Company Registration in Italy

Since 1992, Feod Group has provided a wide range of immigration, corporate, and legal services in Italy and other EU countries, as well as in the UK and the USA.

The company includes Italian corporate lawyers and attorneys.

Offices:

Cyprus

USA

Ukraine

✓ Assistance with opening an Italian bank account
✓ Corporate and personal tax consultations
✓ Business plan development
✓ Support in obtaining Italian residence permits for entrepreneurs and their families

Company Registration in Italy

Italy ranks as the 3rd largest economy in Europe and the 8th in the world, boasting a highly developed economy and high standard of living, making it an attractive and promising market for expanding or starting a business.

Benefits of Doing Business in Italy

✓ Strategic Logistics Hub
Italy serves as a key transportation center connecting Southern, Central, and Eastern Europe.

✓ Access to a Multi-Million Consumer Market
Companies in Italy gain access to over 50 million consumers across all national markets within the European Economic Area.

✓ Italy’s Business Culture Welcomes Innovation and Investment

✓ Government Reforms and Incentives
The Italian government enacts reforms and a series of measures to facilitate business establishment and operations.

✓ Ideal Country for Family Relocation
Italy offers unparalleled nature, history, culture, and cuisine, making it a superb place to live with family. Italy also boasts advanced and highly regarded education, being one of the first countries globally to establish universities and higher learning institutions.

✓ Residency and Immigration for Entrepreneurs
Owning a company in Italy enables you to obtain residency status and apply for a residence permit for your entire family through business immigration.

How to Register a Company in Italy

If you’ve decided to start your business in Italy, the first step is choosing the right type of entity for your entrepreneurial activities, as Italy offers a wide range of organizational forms for setting up a company. Your choice of legal structure will depend on the company’s organization, business goals, capital level, the founders’ liability, and the tax and accounting implications.

Types of Italian Companies

The most popular business structures for registering a company in Italy are:

⇒ Ditta Individuale (Sole Proprietorship)
This is the simplest form for an individual business. In this case, the business manager is fully responsible for the company’s obligations.

⇒ SpA (Società per Azioni) — Equivalent to a Joint-Stock Company
This corporate form is best suited for large businesses requiring significant capital. The minimum paid-in capital for an SpA is €50,000. An SpA is managed by a Board of Directors and a shareholders’ assembly or a single-tier system that includes a management and control board.

⇒ Limited Liability Company (Società a responsabilità limitata)
A Limited Liability Company is one of the most popular types of businesses in Italy, as it provides founders with the greatest flexibility and is ideal for small to medium-sized companies.

There are two types of Limited Liability Companies:

Standard Limited Liability Company — SrL (Società a responsabilità limitata)
This type of company requires a minimum share capital of €10,000.
Simplified Limited Liability Company — SrLs (Società a responsabilità limitata semplificata)
The simplified SrLs has the following limitations compared to the traditional SrL:
- Only individuals may be shareholders.
- The minimum share capital is €1, with a maximum of €9,999.99.
- The simplified SrL must use a standard form for its articles of association, which cannot be modified.

⇒ Partnership

Snc (Società in nome collettivo) – General Partnership
Sas (Società in accomandita semplice) – Limited Partnership

⇒ Branch of a Foreign Company
An Italian branch of a foreign company can be established if the main office and primary operations are located outside Italy. Branches lack organizational and decision-making autonomy. For tax purposes, branches are treated as permanent establishments and therefore subject to Italian taxation.

Branches, like any other legal entity, must also be registered in the Commercial Register in Italy.

Registering a Company in Italy

Before registering a company in Italy, it is essential to consider that the rules and procedures for the same commercial activity may vary by municipality, as local authorities determine how to implement national laws and regulations.

Below are the main steps for a foreigner to register a Limited Liability Company (SrL or SrLs) in Italy.

Obtain a Tax Code (Codice Fiscale)
This can be done at the Italian tax office or through an Italian consulate in your country of residence. All directors and shareholders must obtain an Italian tax identification number (codice fiscale).
Registered Address
The company must have a registered address in Italy.
Open a Corporate Bank Account
You’ll need a corporate bank account in Italy to deposit the share capital and for conducting business operations.
Prepare the Memorandum and Articles of Association
The incorporation document is signed in the presence of a public notary in Italy and includes information about the business, beneficiaries, and director.
Register with the Italian Business Register (Registro delle Imprese)
The final step in the registration process is obtaining the Certificate of Registration (Visura). All documentation must be submitted to the Chamber of Commerce.
VAT Registration
Companies are required to register as VAT payers immediately after incorporation.
Obtain a Residence Permit for Business Activities
To start and conduct business in Italy, you must also have legal permission to live and work in Italy.

