Company Law in Italy

The main legislation that refers to all types of companies in Italy is the Italian Civil Code. In addition to that, companies are also regulated by the Legislative Decree 58/1998, also known as the Consolidated Financial Act. This act was subject to a reform in 2001 by the Law 366/2001. Also, Consob or “Commissione Nazionale per le Societa e la Borsa” is the public authority in charge with supervising and regulating the Italian securities market. In 2006, Borsa Italiana replaced the Corporate Governance Code from 1999 which refers to rules in organizing and running a company in Italy. These rules are not compulsory, but they are recommended to pretty much all types of companies in Italy. Nevertheless, as a member state of the European Union, Italy also applies European regulations when it comes to corporate law in Italy regarding foreign investment.

TYPES OF COMPANIES

The company law in Italy recognizes the following types: Limited Liability Company or Societa a Responsabilita Limitata (SRL), Joint Stock Corporation or Societa per Azioni (SpA), partnership limited by shares or Societa in Accomandita per azioni (Sapa), limited partnership or Societa in accomandita semplice (Sas) and general partnership or Societa in nome collettivo (Snc).

In order to set up a limited liability company in Italy, one has to provide a minimum share capital of 10,000 EUR, while for the incorporation of a joint stock company it is necessary to have at least 120,000 EUR. Partnerships are established in Italy by two or more members.

OTHER RULES

The Italian legal system recognises the central role of work, therefore the labour law in Italy stipulates important matters in working conditions, equality of opportunity or the right of association.

In Italy, the contract of employment is considered indefinite unless it is otherwise mentioned. Under the Italian Civil Code, a contract of employment can be suspended in the case of industrial accident, illness or maternity. The Italian Civil Code also mentions that any of the two contracting parties, the employer and the employee, can terminate the contract of employment under certain circumstances.

BridgeWest can offer detailed information how to start a company in Italy.