Company Types in Italy

Establishing a company in Italy offers access to one of the largest economies within the European Union. Italy plays a crucial role both in the EU and the global economic system, making it an attractive destination for foreign investors.

Limited Liability Company in Italy (SrL)

The Società a responsabilità limitata (SrL) is the most common company type in Italy. It can be established with just one shareholder and one director, with no restrictions on foreign ownership. The minimum share capital required is €10,000, and shareholders’ liability is limited to their share contributions.

Joint Stock Company in Italy (SpA)

For larger businesses, the Società per Azioni (SpA) is a suitable structure. Opening a joint stock company requires a minimum share capital of €120,000, with at least one shareholder and one director. Shareholder liability is limited to the amount of capital contributed, and there are no restrictions for foreign investors.

Branch Office in Italy

Foreign companies can establish a branch office in Italy to operate their business without forming a separate legal entity. The parent company remains fully liable for the branch’s activities. At least one director must be appointed for the branch.

Taxation in Italy

Corporate Income Tax

Italy applies a corporate income tax (IRES) at a flat rate of 24%. Additionally, a regional production tax (IRAP) is levied at approximately 3.9% depending on the region.

Value Added Tax (VAT)

The standard VAT rate in Italy is 22%, with reduced rates of 4%, 5%, and 10% applying to specific goods and services.

Conclusion

Establishing a company in Italy provides foreign investors with access to a major EU market supported by strong legal structures and business opportunities. With flexible company types and favorable tax conditions, Italy remains a strategic choice for international expansion.Ready to explore opportunities in Italy? Contact us to get started.