Holding Company in Italy

Holding Company in Italy

Updated on Tuesday 15th November 2016

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Holding-company-in-Italy.jpgThe 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 here. 

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;
the shareholders can own shares, but also other investment tools, such as bonds or private equity;
relevant tax exemptions. 
Businessmen are invited to contact our law firm in Italy for more details referring to the Italian holding company