In Italy, businesses can be established not only by citizens of the state, but also by its residents, passport holders of other EU countries, and foreigners from outside the EU. To become an entrepreneur in Italy, one must choose a legal form, draw up a charter, and submit a single application to the Chamber of Commerce and Industry. Foreigners who own companies in Italy can only carry out activities after obtaining a residence permit. To do so, they must obtain the appropriate visa in advance and include authorization from the General Directorate of Police and an assessment of their financial situation from the Chamber of Commerce and Industry in the dossier.
Registering a company in an EU member state allows you to expand and optimize your business activities due to no customs duties within the association and the ability to conclude international contracts with suppliers and customers. Read on for more information on opening a business in Italy, the step-by-step procedure for registering a company, the taxation system in Italy, and the benefits for local entrepreneurs. Also covered is the process for business immigration for citizens of third countries.
Doing business in Italy: regulations for foreigners
Foreigners may carry out any type of business activity in the territory of the Republic of Italy that corresponds to their professional qualifications, as recognized by the country’s competent authority. After obtaining a residence permit, such applicants may enjoy all civil rights that citizens of the state enjoy. However, launching business activities in Italy is impossible for a foreigner without preliminary visa and residence permit registration. Before applying for an entry permit, the applicant must obtain a certificate from the Chamber of Commerce and Industry attesting to their financial solvency to conduct business. They must also submit an online request to the General Directorate of Police for a special permit. The timing of the latter application is governed by a government regulation, which also establishes limits on the number of people who can do business in Italy.
A foreigner planning to start a company must fulfill the following requirements:
- Have sufficient financial means to carry out business activities;
- Own or rent a property in the country;
- Comply with Italian self-employment legislation;
- Have an annual legal income that exceeds the minimum statutory exemption threshold for healthcare costs.
Only five categories of applicants can apply for an Italian business residence permit, including project owners who invest at least EUR 500,000 in a company and employ a minimum of three people. Freelance professionals in regulated and unregulated fields, managers of legal entities within the state’s territory, renowned artists, and creators of innovative start-ups can also request residency.
For more information about the eligibility requirements and the easiest way to obtain a business residence permit, please migration specialists.
How to start a business in Italy: the best opportunities
There are several ways for foreigners to open an Italian company:
- Registration of a new company. In this case, a company is established within the territory of the Republic. Registering a company in Italy from the ground up is ideal for those planning to start a business in the country for the first time or engage in a new type of activity. The main advantage of doing so is the ability to build an enterprise and set up all processes at your discretion rather than proceeding from what the previous owner left behind (as would be the case with buying a ready-made company). Specialists can provide professional assistance with business registration, which greatly simplifies the process.
- Purchase of a ready-made business. The process involves the step-by-step transfer of rights to assets, property, and liabilities to the new owner. Before buying a business in Italy, it is advisable to conduct an accounting and legal audit to evaluate the investment’s potential. One benefit of this method of opening a company is the opportunity to acquire a well-known, reputable brand and receive profits from the first month of operation.
- Company relocation. Foreigners who own a business in their home country can relocate it to Italy. In order to do so, the existing company must be shut down, and the funds withdrawn from it must be used to register and create a new company. It is easier for the owner to find funds to start a business abroad using business relocation. Another option is to open a representative or branch office in Italy.
- Startup launch. In Italy, a newly formed company engaged in innovative activities has opportunities for its owners to find investors. To start a business in Italy, foreigners must have at least EUR 50,000. One of the main advantages is the right to certain government benefits.
How to open a business in Italy: step-by-step guide
- Preparatory steps. First, the applicant should request a long-term visa to move to Italy, followed by registration for a residence permit. Employees of the consulate or embassy will evaluate the economic value of the proposed activity, so a detailed business plan will be necessary. At this stage, it is also necessary to draw up incorporation documents and obtain a legal address and taxpayer number. The latter can be obtained from the tax service of the Republic or the embassy/consulate.
- Activity code selection (Codice Attività). This designation must correspond to the type of activity that the organization will carry out. The code assigned to the business determines the applicable social security for the Italian firm.
- Tax regime determination. Entrepreneurs may choose a suitable taxation option based on their estimated annual turnover. Those who are just starting their business may be eligible for the flat rate regime if certain requirements are met.
- Registration in the Commercial Register of the Chamber of Commerce and Industry. The corresponding application is submitted by creating a single ComUnica request. To do so, a certified email address (PEC) and a device with a digital signature are necessary, as well as special software to create the application. After registering in the Telemaco service, the application is submitted. ComUnica allows you to simultaneously request registration of the company, obtain a VAT number, enter data into the social security fund, apply to the National Institute of Work Accident Insurance, and report the start of the business to the One-Stop Shop for productive activities.
