For the foreign investors who want to invest in Italy

WHY INVESTING IN ITALY?

After a long period of economic and financial crisis, which has lasted for 8 years, Italy seems to have finally arrived at the moment of a turning point and, as the simplest of the economic rules says, if you want to invest in Italy:”you must come in when the market is low”.

The strategically most significant sectors to be considered are two:the productive sector, that even with small batches allows to use the brand “Made in Italy”, being this a label that in a very wide number of sectors produces an added value for the own production;

the real estate sector, where the crisis did, in the past, the great part of the damages and where now a faster recovery is expected, also considering the particularly low interest rates for the mortgages and for the “historical”predisposition of the Italian families to “own”their houses.

OPEN A COMPANY IN ITALY

Italy has got a deserved reputation of land of opportunities for the foreign investors, but the bureaucratic requirements are complex. Contact us to guarantee a great start for your new Italian company and to know more about how to open a company in Italy.

WHICH ARE THE MAIN TYPES OF COMPANIES IN ITALY?

The two most popular forms of Italian companies are:Incorporated company (Inc.)

Limited-liability company(Ltd.)

WHICH ARE THE MAIN CHARACTERISTICS OF AN INCORPORATED COMPANY?It is the standard structure for the big enterprises;

The minimum joint stock of €000=, of which at least the 25%paid;

The minimum number of shareholders is one(in this case the joint stock must be entirely paid);

There are strict “governance”rules;

The type of company compulsorily envisages the Board of Statutory Auditors which is a supervision and control authority.

WHICH ARE THE MAIN CHARACTERISTICS OF A LIMITED-LIABILITY COMPANY?

Typical structure of the small and average companies;

The minimum joint stock is €000=,of which at least the 25%paid;

The minimum number of shareholders in one(in this case the joint stock must be entirely paid);

There are flexible “governance”rules;

The type of company does not compulsorily envisage the Board of Statutory Auditors unless jointly exceeding significant turnover, activity and employment levels.

WHICH OTHER TYPES OF COMPANY EXIST IN ITALY?

Other company structures, less common but as much efficient, are the following ones:Branch or representation office

Partnership (S.n.c. or S.a.s.)

Individual company

IS IT COMPLICATED TO OPEN AN ACTIVITY IN ITALY?

Italy has got a deserved reputation of bureaucratic inefficiency and, although this situation has improved, a professional consultancy is still fundamental when someone wants to invest in Italy and establish a company.

We have available a team of experts of the Italian market, so do not hesitate to contact us for any information.

WHICH ARE THE TAXES ON THE COMPANIES?

The taxes on the companies in Italy are several and quite high even though there are facilitations for some activities. The ordinary tax is the IRES equal to the 27,5% on the income, followed by the IRAP that can change from region to region (usually the 3,9%) that is calculated on a greater taxable base(including the cost of staff, administrators,losing interests). There are benefits for the re-invested profits.

WHAT IS THE NORMATIVE CONTEXT FOR THOSE WHO WANT TO OPEN AN ACTIVITY IN ITALY?

Consistent with the EU standard procedure, the companies are obliged to register and show the annual accounts to the regulation authorities. The inspection of the annual balance sheet is compulsory for the big enterprises. There are no specific controls on the foreign investments. The work week is made of 40 hours maximum and the enterprises must provide about five weeks of annual holidays, for all the employees.

Are there financial subsidies available for the foreign investors wanting to establish an activity in Italy?

Italy offers a wide range of subsidizing programs, many of which financed by EU, in general little used. These include the regional subsidies for the investments in the less developed areas of the country, the measure to encourage the investments in specific sectors and the fiscal allowances oriented to reduce the unemployment among the young people.

The “exit strategies”for the foreign investors

In the case there are companies with other partners it is easy to envisage in the statute, which regulates the relationship among the partners, an “exit strategy” that gives the right to the foreign investor to be settled, for his participation in Italy, at a market value. To have the right means that the Italian Law itself identifies the subjects compelled to buy the shares of the leaving partner. The norm envisages that the refund is carried out within 180 days.

LEGAL, BUSINESS, TAX AND WORK CONSULTANCY

A strategic point for the enterprise

The Studi Professionali Associati are in Merate, city situated about thirty kilometers North of Milan industrial capital city of Italy, and at the same time in the middle of “Brianza”, area where the great number of industrial, commercial and services enterprises of the entire Italy is concentrated (with predictable benefits in terms of logistics and supply).

The best moment to invest in Italy is this!