Italy’s GDP bites a huge lump sum from its tourism as it has a lot to offer both in History and Geography-wise. The continuous footfall and oscillation of manpower makes the economy an attractive zone for investors across the world to incorporate their businesses in this particular country.
The government offers a low rate of taxation, qualified labor productivity, greater accessibility to the EU marketplace, and decent infrastructural facilities. This is the reason why it is a hub for the manufacturing fraternity from across the world. The brands like Ferrari, Lamborghini, and Koenigsegg makes it more attractive and presentable to the world market.
However, there are a few things to consider before starting a business in Italy. This article will give more detail on how to register a company in Italy. Along with that, it will also outline the procedure, documents, and quick facts of company registration in Italy.
Reasons to Establish a Business in Italy
1. Lower Rates of Taxation
Taxes in Italy are lower compared to those in other European nations.
2. Strategic Location
Italy, which is situated in the midst of the Mediterranean Sea, provides enterprises with a strategic entryway to the markets of the Middle East, Africa, and the EU.
3. Excellent infrastructural facilities
The infrastructural facilities in Italy are significantly advanced. The nation has a robust rail system in addition to a large number of highways and other forms of transportation.
4. Significant manufacturing sector
One of the sectors that contribute the most to Italy’s GDP is the manufacturing sector.
5. Competent Workforce
Italy is famous for its excellent educational system which aid in the production of skilled laborers for the Italian labor market.
Procedure for Italy Company Registration
The Italy company registration process is mentioned in the following steps:
- The application to register a company in Italy has to be filed through the Italian Trade Register
- After processing the application, the registration certificate is issued for your new company’s incorporation.
- Another obligation for a foreign investor who is interested in companies that are formed within Italy must file a public declaration of incorporation in the notary’s office, purchase the accounting and corporate books and pay the government grant tax.
- The investor also needs to make an application in the Register of Enterprises to receive an identification tax number as well as the VAT code.
- The business must also be registered with the Social Security Administration.
- To recruit staff within Italy the business owner must follow the regulations in the Labor Law and announce the appointment in the Labor Office.
Steps to register a Limited Liability company in Italy
A limited liability business can be formed with the following few steps:
- Registration with the Italian Tax Authorities to get the tax identification number.
- The shareholders are responsible for signing the Articles of Association in front of an official public notary. It may be carried out in person or by the use of a power of attorney.
- The VAT number can be obtained from Agenzia Delle Entrate after an online request.
- Following the submission of all required paperwork, you must acquire the incorporation certificate.
- Create a bank account for the business.
Eligibility Criteria for Italy Company Registration
The following eligibility criteria have been met for company registration in Italy:
1. The minimum number of shareholders
A firm must have at least one shareholder in order to be incorporated.
2. Capital Requirements
The joint Stock corporation requires a minimum share capital of 50,000 euros. The share capital might range from 1 Euro to any amount in the case of an LLC.
3. The Minimum number of directors
At least one director is required to establish a business in Italy.
Documents required for Italy Company Registration
Local, as well as foreign investors, should take into account the preparation of the following documents for the formation of a company in Italy:
- Personal information of the applicants is necessary, and as such an ID or passport is the most important document required.
- In the case of a foreign company, the Certificate of Registration and the incorporation documents of the firm are also required.
- The Italian company’s documents for the establishment are required which will be prepared with the help of the Italian public notary.
- Depending on the sort of business, more paperwork can be required.
We can assist foreign investors to obtain Articles of Association for new companies, written and notarized.
Types of Companies in Italy
There are various kinds of legally-formed entities that are available for those who wish to incorporate a firm in Italy.
- Limited Liability Company: It may be simplified or traditional.
- Joint-stock Corporation: This type of business is also known as a Public Limited Liability Company.
- General Partnership: It must include at least two partners or members.
- Limited Partnership: A general and a limited partner each contribute to its formation.
- Cooperative: A Cooperative isn’t exactly a kind of corporation, however, it is more of an organization used by those who wish to work in the agriculture industry.
- Sole Proprietorship: It is the most basic way of conducting business in Italy.
A Limited liability business is an option for business investors looking to establish small or medium-sized companies. This is the most popular business structure in Italy. The company that is registered in Italy will be run by a director or board of directors that are bound by the company’s article of association. Financial issues will be handled by the statutory auditors, and the individuals responsible for the financial aspects will maintain an inventory of balance sheets and financial statements.
Investors that desire the management of a large corporation opt for a joint stock company. The minimum capital share for the legal company is 500.000 EUR and at least, a quarter of that amount must be paid at the time of formation. Joint stock companies are run by a director or a Board of Directors. The number of contributions given to the share capital determines the shareholder’s liabilities.
Business forms available to foreign firms operating in Italy
Foreign firms are advised to consider the option of Italy company registration by making an application for any of these kinds of structures:
- Branches are legal entities that rely entirely upon the company that is their parent.
- Branch offices with light branches that are only found in Italy and allow certain types of activities.
- The subsidiaries that are independent entities can be established in limited liability corporations.
- Representative offices are not legal entities however, they can assist foreign companies to determine whether they are in the Italian market and is suitable for them.
Our experts in company registration in Italy can assist executives from multinational companies to choose the most suitable company structure for their business.
Costs for the Italy Company Registration
The principal costs involved in Company registration in Italy include:
- Trade Register fee – EUR520 (this fee is payable to register a business with a local Trade Register).
- Virtual office – EUR100 per month (this is required if you do not have an office space for your business).
- The cost of incorporation is approx – EUR2,300.
- Accounting fees begin at EUR130/month, based on the number of invoices received and the annual turnover.
- Minimum share capital – EUR 1 for an LLC and EUR 100,000 for joint stock companies.
Opening a bank account for Italy company registration
The most crucial aspect of starting a business with a company in Italy is the opening of a bank account for corporate purposes. This account is necessary to deposit the capital of the company and to conduct commercial activities.
The steps below can be used to open a corporate bank account in Italy:
- Submit the documents of incorporation to the selected bank.
- Complete the necessary documents that are issued by the Italian bank.
- Appoint a representative for the company who will be in contact with the bank.
- Pick the services that best meet the Italian company’s needs.
Besides opening a bank account for the business, a business can also open merchant accounts to receive payments online. These kinds of accounts are usually utilized by online-based businesses including online stores in Italy.
How can we assist with Italy company formation?
You can get assistance for the establishment of the business in Italy from our experts. The initial step to the Italy Company Registration is creating and writing the required documents of the company, for example:
- The Articles of Association,
- Signatures of directors of the company,
- Affidavits,
- Others.
It is also necessary to establish an account at a bank that is owned by the business, in which the minimum share capital required will be put in.
The startup costs for a business may differ depending on the kind of company as well as the supplies and equipment that are required to run your business.
Your business will also require an accountant to ensure that you meet the accounting requirements in Italy. Our expert team of company formation specialists will assist you.
Conclusion
The businesses across the globe have been given a fortune of an opportunity to skim the best from a multi-trillion dollar economy. Italy offers resources in different modes such as manpower, natural and economics.
We at OnDemand International initially hears you out and delivers you with an absolute solution to your business pains. We examine the possibilities and help you land in the exact situation where you get the opportunity to exercise your operations in the economical map.