Foreign investors coming to Italy can choose to open new companies or they can enter into franchise agreements or joint ventures with local businesses. No matter the way they want to do business in Italy, the Government supports their initiatives through various incentives.
During the last years, joint ventures have become quite popular in Italy thanks to the fact that they ease the tasks of foreign enterprisers to carry our market researches before registering an Italian company. However, if you want to open a company in Italy, our local agents can help you with the registration procedure.
Italy does not have a specific law regulating the establishment of joint ventures, the Civil Code containing the provisions related to drafting and signing contracts which can also be extended to joint ventures.
As a definition, a joint venture is a business form concluded as an agreement between two parties, which can be natural persons or companies in Italy. Joint ventures are usually employed to carry out a project during a limited period of time.
Even if not regulated by the law, Italian joint ventures can be divided into:
A contractual joint venture implies the signing of a contract through which the parties will carry out a specific work independently with the purpose of achieving a common goal. The corporate joint venture, on the other hand, implies the registration of a company in Italy by two or more businesses with the purpose of carrying out a specific project. Corporate joint ventures also fall under the scopes of the Company Act, the Antitrust Law and any other legislation applicable to companies in Italy.
The creation of joint ventures in Italy will depend on the purpose and on the entities establishing them. The contractual joint venture will be set up by signing a deed of establishment before a notary. Through the agreement, the parties will agree on the transfer of rights over certain actions or property for the purpose of the joint venture. The establishment of a corporate joint venture will mean the incorporation of a limited liability or a joint stock company in Italy with the purpose of carrying out the proposed work.
No matter the type of joint venture, all contract must be registered with the National Revenue Agency in Italy.
For assistance in drafting a joint venture agreement or registering a company, please contact our company formation consultants in Italy.