- Opening a bank account. To open an account, one must go to any banking institution in Italy and open an account to deposit the authorized capital, if required, and carry out further financial operations.
Registering a business in Italy is one of the easiest ways to obtain a residence permit, however, it requires knowledge of local legislation. According to entrepreneurs who have moved to Italy, seeking the help of specialists can help avoid difficulties and speed up the process.
can help with collecting documents, registering a company, opening a bank account, and other important processes.
Different aspects of company registration
To register a business in Italy, a foreigner must analyze the existing forms of entrepreneurial activity and select the most suitable one for their project. It is also important to learn about the documents required to legally establish a company, how long the process takes, and the taxation rules in the Republic.
Legal forms of business activities
When registering a business with the Commercial Registry of the Chamber of Commerce and Industry, entrepreneurs must choose a legal business structure.
Sole proprietorship
No authorized capital is required. The owner is solely responsible for the activities of a SP, however, it is possible to hire employees. In the Republic, a sole proprietorship can be established as a family business, in which case only the owner is responsible for the firm’s debts. This form of management allows relatives to legally divide profits and tax charges. A married couple can register a special type of business. In this case, the co-owners are equally liable to creditors. A spouse who is not the sole proprietor can claim 49% of the profits.
This immigration option is ideal for entrepreneurs planning to start or develop a business in Italy without significant start-up investments.
Limited Liability Company (SRL)
A company is created and incorporated by its shareholders. Only the company, not the co-owners, is liable for obligations. The authorized capital must total at least EUR 1, and if the total is less than EUR 10,000, the full amount must be contributed in cash. If the contribution amount exceeds the threshold, then only 25% of the declared contributions must be paid. In Italy, one can also open a simplified limited liability company (the authorized capital should not exceed EUR 9,999) with one founder. An LLC is suitable for all types of activities. A key advantage is the opportunity to sell company shares.
Limited Liability Partnership (SAS)
This type of organization is founded by business partners. General partners are fully liable for the business’s debts. Limited partners are only liable up to the amount of their contribution. There is no starting threshold for the size of the authorized capital, and founders can invest not only cash but also intangible assets such as intellectual contributions or property. This legal business structure is ideal for those who want to attract partners without shifting full responsibility to them. It allows you to perform all legally authorized activities.
In Italy, you can also open a general partnership (SNC), which is an organization where all partners are equally, fully, and personally liable for its debts. The requirements are the same as those for a SAS.
Joint Stock Company (SPA)
Such a company is only liable for corporate obligations with its assets; debts do not apply to shareholders. The minimum authorized capital is EUR 50,000, and the number of shares held by each participant is determined by the amount contributed. This form is best suited for businesses with a high volume of transactions.
Cooperative
Such a company is not created for the purpose of making a profit, but rather to attract partners for cooperation related to the turnover of goods, the services provided, or the favorable working conditions it offers. The size of the authorized capital of the cooperative is not established by law; the firm is responsible for its obligations. Registration of the organization requires a minimum of 9 participants, however, this requirement can be reduced to 3 if the participants are individuals.
Since Italy is an EU member state, the country adopted the division into micro, small, and medium-sized businesses in 2005. A company’s category is determined by its number of employees and financial indicators:
- Small and medium businesses have up to 250 employees and an annual turnover not exceeding EUR 50 million;
- Small businesses have up to 50 employees and a balance of no more than EUR 10 million for 12 months;
- Microenterprises have up to 10 employees and an annual turnover that does not exceed EUR 2 million.
Required documents
To register a new organization in Italy, you will most likely only need to submit the articles of association, or a memorandum of incorporation if required by your chosen business structure. You will also need to provide information about your financial operations, though other data may be required depending on the circumstances. The documents must be scanned and translated into Italian. The owner of the company or a trusted person must fill out the online application form S1 and provide the necessary information about the company.
Costs and terms of opening a company
The time it takes to prepare all the necessary documents to open a business depends solely on those responsible for the task. According to the Republic’s legislation, however, information must be entered into the state register within 20 days of drafting the charter for SRLs and SPAs and within 30 days for other types of companies. Commercial entrepreneurs have 1 month from the date they begin operating. Applications are usually processed within 5 working days. On average, organizing all processes for opening a company in Italy can take up to three weeks.
