Italy is a pillar of the European Union’s economy due to the large number of foreign investors it attracts every year. The Government is also aware of the importance foreign investments play in Italy’s economy which is why it provides numerous tax incentives to businessmen all over the world. Among the incentives provided by the Government, the most notable are in the tourism, food industry, agriculture and manufacturing sector. Italy does not only provide diversity in terms of the investment sectors, but it also has diversity in the types of companies one can register there.
Our lawyers in Italy can help you select the right type of company for incorporation. We invite you to watch a short video about how to open an Italian company:
What are the available types of companies in Italy?
Considering most foreign enterprisers are interested in setting up small and medium sized companies in Italy, the forms they can establish are:
- - joint stock companies (Società per Azioni , SPA),
- - limited liability companies (Società a Responsabilità Limitata , SRL),
- - partnerships limited by shares (Società in Accomandita per Azioni , SAPA),
- - general partnerships (Società in Nome Collettivo, SNC),
- - limited partnerships (Società in Accomandita Semplice , SAS),
- - cooperatives (Società Cooperativa) ,
- - sole proprietorships (Imprenditore Individuale),
Each type of company must be registered according to some requirements. Among these are the share capital and accounting requirements.
What are the main requirements to open a company in Italy?
When setting up a business in Italy one must take into account the minimum share capital required. According to the Italian Commercial Code, joint stock companies and limited liability companies are required to deposit a share capital before the company is registered with the Commercial Register in Italy. Joint stock companies are required to have minimum share capital of 120,000 euros, while limited liability companies must have a minimum share capital of 10,000 euros of which only 2,500 euros must be deposited prior to registration.
Company registration procedure in Italy
In order to register a company in Italy, the next steps must be followed:
- - draft the company’s memorandum and articles of association and notarize them,
- - purchase the corporate and the accounting books,
- - deposit all documents with the Register of Enterprises.
Together with the certificate of incorporation, the company will also receive a tax identification number and a VAT number.
Once the company is registered, there are a few more steps to follow before commencing operating:
- - registration with the Social Security Administration and the Accident Insurance Office,
- - notification of the Labor Office for the employment of workers.
The whole registration procedure takes about seven days. For information about business start-up costs, you may refer to our Italian law firm.