How to start a business in Italy? Steps and options
Italy’s market is an attractive place to start a business, boasting the 3rd largest economy in Europe and the 8th in the world. Its strategic geographical position facilitates trade between Northern Europe, Southern Europe, North Africa, and the Middle East, making Italy a prime location to open a company. The robust economy and international connectivity create numerous opportunities for entrepreneurs wondering how to start a business in Italy.
If you’re looking to open a company in Italy, the market offers a diverse landscape for various industries, from manufacturing to services. Italy’s well-developed infrastructure, skilled workforce, and strong legal framework support business growth and innovation. The country’s rich cultural heritage and lifestyle also contribute to a dynamic environment for new ventures.
Understanding the local regulations and tax system is crucial when considering how to start a business in Italy. Navigating the administrative procedures, such as registering your company with the Italian Business Register and obtaining necessary licenses and certificates, is essential for compliance and smooth operation. Additionally, Italy provides several incentives and support programs for startups and foreign investors, making it even more appealing to open a company in Italy.
Prepare your business plan
To start a business in Italy, is important to define your activity. What is your business about? What kind of structure and mission does it have? If you, your business model and your goals line up with the Italian’s, let’s get into it!
Define the type of business you want to set up
It is necessary to identify the existing category your business will fall under. Italy offers various options for starting a business, making it essential to identify the category your business will fall under based on its size, function, and budget.
For those considering a small business in Italy, options like a “Società a Responsabilità Limitata” (S.R.L.) or a sole proprietorship might be suitable due to their flexibility and lower initial capital requirements. Opening a company in Italy involves understanding whether your business will be a micro-enterprise, a small to medium-sized business, or a larger entity, as this will influence the legal structure and regulatory requirements.
While it may seem daunting, especially if you’re wondering, “Is it hard to start a business in Italy?”, the process can be straightforward with the right preparation and understanding of the Italian business landscape.
By clearly defining your business type, you can better navigate the registration process and ensure compliance with Italian laws and regulations.
Choose the type of company
To set up your business, it is necessary to define the type of company that is the best fit for your needs.
Limited liability companies
S.R.L. And S.R.L.S. are the most common types of limited liability companies in Italy and they allow for the highest level of flexibility for the founder(s).
Partnerships
Founders (or some of them) have unlimited liability towards creditors and need to use their personal assets to pay the debts and obligations of the company.
Benefit corporations
They are “for-profit” companies that, at the same time, achieve one or more beneficial purposes.
Sole proprietorships
These are the easiest and fastest way to start a small business in Italy. The owner is the only one responsible for the enterprise.
Innovative start-up company
These are companies whose core business consists of the development, production and commercialization of innovative goods or services of high technological value.
Other entities
Branches
They are foreign “units” of the mother company. They are not a separate legal entity and are considered permanent establishments subject to taxation in Italy.
Representative offices
They are fixed places for promotional, advertising activities, collection of information, scientific or market research.
Discover more on all the types of companies you can set up in Italy.
Check your permit requirements
Can a foreigner open a company in Italy? To open a business in Italy as a foreigner, you should know that there are no specific limitations regarding most nationalities, when it comes to opening a company in Italy. Director/Shareholder do not need to have Italian residency, supplying an ID or vaild passport is sufficient.
However, if you are planning to move to manage your business locally, do not forget to obtain a legal permit to live and work in Italy. Discover more on our immigration services.
Understand the time frame
How long does it take to register a company in Italy? The time frame for a foreigner to set up a company (including obtaining VAT and opening a bank account) is approximately 5-6 working days from the day in which we start the incorporation procedure. The timeline may vary according to the type of business you need to set up.
Be aware of the challenges
Bureaucracy, despite what is said about its complexity, can be easly overcome by good preparation, clear ideas and a professional support. The best way to set up your business smoothly is to rely on local support.
Ask for local professional support
Our team of lawyers provides legal assistance for setting up a business in Italy and many other related services. You can benefit from having a single provider for all the diverse needs of your company, from setting up a business to tax, accounting, payroll and immigration services. Contact us.
Browse our Q&A section.
