Setting up a company in Italy – this is what you should know
April 05, 2015 || ReportsItalyLegal
More than 590 000 foreign owned companies in Italy
Italy is increasingly attractive to foreign investors. The number of international businesses in Italy is increasing at a steady pace. At the end of 2017, it reached the 590,000-mark, almost 10% of all companies doing business in Italy (data from Unioncamere-InfoCamere).
Form and register a new company in Italy
Internago can support you to start and register a new company in Italy. The process is similar to many other European countries, and you start by defining the type of establishment that you want; branch office or a limited liability company (Srl) or a joint stock company (SpA). Srl is the most commonly used form for small and medium enterprises. Internago and its partners have extensive experience with company registrations and company formation and has helped many international companies to establish their subsidiaries or branch offices in Italy.
Main characteristics of a limited liability company – SRL
Capital and quota-holders: minimum capital is 10,000 EUR. The Srl can be incorporated by a sole quota-holder (company or an individual). In this case, the capital shall be entirely paid in, and specific publicity requirements apply. Under certain conditions, individuals can set up a Simplified Srl (“Società a Responsabilità Limitata Semplificata”), with a minimum capital of 1 EUR and standardized bylaws.
Management: The quota-holders appoint a board of directors or a Sole Director. It is normally allowed to have a Board entirely made up of non-Italian residents (exception apply in case of absence of reciprocity agreements).
Sole statutory auditor (“sindaco unico”) must be appointed if the company has passed at least two of the following limits for two subsequent financial years:
Assets higher than 4.4 M EUR
Earnings from sales and provisions of services higher than 8.8 M EUR
Average number of employees higher than 50
The sole statutory auditor shall also be appointed for companies which must submit the consolidated financial statements, or which control a company for which the audit of accounts is compulsory. The bylaws of the company can establish the presence of a board of statutory auditors (“collegio sindacale”).
Audit of accounts: an independent Auditor of accounts shall be appointed in some cases. The audit of accounts can be carried out by the sole statutory auditor.
Accounting and balance Sheet: the company has to submit an annual financial statement, normally within 120 days from the end of the financial year.
Incorporation: the incorporation process of a Srl, from that time that all papers are in place normally requires a few days to a couple of weeks.
Want to know more about how to form a company in Italy?
Internago can support you during the whole process, including finding the bank and auditor. We also offer a full payroll solution with local payroll consultants and a web system for an easy workflow of payroll processing. For more info, please contact our Country Manager in Italy, Kristofer Svartling.