Company Formation in Italy: A Complete Guide 2025

To start a business in Italy, it is necessary to choose the most suitable legal structure. The main options are:
- Limited liability companies (LLC, PLC, Limited Partnership)
- Partnerships (SNC, SAS, SS)
- Sole proprietorship

The choice depends on factors such as the type of business, governance, liability of the partners, financing needs, and tax aspects.

👉 Studio Genise, a firm of chartered accountants in Milan since 1979, supports entrepreneurs and companies in all phases of company formation and management.

How to establish a capital company in Italy

Choosing the type of company

The most common types of corporations are:
- SRL (Limited Liability Company)
- SPA (Public Limited Company)
- SAPA (Limited Partnership by Shares)

Generally, the SRL (limited liability company) is the most popular choice: it protects personal assets, is flexible, and limits liability to the contributions made. The SPA (public limited company) is ideal for larger projects; the SAPA (limited partnership with shares) has more limited use.

Articles of incorporation and bylaws

An SRL (società a responsabilità limitata) is established with a constitutive deed and bylaws drawn up by a notary and registered with the Business Register. These must specify the company name and location, corporate purpose, capital, governance/meeting rules, and the rights and obligations of the members. In SRLS (società a responsabilità limitata semplificata), the deed is standardized; in ordinary SRLs, it is highly customizable. Since 1993, it has been possible to establish a single-member SRL.

Share capital and contributions

- SRL (Limited Liability Company): minimum €10,000 (initial deposit at least 25%)
- SRLS: from €1
- SPA: minimum € 50,000

For certain activities, the law provides for higher minimum capital requirements (e.g., employment agencies). Contributions can be in cash, goods, or rights and must be specified in the deed.

Registration and initial requirements

- Registration in the Business Register (Chamber of Commerce)
- Request for PEC (Certified Email Address) and VAT number
- Communication of the beneficial owner
- INPS and INAIL registrations (if required)
- Opening of a current account enabled for F24 electronic payments

👉 Want to establish an SRL (limited liability company) in Italy? Contact Studio Genise for complete assistance.

Subsequent requirements

- Company records (meetings, board of directors or sole director)
- Accounting and electronic invoicing
- Annual financial statements and timely filing
- Tax returns: income tax, VAT, withholding tax


How to form a partnership

Types

- SS: non-commercial activities (real estate, agriculture, management of investments)
- SNC: commercial activity, unlimited and joint liability
- SAS: general partners (unlimited liability) and limited partners (liability limited to their contribution)

Key steps

- Articles of incorporation (public deed or authenticated private writing)
- Registration with the Revenue Agency (within 20 days)
- Registration in the Business Register (within 30 days)
- Tax ID number, INPS/INAIL (if applicable) and bank account

Accounting and Taxation

- Ordinary: like capital companies, with full registration of transactions
- Simplified: reduced obligations (VAT registers, register of depreciable assets) – limits: €400,000 for services; €700,000 for other activities

Taxation: income attributed to partners through transparency (individual IRPEF). IRAP on the value of production.

👉 Do you want to set up a simple company, a partnership (SNC), or a limited partnership (SAS)? Studio Genise will assist you in making the most convenient choice.

How to start a sole proprietorship

Passages

1. Define the activity and a business plan
2. Apply for a VAT number (choose tax regime and ATECO code)
3. Registration in the Business Register and/or submission of SCIA (Notifiable Activity Declaration) if necessary.
4. INPS and INAIL registrations

Tax regime

- Ordinary/Simplified: Progressive income tax (current rates)
- Flat-rate tax regime: substitute tax of 5% (first 5 years) or 15%, maximum revenue €85,000

Compliance and Closure

- Tax returns, VAT and INPS contributions
- In case of cessation → closing of VAT number and notifications to CCIAA, INPS, INAIL

👉 Trust Studio Genise, a commercial accountant in Milan: we guide you step by step in opening and managing your sole proprietorship.

Quick comparison of the main forms

Form

Minimum capital

Responsibility

Taxation

Advantages

Considerations

LLC (Limited Liability Company)

€10,000 LLCs from €1

Limited to donations

IRES + IRAP

Asset protection, flexible

Greater compliance requirements and costs for SS/SNC

SPA

€50,000

Limited to donations

IRES + IRAP

Access to capital, prestige

Complex and expensive structure.

Partnerships

No minimum

Unlimited (except for limited partners)

IRPEF for transparency + IRAP

Lean management

Personal liability of the members

Sole proprietorship

No minimum

Unlimited

IRPEF or flat tax

Quick start, low costs

Total personal risk

FAQ – Frequently Asked Questions

·         Q: How much does it cost to set up an SRL in Italy?

A: Costs vary depending on capital, notary fees, chamber of commerce fees, and consulting fees. Contact us for an updated and transparent quote.

·         Q: How long does it take to open a company?

A: Under standard conditions, a few business days from the notary's signature to full operation (PEC/VAT number/Chamber of Commerce registration), except for activities subject to authorizations.

·         Q: Is an LLC or a sole proprietorship better?

A: It depends on the risk, capital, expected margins, and the need for asset protection. We will assess the tax and legal benefits together.

·         Q: What is the beneficial owner and when must it be disclosed?

A: This is the natural person who owns/controls the company; notification is mandatory to the Business Register according to anti-money laundering regulations.

·         Q: Simplified or standard accounting for partnerships?

A: The simplified system requires fewer obligations within the revenue limits (€400,000 for services; €700,000 for other activities). Above these thresholds, the standard system is required.

Conclusions

The choice of corporate structure depends on the capital, the entrepreneurial risks, and the business objectives.

- SRL: ideal for SMEs with asset protection
- SPA: suitable for large companies
- Partnerships: for local or family businesses
- Sole proprietorship: a simple and fast solution

👉 With Studio Genise, a certified public accountant in Milan since 1979, you can establish your company in Italy safely and efficiently.