Discover this article about how to open a branch in Italy in 2026 and the main characteristics of this business entity. You can get assistance from our specialists in company formation in Italy.
| Quick Facts | |
|---|---|
| Applicable legislation | For foreign countries |
Best used for | – banking, – insurance, – financial operations, – trading |
Minimum share capital | No |
| Time frame for the incorporation (approx.) | Around 3 months |
| Management | Local, but not mandatory |
| Legal representative required | Yes |
| Local bank account | Yes |
| Independence from the parent company | Dependent on the parent company |
| Liability of the parent company | Full liability on the branch office’s debt and obligations |
| Corporate tax rate | 24% |
| Possibility of hiring local staff | Yes |
Table of Contents
What are the features of an Italian branch?
- an operational unit dependent on the parent/foreign company,
- carries out the activities of the foreign company, under the same business name,
- it is an extension of a foreign company in Italy.
What is the purpose of a branch in Italy?
Establishing a branch of a foreign company in Italy allows business expansion to the local market without setting up a new company.
What is the status of a branch in Italy?
It does not have a legal personality.
Can a branch be 100% owned by foreigners?
Yes.
Where is a branch registered in Italy?
At the Trade Register in Italy (Registro delle Imprese).
Check this infographic with details on this subject:
What are the conditions to open a branch in Italy?
- register a business address in Italy,
- draft the incorporation documents,
- open a corporate bank account,
- register for taxation,
- appoint the management,
- obtain the company seal, etc.
What documents are required to establish a branch in Italy?
- a board resolution/decision to open a branch in Italy, issued by the parent company,
- Articles & Memorandum of Association,
- deed of establishment,
- the foreign company’s certificate of registration and copies of its articles of association,
- IDs/Passports (copies) of shareholders and directors.
IMPORTANT! All documents must be translated into Italian and notarized. The deed of establishment is drawn up at a notary in Italy.
Is a minimum share capital required for opening a branch in Italy?
No.
Is a representative agent solicited for a branch opening in Italy? Does he/she have to be Italian?
Yes, it is mandatory to appoint a local representative agent. There is no restriction on nationality; however, he/she must have residency in Italy. Our specialists in company formation in Italy can provide such services.
Are there any requirements for establishing a branch in Italy?
- form AA7/10 is required for tax registration with the Revenue Agency in Italy,
- shareholders & managers must ensure their digital signatures before use and obtain Posta Elettronica Certificata,
- certain documents might require an apostille.
Who is liable for an Italian branch?
The parent company.
Can I hire foreign staff when opening a branch in Italy?
Yes. It is recommended to consider the immigration rules for non-EU citizens relocated to Italy.
What are the activities of a branch in Italy?
Only those of the foreign company.
We invite you to watch a short video about how you can open a branch in Italy:
What are the reporting requirements for a branch in Italy?
- must follow the Italian accounting standards,
- must keep the accounting records,
- annual financial statements are mandatory,
- filing corporate income taxand VAT returns is also an obligation for branches in Italy.
How is a branch in Italy levied?
It is taxed on the income generated in Italy.
What are the taxes for owning a branch in Italy?
- 24% corporate income tax (IRES),
- 3.9% as regional production tax (IRAP),
- 22% VAT rate.
What is a light branch in Italy?
A light branch office in Italy cannot carry out commercial activities and cannot issue invoices. There is no need to have a local office to file tax returns, but it can be used by foreign companies offering online support for Italian clients remotely.
What are the benefits of a branch in Italy?
- cost-effective compared to subsidiaries,
- no minimum capital solicited,
- flexibility,
- affordable administrative costs,
- fast incorporation,
- no taxation on profit transfers,
- simplified reporting, etc.
Do you need to know more about the opening branch in Italy in 2026? Feel free to contact our experts in company incorporation in Italy and ask for further information and personalized services.