Establish a subsidiary in Italy

Establish a subsidiary in Italy

Which form of a business to choose?

Foreign investors in Italy can open two types of business forms in order to benefit from the tax incentives: a subsidiary or a branch. A branch has the disadvantage that the liability of its actions is taken by the foreign company, having no power of decision regarding its assets and activity.

Establishing a subsidiary in Italy can be a good choice for foreign investors. The main benefits lie in the fact that a subsidiary is regarded as a legal entity with a majority of capital owned by a foreign company and with the power of making its own management decisions.

Limited Liability Company

A majority of subsidiaries are organized in the form of private or public limited liability companies, each of them having its own particularities. If it is organized in a form of private limited liability company then it requires 10,000 EUR and the liability of shareholders is limited by their contribution in the capital of the company. The shares of this type of company cannot be transferred to the public.

If you have decided to establish a subsidiary shaped in the form of a public limited liability company, then the shares of such company may be transferred to the public and can be registered at the Stock Market. You will also need a minimum share capital of EUR 100,000 to establish this type of company.

The procedure of establishing subsidiary

The procedure of establishing a subsidiary in Italy does not last longer than 6 days in case if all the requirements are respected and the documents are properly submitted. It is noteworthy that within 30 days from the decision of incorporation, the company must be registered in the Italian Company Register.

The first step that has to be taken for opening a company in Italy is depositing at least 25 % of the capital in a bank account and requesting for the certificate of deposit. Under the Italian law the foundation deeds and the decision of establishing for a subsidiary in Italy must be notarized and the registration tax is paid.

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