The Italian legislation
regulating the activity of the commercial companies
set up here prescribe that a local or foreign investor can change the type of the legal entity
under which his or her company
is carrying the current operations. The company type
can be modified in Italy
due to the fact that the legal entity
chosen when the business was incorporated no longer represents the interests of the investors. Our team of Italian lawyers
can offer legal assistance to the investors who want to carry their business operations in Italy
under the regulations of a different company type
Why change the company type in Italy?
Businessmen who are carrying business operations in Italy
can change the company type
at the moment when the current entity
no longer provides sufficient advantages to the business itself. At the same time, the business form
can be changed if another legal entity
can provide more financial advantages. The investor may be better represented under another company type
, in accordance with the roles he or she wants to assume; our team of Italian attorneys
can offer more details on the legal grounds under which the business form
can be changed here.
Change an Italian sole proprietorship into a limited liability company
One of the most common changes referring to the legal entity of the company
refers to the transformation of a sole proprietorship
into a limited liability company (LLC)
. The sole proprietorship
is the simplest way to perform business activities in Italy
. This entity is not a business form
, as there is no distinction between the investor and the company
. Moreover, the investor is liable for the debts incurred by the company and this provision may not represent an advantage as the business grows.
As such, it is recommended to close the sole proprietorship and opt for the limited liability company, which provides several advantages to the shareholder, one of them referring to the liability limited to the value of shares owned in the company.
When changing the business type into a LLC
, the investor will have to register for taxation purposes
. The LLC is liable to corporate tax
, while the sole proprietorship
is not required to pay it.