Foreign investors are drawn to Italy because of the prolific industries they can start businesses in. Some of these industries are more appropriate for small businesses which is why one can choose to set up a partnership in Italy and then later convert into another type of company. The Commercial Code allows for both local and foreign investors to register partnerships in Italy, one of the most popular ones being the general partnership.
Our Italian company formation consultants can offer information on the types of partnerships available in this country.
The general partnership (società in nome collettivo) is shortly known as the SNC and it is not deemed a legal person itself in Italy. This is because the partners are not considered separate parts within the partnership and their responsibility for the business’ debts and obligations are not limited to the capital brought to the general partnership. Even so, one of the greatest advantages of establishing a general partnership in Italy is that it is quite simple to set up and implies no minimum share capital requirements.
Compared to the limited partnership, the partners in an Italian general partnership will be equal in relation to the management of the business and will also be held accountable with their personal assets if the partnership becomes bankrupt.
Our company incorporation agents in Italy can make a brief comparison between the types of partnerships available for registration for foreign investors seeking to open this type of entity.
Local and EU investors may set up general partnerships without any restrictions in Italy, while non-EU investors will be subject to certain restrictions imposed by the government. However, the registration of a general partnership has the same procedure for all types of investors and consists in the preparation of a partnership agreement which must be notarized by a public notary in Italy and then filed with the Companies Registrar. The name of the general partnership must be comprised of the names of the participants.
For assistance in opening a general partnership in Italy, please contact our company registration representatives.