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Company Formation Italy



The Company Act in Italy

Updated on Saturday 17th February 2018

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The Company Act in Italy consists of a series of important acts, laws and regulations that function as a guideline for the incorporation, governance and dissolution of a company in Italy. An investor who wants to open a company in Italy must observe the relevant legislation and comply with the legal requirements.
The most important legislative documents for running and registering a company in Italy are:
- the Italian Civil Code;
- Legislative Decree 58/1998 (abbreviated TUF in Italy);
- the code issued by the Italian Stock Exchange (Borsa Italiana)
- the company’s own Articles of Incorporation.
Although the legal framework listed above only applies to listed companies in Italy, all company owners should have a solid knowledge of the laws and regulations applicable to their type of business.
Please watch our video on the Company Law in Italy:


The main provisions of the Italian Company Law

The Company Law, consisting of several legal documents, regulates a series of important aspects about company formation in Italy. Among the most important legal provisions we can list the following:
- the types of companies that can be incorporated in Italy: limited liability company, joint stock company. cooperative, different types of partnerships, sole proprietorship, branch or representative office;
- company governance: the duties of directors in Italy and those of the Boards in the company;
- shareholder’s rights and protection;
- corporate litigation;
- financial requirements;
- auditing compliance;
- company liquidation.
The Company Act also specifies the characteristics of each type of company, its mandatory minimum share capital and the manner in which shares can be distributed. There are significant differences for companies which are not listed on the Stock Exchange and those that are listed.

Corporate compliance in Italy

Each company in Italy must observe the rules for corporate governance: both the ones issued by the Italian authorities and the internal rules set by the company’s bylaws. 
In Italy, the public authority that supervises the legal activity of companies is the CONSOB or “Commissione Nazionale per le Societa e la Borsa”. The Italian National Commission for Companies and the Stock Exchange is the government authority responsible for regulating the Italian securities market. This Italian company act includes the regulation of the Italian stock exchange.
When hiring employees in Italy, the business owners must observe the Labor Law in Italy. The Labor Law has been developed to regulate and mitigate the social problems caused by the industrial revolution and ranges from the rulings on the relations between employer and employee to the ones that imply labor relations (proper object of trade union rights) and finally to those related to social insurance and welfare.
The employment contract will govern the relationship between the employer and the employee. Both parties will need to fulfill their contractual duties and, in case of termination, observe the legal grounds for terminating the agreement.
If you want to open a company in Italy and need more information about the process you can contact our company registration agents in Italy.  

For company formation services in other countries, such as UAE (Dubai), China, Georgia or Russia, you may contact us.


  • Junejo Nazar 2015-04-04

    Enquiry to register a small and medium company in Italy.

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Starting a company in Italy can be difficult since it involves such complex procedures. The team from CompanyIncorporationItaly is very qualified and benefits from extensive expertise in this area.

Mihai Cuc, Partner of
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