Italy is a popular destination for entrepreneurs and investors looking to set up a business in Europe. However, before starting a business in Italy, it is important to understand the types, costs and expenses associated with company registration. In this article, we will provide a breakdown of the fees and expenses associated with registering a company in Italy.
Types of business structures in Italy
Italy is a developed nation, and thus supports and permits most of the business formats that are prevalent anywhere in the world. The table below showcases types of permissible legal business formats and capital requirements.
| S# | Type of company | Local Name | Min. paid-up capital requirement |
| 1. | Sole Proprietary Company | ditta individuale | No minimum paid-up capital required |
| 2. | Partnership | Società in Accomandita Semplice (SAS) | No minimum paid-up capital required |
| 3. | Limited Liability Company – LLC | Società a Responsabilità Limitata (SRL) | €10,000 |
| 4. | Joint Stock Company – JSC | Società per Azioni (SPA) | €120,000 |
| 5. | General Partnership | Società in Nome Collettivo (SNC) | No minimum paid-up capital required |
| 6. | Cooperative | Società Cooperative (Co-op) | €2,500 |
Process & cost of registering a company in Italy
The cost of registering a company in Italy can vary depending on the type of business structure and the specific requirements of the company. Some general costs associated with registering a company in Italy include:
Notary fees
First, let’s take a look at the Notary fees. These fees are charged for the drafting and execution of the company’s articles of association. The notary fee is calculated based on the company’s share capital and ranges from a few hundred to a few thousand euros.
Capital contribution fee
Next, there is the Capital contribution fee. This fee is charged for the contribution of capital to the company. The fee is typically a small percentage of the total capital contribution and ranges from a few hundred to a few thousand euros.
VAT
Value Added Tax (VAT) is also applied on some of the above costs. The VAT rate is 22% for most of the services, but it could be reduced in some cases.
Chamber of Commerce registration fee
The Chamber of Commerce registration fee is also an important cost to consider. This fee is charged for registering the company with the local chamber of commerce and ranges from a few hundred to a few thousand euros, depending on the company’s share capital.
Share capital fee
Additionally, there is the Share capital fee. This fee is charged for the issuance of shares in the company and ranges from a few hundred to a few thousand euros, depending on the number of shares issued.
Legal fees
Lastly, Legal fees are another important cost to consider. These fees may be charged for the legal services required to register the company, such as drafting the articles of association and registering the company with the local chamber of commerce. Legal fees can vary widely depending on the complexity of the business and the specific requirements of the company.
In conclusion, the cost of registering a company in Italy can vary depending on the type of business structure and the specific requirements of the company. However, it is important to budget for notary fees, capital contribution fees, VAT, chamber of commerce registration fees, share capital fees, and legal fees when starting a business in Italy.
Process
The process of registering a company in Italy involves several steps, including:
Choosing a company name
The company name must be unique and not already in use by another company. The name must also comply with legal requirements, such as not including any prohibited words or phrases.
Preparing the articles of incorporation
This document outlines the company’s purpose, capital structure, management, and other important details. It must be drawn up by a notary and signed by the founders.
Depositing the capital
The company must deposit the minimum required capital in a bank account, and provide proof of this deposit to the notary.
Registering with the Chamber of Commerce
The articles of incorporation and proof of capital deposit must be filed with the local Chamber of Commerce, along with other required documents such as the tax identification number (codice fiscale) of the company’s legal representative.
Obtaining necessary licenses and permits
Depending on the type of business, the company may need to obtain licenses or permits from local or national authorities.
Registering for taxes
The company must register for VAT and other taxes, and file regular returns with the Italian Revenue Agency (Agenzia delle Entrate).
Registering employees
The company must also register employees with INPS (Italian National Social Security Institute) and INAIL (Italian National Institute for Insurance against Accidents at Work).
Cost & benefits of doing business in Italy
The cost of doing business in Italy can vary depending on factors such as location, industry, and company size. Some costs to consider include:
- labor
- taxes
- office space, and
- transportation
- Utilities
Italy has a relatively high cost of labor compared to other European countries, and taxes can also be relatively high. However, the country has a well-developed infrastructure and a skilled workforce, which can offset some of these costs. Overall, the cost of doing business in Italy can be relatively high, but it also offers many opportunities for growth and success.
Benefits of doing business in Italy
There are several benefits to doing business in Italy. Some of the key benefits include:
Strong economy
Italy has a strong and stable economy, which can provide a solid foundation for businesses to grow and thrive.
Skilled workforce
Italy has a well-educated and skilled workforce that can provide a competitive advantage for companies in certain industries.
Strategic location
Italy is well-connected to other parts of Europe and the world, making it an ideal location for companies looking to expand their reach.
Cultural heritage and tourism
Italy is a culturally rich country with a strong tourism industry, which can provide opportunities for businesses in the hospitality and tourism sectors.
Luxury goods industry
Italy is renowned for luxury goods production, such as fashion, leather, furniture, and jewelry.
Food and agricultural industry
Italy is also well-known for its food and agricultural products, particularly olive oil, wine and cheese.
Supportive government
Italy has an overall supportive government which provides different incentives and opportunities for businesses.
Overall, doing business in Italy can be challenging, but it also offers many opportunities for growth and success, particularly in industries such as luxury goods, tourism, and agriculture.
