A nonprofit organization (NGO), often referred to as a foundation, is an entity established for charitable purposes. In Italy, foundations fall under the governance of the Civil Law and can only take the form of private autonomous NGOs. Our company formation agents in Italy can offer more information on nonprofit organizations in this country.
| Quick Facts | |
|---|---|
| How is a foundation known in Italy? | Non-profit organization (NGO) |
|
Who can open a foundation in Italy? |
Both natural persons and legal entities in Italy |
|
Registration |
With the local authorities, respectively the Italian Trade Register |
| Legislation | Legislative Decree No. 117/2017, Code of the Third Sector |
| Purposes of an NGO in Italy |
– charity, – philanthropy, – donations, – supporting social utility and projects |
| Documents for opening a foundation in Italy |
Deed of incorporation or statute that must comprise details about the NGO’s activities in Italy |
| Notarization of documents |
Required |
| Capital requirement |
Not solicited |
| Can a foundation have assets? (YES/NO) |
YES |
| Address required for a foundation in Italy (YES/NO) | YES |
| The management board of a foundation in Italy |
– president or director, -investment committee, – trustees, etc. |
| Rules of the NGO in Italy |
Comprised of the documents of the foundation, plus the rights and obligations of founding members |
| Tax ID for a foundation in Italy |
Not mandatory, however, recommended. Our Italian lawyers can help you with the tax registration. |
| Is the annual financial report required when owning an NGO in Italy? (YES/NO) |
YES |
| Assistance in opening a foundation in Italy |
Our agents in Italy can manage the procedures of opening a charity in this country, collaborating with the local and national authorities. Complete services at budget-friendly costs. |
Table of Contents
Types of foundations available in Italy
In Italy, there are two types of foundations as follows:
- Recognized foundations with full legal personality and registration with the Commercial Registry in Italy.
- Non-recognized foundations without formal registration and representation. Legal protection and autonomy are not available for such types of foundations in Italy.
In most cases, those interested in opening a foundation in Italy prefer the first option, respectively, the recognized one, taking into account the following aspects:
- purpose of the foundation/charity/NGO,
- assets/financial resources involved,
- bylaws,
- founders/public bodies involved in the formation.
Considering these important aspects in creating a foundation in Italy, all that remains to be done is to collaborate with our team of Italian agents and find out more about the registration formalities. You may also discover the following infographic with information on this subject:
How to register a foundation in Italy
Bylaws are the main documents that form the basis of a foundation in Italy. In addition to these, the following should also be prepared:
- governance structure implies the president, directors, management, governing bodies, etc.
- financial structure and scope of the activities,
- financial reporting and asset management rules,
- dissolution procedures in the case of liquidation.
The notarial deed is the foundation of such an entity, which is normally signed in front of a notary, as stated by the Civil Code in Italy. The legal recognition of a foundation follows next, either at the prefecture, if it will operate at a regional level, or at a local level with the competent authorities. Recognition will be based on Presidential Decree No. 361/2000, and one of our Italian agents can guide you with the paperwork.
Taxation and accounting requirements for foundations in Italy
The non-profit sector in Italy is subject to different taxation rules, and the general framework that is in place for foundations, either as NGOs or other types, like community foundations, is generally advantageous from a taxation point of view. The law distinguishes between third-sector organizations as opposed to the other business forms that can be selected by an investor who wishes to open a company in Italy. These organizations are clearly defined as ones that pursue civic purposes or social utility purposes, without having the intention to derive profit from these activities. In general, these organizations carry out activities of general interest.
Foundations in Italy – facts and figures
Here are some statistical data about charities/foundations operating in Italy, as provided by Statista.com:
- About 20 foundations in Italy are involved in charity work and fighting poverty.
- The largest non-profit and Catholic organization in Italy has over 20,000 activists and volunteers. It also works in 70 other countries in the world.
- With over EUR 162 million in revenue for 2023, Save the Children is the second-largest NGO operating in Italy.
Interested in company incorporation in Italy? Have you decided to set up a business in Italy? You may explore the services offered by our Italian agents in this field. Plus, you can benefit from complete business packages by also choosing the services of our accountants in Italy. Feel free to contact us and discover more about the support we provide for company formation in Italy.