The Italian legal environment
allows the incorporation of a holding company
, which represents a parent company
that has enough voting rights in another company
, to such an extent that it can control the management of the latter company
. A holding company in Italy
is registered with the sole purpose of controlling a smaller company
, regardless of the legal entity
under which the company was registered. Our team of Italian lawyers
can offer assistance on the legal requirements that must be fulfilled in order to set up a holding company
Holding company legislation in Italy
The regime under which the holding companies in Italy are functioning was modified in 2003, when the local authorities enacted new regulations under the Corporate Law Reform. The legislation became applicable in Italy starting with 1st of January 2004.
According to the legislation – more specifically, to the Article 3 of the Law No. 287/1979, a holding company in Italy
is allowed to control the activities of another company, as long as the holding company
does not abuse its rights. In this sense, the legislation prescribes that the directors of a holding company
can’t act against the best interest of the controlled company
. Investors may find more details on this legislation from our team of attorneys in Italy
Moreover, the directors are also required not to intervene in the legal rights of the minority shareholders.
In the situation in which the holding
controls more companies in Italy
, the Article 2497 of the Civil Code states that the company’s management
should be represented by a unitary policy
which must be followed by the respective companies.
The advantages of an Italian holding company
Investors interested in opening a company in Italy
under this structure should know that the entity is not allowed to perform commercial activities
, as its main purpose is to control the activities of other companies.
However, this type of business form provides several advantages, such as:
• protection of the company’s shareholders;
• relevant tax exemptions.