Italy is an attractive economic spot for business that favors startups, small and medium-sized firms and thus resulting in high growth in the Italian market.
Italy offers exciting opportunities for business owners who own legal residency permits and a legal right to live and work in Italy.
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Who can open a business in Italy?
Italy is a country run on the traditional way of living. Therefore, to open a business in Italy, you have to own a legal right to live in Italy or a residency permit.
However, there are exceptions to this; Citizens from countries that have made an international agreement with Italy, such as the EU and EEA, or a refugee and a stateless person owns a right to start a business in Italy without a residency permit.
Types of company structure
For an easy flow of business and accountability, Italy provides a broad choice of legalities for business, company based on the goals, the model, the capital, the level of accountability of the business owners, and the tax consequences. There are many business idea’s to choose from.
Below are legal arrangements set aside for individuals looking to start a business.
Societa Cooperativa (SC) or cooperative society:
Societa Cooperativa (SC) offers a legal arrangement that has no limitation on the number of shareholders. No minimum capital with associates enjoying benefit from limited and unlimited liability.
Societa Semplice in Accomandita (SAS) or simple convenience company:
Societa Semplice in Accomandita is a type of legal arrangement that has no limitation on the number of shareholders or minimum capital, and the responsibility of the partners is limitless.
Societa Collettivo in nome (CNS) or partnership:
Societa Collettivo in nome offers no limitation to the number of shareholders or minimum capital. Associates have unlimited and many several joint liabilities.
Societa per azioni (SpA) or limited liability company:
Societa per azioni (SpA) comes with no limit to the number of shareholders, but A minimum capital of €120,000 is required. It must be fully subscribed and paid at 3/10 of the company’s creation. Moreover, the partners’ liability is limited to the amount contributed. A quarter of the initial investment has to be before the company’s registration in Italy.
Societa a responsabilita limitata (SRL) or limited liability company:
Like others, Societa a responsibility limitata has no limit to the number of shareholders. A minimum capital of €10,000 is required. This amount must be fully subscribed and paid at 3/10 of the company’s creation. Partners’ liability is limited to the amount contributed. Moreover, a quarter of the initial investment must be paid before the company’s registration in Italy, though there are no incorporation taxes, less paperwork, and no notary fees.
It is worth noting that if you want to charter a company without making yourself personally accountable, you should choose the SRL or SPA. The SRL is best for shareholders wishing to sustain the management, while the SPA works better for bigger investments and a larger number of investors.
If you want to be the sole shareholder of a business, the following arrangements are most common:
Società per Azioni unipersonale (SA):
Società per Azioni unipersonale gives you the company’s sole shareholder, and your liability will be limited once the capital is paid fully. To get this, a minimum capital of €120,000 is required. You can choose to constitute a board of directors with multiple members or a single director to manage your Società per Azioni unipersonale.
The Ditta individuale (DI):
The Ditta individuale offers a more attractive arrangement such that you can own craft business, but specific prerequisites apply. Although, capital or assets are not required. However, your personal belongings will be held as a warranty if you have debts.
Società unipersonale has responsabilità limitata (SRL):
Società unipersonale has responsabilità limitata permits you to have a single partner, whose liability is limited to the amount contributed. You are required to let out a capital of €10,000 which may consist of contributions. If your contributions are made in cash, you will have to appoint an experienced auditor registered with the Revisori, that is the Auditors registrar.
You will also need to get your SRL’s constitution notarized. Afterward, you’ll be able to appoint a board of directors made up of multiple members or a single director. You are entitled to handle basic accounts if your company’s annual revenue does not exceed €120,000, and it fits specific conditions (number of employees, etc.).
Italian government welcome to Startups
Although the Italian government is strict with startups, innovative ideas are welcome, with a prerequisite that the company must be created for a maximum of 48 months and not surpass a turnover of 5 million euros.
Set up and register your business
With modernization and technology, setting up a business and registering a business in Italy comes easy; however, seeking legal and financial advice is advisable. This helps with running your business and helps prepare you for the future.
Creat a Business Plan and Market survey
If you desire success for your business, especially in a culturally oriented country like Italy, you need a business plan and run a market survey. Having a business plan gives you direction, strategies, and how to make things work for your business.
While running a market survey opens your eyes to what the market wants, how to serve them, risk assessments, and even obstacles that will come your way.
Save Yourself on Paperwork
Regardless of your choice, going the right way with paperwork will help your business. Therefore, if you decide to use a notary instead of an agency, you will need to draft an Atto Costitutivo (memorandum) and Statuto (articles of association), which must be present either to draft the Atto Pubblico (incorporation agreement) or to authorize the signatures of the shareholders (scrittura privata autenticata).
It is worth noting that your business would only exist after this registration process.
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