Italy

Company Formation in Italy

Italy is a good destination to set-up your company to cater to the large EU Market. YourGlobalPro can assist in Italy for Company Formation, Secretarial Compliance, Tax Registration, VAT Reclaim, Document Retrieval, Trademark Registration and Citizenship Services.

About the Country

The Italian Republic (“Italy”) he fourth most populous EU member state is located in the heart of the Mediterranean Sea, Italy shares open land borders with France, Switzerland, Austria, Slovenia, San Marino and Vatican City. It is the fifth most visited country in the world – having divided into 14 metropolitan cities and 96 provinces having highest level of faunal biodiversity in Europe. The below content will explain you in detail about the requirements for the company formation in Italy, know more about the process of trademark registration in Italy and understand the Italy Legal and Compliance requirements.

Italy

Doing Business Introduction

The Country is considered as the world’s sixth largest manufacturing country and part of the European single market which represents more than 500 million consumers. Italy has a glamorous image and interesting investment opportunities.  As per Doing business report of The World Bank –Italy ranks 50 for 2017 survey.

YourGlobalPro professionals are able to assist with any type of company formation, trademark registration and other recurring services for your business in Italy.

Incorporation - Types of Business Entities

The Company formation process in Italy requires the articles of association, the memorandum of association or public deed to be presented to a notary public and lodged accordingly with Registro delle Imprese. There are different types of entities that can be incorporated in Italy are as mentioned below:

  • Limited Liability Company (SRL – Societa a responsabilita limitata)
  • Joint Stock Company (SPA – Societa per azioni)
  • General Partnership (SNC – Societa in nome collettivo)
  • Limited Partnership (SAS – Societa in accomandita semplice)
  • Partnership Limited by Shares (SAPA – Societa in accomandita per azioni)

Time Frame for Incorporation of Company in Italy varies from depending on the type of entity selected. Each business type has its own advantages and disadvantages. Your global pro estimates the time required for Italy Company formation process to be completed is 7-10 working days.

Benefits of Registration of a Company

Below are the advantages of company formation in Italy:

  • Various forms of grants for new businesses in form of EU Subsidies, Grants from the Government
  • Strategic location being a natural bridge between Europe and Africa
  • Ranks among the seven most industrialised countries in the world
  • Significant net importer of energy, chemicals and ferrous and non-ferrous metals
  • Significant net exporter of manufactured goods and textiles
  • Manufacturing, mechanical, construction sectors, chemicals, and the transport industry are listed amongst developed Sector of Italy

Tax Registration and Filing

The Agenzia delle Entrate, is the Italian Tax Authority having its own structure, with different offices. All the Resident companies are subject to corporate income tax (imposta sul reddito delle società, or IRES) on their worldwide income.

Corporate Income Tax Rate 27.5%
Capital Gains Tax Rate 1.375% / 27.5%
Value-Added Tax 22%
Dividends Non-residents 0%, Tax Treaties 1.375%, Resident individuals with non-substantial participations 26%
Interest Non-residents 0% / Treasury Bonds issued by the Italian government 12.5%, Residents and Non-Residents from Corporate Bonds 26 %
Royalties Associated Companies 0%, Tax Treaties 22.5%, Non-Residents 30%
Branch Remittance Tax 20%
Income Tax Return Needs to be filed by the end of the ninth month following the end of the companyu2019s fiscal year
Advance Payments To pay for their corporate and local tax liability

Double Tax Treaty

Double Tax Agreements regulates the tax treatment of income or capital gains in situations where the same taxpayer is taxed twice in two countries for the same subject. Italy has double taxation treaties with about 90 countries.

Trademark registration

For trademark registration in Italy, an application needs to be made to Ufficio Italiano Brevetti e Marchi. It takes approximately 18-20 months’ timeframe to complete the trade mark registration process.  A Trademark Registration in Italy is valid for 10 years from the application date and can be renewed indefinitely provided renewal fees are paid every three 10 years.

YourGlobalPro professionals are fully equipped to assist you with the process for trademark registration in Italy. For assistance or advice in the matter of the trademark registration in Italy or intellectual property – please feel free to write or contact us.

Secretarial Compliance

Below are some of the important points in relation to Company Secretarial Compliance in Italy:

  • All accounting records to be maintained for ten years.
  • Notary public need to be hired for executing the Memorandum and Articles of Association by the at the time of Company formation.
  • Required to prepare and lodge a copy of their financial statements with the Public Business Registry within 30 days of approval by the shareholder
  • Board Minutes, shareholders’ decisions book to be maintained by the Company.
  • An annual fee is payable by all companies local Chamber of Commerce (Camera di Commercio).

