Set up a Fintech Company in Italy
Set up a Fintech Company in ItalyUpdated on Thursday 14th February 2019
Rate this article
based on 1 reviews.
based on 1 reviews.
Fintech refers to a sector that describes the field of financial technology; it generally defines a company that offers financial services by employing modern technology and software products. Businessmen who want to start a company in Italy in this sector should know that the fintech industry takes into consideration a wide category of financial services and it also includes the latest trends in the field, which refer to the use of cryptocurrencies.
In order to set up a company in Italy in the fintech sector, the investors will have to follow the standard registration procedure available for local business forms, process which can be assisted by our team of Italian lawyers, who have an in-depth experience in the legal matters concerning this subject (obtaining specific business permits, registration with the local institutions, drafting corporate documents and so on).
What are the main fintech activities in Italy?
Those who want to register a business in the fintech industry in Italy are advised to analyze the characteristics of the market, in order to identify the sub-sectors that have the highest development here. A positive aspect of the fintech industry in this country is given by the fact that this sector is estimated to grow in the following years, reaching a 8.3% annual growth rate for the period of 2019 – 2023. The value of the market, comprised of the below mentioned sub-sectors, will reach $54,269 million by 2023:
|Digital payments||This sub-sector, with a value estimated at $39,381 million in 2019 is best represented by digital commerce and mobile POS payments.|
|Personal finance||The largest market segment is represented by peer-to-peer money transfers.|
|Alternative lending||With a total value of $779 million in 2019, the sector is mainly driven by crowdlending for corporate entities.|
|Alternative financing||It is the smallest fintech sector in Italy, accounting for a total value of $108 million (the estimate for 2019), and it is mainly defined by crowd-investing and crowdfunding operations.|
Investors should take into consideration that the country does not provide a regulatory framework designed for this industry; instead, there are different rules of law which can address to different fintech operations. For example, in the case of peer-to-peer lending operations, it can be requested to obtain an authorization from the Bank of Italy, which may not be the case for other types of fintech operations. Our law firm in Italy can offer in-depth advice on the rules of law that can apply here, depending on the type of fintech activities in which the businessmen want to invest.
Are there any restrictions for fintech investments in Italy?
No, businessmen who want to open a company in Italy in the fintech industry should know that the country does not provide a legal framework which prohibits any types of fintech activities, but it is necessary to take all the legal precautions when investing in cryptocurrencies, as this field just recently began to be properly regulated under the local legislation, due to its novelty.
Thus, it is necessary to verify under which definition a cryptocurrency business will fall as stipulated by the legislation in the field, which has recently defined cryptocurrency and cryptocurrency providers under the Legislative Decree No. 90/2017. This decree introduced new provisions in the Italian Anti-Money Laundering Law and our team of lawyers in Italy can advise on the latest regulations addressed to this sector.
Does Italy offer any incentives for fintech businesses?
As a general rule, most of the fintech businesses operating in Italy are set up as start-ups. In Italy, both local and foreign investors can benefit from a wide range of incentives, in the form of tax breaks, deductions and so on, which were especially designed to assist the development of companies implementing activities in the field of technology (research, innovation and others).
For example, investors can obtain a set of benefits under the innovative small and medium sized and start-ups regime, the Patent Box regime or the research and development tax credit regime, to name a few. Through programs such as these, investors can obtain a tax deduction on the income tax or a simplified access to granting schemes available in this country.
Foreign companies operating in the fintech sector can expand on this market, but different regulations may apply depending on their tax residency (there is a difference in this sense between businesses registered in the European Union and non-EU companies); investors are invited to contact our law firm in Italy for advice on the legislation regarding this subject.