Over the past three years, Italy has become one of the most attractive countries in terms of investment in Europe, surpassing the Netherlands and Germany in terms of attractiveness index. The government is making impressive efforts to create a stable tax and legal environment for foreign investors, as well as to promote competition and reduce the tax burden. This statement has particular relevance to the service sector, traditionally one of the most profitable areas of the Italian economy.
Società a responsabilità limitata – S.R.L.
This type of company is the most common form of doing business in Italy since it provides for the obligatory contribution of capital, the amount of which is limited to the property liability of the founders, owners of shares in the company, for the obligations of the company itself.
This type of company is indicated for small and medium-sized businesses that require a certain initial investment and when the founders want to draw a clear line between personal property and company property.
The minimum authorized capital is 10.000 euros. If the company has more than one member, the initial contribution of the authorized capital in the amount of 25% is possible. The remaining 75% of the authorized capital can be contributed at any time, a specific period is not set.
The governing body of the company can be the so-called Single Administrator or the Board of Directors. The board of directors may include third parties, as well as the founders of the company itself.
Important decisions concerning, for example, the functioning of the company, increasing the authorized capital, and others, are made by the meeting of the founders, by open voting. Each founder has a number of votes in direct proportion to his shares in the company.
The company is obliged to maintain accounting records and submit the balance sheet to the chamber of commerce at the place of company registration.
The ability to solely own a company and at the same time limit property risks.
The ability to disproportionately divide the shares, and, accordingly, profits and costs, between the participants, depending on the initially set goals.
The possibility of using a legal entity, including a foreign one, partially, as a founder of a company.
Possibility of tax optimization.
The founder of the company has the opportunity to obtain a residence permit.
The company registration process in Italy
- preparation of constituent documents for opening a company in Italy,
- certification of documents by a notary,
- interpretation of notarial certification of registration,
- opening a compulsory certified mailbox,
- registration of company books,
- statement on the start of activities
- opening a bank account
- payment of the authorized capital EUR 10,000
- receipt of VAT
Documents for opening a company in Italy
International passport for founders-individuals and members of the governing body, tax code. Constituent documents with apostille and translation into Italian for legal entity founders.
Moreover, you need to prepare 2-3 variants of the name of the company, a description of the type of activity of the company, and the desired place of registration (legal address).
Taxation in Italy for LLC
Corporate tax: 24% on net income. 3.9% on the net income plus FOP
When businessmen in Italy pay dividends, 40% of the total amount is taxed according to the progressive scale of income tax provided for individuals for the current year.
Terms of opening SRL in Italy
The procedure for notarization of registration takes 1 hour. Entry into the commercial register – up to 20 days