Types of Companies in Italy

Updated on Wednesday 06th November 2019

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Foreign businessmen who want to start a company in Italy can choose from many legal entities, prescribed under the local legislation. Both persons who are citizens of the European Union (EU), as well as those living outside the Community are allowed to open a company in Italy, but the legal requirements can differ based on this aspect.

Those who want to register a small company can start a sole proprietorship, which is the simplest business form available here. However, it is important to mention that the most popular business entity registered in Italy is the limited liability company. Investors can find more details on the subject from our team of lawyers in Italy.

Who can register an Italian company?

An Italian company can be registered by foreign investors regardless of its business form. However, in order to open a company here, the businessmen need to have one of the following qualities:

citizen of a member state of the EU;
citizen of a member state of the European Economic Area;
citizen of a state with which Italy has signed an agreement favorable to business relations;
a person with the legal statute of a refugee;
a person with the legal statute of a stateless person.

It is important to mention that the European Economic Area refers to the following states:

• Iceland;

• Liechtenstein;

• Norway.

As mentioned above, foreigners can register an Italian company if they are citizens of a state with which the local authorities have concluded a treaty for international collaboration. Such agreements can refer to double taxation treaties as well.

Our team of attorneys in Italy can provide in-depth information on the countries with which Italy concluded this type of agreements.

Legal entities in Italy

Foreign persons who are interested in company registration in Italy can register the following legal entities:

limited liability company;
joint stock company;
partnership limited by shares;
general partnership;
limited partnership;
cooperative;
sole proprietorship.

At the same time, businessmen can opt to register a subsidiary or a branch of a foreign company. The main difference between the two types is that the subsidiary can be registered as an autonomous legal entity. Its activities and investment policies are decided by the local management, while in the case of a branch, the company will be dependent for all its activity on the parent company.

Businessmen interested in finding more details on the types of companies available here can contact our law firm in Italy.