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: