosen by small and medium enterprises that want to register a business in Italy.

Depending on whether there are one or more partners, you can choose to set up a multi-incorporator or single-incorporator SRL.

The shareholders can also be persons or companies, including foreign ones.

Share capital can be paid upwards of one euro (Banks will look more favourably at companies with significant share capital to assess their real propensity to the business and to open a credit line).

The S.R.L. is the preferred form for a foreign company registering a business in Italy that wants to create a subsidiary or a permanent establishment.

Whether you are an individual or a foreign company, our lawyers will guide you through the process of opening a company in Italy and starting a business in just a few steps.

a) We will prepare all the necessary documents, such as the articles of association and memorandum of association, the company directors’ specimen signatures, affidavits, due diligence, and documentation translations.

b) We will obtain a Tax code for each company shareholder and director and a company VAT number from the Tax Office.

c) You will give us a power of attorney to represent you in front of the notary who will stipulate the public deed of incorporation.

d) We will instruct the chartered accountant to prepare the accounting activities necessary for the company, including the registered office and bookkeeping.

e) We will assist you in opening the Italian Bank account and obtain the e-signature mandatory to sign the official company documents

When selecting a location for your business in Italy, various factors come into play:

• Market Access: Proximity to key customers and suppliers.
• Logistics and Infrastructure: Availability of efficient transportation networks.
• Cost of Living and Operational Costs: Consider the affordability of running your business in different regions.
• Local Regulations: Different cities and regions may have unique regulations that affect your business.

We help you analyze these factors to find the ideal location for your operations.

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

You can choose different business forms. Some, such as the simplified company and the start-up, allow you to receive tax benefits and reductions.

A foreign company that wants to establish its business 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: 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.).

The foreign company’s director does not have an obligation to reside in Italy.

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

Therefore, the requirements of the country of origin will need to be assessed, or a local director will be appointed.