Company Registration in Italy - COST-EFFICIENT!

LEXIA Avvocati provides company incorporation and other legal services in Italy through its five offices and employs more than forty lawyers. LEXIA provides complete company formation services, as well as many other types of services, suited to all types of companies. Specialization is important and our team is dedicated to providing complete services in a number of areas including corporate, startups, tax, labor, insolvency, trust and asset protection as well as new technologies such as fintech.

Quick Facts
Types of companies	Limited liability company (S.r.l.)  Simplified limited liability company (S.r.l.s) Innovative start up Sole proprietorship Public limited company by shares Partnership Cooperative corporation Benefit corporation
Minimum share capital for LTD Company	EUR1
Minimum number of shareholders for Limited Company	there is no minimum number, 1 shareholder suffices
Time frame for the incorporation	5-7 working days
Corporate tax rate	24% corporate tax rate (IRES) + 3,9% regional tax rate (IRAP) = 27,9%
Dividend tax rate	- dividends received from resident companies are taxed on a taxable base of 5%; - dividends received from companies located in countries with a preferential tax system are fully taxable; - dividends paid to companies based in member states of the EU and in members of the EEA that allow a suitable exchange of information with Italy are taxed at source (WHT) at a rate of 1.2%
VAT Rate	- standard VAT rate = 22%  - reduced rates = 4% - 10%
Are Shelf Companies Available?	Yes
Do you supply a Registered Address/Virtual Office?	Yes, at 1,200 Euro per year
Local Director Required	No, unless the condition of reciprocity between countries is given.
Annual Meeting Required	Yes. The annual meeting can also be held virtually or in the form of written resolutions.
Redomiciliation Permitted	Yes
Electronic Signature	Yes
Is Accounting/Annual Return Required?	Yes
Foreign-Ownership Allowed	Yes (percentage up to 100%), however subject to the condition of reciprocity between the respective countries.

Steps for company formation in Italy

1. Registration with Italian Tax Authorities – there is necessary to obtain a tax identification number (codice fiscale);
2. Execution of the articles of association with a public notary – this is an obligation for the shareholders and it can be done personally or through a power of attorney;
3. Obtain the VAT number – this is issued by Agenzia delle Entrate after an online request;
4. Obtain the certificate of incorporation – after filing all the documentation required;
5. Open a bank account for the company.

How to open a company in Italy

 

• - the articles of association,
• - specimen signatures of the company directors,
• - affidavits,
• - others.

Types of companies in Italy

• - the limited liability company, which can be traditional of simplified;
• - the joint-stock company, also known as public limited liability company;
• - the general partnership, which must have at least two members called partners;
• - the limited partnership, which must be formed by a general and a limited partner;
• - cooperative, which is not exactly a type of company, but more of an organization employed by those who want to operate in the agricultural industry;
• - sole proprietorship, which is the simplest form of doing business in Italy.

Business forms available for foreign companies in Italy

• - branch offices which are legal entities depending entirely on the parent company;
• - light branch offices which can only be found in Italy and which allow for certain activities;
• - subsidiaries which are independent entities can which can be created as limited liability companies;
• - representative offices which are not legal entities, but can help foreign companies determine if the Italian market is suitable for them.

 

We invite you to watch a video about how to register a company in Italy:

 

The company incorporation procedure in Italy is not very difficult and is similar to those in other countries. An application for registering the company must be made at the Italian Trade Register and, after the application is processed, a registration certificate is issued for your new company.  

 

Another obligation for the foreign investor in company formation in Italy is to execute a public deed of incorporation at the notary office, buy the corporate and accounting books and pay a government grant tax. 

 

The investor must also submit an application to the Register of Enterprises in order to obtain a tax identification number and a VAT number. The company must also be registered with the Social Security Administration. In order to hire employees in Italy, an entrepreneur will need to observe the provisions of the Labor Law and announce the employment to the Labor Office. 

 

Our company formation agents in Italy can give you detailed information about the steps required to set up a company in Italy. We can provide you with complete assistance and advice if you want to start a business.

 

 

One of the most important aspects of opening a company in Italy is related to the establishment of a corporate bank account. This account is needed for depositing the share capital and for conducting commercial activities.

 

Opening a corporate bank account in Italy implies:

 

Apart from the company bank account, a business can also create merchant accounts for accepting online payments. These types of accounts are mostly used by e-commerce companies, such as online stores, in Italy.

 

Our Italian company formation representatives can help foreign entrepreneurs choose the right type of structure for their businesses here and can represent them in the procedure for opening the bank account.

 

 

Italy is very appealing to foreign enterprisers who usually have many questions related to the requirements and process related to company formation in Italy. Among these questions are:

 

Yes, full foreign ownership is possible in Italy even for single shareholders. Among the types of structures, foreign enterprisers can use are the sole proprietorship and the private limited liability company.

 

It depends on the type of company you want to establish: in the case of the private limited liability company, you will need 1 euro, while in the case of a public company, the new requirement is 50,000 euros.

 

Yes, remote company registration is possible in Italy, however, you must appoint a local representative and grant him or her power of attorney to complete the process.

 

No, the law no longer requires for resident directors in Italian companies.

 

The usual procedure for setting up a company in Italy takes about a week, however, this timeframe will depend on how much time it takes for the documents to be prepared.

 

 

Companies performing commercial activities in Italy are liable to taxation. A company can be taxed in Italy as long as it has a place of management or a main business activity developed in this country. Companies are liable to value added tax, corporate income tax and others as long as they have been operating in Italy for at least 183 consecutive days (in this case, the company will be seen as a permanent establishment in Italy).

If you are interested in opening companies in other European countries, such as Malta, Cayman Islands or Russia, you can contact our specialists in company formation.