The amount of stamp duty required to register an organization in Italy depends on the chosen business structure:
| Business structure | Stamp duty amount, € |
|---|---|
| SP | 17,5 |
| SAS, SNC | 59 |
| SRL, SPA | 65 |
| Cooperative | 16 |
Obtaining a VAT taxpayer number is free of charge. Every year, enterprises must contribute to the Chamber of Commerce and Industry. The amount is determined by the government and calculated on a progressive scale based on annual profits.
Business taxation in Italy
As of 2023, companies incorporated in Italy pay a corporate tax rate of 24%. They can switch to a flat tax rate of 15% if certain requirements are met. The country also has a regional production tax. The rate is set by the authorities of a particular region and averages 3.9%. The standard VAT rate in Italy is 22%. Applicants register as taxpayers when submitting a single application to register the company’s activities. The tax rate for local and foreign enterprises is the same.
Tax benefits for Italian companies
A company based in Italy can enjoy the benefits of the country’s EU membership. In particular, companies in EU states do not have to pay duty on imports from other jurisdictions within the agreement.
Citizenship or residence permit and business relocation anywhere in the world:
- Live and travel the world freely;
- Grow your business internationally;
- Give your children the opportunity to study at the world’s best universities.
Leave an application and get a consultation with an immigration specialist
What business to open in Italy: a list of ideas
In order to run a successful business in Italy, choosing a promising idea is essential. The following business activities could be quite profitable in 2025:
- Construction. Those with experience in repairs or construction of houses will be well-suited to this business area. It is a promising and profitable niche with many directions, from plumbing installation to old building reconstruction. It is better to open a construction company in large cities, where it is easier to find customers, or in areas with low competition. Initially, a specialist can register as a sole proprietorship and then transition to a partnership or joint-stock company. No special permits are required for these activities, but all hired employees must have recognized construction qualifications in Italy. The necessary investment amount depends on the company’s scale — whether equipment must be purchased and, if so, how much. The minimum starting capital is EUR 40,000. To speed up the registration process, foreigners might consider buying an existing business in the construction sector or a franchise from a corporation such as Casa & Comfort Group, SPEED CASA, or Bricofer.
- Transportation. In 2025, there is a wide variety of transportation options available for rent, ranging from bicycles to electric scooters and cars. Those who wish to work with online services will find this field appealing, as these services are in high demand (e.g., renting a car by scanning a QR code). Starting a company in large tourist cities would be profitable. In order to conduct business, you must register a LLC or a partnership. Permits are not required. The company must hire employees to service transportation and provide technical support to clients. It is important that employees have the appropriate qualifications. Prices for purchasing such a franchise start at EUR 1,300. The most popular offers are from Italian companies Elerent Sharing, Driveline, and FacileRent.
- Nutrition. As of 2025, businesses that offer products for narrow target audiences are becoming relevant. These audiences include customers with gluten or lactose intolerance, vegans, individuals who seek to buy only organic products, and fans of rare coffees. Such a company can operate anywhere in the country and deliver food by mail or courier. Initially, registering as an individual entrepreneur is sufficient, but if the turnover is large, registering as an LLC or other business entity will be necessary. To more easily enter a new market, consider buying a franchise from companies such as Food Senza Glutine®, Biocelia, or OpenMind Care Italia. The required investment starts at 3,000 EUR.
Business immigration: how to obtain a residence permit through company registration
Business owners must apply for a residence permit to carry out their activities and may eventually apply for permanent residency in Italy. The easiest way to legally reside in the country is to open a sole proprietorship, as it requires meeting fewer requirements than other business structures. To become a resident, prepare the necessary documents and apply for a long-term visa at the Italian consulate or embassy in your country of permanent residence. Upon arrival, request a residence permit from the police within eight working days. The visa is issued for up to 90 days and the residence permit is valid for approximately two months. The entry permit costs EUR 116, and the residence permit costs EUR 80.46 plus EUR 46 per card. Initially, the status is issued for two years and can then be extended for three years each time.
Professional assistance with obtaining legal residency in Italy
Based on feedback from local entrepreneurs, registering a sole proprietorship is the most affordable way to legally reside in the country. Not only does it allow you to develop your business in the European market and live comfortably, but it also enables you to eventually request a residence permit and Italian citizenship. However, to formally establish your right to reside in the country, you must fulfill all the requirements of the local legislation, understand the visa and residence permit procedures, and properly register your business activities.
With the help of , you won’t have to worry about issues related to migrating to Italy for business purposes, as they will guide you through every step of the way.
