22 April, 2024
Types of Companies in Italy
Establishing a company in Italy involves navigating through various legal structures tailored to different business needs. Here’s a breakdown of the types of companies and entities you can establish in Italy:
- Companies:
- Limited Liability Company (Società a Responsabilità Limitata – S.r.l.): this structure offers limited liability for owners and allows for separation of ownership and management.
- Public Limited Company by Shares (Società per Azioni – S.p.A.): ideal for large businesses requiring substantial capital, it’s characterized by shares that can be publicly traded.
- Partnerships:
- Società in Nome Collettivo (S.n.c.): partners share unlimited joint and several liability for the company’s obligations.
- Società in Accomandita Semplice (S.a.s.): combines general partners with unlimited liability and limited partners with liability restricted to their investment.
- Other Entities:
- Branch: a foreign unit of the mother company, subject to taxation in Italy.
- Representative Office: conducts promotional and advertising activities, with no authority for business transactions.
Establishing a Company: key considerations
When establishing a company in Italy, several factors come into play:
Limited Liability Companies (S.r.l.):
- Traditional S.r.l. vs. Simplified S.r.l.: Traditional offers more flexibility, while Simplified has certain restrictions.
- Minimum Initial Share Capital: No longer required, with minor restrictions for capital below €10,000.
- Remote Establishment: Incorporation process can be completed remotely through power of attorney.
Public Limited Companies (S.p.A.):
- Share Capital Requirements: Initial capital must be at least €50,000, divided into shares.
- Corporate Governance: Choose between traditional, one-tier, or two-tier management systems.
Partnerships:
- Unlimited vs. Limited Liability: Partnerships offer varying degrees of liability for partners.
- Business Name: Must reflect the type of partnership and include partners’ names.
Who Can Establish a Company in Italy?
Foreign investors can set up companies in Italy, subject to reciprocity conditions. Exceptions apply for citizens of EU member states, EEA countries, and nations with international agreements with Italy. Verification of reciprocity can be done through Italy’s Ministry of Foreign Affairs.
Establishing a company in Italy involves careful consideration of legal structures, capital requirements, and governance models. Whether opting for a limited liability company, a public limited company, or a partnership, understanding the nuances of each entity is essential for successful business operations. If you’re considering company formation in Italy, contact us for expert guidance tailored to your specific needs and circumstances >
