Italy Company Formation

Italy company formation allows global entrepreneurs access to one of Europe's largest economies.

Italy allows 100% foreign ownership for a number of company types. For company incorporation of a Limited Liability Company (Srl) only one EU-resident director will be required. The shareholder can be of any nationality and does not need to be resident in Italy.

According to Italy company laws, company formation requires 25% of capital to be paid up. However, for a single shareholder company the capital must be paid in full.

Italy encourages company registration, by offering foreign-owned entities the same incentives as local companies.

Italy does not have any foreign exchange restrictions and controls, these were abolished in 1990.

Italy company formation is supported by a wide network of double tax agreements with other countries, including China, India, Singapore and the UK.

It is easy to open global corporate bank accounts to support Italy company formation. Healy Consultants works with internationally recognised banks such as HSBC, Standard Chartered and Citibank to provide corporate bank account services.

Foreign entrepreneurs wanting to undertake company formation in Italy to enter the financial services sector would need to set up a SPA company (Societa Per Azioni). This form of company has a high minimum capital requirement at EUR120,000 (approximately US$172,000).

Italy was ranked negatively as the world's 69th least corrupt country in the World according to the Corruption Perceptions Index 2011. Italy was also ranked 43rd in terms of competitiveness, by the World Economic Forum's Global Competitiveness Report 2011-2012.

Annual accounts must be submitted to the government following Italy company formation. Healy Consultants will assist our clients efficiently and effectively to complete this annual statutory obligation.

The corporate tax rate in Italy is a standard rate of 27.5%. In addition, local tax (IRAP) is imposed at 3.9%, bringing the effective tax rate to 31.4%.

Italy company formation requires registration for value added tax (VAT). The current VAT rate in Italy is 20%.

According to the World Bank's Doing Business 2011 Survey, Italy ranks 80th, with paying taxes and enforcing contracts among the more difficult aspects.

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