If you want to open a sole proprietorship in Italy and require information and guidance, our agents can assist you. This article will help you get an idea of the formalities and procedures for registering such a business so that you can benefit from a good start in business. Our specialists in company formation in Italy are here to support you throughout the process.
| Short Facts | |
| Who can register sole proprietorships in Italy? | Foreigners and locals who want to start a business on their own in Italy. |
| A sole trader is also known as | Ditta Individuale in Italy |
| Legislation | Italian Civil Code |
| Authority | Chamber of Commerce in Italy |
| Registration | With the Italian Trade Registry |
| Minimum share capital | Not imposed |
| Documents | – valid ID/passport, – filling a standard form, – business plan (recommended), – digital signature, – licenses & permits, etc. |
| Local agent for a sole trader in Italy | Our Italian agents can represent clients in registering a sole proprietorship in Italy. |
| Total business control (YES/NO) | YES |
| ATECO code for sole traders in Italy | Identifies the activities of the sole proprietorship in Italy |
| Tax registration required (YES/NO) | YES |
| Taxation of sole proprietorships in Italy | Income tax ranging from 23% to 43%, depending on the annual revenues |
| Flexibility | – maximum autonomy, – control over the business decisions, – low administration costs, etc. |
| Precautions | Non-EU entrepreneurs must first obtain a work & residence permit before opening a sole proprietorship in Italy. |
| Costs for establishing a sole trader in Italy | For: – registration fee, – representative agent, – business license & permit, etc. |
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Requirements to open a sole trader in Italy
Compared to the limited liability company, which is the most popular business form employed by foreign investors coming to Italy, the Italian sole proprietorship has the advantage of fewer requirements for registration. In fact, there is no share capital obligation to set up a sole trading company in Italy. The only requirement to respect is the trade name, which can be made up of any element chosen by the owner, completed by his or her own name at the end. As a tip, a sole proprietor also has the possibility to register the trade name with the Intellectual Property Office in Italy in order to protect it. Here are other conditions to bear in mind:
- If you come from a non-EU/EEA country to open a sole trader in Italy, you will need to obtain a work permit first.
- Obtaining a Tax Code (Codice Fiscale) in Italy is another important requirement for establishing a sole proprietorship here. This is the main ID that shows the business is registered for taxation.
- The registration of a sole trader is done with the Italian Chamber of Commerce. A dedicated email address is requested here for various communications with the institution.
- The VAT registration is done with the Revenue Agency.
Considering this information, we invite you to discuss with our team and collaborate closely for the registration of a sole trader in Italy. We assist any entrepreneur in setting up a company in Italy, regardless of the selected business structure.
What is the ATECO code?
Economic activities in Italy are classified using the ATECO system and used by the National Statistics Institute in this country. ATECO identifies economic activities for statistical, tax, and administrative purposes. This code is assigned when a company is opened and is also valid for sole proprietorships in Italy. Our accountants in Italy, with whom you can collaborate from the very beginning, can help you select the suitable ATECO code from the official list. Once selected and accepted, the Revenue Agency in Italy must be notified.
About the Italian economy in a few lines
Opening a company in Italy is certainly an excellent opportunity for the development of a business, whether it is opened from scratch (like a sole trader), or in the form of a branch or a subsidiary. The following statistics support this and may be useful when you want to enter this market:
- Economic growth of around 0.7% is estimated for 2025. GDP growth of around 1% is estimated for 2026.
- Inflation of around 2% will remain in both 2025 and 2026, according to the most recent data.
Interested in company incorporation in Italy? Is a sole trader the right business decision here? We invite you to discuss further details with our Italian agents by contacting us by phone, web, or email.