Establishing a branch in Italy

Establishing a branch in Italy

The establishment of a branch in Italy is regulated by the Italian Civil Code, providing certain requirements for creating this type of doing business in Italy for entrepreneurs willing to invest in Italy.

Requirements

A branch in Italy is established as an extension of the foreign company which cannot register a branch as a separate legal entity. All responsibilities for the actions performed by a branch must be taken by parent company and all the necessary assets must be provided by the parent company. In the establishment of a branch in Italy, it is important to notice that the major decision involves the consent of the foreign company.

Branch activities

A branch can issue invoices and has the right to hire employees and may also perform trade activities under the foreign company’s name. If the branch is planning to hire personnel, it’s important to register at the labor office. A local resident may be appointed to conduct the branch in Italy.

Taxation

When establishing a branch in Italy, the formers must be aware that this type of conducting business is subject to taxation and there must be kept own accounting books. The accounting documentation must then be submitted to the local Revenue Agency, along with the income tax returns and VAT. The main difference between a local company and a branch of a foreign is that the branch must provide the financial account of the parent company and the reports of the audited accounts.

Notary

A branch in Italy can be established in front of a notary. The incorporation procedure is taking place if the following documentation is provided.

  1. The decision of opening a branch (with a registered address).
  2. The certificate of registration of the foreign company.
  3. The certificate of good stand of the foreign company.
  4. Copy of the articles and memorandum of association.

All the documents mentioned must be notarized in the country of origin and signed by the legal representative. Also a signature certification from an Italian notary is required.

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