December 04, 2024
INCORPORATION OF LLC IN ITALY
INTRODUCTION
Starting a business in Italy can be a great opportunity because of its strong economy, central location in Europe, and culture of innovation. One of the most popular ways to set up a business is by forming a Limited Liability Company (“LLC”), called Società a Responsabilità Limitata (“SRL”) in Italy. This structure offers flexibility, protects shareholders from personal liability, and is easy to set up.
This form is quite flexible, protecting the individual shareholders from the risks of personal liability, and is very simple to set up. Prior to beginning the process, a decision must be made about the kind of LLC that is being to be established.
Before starting, you need to decide which type of LLC you want to establish. In Italy, there are two main types:
Società a responsabilità limitata (“SRL”): It is an Italian legal entity equivalent to a private limited liability company LLC. It limits shareholders’ liability to their capital contributions and is commonly used for small to medium-sized businesses.
Società a responsabilità limitata semplificata (“SRLS”): It is a simplified version of the S.r.l. in Italy, designed for small businesses and entrepreneurs. It features reduced setup costs, no minimum share capital requirement beyond €1, and streamlined procedures.
STEPS TO INCORPORATE AN LLC IN ITALY
- Choose a company name
The first step in establishing an LLC is the selection of a distinct name. No names of companies in Italy can be the same or even closely resemble already existing company names. One can ascertain whether the name is not taken and reserve it via the Business Register or through a notary.
- Prepare the required Documents
To register LLC, you will need to prepare the following documents:
- Articles of Association (Statuto): This document explains how the company is structured, the rights of the shareholders as well as other fundamental ways of running the business.
- Deed of Incorporation: The deed must be signed in the presence of a notary and must contain details of the shareholders, directors, and share capital of the company.
- Shareholder and Director Information: The shareholdings of the company are indicated together with a list of the shareholders and the directors that have been appointed.
- Proof of Registered Office Address: You need to show that your company has an official address in Italy.
- Bank Certificate: A certificate from a bank showing the deposit of the company’s share capital.
- Tax Identification Number (“TIN”): All directors and shareholders and this company are to possess TIN which can be procured from Revenue Agency.
- REGISTRATION FOR TAXES AND VALUE ADDED TAX (“VAT”)
Once your company is registered, you will need to register for taxes with the Revenue Agency Enter (Agenzia delle).
VAT number if your business will be involved in taxable activities.
– Registering for income tax purposes
– If you have employees, registering for social security and pension contributions
- OPEN A CORPORATE BANK ACCOUNT
Once your company has been incorporated, to operate, it will be necessary to open a corporate bank account in Italy. Such papers as company registration certificate, documentation tax number and documentation of deposited capital will be required by the bank. - OBTAIN NECESSARY LICENSES AND PERMITS
Licenses and permits are necessary for your business in order to be able to operate legally within Italy.
COMPLIANCE
After the registration of the company and its opening and existence there are ongoing obligations regarding compliance:
Annual Financial Statements: As a standard Limited liability company in Italy should prepare and deliver annual financial statements in time and according to Italian principles of accounting.
Tax Filings: It is important that the company complies with the tax filing period set in Italy regarding VAT, corporate income tax, and social contribution.
Employment Obligations: Registration for social insurance, healthcare, and unemployment insurance must be secured.
CONCLUSION
Registering an LLC in Italy can be a bit complicated, but it is a manageable process when you follow the steps. Italy’s business-friendly policies, strategic location, and skilled workforce make it a great place to start a business. The process takes around 15 to 18 days, depending on document preparation and government processing times.
HOW WE CAN HELP?
- We offer expert services to guide you through every step of the LLC registration process in Italy.
- Our team can oversee the complete LLC registration procedure, including name reservation and charter drafting.
- Our professionals can provide comprehensive advice on Italian tax laws and ensure efficient VAT registration and compliance.
For more information or queries, please email us at
[email protected]
Key Contact
Surendra Singh Chandrawat
Managing Partner
