The Italian economy has made a pretty strong recovery during the last year, as many industries have increased their output. The external demand has also risen, which is one of the main reasons Italy has started to attract more and more foreign investors. Most of them decide to set up holding companies in Italy, as it is one of the most advantageous ways of owning a business here.
Our company formation agents in Italy can assist you with the registration of holding companies.
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Why open a holding company in Italy?
| Quick Facts | |
|---|---|
| Legal entities used | Limited Liability Company, Joint Stock Company, Partnership |
| Incorporation method | With the Italian Trade Register |
| Incorporation time | Around 1 week |
| Advantages | No need for resident director |
| Precautions | Work permits issued in about 3 months |
| Shareholding structure | 1 shareholder |
| Minimum Capital | EUR 1 |
| Taxation | 24% corporate tax rate |
| Control | Foreign ownership permitted |
| Accounting and Reporting | Annual tax return, no audits |
| Number of double taxation treaties | 100 |
The Italian holding company is perhaps the most efficient tax minimization solution available in this country. A holding company can only be established for the sole purpose of owning or holding (as its name states) shares in one or more companies in Italy, without being allowed to carry any type of commercial activity. Even if at first this could seem a disadvantage, an Italian holding company offers, in fact, many benefits among which:
- – enhanced protection for the shareholders;
- – the shareholders may own shares, private equity, bonds, real estate assets, etc.;
- – the holding company implies a minimum investment;
- – the participation exemption offers great tax deductions;
- – several type of structures can be used to set up a holding company in Italy.
The participation exemption provides for a 95% tax exemption for dividends paid by the Italian subsidiary to its foreign shareholders, such as the holding company. In Italy there is no minimum period for the qualification to the participation exemption.
Our consultants can offer even more reasons why it is worth to open a holding company in Italy.
How to register an Italian holding company
As mentioned before, the holding company can take various forms. However, the most employed type of structure is the limited liability company. Apart from that, the holding may also be registered as a partnership or as a joint stock company. In order to register a holding company in Italy, one must prepare the Memorandum and Articles of Association, appoint the manager or directors, according to the Company Act’s specifications and file the necessary documents with the Trade Register.
Setting up a business in Italy can be an optimal choice for foreign entrepreneurs who want to develop their portfolio in this country full of opportunities. If the SRL is the choice of structure in your case, the minimum share capital is 1 euro and must be deposited in a local bank account. This process, as well as the drafting of documents, is the focus of our company formation specialists in Italy, so contact us and discover the services you need in this process.
For assistance in opening a holding company in Italy, do not hesitate to contact our company incorporation consultants.