Guide to Company Incorporation in Italy

1. What is the minimum share capital of an Italian SRL (Limited Liability Company)?
An Italian Limited Liability Company may be owned by one or more shareholders who must provide a minimum capital of EUR 10.000. Usually the shareholders' contributions are made in cash, unless the act of incorporation specifies otherwise. The capital of an Italian SRL is expressed in quotas.

2. What is the minimum share capital for an Italian SPA (Joint Stock Company)?
Before opening an Italian Joint Stock Company, the founders must provide a minimum capital o 120.000 EUR which is divided into shares with a nominal value.

3. Are there any special requirements for establishing a SRL in Italy?
In order to set up an Italian SRL, or Limited Liability Company, the company's capital has to be fully subscribed and at least 25% must be paid in. The business entity may be set up by one or more founders who can be residents of EU-member states, or have residence permits. In order to set up the company there are no requirements for directors to be Italian citizens or residents, neither does the law require a company secretary. For incorporation of a new SRL al shareholders must be present in front of an Italian Notary to sign all the company documents, or they can issue a Power of Attorney to enable a lawyer to sign and provide all the required documentation. The company has to open a bank account in which to deposit the minimum capital, and therefore the titular may be required to travel to Italy once before setting up the account. However, it is recommendable to discuss the possibility of a representative carrying out all the required steps and providing the necessary identification documents.

4. How can I register for VAT in Italy?
After registration of the new company the founders must apply for a VAT number. The VAT registration in Italy and the accounting matters are handled by an accountant. The company must apply for the VAT office competent for its tax domicile and complete a declaration form of business commencement. Foreign traders not resident in EU are required to appoint a tax representative in Italy. For EU residents, appointing a tax representative is optional. In order to register the company for VAT the founders must provide the deed of incorporation, the registration certificate and information on the object of activity and an estimated annual turnover. 

5. How can I open a bank account in Italy?
Before registering an Italian Limited Liability Company, the founders must open an Italian bank account in which to deposit the minimum capital funds. Some Italian banks may require presence of the account titular, presenting an identification card and passport, and also the company documents. However an application form from a branch of an Italian bank may be obtained and sent from abroad to the respective bank, in order to avoid travelling to Italy and set up the bank account through a representative.

5. How can I recruit personnel in Italy?
When a company comes to the point of hiring personnel, it must weigh its options. The secure social security system and loads of job opportunities favour millions of immigrants seeking jobs. Italian workforce is highly trained in most business sectors, and there are plenty of job placement websites where a company can create an account and fin employees. Recruitment agencies are easy to find and offer best suited solutions for any company.

6. What is the average salary in Italy?
Italy offers a great social security system, enabling a good quality of life for many employees. Most domains are well paid, and employees benefit from many advantages, as the average net salary exceeds 1500 EUR.

7. What is the overall economical situation in Italy?
Italy ranks as one of the strongest economies in Europe, mainly due to a capable and strong workforce, but also a well structured economic system. The present economic situation is due to the development of industrialization. Tourism, agriculture and manufacturing are the most productive business domains that kept Italian economy strong in the recession period. In terms of investments, millions of foreign investors commence business here, mainly due to the welcoming conditions and development possibilities that Italy has to offer.

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