We provide investors with our compliance services when setting up a business in Italy and assist them in opening accounts in branch banks from abroad.
Our years of expertise and reliable contacts help us to competently support Chinese companies entering the European market. Due to our good local networking, we are always able to inform our Chinese partners promptly about the latest guidelines of the respective government and optimize the remote foundation process for Chinese investors.
We have recently updated the company incorporation process in accordance with the latest notary regulations. This now allows remote video notarization of the company’s articles of association and remote opening of an Italian business bank account.
With these new possibilities, the procedures for establishing an Italian company have been greatly simplified and efficiency improved.
Arguments for starting a business in Italy
Italy has good distribution channels and is an important transportation hub between Europe, the Middle East, and West Asia. The flight time from most European capitals to Rome is less than three hours.
The gross domestic product (GDP) of the European Union in 2020 is around EUR 12.46 trillion. EU GDP decreased by EUR 1.44 trillion year-on-year in 2020 due to the impact of COVID-19. Of this, more than a quarter of the EU GDP is generated by Germany (27%), followed by France (18%), with Italy accounting for around 13% of the total EU GDP.
Italy leads Europe in terms of annual financial investment and subsidies in the education system. More than 20 Italian universities are among the 500 best universities in the world. On average, nearly 300,000 highly qualified students graduate here each year. The quality of work performed by employees in the Italian industry is top-notch by global standards; Italy is a leader in particular in the fields of mechanical engineering, industrial design, aerospace, textiles and clothing, and food processing. However, compared to other EU countries, labor costs in Italy are relatively low. According to Eurostat statistics, in 2020 average wage costs in EU countries were around 32.3 euros per hour, but in Italy only 29.8 euros per hour.
The total length of the Italian road network is 310,000 kilometers, making it the second-largest road network in the EU. The total length of the national railroad network is 193.94 million kilometers, making it fifth in the EU. Italy is surrounded by the sea on three sides and has 352 ports and a well-developed shipping industry. There are 96 airports here. The annual cargo throughput of the 35 major airports is more than 952,000 tons.
- Tourism: with outstanding historical and artistic achievements, cultural heritage, natural landscapes, etc.
- Fashion and luxury industry: Global industry giants such as haute couture, watches, jewelry, yachts, etc. gather in Italy. The industry activity is among the best in the world.
- Automotive industry: major car manufacturers with a long history
- Biopharmaceutical industry: established systems especially in R&D (research and development)
- Renewable energy sector
- Chemical industry
- Aerospace industry
What are the specifics of setting up a business in Italy?
Choice of legal form/capital company form
Under Italian law, there are different legal forms for the incorporation of a company in Italy. These are as follows: S.R.L (Societ à A Responsabilit à Limitata), S.p.A. (Società per azioni), Branch, and Rep Office.
S.R.L. is the most common among them - and the legal form is most often chosen by foreign investors. The minimum share capital of S.R.L. is €10,000. There are no restrictions on the nationality and residence of shareholders. In addition, shareholders do not directly participate in the company's assets, and liability is limited.
Choice of the company address/location
Economically, the development of the north and the south of Italy are very different, also with regard to the orientation of the industries. Before deciding on a company location, investors should first consider the development needs and industry of the company, as well as specifically evaluate the economic development of the regions and the related government subsidies and support.
Employment of employees
Italian companies are not required to hire employees.. At the beginning of the business start-up, we recommend having the daily administrative tasks performed remotely by a professional management team. When the company's operations are stable and further expansion is planned, employees can be hired locally.
Tax matters
Under Italian tax law, the national corporate income tax (IRES - Imposta sul Reddito delle Società) and the regional tax on production activities (IRAP - Imposta Regionale sulle Attività Produttive) are payable. The regional tax rates vary slightly by location. The combined tax rate is thus 27.9%.
In the case of a permanent establishment with its head office in Italy, it is possible to offset losses or carry forward losses for an indefinite period.
Meet our experts in business establishment and structuring
Chen Shi
Co-Founder & Managing Director
Grenoble, France
Lili Fan
Business Development Manager
Grenoble, France
Process of remote company creation in Italy
Preparations for the establishment of an Italian company
First of all, it is important to determine the Italian company to be established: Company name, business scope, shareholder structure, registered address, and information of directors and shareholders. The time required is 3-5 working days.
Apply for the local tax numbers, personal electronic signature and deposit the registered capital
The tax number applied for includes the personal tax number of the shareholder, and director, and the Italian tax number of the shareholder's parent company. During this period, the share capital must be paid in and deposited in the notarial deposit account in order to obtain a capital contribution certificate. The time required is approximately one month.
Notarization of the company's articles of association and registration procedures (remote)
After receiving approval from the customer, the authorized person will bring the certified materials in China to the Italian notary office to obtain the certification of the company charter. After the notarization, the notary will submit all the business registration documents to the Italian business registry to obtain a business license. The time required for this is one to two weeks.
Apply for tax numbers and branch bank accounts
After the establishment of the company, it is necessary to apply for the required documents of the company, such as company tax number, VAT, EORI, etc., and complete the opening of the Italian company bank account. After the bank account opening is completed, the share capital of the deposit account is transferred to the bank account of the newly established companies in Italy.