Accounting Services

In Italy, entities are required to maintain adequate bookkeeping records, including a copy of all supporting documentation. Italy adopted the International Financial Reporting Standards (IFRS).

YourGlobalPro professionals can assist you with the entire bookkeeping and accounting services for your Italy Business Set up as per your business needs including implementation of financial accounting software, accounting records preparation and time to time preparation of budgets, forecasts.

Auditing service

In Italy audit of the financial statements is done in accordance to Article 2409 b is of the Italian Civil Code and Auditing standards issued by the Italian Association of Audit Firms, the Italian Institute of Chartered Accountants.

Based on the size of the business – the companies are required to prepare and file financial statements with the Authority. YourGlobalPro professionals provide you auditing services as required by your business.

Banking

The documentation requirement differs from Bank to Bank and need to be complied for the Bank account opening. Before proceeding with opening Bank Account with Bank, it is recommended to compare commission rates for money transfer to and from Italy. The Bank of Italy stabilizes money supply and supervises banking and credit institutions in Italy.

The major banks in Italy are Nuova Banca di Credito di Trieste, Cassa di Risparmio di Padova e Rovigo, Credito Italiano, Bank of Italy, Banca Commerciale Italiana, Banca di Roma, Banca Nazionale del Lavoro, Banche di Credito Cooperativo BCC, Cassa di Risparmio di Firenze, Cariplo, Banco di Napoli. All banks are stable, reliable and offer the same level of services.

YourGlobalPro professionals can facilitate all the paper work in relation to banking need and can assist you in opening bank account for your business plan in Italy.

Legal and Compliance

The responsibility of legal and compliance in Italy is not a one-time affair, but a continuous process. Below is the various Italy legal and compliance requirement to be followed by incorporated entities:

  • All entities will ordinarily need to prepare an income statement for tax purposes
  • An annual fee is payable by all companies, an annual fee is payable by all companies, and local Chamber of Commerce.
  • The Social Security Contributions to Istituto Nazionale Previdenza Sociale (INPS) must be made on a monthly basis – on 16th day of the month following the end of the month for which the salary was paid by the Company for the employee
  • The Insurnace premimum to Istituto Nazionale per l’Assicurazione contro gli Infortuni sul Lavoro (INAIL) is wholly paid by the Employer.
  • The financial reporting requirement is provided in the Civil Code and the Italian Generally
  • Accepted Accounting Principles (GAAP).
  • Filing with Public Business Register by Limited Liability Company and Joint Stock Company must be within 30 days of Approval of Accounts.

YourGloabalPro professionals can assist you in Italy with the Legal and compliance requirement

HR and Employment Law and Immigration / VISA

Below are some of the important points in relation to HR & employment law in Italy:

  • The employment in Italy is regulated by the Italian Constitution, Codice Civile, Statuto dei Lavoratori and Contratti Collettivi
  • The Standard working week is 40 hours, with a maximum set at an average of 48 hours in a seven-day period.
  • The statutory level is prescribed for Trial periods for employment – (non-managing functions – 3 month & all other employees -6 months.
  • The notice periods under that agreement apply
  • Apart from Public holiday the employees are allowed for four weeks of statutory annual leave for full-time employees, three days paid sick leave and five months’ maternity leave.
  • Minimum working age in Italy is 18
  • The EU, the United States of America, Canada and a number of other countries resident do not require Italy Visa – only the passport must be valid for 6 months or more.
  • The Foreign Resident who is interested in working in Italy is required to obtain work permit.
  • The work permit is granted only when the applicant is outside Italy – and the same is granted for a period of one year with option of extension.

Country Statistics

Capital Rome
Largest City Rome
Total Area 301,338 Sq. Km.
Population 60,599,936
Density 201.3 / Sq. Km.
Currency Euro (u20ac) (EUR)
Government Unitary Parliamentary Republic
Official language Italian
Religion Christianity: 83.3%
No religion: 12.4%
Islam: 3.7%
Buddhism: 0.2%
Hinduism: 0.1%
Other religions: 0.3%
Business Offices Hours Mondays to Fridays: 08:30 - 13:00 and 15:00 - 18:00
Banks and Exchange Houses Hours Mondays - Fridays: 08:30- 13:30 and 14:45 - 16.15

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