Opening a company is a process that requires attention from the entrepreneur, who must make sure that the business he wants to start can be sustainable, that is, it must generate profits.
Do you want to know how much it costs to start a business in Italy? In this article you will find all the information you need to start a business in Italy.
Are you ready? Let’s start now!
- Costs To Start a Business in Italy
- Open a Company Current Account in Italy
- Main Taxes Applicable to Businesses in Italy
- Licenses and Certificates
Cost To Start a Business in Italy
More and more people aspire to a future as an entrepreneur. However, starting a business in Italy is not very easy. It takes a planning period, a budget sufficient to cover the starting costs, but also ideas and strategies to achieve the set objectives.
Among the business start-up costs related to opening a company in Italy, an investor must also take into account the bank account opening fee and the minimum amount of money to be deposited as a share capital.
S.R.L Company Costs
For a limited liability company or the S.r.l., the minimum share capital is between 1€ and 10,000€. When the capital has a maximum value of 10,000 euros, the contributions can only be made in cash and must be paid in full upon subscription.
When the share capital is greater than 10,000 €, at least 25% of this value (or 2.500 euros) must be paid to the directors.
Joint Stock Company Costs
When opening a joint-stock company, a minimum of 50,000€ is needed and the value is to be stated in the Articles of Association.
The number of shares a held by a shareholder does not have to be identical to his overall investment in the company. Like in the case of the S.r.l., 25% of the share capital of the S.p.a must be paid when signing the Articles of Association and the rest of the amount at a later date.
When the companies are incorporated by a single shareholder and in this case, the share capital is to be paid in full. All contributions that are made in kind, not cash must be paid in full.
In general, the main costs related to incorporating a business in Italy are:
- Trade Register fee – EUR520 (this fee will be paid for registering a company with the local Trade Register);
- Virtual office – EUR100/month (this is necessary if you don’t have an office for your business);
- Incorporation fee – approx. EUR2300;
- Accounting fee – starting from EUR130/month, depending on the number of invoices and yearly turnover ;
- Minimum share capital – EUR 1 for a limited liability company and EUR 50,000 for a joint stock compan.
Open a Company Current Account in Italy
One of the most important aspects of start a business in Italy is related to the establishment of a corporate bank account. For depositing the share capital and for conducting commercial activities this account is needed.
To open a company current account in Italy it is necessary:
- present the company’s articles of association to the bank;
- complete the necessary paperwork issued by the Italian bank;
- appoint a company representative who will have contact with the bank;
- choose the services best suited to the needs of the Italian company.
In addition to the company’s bank account, a business can also create merchant accounts to accept online payments. E-commerce companies mainly use these types of accounts.
Main Taxes Applicable to Businesses in Italy
Companies performing commercial activities in Italy areliable to taxation. A company can be taxed in Italy as long as it has a place of management or a main business activity developed in this country.
Companies are liable to value added tax, corporate income tax and others as long as they have been operating in Italy for at least 183 consecutive days (in this case, the company will be seen as a permanent establishment in Italy).
The main tax you pay in Italy is IVA (value added tax). The standard rate is 22% on the invoice amount, with a reduction of 10% or 4% depending on the product or service.
Sole proprietorships and partnerships pay a rate of 23% to 43% on income, based on the range of values. The joint-stock company pays an equivalent rate of 24% on its income. There are special schemes for small businesses with lower rates, such as 5%.
Licenses and Certificates
Another economic factor to start a business in Italy is the licenses or certificates. For example, those who deal with packaged foods should take a course called HACCP which costs little, around € 40.00 for 4 hours.
In addition, those who work the food have to take a longer course and it can cost from €100.00 to €150.00.
In some cases, you can even hire a professional who has the certificate and then meet the requirement without having to take the course
Of course, each sector has its own requirements.
Did you find the reading useful? Then you should also check out our article about to how start a business in Italy.