Italy Company Formation
Italy Company Formation: Establish Your Business in the Heart of Europe Main Characteristics and the basic rules of Company registration in Italy
Italy Company Formation with BRIS Group
BRIS Group offers professional Italy company formation services for entrepreneurs and international investors seeking a strategic foothold in the European Union. Establishing a company in Italy provides access to the EU market, a skilled workforce, and a strong business and legal framework — making it ideal for international business expansion.
Our team manages the complete Italy company registration process remotely, including corporate banking support, compliance, and ongoing administration. With BRIS Group, your Italian company will be fully compliant and ready to operate efficiently across Europe and globally.
A Comprehensive Guide for Non-Residents to Register a Company in Italy
Italy is one of Europe’s most influential and economically vibrant nations, offering a powerful mix of innovation, industrial strength, and access to the European Union’s single market. With its strong legal system, skilled workforce, and strategic location at the crossroads of Europe and the Mediterranean, Italy company formation presents a lucrative opportunity for entrepreneurs, startups, and international investors.
This guide explores everything you need to know about forming a company in Italy, from key advantages and company types to tax systems, procedures, and setup requirements.
Why Choose Italy for Company Formation?
Italy is a G7 economy and the third-largest in the European Union, making it one of the most attractive locations for global investors seeking a prestigious European base. The country offers a combination of modern infrastructure, a diverse economy, and extensive trade links across Europe, Africa, and the Middle East.
Key Advantages of Italy Company Formation
- EU Membership and Market Access – Direct access to the 27 EU member states and over 450 million consumers.
- Strong Industrial and Manufacturing Base – Ideal for businesses in design, fashion, technology, and automotive sectors.
- Strategic Location – Positioned at the heart of the Mediterranean trade routes.
- Investment Incentives – Government grants and tax credits for innovation, green energy, and R&D.
- Skilled Workforce – Access to highly educated professionals and engineers.
- Modern Banking System – Fully integrated with EU and international financial networks.
- Prestige and Credibility – Incorporating in Italy enhances corporate image and international trust.
Types of Companies in Italy
|
Company Type |
Description |
|
Società a Responsabilità Limitata (S.r.l.) |
The most common form of limited liability company, suitable for SMEs and startups. Requires minimum share capital of €1 (simplified) or €10,000 (standard). |
|
Società per Azioni (S.p.A.) |
Public limited company suitable for larger enterprises. Minimum share capital of €50,000. |
|
Branch of a Foreign Company |
Allows foreign businesses to operate in Italy under their existing structure. |
|
Sole Proprietorship (Impresa Individuale) |
Ideal for small-scale entrepreneurs. |
Advantages of Italy Company Formation for Non-Residents
|
Advantage |
Details |
|
100% Foreign Ownership |
Foreigners can fully own Italian companies. |
|
No Residency Requirement |
Directors and shareholders can be non-residents. |
|
Tax Incentives |
Reduced corporate tax rates and innovation-friendly regimes. |
|
Access to EU Funding |
Eligible for EU grants and business development programs. |
|
Prestigious EU Jurisdiction |
Boosts international reputation and investor confidence. |
|
Double Tax Treaties |
Over 90 treaties reduce withholding taxes and prevent double taxation. |
Requirements for Company Registration in Italy
Setting up a company in Italy involves meeting the following key requirements:
- Company Name – Must be unique and approved by the Italian Business Register (Registro delle Imprese).
- Registered Office – A physical address in Italy is mandatory.
- Shareholders – Minimum of one shareholder (individual or corporate).
- Directors – At least one director; no residency requirements.
- Company Secretary – Optional for smaller companies but common in larger firms.
- Minimum Share Capital –
- S.r.l. Simplified: €1 minimum
- S.r.l. Standard: €10,000 minimum
- S.p.A.: €50,000 minimum
- Articles of Association – Must be drafted and notarized in Italian.
- Tax Identification Number (Codice Fiscale) – Required for all directors and shareholders.
- Corporate Bank Account – Needed to deposit share capital and handle transactions.
- Business License – Certain industries may require specific licenses or permits.
Step-by-Step Procedure for Italy Company Formation
Step 1 – Initial Consultation
Define your business structure, objectives, and tax strategy.
Step 2 – Choose the Company Type
Select the appropriate structure (S.r.l., S.p.A., or branch).
