Types of Companies in Italy
Italian legislation provides several legal forms for conducting business. The choice depends on the scale of operations, the number of participants, and the company’s objectives.
In addition to the above forms, foreign companies may open a branch (succursale) or a representative office in Italy. A branch is not a separate legal entity; however, it must be registered with the Registro delle Imprese and is required to maintain accounting records in accordance with Italian standards.
Company Registration Procedure
Company registration in Italy is carried out by making an entry in the Business Register (Registro delle Imprese) at the local Chamber of Commerce (Camera di Commercio). The process includes the following stages: selection of the legal form and verification of the uniqueness of the company name, preparation of the memorandum of association (Atto Costitutivo) and articles of association (Statuto) by a notary, obtaining a tax identification number (Codice Fiscale) from the Agenzia delle Entrate, depositing the share capital into a bank account and obtaining confirmation from the bank, submission of documents to the Registro delle Imprese through the notary, and registration as a VAT payer (obtaining a Partita IVA).
For certain types of activities (banking services, insurance, financial consulting), an additional licence from the relevant regulator — Banca d’Italia or CONSOB (Commissione Nazionale per le Società e la Borsa) — is required.
Tax System in Italy
The Italian tax system includes two main corporate taxes.
The corporate income tax rate (IRES — Imposta sul Reddito delle Società) is 24%. In addition, a regional production tax (IRAP — Imposta Regionale sulle Attività Produttive) is levied at a standard rate of 3.9%, bringing the effective tax burden to approximately 27.9%.
The standard VAT rate (IVA — Imposta sul Valore Aggiunto) is 22%, with reduced rates of 10%, 5%, and 4% for certain categories of goods and services. The dividend tax for individuals is 26%. Italy has concluded double taxation avoidance agreements with more than 100 countries.
All companies are required to maintain accounting records in accordance with Italian standards and to file an annual tax return with the Agenzia delle Entrate. The financial year generally coincides with the calendar year. Companies with annual turnover exceeding the established threshold are subject to mandatory audit.
Opening a Bank Account
Having an account with an Italian bank is a mandatory condition for company registration — the share capital is deposited into it before the documents are submitted to the Registro delle Imprese. After company registration, the bank account is used for operational activities. Italy does not impose residency requirements on founders and directors; however, citizens of countries outside the EU must obtain a work permit to manage a company on the territory of Italy.
Registration Timelines
Company registration in Italy typically takes from 10 to 20 business days, provided that a complete set of correctly prepared documents is available. The notary submits documents electronically to the Registro delle Imprese, which issues the REA number and VAT registration confirmation within 24–72 hours of submission.
Our Experts
The COREDO team has been operating since 2016 and possesses deep expertise in company formation across various European jurisdictions.
Frequently Asked Questions
COREDO specialists provide comprehensive support for the company formation process in Italy — from selecting the legal form to making an entry in the Registro delle Imprese and tax registration. We have been operating since 2016 and help entrepreneurs from dozens of countries successfully build business structures in Europe and beyond.