The steps above are the main stages, but additional requirements and procedures may apply depending on the number of founders, region of registration, etc.

To avoid errors when registering your company in Italy, consult the professionals at Feod Group!

🔹 How to Open Your Company in Cyprus + Corporate Taxes

Corporate Taxes in Italy

According to Italy’s Tax Code, companies and other legal entities are considered tax residents if their registration, management, or primary and secondary activities are based in Italy. Meeting one or more of these conditions for half of the fiscal year classifies a company as a resident and subjects it to taxes in Italy on worldwide income.

Main Taxes for Companies in Italy

Corporate Tax
Italian companies are subject to corporate income tax (IRES — Imposta sul Reddito delle Società) and regional tax (IRAP — Imposta Regionale sulle Attività Produttive).

IRES: fixed rate of 24%.
IRAP: varies by region, generally around 3.9%. The tax base for IRAP depends on the business activity and may fluctuate by up to 0.92% depending on the region.

VAT (Imposta sul Valore Aggiunto — IVA)

22%: standard rate
10%: on certain energy and pharmaceuticals
5%: on specific healthcare services, medicinal herbs, and certain transport services
4%: on selected food items, beverages, and agricultural products

Social Security Contributions
Italian employers must register with the Italian Social Security Administration (INPS) to pay employee contributions, typically around 40% of the total employee wage. This contribution varies by industry, workforce size, and employee position:

Employer’s portion: approximately 29–32%.
Employee’s portion: 9.19–10.49%, depending on job classification (worker, executive, manager) and company sector (manufacturing, trade, tourism, etc.).

Dividends, Interest, Royalties

Dividends: 1.2%, 5%, or 26%
Interest: 0%, 12.5%, or 26%
Royalties: standard rate of 22.5%

Individual Taxes for Entrepreneurs

IRPEF (Personal Income Tax) Income tax for individuals is applied at three levels: national, regional, and municipal.

National Income Tax Rates:
- €0–15,000: 23%
- €15,001–28,000: 25%
- €28,001–55,000: 35%
- Above €55,000: 43%
Regional income tax: depends on the region, with rates from 0.7% to 3.33%.
Municipal income tax: varies by municipality, with rates from 0% to 0.9%.

FAQ – Company Registration in Italy

Can a non-resident open a business in Italy?

Yes, a company in Italy can be registered by a foreign national, even if they are not a resident of Italy or the European Union.

Is it mandatory to open a corporate bank account in Italy?

Opening a corporate bank account in Italy is one of the important aspects of registering an Italian company. A corporate account is necessary for depositing the share capital and conducting business activities.

What are the main taxes that companies pay in Italy?

Companies engaged in commercial activities in Italy are required to keep accounting records and pay various taxes depending on the type of activity, income, number of employees, and other factors. The main taxes for companies include: corporate tax, value-added tax (VAT), taxes on dividends, interest, as well as social contributions, stamp duty for certain acts or documents, and others.

What is the current corporate tax rate in Italy in 2024?

The current corporate tax rate in Italy is 24%.

How to register as a sole trader in Italy?

To operate as a Ditta Individuale (sole trader), the applicant must reside in Italy, have an Italian tax number (codice fiscale), an Italian address, and a valid work permit.

Article author

Anastasia Taran Head of Corporate Services
Ukraine

In 2013, she graduated in law from the National University «Odessa Law Academy» with honors and received a Master of Law degree. Anastasia Taran has experience in international and contract law, as well as corporate and tax law in Europe. Within the framework of Feod Group, she specializes i...

family and corporate immigration solutions.
establishing a business in Europe.
personal and corporate taxation in Europe.
opening accounts in European banks.
obtaining a tax resident status.

Why clients choose Feod Group

Since 1992, Feod Group has been providing a wide range of legal, business and immigration services in Europe, the USA and other countries of the world.

The company has accredited western lawyers, experts in various fields of law and jurisdictions of the world.

Having offices in Europe and the USA, Feod Group provides rapid paperwork and maximum customer comfort.

We provide our clients with related services, such as relocation and adaptation abroad, organizing family relocation abroad, enrollment of children in schools and many other services.