Step 3 – Obtain Tax Identification Numbers
All founders must obtain an Italian Codice Fiscale.
Step 4 – Draft the Articles of Association
Prepare and notarize the company’s Articles of Association and Memorandum.
Step 5 – Open a Bank Account and Deposit Share Capital
Deposit the required share capital into a temporary corporate account.
Step 6 – Register with the Italian Business Register
Submit notarized documents to the Registro delle Imprese.
Step 7 – VAT and Tax Registration
Register for VAT and corporate taxes with the Italian Revenue Agency (Agenzia delle Entrate).
Step 8 – Social Security Registration
Register the company and employees with INPS (National Social Security Institute).
Step 9 – Begin Operations
Once registration is complete, the company can start trading immediately within Italy and the EU.
Timeframe for Company Formation in Italy
|
Stage |
Process |
Estimated Duration |
|
Name Approval |
Registro delle Imprese review |
1–2 business days |
|
Document Preparation |
Drafting and notarization |
2–5 business days |
|
Bank Account Opening |
Deposit of share capital |
2–4 business days |
|
Company Registration |
Business Register filing |
3–7 business days |
|
Tax & VAT Registration |
Activation with authorities |
2–3 business days |
Total Estimated Time: 10–20 business days depending on the company structure and documentation.
Italy Corporate Tax System
Italy’s corporate tax structure is designed to attract business while ensuring compliance with EU fiscal standards.
Key Tax Highlights
- Corporate Income Tax (IRES): 24% standard rate.
- Regional Tax (IRAP): 3.9% average, depending on the region.
- Withholding Tax on Dividends: 26% (reduced under tax treaties or EU directives).
- VAT Rate: 22% standard (10% and 4% for certain goods and services).
- R&D and Innovation Credits: Up to 50% tax credit for eligible innovation activities.
- Patent Box Regime: Tax reduction on income derived from intellectual property.
- Start-Up Incentives: Reduced tax rates and simplified procedures for innovative startups.
Compliance and Reporting
- Annual financial statements must be filed with the Business Register.
- Tax returns due annually with quarterly VAT filings.
- Accounting standards align with EU IFRS and Italian GAAP.
How We Can Help You
Our team of Italy company formation specialists provides full-service support to help you establish and manage your business efficiently and compliantly.
Our Services Include
- Business structure advisory and tax optimization.
- Company name reservation and legal documentation.
- Drafting and notarizing Articles of Association.
- Bank account opening assistance.
- Registration with the Business Register and tax authorities.
- Accounting, VAT, and payroll setup.
- Legal and compliance consulting.
- Virtual office and registered address solutions.
Start Your Italy Company Formation Today
With its strategic EU position, tax incentives, and prestigious business environment, Italy remains one of Europe’s most desirable destinations for company incorporation.
Our experts will guide you through each stage of the Italy company formation process — ensuring full compliance, optimized tax planning, and a seamless business launch.
Contact us today to begin your Italian company formation journey and establish your presence in one of the world’s most respected and opportunity-rich markets.
Questions & Answers
What is the current corporation tax rate in Italy?
The standard corporation tax rate in Italy, known as IRES, is 24% on the taxable income of resident companies. There are certain incentives and deductions available that might lower this effective tax rate for specific sectors or small businesses.
How is personal income tax structured in Italy?
Personal income tax in Italy (IRPEF) operates on a progressive scale, with rates ranging from 23% to 43%. This means that individuals pay a lower rate on their initial income, with higher rates applied as income increases. The income brackets for these rates are adjusted annually.
What is the tax on income for non-residents in Italy?
Non-residents are subject to taxation on income generated within Italy. Non-resident individuals pay a flat rate of 30% on income from employment, while dividends and other income may be taxed at different rates. There are specific treaties that may prevent double taxation.
What is the VAT rate in Italy?
The Value-Added Tax (VAT) in Italy is generally charged at a standard rate of 22%. There are reduced rates of 10% and 4% for certain goods and services. Companies must register for VAT if their taxable turnover exceeds a specific threshold.
Are there any local taxes in addition to national taxes?
Yes, in Italy, local taxes can include municipal property taxes (IMU) and regional taxes on productive activities (IRAP). The rates for local taxes vary depending on the municipality or region, and it is advisable to check with local tax authorities for specific rates and requirements.
