Italian corporation can be very attractive to business owners for many reasons. Friendlier tax rates, access to overseas customers and the cache of European company formation are only a few of the desirable characteristics foreign investors can expect when registering their company as an Italian corporation. But just as each company’s goals are different, there are distinctly different forms of business registration in Italy, each with a very precise set of qualifications, and each delivering distinct benefits.
The three major Italian corporation titles are “Società a responsabilità limitata”, or Limited Liability Company, known better as SrL, “Società per Azioni”, an Experts Joint Stock Company or SpA and a Branch or registered office. Forming these entities requires an in-depth knowledge of the filing requirements and legal responsibilities in Italy, and should only be handled by Italian locals who are up to speed with the daily machinations of Italian corporation, and are trusted accountants and lawyers with a high level of ethical and protective client representation. Only deal with a European company formation firm that employs these desirable business formation specialists, and you will ensure a successful launch of your corporate presence overseas.
The most popular Italian corporation, and the most common format for small to medium size businesses is the SrL. This is a limited liability corporation that has virtually no restrictions on foreign shareholders, and asks for only a very attractively small 10,000 euro capitalization to file. You must file accounting annually, and these are annually audited. This is a very straightforward and quick way to develop a business title overseas.
The best Italian corporation for larger companies is an SpA joint stock company. This business entity requires a much larger capitalization, 120,000 euros, but also offers no restrictions on foreign shareholders. The audited accounts with this larger size company must be kept with the local Registrar of Companies, but requirements call for only one director.
Finally, the physical Branch office or registered office is the third major path to Italian corporation. This type of corporate structure requires accounts to be maintained at the physical business address, but there are no reporting requirements or regular audits. There is only one director required by law, and the overseas parent company is held liable for all actions of the branch.
Regardless the type of Italian corporation you seek, there are six very distinct steps your company must take in addition to the different filing requirements of each separate entity. These involve city-specific and Italian corporation procedures that can be handled efficiently and properly only by trusted local Italian business professionals well versed in filing the necessary paperwork at each level to deliver peace of mind and proper formation for your business to reap the maximum rewards Italian corporation has to offer.
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