S.r.l. - 4200€ + VAT (all inclusive).
Traditional S.r.l. - 5800€ + VAT (all inclusive).
eighth largest economy in the world, the third largest in the European Union and the third largest in the United States.
the 20th largest market in the United States. It continues to recover from the global financial crisis and is growing year on year.
year on year.
Currently, different types of business forms can be set up in Italy:
– Ordinary limited liability company (società a responsabilità limitata, SRL)
The private limited company is one of the most popular forms of business in Italy, especially for small and medium-sized enterprises. The liability of its members is limited to the amount invested in the company: contributions, which can be made in cash or in kind if the shareholders agree. The minimum share capital for this type of company must be €10 000.
– Simplified limited liability company (società a responsabilità limitata semplificata, SRLS)
This is a form of entrepreneurship offered to foreign entrepreneurs and is generally recommended for new entrepreneurs. A simplified company SRLS has the following limitations compared to a traditional company SRLS
The minimum share capital of a simplified SRL should be 1€ and the maximum 9999,99€ (normally the share capital of an SRL is 10 000€). A simplified SRL must use the standard form of articles of association and its model provisions or no amendment of the articles of association is possible.
There are no nationality requirements to be a shareholder or member of the board of an Italian limited company. Foreign investors can set up this type of company without an Italian partner. Any foreign company or foreign natural person may hold shares in an Italian company. A traditional SRL can be through a single managing director or a board of directors.
Lihtsustatud SRL-i aktsionärid võivad olla ainult füüsilised isikud.
– Public limited company (SPA)
A limited company or SPA is better suited to large companies. Shareholders are only responsible for their own contributions, with a minimum authorised capital of €50 000. The capital is divided into transferable shares. It is the only form of company that can be listed on a stock exchange and is therefore suitable for companies with a large number of shareholders. By its very nature, namely its listing on a stock exchange, it is subject to stricter accounting and reporting requirements. SPA-D is managed either through a board of directors and shareholders or through a one-tier system consisting of a board of directors and a management control committee.
– Private limited company
The private limited company is a form of company recognised in Italy, but it has important differences compared to the companies mentioned above:
A private limited company is not a legal entity, which means that the identity of the founder is not separate from the identity of the private limited company, such as a public limited company or a private limited liability company.
The commitment of the partners, their common goals and their shared experiences contribute to the success of the partnership and the company.
A branch is an extension of the parent company and is not separate from the foreign legal entity as a representative office. This means that the foreign parent company is liable for the debts of its Italian branch if it decides to open a branch. The difference between a branch and a representative office lies in the possibility to carry out an economic activity: a representative office can only be used for marketing or advertising purposes and cannot carry out an economic activity, whereas a branch can carry out the same economic activity as a foreign company. The branch must also be registered with the Italian Companies Register, but in this case registration may be quicker than for an SRL or SPA.
Italian companies must be registered with the Companies Register. This is compulsory in order to legally operate on Italian territory and is a process that starts with the drafting of the company’s articles of association in the case of a new company or the establishment of a foreign branch. The instrument of incorporation is drawn up before an Italian notary and the articles of association contain information about the company: its scope and type, duration if applicable, the names of the members and managers, information about the share capital and the types of shares (and their transfer, if applicable). One of our agents specialising in company formation in Italy can provide investors with further information on the form of the articles of association.
Setting up a company in Italy involves several types of taxes:
The national corporate tax rate (IRES) is currently 24%.
The regional corporate tax rate (IRAP) varies from region to region and is generally around 3,9%.
National income tax is a progressive rate of 23%-43%.
Dividends subject to a progressive tax rate are generally taxed at 49.72% of the amount of dividends distributed (i.e. 50.28% of the dividend income is additionally exempt).
The government is offering a number of tax breaks and incentives to attract new entrepreneurs.
These include tax incentives for employment (especially for hiring women and younger workers), tax deductions for energy efficiency and tax incentives for income from specific intangible assets. The government is also offering significant tax incentives for R&D: 25% for private investment in R&D, rising to 50% for university or research institute projects, and 15% for investment in machinery and capital goods. Enterprises investing in new production in the southern regions of Italy may benefit from additional public support.
Italy is one of Europe's biggest producing countries, second only to Germany.
Italian-made products continue to be renowned for their high quality and design. Investors can look to collaborate with a wide range of experts in sectors as diverse as machine tools, fashion, food, automotive and pharmaceuticals. Companies also have access to an extensive network of intermediary suppliers in a wide range of sectors, including industrial machinery, metals, chemicals, plastics, paper, ceramics, textiles, marine and others.
Italy is Europe's third largest producer of chemicals.
Italy focuses mainly on agricultural, food and beverage markets. Many large multinationals have a presence in Italy, as Italy’s skilled workforce and strategic location in Europe benefits them.
LCPC aims to provide you and your business with high quality assistance. Setting up a company is one of the first steps in building your business and we will help you through it together!
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