Italian Corporation Formation – What Are Your Choices?
Italian corporation of your business in either physical branch office form or registration only can deliver incredible benefits not seen in other European countries. Italy is part of the European Union of 47 countries, but each of these countries has a unique set of desires when it comes to attracting foreign business owners. Often seen as a “slow starter” economically, Italy has made marked efforts to shake off their quiet economic growth level and has begun to make itself very attractive to overseas investors in many ways.
Italian corporation may not be the first idea to come to mind when you are considering heading to Europe to structure a tax beneficial business, but many businesses have quietly been moving there for branch offices and the much desired Italian corporation business designation in recent years.
A Limited Liability Company (SrL) only requires one Director and a minimum of two shareholders. An Italian corporation structured with only one shareholder is termed “Società Uninominale” and is liable to unlimited liability. Dealing with a European company formation specialist with a history of hands-on, localized experience in setting up Italian corporation and business entities will keep deadly but similar filing designations such as the above example from eating into your bottom line, and will maximize the tax and trade benefits an Italian corporation can offer.
In a SrL, you do have to file audited account records, but there are zero restrictions on foreign shareholders, and you need no local share representation in Italy. This is the most popular small to medium sized Italian corporation, and requires only a 10,000 Euro capitalization to qualify.
An Experts Joint Stock company, or SpA, is better for those medium to large Italian corporation needs, and a minimum of 120,000 Euros business capitalization is required to begin filing. The benefit here is that Italy only requires you appoint one shareholder to qualify for this business formation. Regular audited accounts have to be filed with the Registrar of Companies as above, and there are no restrictions of any kind placed on foreign shareholder designation.
Finally, the third type of Italian corporation you can open is a branch office. This is obviously enviable if you need a physical presence in Italy, and Italian staffing of a branch office can be handled for you. In this way, you have locals versed in the language and customs of Italy who are already known in business and professional circles. This lends your business immediate respectability, and helps ease your transition to your Italian branch.
Only one director is required for filing for a branch office,and you must keep audited accounting records, but they can be kept at your branch. No accounts are required to be filed. All actions of the branch office are the responsibility of the foreign home office.
Italian corporation can be very profitable, when structured in the manner that best matches your businesses goals and desires. Only deal with a European corporation specialist that has a solid relationship with local attorneys and accountants on the ground in each European country they handle, that are known and respected for their business and legal knowledge. Only then will Italian corporation of your business return the greatest profits and the most peace of mind.