Italy company formation

Opening a company in Italy

Why open a company in Italy? What are the advantages of the country of Italy?
Italy, a country that is part of the European Union, is a convenient solution for many entrepreneurs.

The local currency is the Euro (EUR).

Italy is a convenient gateway to the European market, with cheap maintenance costs and a local market that understands the English language better in recent years.

Italy is a place for exporting fashion, food and other things. Italy is a rich country with a rich culture. Italy is a very important strategic location for import/export operations to Europe. The proximity to Israel and its colony in the northern Mediterranean, combined with a culture similar to ours, is a perfect combination of features.

Italy is a perfect place for investment and business expansion. The Italian government is eager to boost the economy by providing incentives to foreign investors.

Investors see Italy as one of the attractive investment destinations in Europe. Tourists are fascinated by Italian hospitality and friendliness, Italy's cultural heritage and the country's natural wealth.

The Italian economy is undergoing significant growth with solid foundations in the country's democratic mechanisms, thanks to which the economic system is considered one of the best economies. All factors together make Italy a reliable and important business partner for foreign investors.

The process of opening a company in Italy
Opening a company in Italy begins with the signing of a notarized power of attorney to open a company by a local agent. The document is then sent by courier to Italy for processing with a local Italian notary. After several processes in Italy, the client is required to sign the application for registration in the commercial registry, and again send the document to Italy. At this point, the company already exists legally and can begin business activity.

The requirement for a director with European citizenship, or a director with Italian residency
In Italy, a shareholder can be foreign. However, the managing director must have some European citizenship, or Italian residency, (as owning an Italian company does not automatically grant Italian residency for this matter). In other words, you can open the Italian company with 100% shareholding in the name of a foreign citizen – in your name, or even in the name of a foreign company, and the director can also be foreign but is required to have some European citizenship, or Italian residency. If none of these are available, the solution is to use a local director for a monthly salary.

We will qualify this statement and say that it is possible to open the company without European citizenship, and also to be a director without European citizenship. However, the company will be in "dormant" status, and it will not be possible to issue an "active company" certificate from the Commercial Registry.

This company status may still have some utility for certain clients, such as if the Italian company were to be a holding company for a yacht, the owner of which would like to have an Italian flag.

Opening a bank account in Italy – current account for the company
Since it is a European country, more or less starting from 2018, those who want to open a bank account are required to come to the country.

However, there is an alternative, which is opening an online bank account. Indeed, similar to our "Zero One" bank, there are online banks in Europe that will be happy to accept your company in Italy as a client.

Equity
There are two types of companies in Italy. The first type of "small company" requires equity of a minimum of 1 euro only. The second type of company requires a minimum equity of 10,000 euros, while in order to open the company it is required to actually deposit at least 25% of this (i.e. 2,500 euros). Either way, as part of the process, we will help you open a bank account.

After opening the bank account (and depositing the equity as required), the company is opened and a company document is issued from the commercial register (this is the certificate of incorporation Italian).

VAT Registration
After opening the company, at the same time as opening a current bank account for the company, the new company will also be registered with VAT. The company will receive a VAT number and can start trading.

EORI Number
If you need it, we can obtain an EORI number for you so that you can import or export with the company into Europe.
EORI is an abbreviation for Economic Operators Registration and Identification number.

Company Maintenance
The company requires annual maintenance of payment of fees, annual filings, a local address (which we will provide for you), as well as filings with the tax authority.
However, all costs in Italy are low due to the relatively cheap cost of living.

Tax in Italy
Corporate tax in Italy is only 24%.
For sales to the domestic Italian market, VAT is 22%.
In addition, a national insurance tax is required, which is paid by the customer, in the amount of 3.9%.

Questions and Answers
Question: Is it necessary to physically fly to Italy to open a company in Italy?
Answer: The entire process is carried out remotely and at no stage is it necessary to physically arrive in Italy. There is no need to fly to Italy to open the company, nor the company's bank account. The entire process of opening the company and in most cases also the company's bank account, is carried out remotely without setting foot on Italian soil.

Question: Who provides the local address for the company in our new Italy?
Answer: We will provide the local address.

Question: How can I find a good accountant who can handle the company in our new Italy?
Answer: After opening the company, we will connect you with a local accountant.

Question: If I am interested in coming to Italy to open a bank account, what should I do?
Answer: We will try to arrange an appointment for you at the branch in advance to sign the account opening forms, so that everything is in order before you arrive, so that you do not have to wander around the city in search of a branch that will accept you and open a bank account for your new company in Italy.

Question: What type of company should I open in Italy?
Answer: There are two types of companies in Italy:
The first type is a "small company" ("SRLS").
The equity capital required in this type of company is at the client's discretion, and can be as low as 1 euro. The only limitation of this type of company is that its owner must be an individual, meaning that a corporation cannot own a "small company". This is a limitation that is not important at all for most clients.

The second type is a regular, traditional company, the one that has always existed in Italy - the SRL.

The second type is a regular, traditional company, the one that has always existed in Italy – the SRL.
The equity required to open this type of company is also subject to the client’s choice, but the minimum is 10,000 euros.
To open the company, 25% of this amount (2,500 euros) is required to be actually deposited in the company’s bank account.

Investors usually choose to open a “small company” of the first type, unless their business requires for some reason that the company be of the second type.

Question: Do you need a European passport to open a company in Italy?
Answer: There is no need for a European passport. We can open a company in Italy for any Israeli citizen as long as they have a valid passport. However, to be a director in a company, European citizenship or Italian residency is required.

Question: How long does it take to open a company in Italy?
Answer: The process of opening a company, including signing and sending the power of attorney, should take about 3 weeks. After that, the process of opening a bank account takes between 3-4 weeks, depending on the banks' willingness to accept the new company as a client. Of course, these times depend on third parties and are therefore only an estimate.

Question: Is it possible to open a company in Italy for a person with American citizenship or a person living in the United States?
Answer: Yes. We know how to open a company in Italy for a person with American citizenship or a person living in the United States.
At first glance, it seems trivial that a person with ties to the United States could open a company in Italy, but we assure you that this is not the case. Today, all banks in Italy, without exception, refuse to open an account for a new Italian company if its owner has any ties to the United States. Therefore, we are probably the only ones in Israel, and certainly one of the few in Italy, who know how to open a company in Italy for a person with American citizenship or who lives in the US.

Question: Is it possible to define that any Israeli company will be the subsidiary of a company in Italy?
Answer: Yes, absolutely, we know how to do such a process with the Israeli Registrar of Companies without any problems and in a completely smooth manner.

Question: How much does it cost to open a company in Italy?
Answer: Click here and contact us and receive an up-to-date price quote without obligation!