Setting up business in Italy

Setting up business in Italy

There are few ways to structure your company in Italy and it is vital to obtain legal advice regarding type of business which is right for you. Here is a list of some of the types of companies in Italy.

  • Limited Liability Company (SRL – Societa a responsabilita limitata). This is a type of company which foreigners are usually choosing when starting a small business in Italy. According to this type of business, there should be at least one shareholder and the minimum investment of 10 000 euro is required. At least 2500 euro must be paid as a deposit upon incorporation. In the case of only one shareholder, the deposit as the start-up capital must be paid in full. Shareholders generally hold limited liability to the extent of their contribution. It is possible to choose whether there will be one or several directors with independent power or board of directors.
  • Joint Stock Company (SPA – Societa per azioni). This type of company is suitable if you have a minimum of 120 000 euros as a starting capital. A quarter of this sum needs to be deposited before the incorporation of the company. There should be at least one shareholder with a capital divided into shares with the possibility of listing them on the stock exchange. Each year the shareholders must hold an ordinary meeting with the aim of improving financial statements. The company also needs to have its own accounting system supervised by the board of statutory auditors. The management of this kind of company can be as a traditional board, a board of directors or a management board.
  • General Partnership (SNC – Societa in nome collective). At least two individuals are required to set up this type of company in order to sign an agreement document. It is not necessary to have a sufficient amount of capital to set up this type of company. All members are general members and hold full liability and management responsibility.

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