View Full Version : Starting Your Own Business in Italy


jacqueline
01-29-2007, 02:25 PM
You Will Need to Look Into:

a "Codice Fiscale" (individual taxpayer number)
a "Partita IVA" (VAT tax number)
To register with the nearest "Camera di Commercio" (Chamber of Commerce)

Deciding Which Type of Business You Plan on Opening
Types: Representative offices, branch offices, sole proprietorships, partnerships, and corportations

Representative Offices/ Ufficio di Rappresentanza
For those that want to set up business operations in Italy, but come to research the markets available, distribute information, or promote the image of a foreign company

Branch Offices/Sede Secondaria
This is a branch of a non-resident company that wants to do business in Italy
The procedures to open one are complicated and you will need the help of a "Notaio" (notary public) to register the branch office with the local tas authorities

Sole Proprietorships/ Ditta Individuale
This is the simpliest business structure, because there is no capital requirement.You must have a partita IVA tax number and must be registared with the "Camera di Commercio" within one month--you must bear all tax consquences and liability of the company. If it goes bankrupt, your assets, both personal and company-related are liable for all business debts.(unless you protect them)

Partnerships/Societa di Persone
There is the general partnership (societa in nome collettivo) and a limited partnership. There is no requirement for capital. All partners are liable for debts. In a limited partnership (Societa in accomandita semplice) the liability of each is determined by his or her original investment.
There is no limit to the number of partners

Corportations/Societa di Capitali
WIth a corporation you are protected against liabilities incurred by the enterprise, except where the original investment is concerned. If the corporation goes bankrupt, shareholders personal effects cannot be taken to pay off debts. There are two types of corporations, and each has its own set of capital requirements. Both are subject to local income tax, IVA and corporate tax (IRPEG).
!.This one is a Limited-liability company (societa a responsablita limitata (Srl).
It requires a minimum quota capital of 10,000 euros with at least 30% to be paid upon incorporation. It cannot be listed on the stock exchange and has quotas of no less than 1 euro that represent the interests of the quoptaholders. It requires an annual audit if the paid-in capital is more than 50,00 euro.
2. Joint stock Corporation / Societa per Azioni (S.p.A) This type of corporation is more complex. It must have a minimum capital of 100,00 euro with the 30% required down payment. This is usually set up for large businesses that want to be set up on the stock exchange (Borsa).
Before the S.p.A. is registered its capital must be underwritten by at least two shareholders. If it is to be listed on the stock market, it is required to submit its account to outside auditors.
There is a tax due upon registration that is equal to 1% of the capital, and there is a state concessions tax of 300 euro. The fees of the Notaio alone can run you 3,000-5,000 euro.

Colci
03-01-2007, 07:10 PM
You Will Need to Look Into:
Both are subject to local income tax, IVA and corporate tax (IRPEG).


IRPEG has now been substituted by IRES. Same tax, same rate (33%) different name. Companies, parterships and certain sole traders are also liable to IRAP, the regional production tax, generally 4.25% but higher rates apply in some regions where the Regional governments are unable to balance their books (generally the Mezzogiorno).


This one is a Limited-liability company (societa a responsablita limitata (Srl).
It requires a minimum quota capital of 10,000 euros with at least 30% to be paid upon incorporation. It cannot be listed on the stock exchange and has quotas of no less than 1 euro that represent the interests of the quoptaholders. It requires an annual audit if the paid-in capital is more than 50,00 euro.

You now need to pay up only 25% on incorporation unless the company has a sole shareholder in which case you need to show the notary that you've paid up 100%before he will do the dirty deed.
An audit (its' morethan annual becasue the board need to do quarterly inspections as well as an annul report) is required if the share capital exceeeds Euro 120,000 or if certain financial statments parameters (turnover, assets, staff headcount) are exceeded for two consecutive periods.


2. Joint stock Corporation / Societa per Azioni (S.p.A) This type of corporation is more complex. It must have a minimum capital of 100,00 euro with the 30% required down payment. This is usually set up for large businesses that want to be set up on the stock exchange (Borsa).
Before the S.p.A. is registered its capital must be underwritten by at least two shareholders. If it is to be listed on the stock market, it is required to submit its account to outside auditors.
There is a tax due upon registration that is equal to 1% of the capital, and there is a state concessions tax of 300 euro. The fees of the Notaio alone can run you 3,000-5,000 euro.

Min capital for an Spa is Euro 120,000 and the same rules as for Srl apply as regards paying in before the notary will let you incorporate. The 1% tax on incorporation was abolished yonks ago and any notary that takes it off you is a thief. Also the 2004 the Italian corporate law reform now permits SpA's with a sole shareholder (but with some extra compliance).

Kathleen Cipolletti
03-05-2007, 04:26 AM
Jacqueline

I am a student in Arizona and have to write a paper on how to open a business in Italy. If you have any information that can help me please let me know. My business is a restaurant. It is a 16 page report so anything will help. Thank you

Kathleen

jacqueline
03-10-2007, 08:17 PM
Kathleen, I would love to help you, and as soon as I have some concrete information I will post it for you--when is your paper due?