Company Formation in Italy

OVERVIEW

Incorporation in Italy

Italy is the third largest economy in the European Union and one of the world’s most culturally and commercially significant business jurisdictions. The country is a global leader in luxury goods, fashion, automotive manufacturing (Ferrari, Lamborghini, Fiat), food and beverage, pharmaceuticals, and precision engineering. A company registered in Italy carries strong international credibility and provides full access to the EU Single Market. The most common entity type for foreign investors is the S.r.l. (Società a Responsabilità Limitata), which offers limited liability, flexible governance, and a recognised legal structure across the EU. Foreign entrepreneurs can own 100% of an Italian company with no residency requirement, and the formation process can be completed remotely via an apostilled Power of Attorney or virtual notary signing.

Why Italy?

Requirements

General Requirements for Italy Company Formation

Company Name

Must be unique and not identical or misleadingly similar to an existing registered Italian company. Must include the suffix S.r.l., S.r.l.s, or S.p.A.

Entity Type

S.r.l. (most common for foreign investors), S.r.l.s (natural persons only), S.p.A., or Branch Office (Succursale)

Registered Office Address

A physical Italian business address is mandatory for all registered companies. CORPEASE provides a registered office address service in Italy.

Minimum Share Capital

S.r.l.: from €1. Capital below €10,000 must be paid in full in cash at incorporation; S.r.l.s: €1 to €9,999, fully paid in cash. S.p.A.: €50,000 — at least 25% paid up at incorporation (100% if single founder).

Capital Deposit

Share capital must be deposited before registration via an Italian bank account or a notary escrow account. Standard clients deposit directly into an Italian bank account. Premium clients use the CORPEASE Capital Deposit via Notary Escrow — no Italian bank account required.

Minimum Shareholders

1 shareholder for S.r.l. and S.r.l.s. Minimum 1 shareholder for S.p.A.

Minimum Directors

1 director for S.r.l. and S.r.l.s. Board of Directors (minimum 3 members) for S.p.A. No Italian residency or citizenship is required.

Foreign Ownership

100% foreign ownership is permitted. No local Italian partner, shareholder, or director is required.

Owner Identification

1. Certified Copy of a Passport 2. Certified Copy of a Utility Bill (e.g., Gas / Electricity) or Bank Statement (dated within the last 3 months)

Atto Costitutivo e Statuto

The incorporation deed and articles of association — drafted by CORPEASE LEGAL and signed before an Italian civil law notary. Foreign founders may sign via an apostilled POA or through a virtual notary signing session.

Document Requirement

Remote formation is completed via an apostilled Power of Attorney or virtual notary signing. Foreign-issued documents must be officially translated into Italian and apostilled in accordance with the Hague Apostille Convention. CORPEASE coordinates the full apostille and notary process.

Tax Registration

Codice Fiscale (Italian tax identification number) and Partita IVA (VAT number) are issued by the Agenzia delle Entrate upon registration. Registration with the Registro delle Imprese (Business Register) through the local Camera di Commercio is required for the company to be fully operational.

COMPANY TYPES

Which Company Types We Serve

S.r.l. — Società a Responsabilità Limitata (Private Limited Company)

The most common and recommended entity type for foreign investors.The S.r.l. can be formed with as little as €1 in share capital. If share capital is below €10,000, contributions must be made in cash and paid in full at incorporation, and 20% of annual profits must be set aside as a legal reserve until net assets reach €10,000. If capital is €10,000 or above, at least 25% must be paid up at incorporation (100% if there is only one founder).

Best for:

Foreign entrepreneurs and international investors entering Italy
SMEs, e-commerce, consulting, technology, and trading companies
Companies seeking a widely recognised Italian legal entity
Businesses with one or more shareholders

S.r.l.s — Società a Responsabilità Limitata Semplificata (Simplified SRL)

A simplified version of the S.r.l. available exclusively to natural persons (not legal entities). Requires only €1 in share capital. Uses standardised statutory templates with no customisation. Requires 20% of annual profits to be reserved until share capital reaches €10,000.

Best for:

Individual entrepreneurs and sole founders entering Italy at low cost
Early-stage startups testing the Italian market with minimal capital
Founders who do not require a customised corporate structure

S.p.A. — Società per Azioni (Joint Stock Company)

The Italian equivalent of a public limited company. Requires a minimum share capital of €50,000, of which at least 25% must be paid up at incorporation. Suitable for large corporations, companies raising significant investment, or those planning to list on the Borsa Italiana.

Best for:

Large corporations requiring a formal share-based capital structure
Companies planning to raise investment from institutional investors
Businesses intending to list on the Italian Stock Exchange

Succursale (Branch Office)

An extension of a foreign parent company operating in Italy. Not a separate legal entity — the parent company remains fully liable. Suitable for foreign companies establishing a local presence without a full incorporation.

Best for:

Foreign companies testing the Italian market before full incorporation
Short-term or project-based Italian operations

Comparison

S.r.l. vs S.r.l.s vs S.p.A. — Which Structure Is Right for You?

S.r.l.

S.r.l.s

S.p.A.

Branch

Best for

SMEs, foreign investors

Solo founders, low capital

Large corps, investors

Foreign extension

Min. share capital

From €1

From €50,000

None

Paid-up at registration

25% (€2,500); 100% if 1 founder

100%

25% (€12,500)

N/A

Min. shareholders

1 (natural person only)

N/A (parent only)

Min. directors

1 (no residency required)

1 (natural person only)

Board of Directors (min. 3)

1 representative

Foreign ownership

100% permitted

100% permitted (natural persons)

100% permitted

Parent company

Corporate tax (IRES)

24% / 20% IRES Bonus

24%

Statutory customisation

Full flexibility

Standardised template only

Full flexibility

Limited

Notary required

Yes

Formation time

2–4 weeks

2–3 weeks

4–6 weeks

2–3 weeks

Recommended for foreign clients

First choice

Low-budget solo founders

If raising investment

Market testing

Our Recommendation

For the majority of foreign entrepreneurs and international investors, the S.r.l. is the most recognised, flexible, and practical entity type in Italy. It offers full limited liability, 100% foreign ownership, and a customisable governance structure. Our advisors will assess your situation and recommend the most suitable structure — free of charge.

Process

From Enquiry to Operation — Formation Timeline: 2–4 Weeks

A clear, predictable process — so you always know what happens next.

Step one

Free Consultation

We assess your business needs and recommend the right entity type. We provide a full transparent quote with no obligation.

Step Two

Document Preparation

We prepare the Atto Costitutivo e Statuto and all required incorporation documents in Italian. All foreign-issued documents are coordinated for official translation and apostille.

Step Three

Capital Deposit

Standard clients deposit capital into an Italian bank account and provide the deposit certificate. Premium clients use the CORPEASE Capital Deposit via Notary Escrow — no Italian bank account required.

Step Four

Notary Signing

The incorporation deed is signed before an Italian civil law notary via apostilled POA or virtual notary signing. No travel to Italy is required.

Step Five

Registro delle Imprese Registration & Tax Setup

The notary files the incorporation deed with the Registro delle Imprese through the local Camera di Commercio. Upon approval, the Codice Fiscale and Partita IVA are issued by the Agenzia delle Entrate.

Annual Requirements

Ongoing Annual Obligations

All Italian companies are required to meet the following annual compliance obligations.

Annual Financial Statements

Annual accounts must be prepared and filed with the Registro delle Imprese through the Camera di Commercio. Costs vary based on company size, number of transactions, and complexity.

Corporate Income Tax (IRES)

Annual return filed with the Agenzia delle Entrate. Standard rate 24%. Qualifying companies may benefit from the 2025 IRES Bonus reducing the rate to 20% for eligible investments and hirings.

Regional Tax (IRAP)

IRAP (Imposta Regionale sulle Attività Produttive) is a regional production tax levied at 3.9% on the value of production. Filed annually with the Agenzia delle Entrate.

VAT Returns (IVA)

Quarterly or monthly IVA (Imposta sul Valore Aggiunto) returns filed with the Agenzia delle Entrate. Standard VAT rate 22%; reduced rates of 10%, 5%, and 4% apply to certain goods and services.

Camera di Commercio Annual Fee

All registered companies must pay an annual membership fee to the local Camera di Commercio. Fees range from €200 to €300 depending on company size and location.

Office Address Renewal

Registered office address must be maintained at all times. Annual renewal coordinated by CORPEASE as part of the Premium package.

Payroll & Social Security

Companies with employees must register for payroll and social security contributions with INPS (National Social Security Institute). CORPEASE can provide payroll support services.

Pricing

See our price list & choose your plan

All prices are in US Dollars. Government fees, notary fees, and third-party costs are included where specified.

Standard

Starting from

US$ 3,800

Includes:

Company name availability check
Preparation of Atto Costitutivo e Statuto and all incorporation documents
Italian civil law notary coordination
Apostille coordination for foreign-issued documents
Registro delle Imprese registration via Camera di Commercio
Codice Fiscale and Partita IVA registration
All government and notary fees
One set of digital corporate documents

Not included:

Premium

Starting from

US$ 4,800

Everything in Standard, plus:

Recommended for international clients who do not hold an Italian bank account prior to registration

Annual Compliance Services

Office address renewal (included in Premium package; separate arrangement required for Standard)
Annual financial statements filed with the Registro delle Imprese — costs vary based on company size and complexity
IRES corporate income tax return — 24% standard; 20% IRES Bonus for qualifying companies
IRAP regional tax — 3.9% on value of production
Camera di Commercio annual fee — €200 to €300 depending on company size and location

Connect with our Experts

You can reach out to a customer support representative or send us an email. We will respond to your request at the earliest time possible.

Under 0 transactions

per month

Starting from

US$ 3,000^/year

You can reach out to a customer support representative or send us an email. We will respond to your request at the earliest time possible.

1-50 transactions

per month

Starting from

US$ 4,000^/year

You can reach out to a customer support representative or send us an email. We will respond to your request at the earliest time possible.

Connect with our Experts

Costs vary based on company size, number of transactions, and complexity. Connect with our Experts — You can reach out to a customer support representative or send us an email. We will respond to your request at the earliest time possible.

FAQs

Frequently Asked Questions

Can a foreigner own 100% of an Italian company?

Yes. Italian law permits 100% foreign ownership of S.r.l. and S.p.A. entities. No local Italian partner, shareholder, or director is required.

Do I need to travel to Italy to register a company?

No. Formation is completed remotely via an apostilled Power of Attorney or through a virtual notary signing session. CORPEASE coordinates the full process including apostille of foreign-issued documents.

How long does company formation in Italy take?

Formation typically takes 2 to 4 weeks from document submission, covering notary preparation, signing, and Registro delle Imprese approval.

What is the corporate tax rate in Italy?

The standard corporate income tax (IRES) rate is 24%. Under the 2025 IRES Bonus introduced by Legislative Decree 2025, qualifying companies that make new investments and hire employees may benefit from a reduced rate of 20%.

What is IRAP and does every company pay it?

IRAP (Imposta Regionale sulle Attività Produttive) is a regional production tax levied at 3.9% on the value of production. Most Italian companies are subject to IRAP, though certain exemptions and reductions may apply depending on the nature of the business and the region.

How much share capital is required and how much must be paid upfront?

An S.r.l. requires €10,000 minimum share capital. If there are two or more founders, at least 25% (€2,500) must be deposited at the time of incorporation. If there is only one founder, the full €10,000 must be deposited before registration.

I do not have an Italian bank account. How can I deposit the share capital?

CORPEASE offers a Capital Deposit via Notary Escrow service in the Premium package. The share capital is deposited through a notary-held escrow account on your behalf, allowing registration to proceed without an Italian bank account.

Is VAT registration mandatory?

Yes. VAT registration (Partita IVA) is mandatory for all companies conducting taxable activities in Italy. The Partita IVA is issued by the Agenzia delle Entrate upon company registration. The standard Italian VAT rate is 22%, with reduced rates of 10%, 5%, and 4% for certain goods and services.

What is the Camera di Commercio fee?

All Italian companies must pay an annual fee to the local Camera di Commercio (Chamber of Commerce). Fees range from €200 to €300 per year depending on company size, turnover, and location.

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