Italy is a European country that is very attractive to start your own business there. Many of our entrepreneurs now want to open a company in Italy, but many are stopped by the fact that they do not have enough information about the nuances and intricacies of opening a company there.
Business in Italy
The Italian economy is particularly resilient. This is confirmed by the fact that almost 80% of Italian companies are family-owned. Proponents of the American business model, perhaps, should not open a company in Italy. The business market in Italy is not at all the same as in America. Small business in Italy is based on several organizational and legal forms in which entrepreneurs can register their firms.
Limited Liability Company (Sоsieta \ ‘a responsabilita \’ limitata (S.r.l.) is the most common form of company registration in Italy.
The minimum authorized capital of an SRL is 10.000 euros. If the SRL has one participant, then the authorized capital must be paid 100% by the time of registration of the Company.
A contribution to the authorized capital of an LLC can be both money and securities, other things or property rights, or other rights that have a monetary value.
Establish a company in the form of S.r.l. can be both individuals and legal entities. A prerequisite is the presence of a legal address, and it must be functioning, and not fictitious. If you plan to be the sole owner of the company, then be prepared for the fact that you will be required to pay all the authorized capital by the time of registration. If the number of founders of the company exceeds one person, then the option of paying only a part of the authorized capital when registering the company is allowed. During the registration of the company, it must also be entered in the regional register of enterprises. Less common forms of business registration in Italy are such as a limited and unlimited limited liability company (Società in accomandita semplice), an unlimited liability company (Società in nome collettivo) and an additional liability company (Responsabilità aggiuntiva).
If you are seriously thinking about opening a company in Italy, then you can register your business in these forms, but most often the most suitable is just a limited liability company. Each company in Italy is obliged to submit monthly or quarterly reports to the relevant services – the frequency of submission of documents depends on the company’s cash flow. The balance sheet must be submitted to the tax office once a year. For many, a good alternative to starting a business abroad on their own is to buy an existing company there.
How much taxes does an LLC pay?
The LLC will pay income tax of 27%, which consists of corporate income tax IRES (Italian Imposta sul reddito delle società) equal to 24% and regional income tax IRAP (Imposta regionale sulle attività produttive) of 3.9%.
Currency restrictions in Italy
Currency regulation in Italy is based on the fact that all cash payments are carried out only in lira, and non-cash – in euros. If you decide to buy real estate in Italy, then you can do it only from an account in an Italian bank. All foreign banks, of which there are not so many in Italy, are much less trusted, and they are not very popular both among companies and among ordinary citizens.
Company service
Compared to other European countries, the cost of servicing a company in Italy is significantly lower.
The legislation does not put forward requirements for the number of hired residents, and does not fix the minimum annual turnover. There are also no requirements for the number of hired directors, administrators, and other employees. In Italy, they adhere to the principle that the success of the company is a purely private matter of the entrepreneur. There is no need to prove what benefits it brings to the state.
Italian business culture
Like any other country, Italy has its own business culture, which should be adhered to by anyone who decides to do business in this country. Italian culture as a whole is primarily relationship-oriented. This trait is also characteristic of the business sphere.
A handshake is an important element of communication, including business communication. Even women greet each other with a handshake in Italy. Italians do not like to talk about business over the phone or the Internet. Therefore, you should not send Italians an email with an offer of cooperation. Better to make an appointment and discuss everything in private. Even during business negotiations, Italians do not betray their explosive temperament – they are impulsive, expressive, expressive. If during a conversation your Italian partner interrupts you, do not take it as disrespect, this is just a manifestation of Italian expression.
Before negotiations, Italians are accustomed to studying the work history of a future potential partner, since it is customary in Italian society that people with the same business and social status should participate in negotiations. Although Italians are very friendly and tend to create an atmosphere of ease even in the business aspects of communication, one should not neglect their titles, titles, and high positions.
