How to start a business in Italy

Starting a business in Italy involves several key steps: selecting a legal structure, registering your business, and complying with local regulations. We present here the key steps you need to be aware of, in order to understanding local tax requirements, ensuring you have a clear roadmap to start your business successfully.

Select the legal structure

Once you have completed your research and business plan preparation, you need do decide on the legal structure. The most common in Italy are the following

• • S.r.l. (Società a responsabilità limitata) – Limited liability company
  • S.r.l.s. (Società a responsabilità limitata semplificata) – Simplified limited liability company (ideal for small startups)
  • S.p.A. (Società per Azioni) – Joint-stock company
  • S.n.c. (Società in nome collettivo) – General partnership
  • S.a.s. (Società in accomandita semplice) – Limited partnership

Register Your Business

Whatever legal form you choose, all companies, of any nature, must be registered in the Register of Companies managed by the Chambers of Commerce. The classification in a legal form is not just a formality, but a legal obligation that guarantees the legitimacy and transparency of the entrepreneurial activity. More information here https://www.registroimprese.it/nuova-impresa.

In order to register, you need to have COMPANY CHARTER also known as the articles of incorporation (called statuto societario in Italy) is a foundational legal document that formally establishes a company. It outlines the essential details and rules governing the business.

Typically, it includes:

• Company Name: The official registered name of the business.
• Legal Form: Type of company (e.g., S.r.l., S.p.A.).
• Registered Office: The legal address of the company.
• Corporate Purpose: A description of the business activities the company will engage in.
• Share Capital: The amount of capital invested and how it’s divided among shareholders.
• Ownership Structure: Names of shareholders and their respective shares.
• Governance Rules: (a) Appointment and powers of directors or administrators; (b) Voting rights and decision-making procedures.
• Duration: Whether the company is set up for a fixed or indefinite period.
• Profit Distribution: How profits will be allocated among shareholders.

In Italy, the charter must be drafted by a notary and registered with the Registro delle Imprese (Business Register) at the local Camera di Commercio. It’s a legally binding document and serves as the company’s constitution.

Obtain a Tax Code and VAT Number

Applying for a Codice Fiscale and Partita IVA from the Agenzia delle Entrate is essential for legally operating a business in Italy.

  Codice Fiscale (Tax Code)

• What it is: A personal identification number used in all interactions with public authorities and financial institutions.
• Why you need it:
  • Required to register a company.
  • Needed to open a business bank account.
  • Used for contracts, invoices, and tax filings.
  • Mandatory for both Italian citizens and foreign nationals doing business in Italy.

Partita IVA (VAT Number)

• What it is: A unique number that identifies your business for Value Added Tax (IVA) purposes.
• Why you need it:
  • Required to issue invoices and collect VAT.
  • Enables you to deduct VAT on business expenses.
  • Mandatory for freelancers, sole proprietors, and companies offering goods or services.
  • Needed to register with the Registro delle Imprese and operate legally.

Without these two identifiers, you can’t legally invoice clients, pay taxes, or register your business. They’re the backbone of your fiscal identity in Italy.

 Comply with other local regulations

Depending on your sector, you may need:

• • Health and safety permits
  • Environmental clearances
  • Municipal licenses.

For more information on those regulations, please refer to the Camera di Commercio of the province where you intend to open your company.

Sources

• https://www.registroimprese.it/nuova-impresa
• https://www.impresainungiorno.gov.it/en/web/l-impresa-e-l-europa/setting-up-a-business
• https://italiancompanyformations.com/start-a-business-in-italy/set-up-company-in-italy
• https://www.agenziaentrate.gov.it