The limited liability company (abbreviated SRL) is one of the most popular business forms in Italy. Investors who want to register a SRL in Italy will need to follow a few steps and complete the required company incorporation procedures.
This type of company
is more suited for small and medium sized businesses and it is popular among investors because of its flexibility, the simple set up procedures and easy running. This business structure has legal personality and the shareholders are only liable to the extent of the assets invested in the share capital.
Requirements for registering a SRL in Italy
for opening a limited liability company in Italy
include several taxes and fees as well as the minimum share capital of 10,000 EUR. Unless the company’s articles of association specify it, the contributions can be made both in cash and in kind. The minimum share capital is divided into shares per the existing number of shareholders and they can be freely transferable. The Italian SRL
must have at least one shareholder. Our company registration agents in Italy
can give you further details about the rights and liabilities of shareholders.
A company in Italy must be registered with the Trade Register within 20 days after the incorporation deeds have been drawn up and notarized. Companies must also be registered at the local Revenue Agency and, depending on the business scope, will need to register for VAT
Business owners who operate in certain sectors will need to obtain special permits and licenses to run their businesses. Our agents can help you apply for these permits and fulfil any other requirements for performing specific business operations in Italy.
Other particularities for the Italian limited liability company
A company director is the one who has the duty to manage the company accordingly, perform any and all necessary business transactions and make sure that the company meets its business goals.
The appointment or revoking of company directors takes place during a shareholder’s meeting. Any other important decisions regarding the company (such as amendments to the statutes or capital increases and decreases) are taken only by the company shareholders during their meetings. Shareholders have administrative and economic rights based on their shares in the company. However, special rights for management and the distribution of profits can be granted to shareholders in the articles of association.
Accounting for companies in Italy
A SRL in Italy will have to comply with the accounting principles in Italy and observe the requirements for preparing and submitting annual accounting and financial records. A general journal, an inventory book and other ledgers are the accounting books that must be kept by an Italian company.
The annual financial statements required by law for an Italian company include: the balance sheet, the profit and loss account and notes to the financial statements. The company’s assets and liabilities must be accounted for in these documents and they must reflect the true financial status of the company. Directors’ reports might also be needed, although SRLs in Italy are allowed to draw up abridged financial statements.
In some cases, a limited liability company in Italy
needs to appoint a board of statutory auditors. A company in Italy must submit the annual corporate income tax returns within nine months after the end of the financial year. This can also be done electronically. The corporate income tax in Italy is paid in two installments and different rules apply for companies whose financial year does not correspond with the calendar year. Our team can help you with accounting services for your company
We invite you to watch a short video about opening a limited liability company in Italy: