How to open a business in Italy for a foreigner

Since 1992, Feod Group has provided full legal support for obtaining a residence permit in Italy through business immigration. The company includes Italian lawyers. Offices in Europe, USA and Ukraine.

Our services include:

✓ Registration of a company in Italy ✓ Purchasing a ready-made business in Italy ✓ Opening an account in a bank in Italy ✓ Renting and purchasing real estate in all regions of Italy ✓ Creating an effective corporate and tax scheme ✓ Confirming the source of funds ✓ Obtaining tax resident status in Italy
Italy is a full member of the European Union , with a very strong developed economy and a high standard of living, as well as social guarantees for Italian residents. Therefore, Business Immigration continues to be the most reliable way to immigrate to Italy to obtain permanent resident status.

Residence permit for entrepreneurs (Permesso di soggiorno under the Lavoro autonomo category)

The procedure for obtaining a residence permit in Italy based on the motive of an entrepreneur (Imprenditore) belongs to the Lavoro autonomo category and is regulated by Art. 5 of Immigration Decree No. 286/98.

This residence permit is issued for the purpose of opening a business or introducing private entrepreneurial activity in Italy.

Features of obtaining a residence permit for business immigration to Italy:

The Italian government annually sets quotas for the number of permits issued under the Lavoro autonomo category. In 2021, 2,400 quotas (Decreto Flussi) were allocated for self-employed foreigners.

To obtain a residence permit in this category, it is not enough just to open (register) a business in Italy; the applicant must prove that he has the qualifications, work experience or education to launch a profitable business, as well as the availability of a financial base. The applicant must also undergo verification and obtain approval from the Italian consulate, Chamber of Commerce and Migration Service.

Permesso di soggiorno in the Lavoro autonomo category is provided for 2 years. Further, if a foreigner develops his business activities and pays taxes, the residence permit is renewed every 2 years. After 5 years, it is possible to obtain permanent residence in Italy. And then after 7 years of residence in Italy - Italian citizenship.

Basic requirements for starting a business in Italy:

1. Relevance of the applicant’s business project for the Italian economy:

It is necessary to provide a business plan in Italian, which will reflect the relevance and significance of this type of business for a certain region of the country, an analysis of the local market and clearly formulated business goals).

2. Availability of sufficient sources of financing:

Availability of starting capital from 20,000 euros. The amount may be higher for some areas of activity or region of business. The amount must be in the applicant’s account.
availability of sufficient funds for the period of the applicant’s stay in Italy (from 2,200 euros per month). The funds must also be in the applicant’s personal account.
Mandatory provision of documents confirming the legality of the source of funds.

3. Availability of a legal address at which the business will be registered in Italy, as well as other criteria for the real presence of the company in accordance with the requirements of Substance.

4. Availability of housing in Italy, rented or owned:

lease agreement, purchase and sale agreement, declaration of housing, etc.

5. Qualifications of the applicant allowing the implementation of the business idea:

having a diploma of education with the required qualifications or having professional experience.

6. Confirmation of the applicant’s integrity:

No violations of the EU visa regime, no deportations;
No criminal record.

Family members can obtain a residence permit in Italy for business immigration together with the main applicant:

Spouse
Children, including adults, who are fully supported by the main applicant
Parents who are fully supported by the main applicant

We accompany all client actions related to registering or purchasing a business in Italy, and at the same time provide a full range of services for obtaining immigration status for the entire client’s family.

Get professional advice from an immigration lawyer

How to open a simple Srl

Spa (Joint Stock Company) is a company with autonomous financial assets transferred by inheritance. A company is responsible for its debts with its assets. The quality of an enterprise is achieved by purchasing shares. However, partners who are not involved in the management of the company cannot make decisions on the acceptance of documentation related to management activities. If profits are reduced by more than a third as a result of operations, the managing partners must call a meeting. If during the period of savings to stabilize the situation, losses have not decreased by at least a third, the meeting or supervisory board that approves the budget must reduce financial investments in an amount corresponding to the loss of the established budget. If the losses result in the capital being reduced below the statutory minimum, currently €120,000, you should negotiate a capital increase or convert the company into a structure with a lower minimum capital than, for example, a limited liability company.

As for an LLC, corporate law reform has the opportunity to form a joint stock company unilaterally, i.e. with a single founder (more details).

Residence permit for managers of a representative office or branch of a foreign company in Italy

The immigration program for managers of representative offices and branches of foreign companies in Italy allows you to obtain a residence permit for temporary transfer from a country that is a member of the World Trade Organization to Italy.

Features of business immigration for managers of a representative office or branch of a foreign company:

Residence permits for heads of representative offices and branches in Italy are issued outside of entry quotas.
The duration of the residence permit is the duration of the employment contract concluded between the employee and the representative office or branch of the foreign company in Italy.
A person appointed to the position of head of a representative office or branch in Italy cannot simultaneously be the head (general director, director) of the parent company.
The head of a representative office or branch must have at least 6 months of experience in a managerial position.
The maximum period of stay in Italy on this basis cannot exceed 5 years. After this period, it is necessary to re-register the status or provide information to the immigration services about another source of income (carrying out another type of activity). The period of residence in Italy under this residence permit is counted towards the period required to obtain permanent residence (permesso di soggiorno UE per i soggiornanti di lungo periodo).

Basic documents required for business immigration to Italy and obtaining a residence permit:

An extract from the Italian Chamber of Commerce confirming the establishment of a representative office or branch.
Preliminary contract for the provision of services for the management of a representative office or branch.
Certificate from the Provincial Directorate of Labor (Direzione Provinciale del Lavoro), certifying that the contract complies with the requirements of Italian law.
A document showing the applicant’s income in his country for the past year is not lower than the minimum established by Italian law.
Obtaining prior permission to enter Italy from the territorial Police Office (NULLa osta);
Documents confirming the availability of housing in Italy, rented or owned.

Get professional advice from an immigration lawyer

Stay in Italy

When doing business in Italy, you can use three types of visas:

1. Investor visa (golden visa). This visa is issued to non-EU citizens who invest in strategic assets for the Italian economy and society. It can be issued when investing in the Italian economy in the following amounts:

€ 2 million - when investing in government bonds issued by the Italian Republic (you will only need to hold these securities for the first two years)
€ 1 million - when investing in shares or shares of legal entities registered and operating in Italy (€ 500,000 if the company is an innovative start-up), with a holding period of these shares/shares for two years
€1 million in the form of charitable donations for projects in the fields of culture, education, migration management, scientific research and restoration of cultural property.

The Golden Visa is valid for two years and can be extended for a further three years. The visa holder must apply for a residence permit (also valid for two years and renewable for three years) within eight working days of entry into Italy and make the full investment or donation within three months.

Startup visa. Issued for non-EU citizens who create a new innovative company in Italy
Regular business visa. Suitable for traveling to Italy to participate in short-term business activities: meetings, visiting companies, concluding business deals, recruiting or training. Issued within 48 hours.

Malpensa Airport in Milan. Photo from tourister.ru

Startup Visa (Italia Startup Visa)

Practicing specialists in the field of creation and application of innovative technologies can take advantage of the simplified procedure for obtaining a residence permit in Italy under the Italia Startup Visa category.

The procedure for obtaining permesso per lavoro autonomo startup was initiated by the Italian Ministry of Economic Development and the main purpose of which is to significantly simplify the procedure for obtaining a permanent residence permit in Italy for specialists from non-EU countries.

Requirements for obtaining a business immigration permit to Italy:

The applicant's nationality is from a non-EU country.
The company's predominant corporate objective is to develop, produce and market innovative products or services of high technological value;
Provide a detailed business plan with proof of innovative value according to Italian law.
Availability of starting capital from 50,000 euros.

Guide to creating Srl

Srl (LLC) (Limited Liability Company) is a financial enterprise that responds to public responsibilities with its own inherited capital. The minimum authorized capital is 10,000 euros, however, in the development of specific limited liability companies, the authorized capital may be one euro. If the deed of formation of a company is signed by one person, then the company becomes a “limited liability company of one person”. A special feature of this company is the presence of a single shareholder.

Italian tax resident

An Italian tax resident is an individual or legal entity who, according to the laws of the state, is subject to taxation there on the basis of his place of residence, permanent residence or place of registration for a legal entity.

By becoming a tax resident of Italy, you have the opportunity to receive a unique tax benefit based on the Non Domiclied Resident .

Non-dom tax status is available to individuals who:

have moved their tax residence to Italy (the maximum period during which non-dom status can be enjoyed is 15 years, and it can be canceled by the taxpayer at any time).
have not resided in Italy and have not been tax residents of Italy for 9 of the last 10 years.
received official approval from the Italian tax authorities.

Advantages of non-dom in Italy

The main advantage of this law is the one-time payment of personal income tax per year, declaring income of any amount received outside Italy as a flat tax:

100 thousand euros tax on the income of the main applicant;
25 thousand euros income tax for each family member.

An annual lump sum tax payment replaces the need to pay income taxes, local taxes and property taxes. Taxpayers are also relieved from certain tax and financial monitoring obligations. The Italian controlled foreign company (CFC) regime does not apply to non-Italian interests held by an individual and tax relief is not available on any tax paid abroad.

Another significant advantage is that the non-dom regime completely exempts from inheritance and gift taxes all foreign assets held by individuals who choose to use this special regime.

Read more »

Get professional advice from an immigration lawyer

Answers to frequently asked questions about business immigration to Italy

What are the options for business immigration to Italy?

Ways to obtain a residence permit in Italy through business:

Open your own business
Buy a ready-made business in Italy
Open a company branch and obtain a residence permit under the Intra-corporate transferees (ICT) program
Creation of an innovative startup (Italia Startup Visa)
Investments in the authorized capital of Italian companies (Permesso di soggiorno per investitori)

What are the benefits of business immigration to Italy?

The main advantages of business immigration to Italy:

Right of free entry and movement with an Italian resident card.
Obtaining status for all family members
Access to all European benefits: medical care, insurance, education, etc.
Opportunity to receive a tax benefit based on the Non Domiciled Resident principle.
Opportunity to obtain EU citizenship and passport after 10 years of permanent residence in Italy.

What are the tax conditions for business in Italy?

Basic taxes for business in Italy:

Italian legal entities are subject to corporate income tax (Imposta sul reddito sulle società or IRES) at a rate of 24% and a regional production tax (Imposta regionale sulle attività produttive or IRAP) at a rate of 3.9%.
The standard Italian VAT rate is 22%. Reduced rates: 4%, 5% and 10%.
An Italian employer must pay social security contributions for its employees. The general social security rate is about 40% of the employee's gross remuneration, of which 30% is paid by the employer.

How to register a company in Italy?

According to Italian law, any individual who has reached the age of 18 has the right to register a company.

The main organizational and legal forms of companies in Italy: Società a responsabilità limitata (SRL) - an analogue of an LLC; Società per azioni (SPA) - an analogue of a joint-stock company; Società in nome collettivo (SNC) - general partnership; Impresa individuale is an individual enterprise.

Main stages of registering a business in Italy:

obtaining a tax number (codice fiscale) from the tax office in Italy or from the Italian consulate in the country of residence
opening a personal and corporate bank account in Italy with authorized capital
rental of real estate with a legal address
Submitting a package of documents to a notary
registration in the Italian register of enterprises (Registro delle imprese).

How to open a business in Italy and what legal form to choose

public companies (Snc and Sas) and financial enterprises (Srl and SpA) also stand out

In order to form a Snc (Partnership), a written document is required, registered with the business registration office, which must contain: general information about the shareholders, the name of the company, details of the partners in the management of the company who have representative offices of this social entity, indicating the location of each of these, in the performance of which all participants are obliged to regulate the work of the company and the methods of distribution of profits and losses. Participants bear full and equal responsibility for the activities of the company. Money, unless it is the actual profit generated by the company as a result of its work, cannot be distributed among the shareholders, and, in the event of loss of money, it is impossible to distribute the profit until the share capital has been restored or reduced due to the current situation , respectively.

Why clients choose Feod Group for business immigration to Italy:

1. Since 1992, Feod Group has been providing a wide range of legal, business and immigration services in Europe, the USA and other countries of the world.

2. Thanks to the presence of several offices in Europe, we ensure fast processing of documents and maximum comfort for the client.

3. The company employs practicing Italian lawyers.

4. We provide services for creating an effective corporate and tax scheme.

5. We provide our clients with related services related to relocation and adaptation in Italy, services for organizing family relocation to Italy, enrolling children in schools and many others.

For the initial analysis of your request, Feod Group recommends taking advantage of professional consultations with Western immigration lawyers, during which you will receive detailed information about Italian immigration and tax laws.

Our publications on business, taxes and real estate in Italy and abroad:

Immigration to Italy for entrepreneurs
10 trends in migration issues 2021
Investor visa to Italy: minimum investment amount halved
How to travel abroad during quarantine
Intra-corporate transfer of employees to EU countries
New requirements for doing business abroad: substance rules
How to open an account in a European bank
Registration of companies in Europe in 2021: best countries, features, benefits
Residence permit in the countries of the European Union without the need for permanent residence
Where to go for permanent residence? Best countries to live
How to buy property abroad without losses
Benefits of becoming a Cyprus tax resident in 2021
Second citizenship in the European Union. How to obtain a second citizenship in EU countries.
Answers to pressing questions about freedom of movement during quarantine
Visa refusal, deportation, visa cancellation - what is it and what to do?