7 April, 2025
The process of starting a business in Italy: key considerations for entrepreneurs
Starting a business in Italy can be a rewarding venture, but navigating the process requires an understanding of the country’s legal, financial, and regulatory systems. Whether you are an international entrepreneur or a local startup, there are several steps to take to ensure your business is legally established and set up for success.
Select the right business structure
The first step when starting a business in Italy is to determine the right legal structure. The most common forms include:
- Sole proprietorship (Impresa individuale): Best for individual entrepreneurs who want full control of their business.
- Limited liability company (SRL): Offers protection from personal liability, and is a popular choice for small to medium-sized enterprises.
- Joint-stock company (SPA): Ideal for large businesses or companies that plan to raise capital from investors.
Each structure comes with different implications for taxation, liability, and governance, so it is important to choose the one that fits your business model and goals.
Register your business with the italian trade register
Once you have chosen a legal structure, you must register your business with the Registro delle Imprese (Italian Trade Register). This includes submitting necessary documents such as the company’s articles of association, tax code, and the details of the company’s directors. This registration process also includes obtaining a Partita IVA (VAT number), which is required for tax purposes.
Set up a business bank account
A business bank account is required for managing company finances. You will need to provide proof of company registration and tax details when opening an account. This account is used for depositing the company’s capital and for ongoing transactions.
Address employment and labor laws
If your business plans to hire employees, you will need to comply with Italian labor laws. This includes registering with the INPS (National Social Security Institute) and INAIL (National Institute for Insurance against Accidents at Work). You will also need to create employee contracts and establish payroll systems.
Understand Tax and accounting requirements
Italy has a complex tax system that includes VAT, income tax, and social security contributions. As a business owner, you must comply with these tax regulations, which can be a challenge for those unfamiliar with the system. Having a local accountant or tax advisor is highly recommended to ensure that you stay compliant with Italian tax laws.
Get the necessary licenses and permits
Depending on the type of business you are operating, you may need to obtain specific permits or licenses. For instance, businesses in the food and beverage industry or those that require certain certifications must obtain the appropriate local or regional authorizations.
How Italian Company Formations can assist
Setting up a business in Italy can be challenging, especially for foreign entrepreneurs who may not be familiar with local regulations. At Italian Company Formations, we offer comprehensive support for every step of the business registration process. From choosing the right legal structure to ensuring tax and regulatory compliance, our team provides expert guidance tailored to your needs.
We simplify the process of starting your business in Italy, ensuring that you can focus on growing your company while we handle the complex administrative tasks.