Learn more: Visit our Full Frequently Asked Questions (FAQ) page
or contact our tax and company formation team at [email protected]
What types of companies can non-residents form in Italy?
Non-residents can form various types of companies in Italy, with the most common being a Limited Liability Company (SRL) and a Joint Stock Company (SpA). An SRL is favored for its flexibility and lower capital requirements, making it ideal for small to medium-sized enterprises. For larger businesses, an SpA, which requires a higher minimum share capital, may be more appropriate. There are also other structures such as partnerships and sole proprietorships, but these may require different levels of stakeholder involvement.
What are the benefits of forming a company in Italy as a non-resident?
Forming a company in Italy offers numerous benefits for non-residents, including access to the European Union market, which allows for smoother trade and business operations across EU nations. Italy also has a strategic location, rich cultural heritage, and a skilled workforce. Additionally, tax incentives may be available in specific regions, along with the ability to leverage Italy’s extensive networks in various industries, enhancing business opportunities.
What are the requirements for non-residents to form a company in Italy?
Non-residents wishing to form a company in Italy typically need to meet several requirements. These include having a valid passport or identity document, securing a tax identification number (Codice Fiscale), and providing proof of a business address in Italy. Additionally, the company must adhere to Italian corporate laws, which involves registering with the Italian Business Register, drafting its bylaws, and potentially opening a local bank account depending on the chosen company structure.
Are there any restrictions for non-residents forming a company in Italy?
Yes, there are some restrictions for non-residents looking to form a company in Italy. Certain sectors may have regulations that limit foreign ownership, such as strategic industries involving national security. Non-residents may also encounter stricter requirements in terms of banking and taxation. Additionally, while there is no minimum residency requirement for company directors, having at least one director who is a resident in Italy can help in navigating local regulations more effectively.
How long does it take to form a company in Italy?
The time it takes to form a company in Italy can vary based on several factors, including the type of company being established and the efficiency of the processes involved. Generally, it can take anywhere from a few weeks to several months to complete all necessary registrations. After preparing the required documents, obtaining a tax identification number, and registering with the Business Register, the entire process may be expedited with professional assistance, reducing time significantly.
What are the tax implications for non-residents forming a company in Italy?
Non-residents forming a company in Italy should be aware of various tax implications. Generally, Italian companies are subject to corporate taxes on their profits, including the IRES (corporate income tax) and IRAP (regional tax on productive activities). Non-residents may also be liable for other local taxes depending on business activities. However, certain tax treaties between Italy and other countries may mitigate double taxation. Consulting with a tax professional is advised to understand specific obligations and benefits.
Learn more: Visit our Full Frequently Asked Questions (FAQ) page
or contact our tax and company formation team at [email protected]
This publication is provided for information purposes only. This info should not be treated as a substitute for a tax or legal consultation or legislation. You should not act on the basis of the information contained in this publication without having obtained individual advice from the professional expert.
BRIS GROUP does not assume responsibility for any damage resulting from decisions made by the reader on the basis of this publication.
About Italy
Capital: Rome
Region: Italy, country of south-central Europe, occupying a peninsula that juts deep into the Mediterranean Sea.
Language: Italian
Currency: Euro (EUR)
Time Zone: GMT+2
Dial Code: +39
Abbreviations: IT
Helping Your Company Thrive in Italy With us, starting and running a business in Italy will be easy and efficient!
- Full support of the company’s registration in Italy: from the preparation of documents to their submission.
- Remote registration: all processes are online, wherever you are.
- Secretary and Treasurer: we can take on these important roles.
- Nominal directors and shareholders: we will ensure the confidentiality of your information.
- Help in opening a bank account: we will simplify this complex process.
- Registration for taxes, VAT and EORI: ensure all requirements are met.
- Website development: we will create a professional online representation for your business.
- Logo creation: we will design a unique and memorable logo for your brand.
- Full administrative support of the company: we will take over routine tasks.
- Mailing address organization: we provide a reliable mailing address for your business.
- Organization of the virtual office: we will ensure the professional image of your company.
- Telephone answering service: we will answer calls on behalf of your company.
- Accounting, audit and reporting: ensure accurate and timely accounting.
- Preparing and filing a VAT declaration: let’s save you the trouble.
- Interaction with local authorities: take over communication with state institutions.
- Trademark registration: protect your brand.
- More Emphasis on Customer Input.