Setting up a startup in Italy has many advantages thanks to the Startup Act that sets forth favorable conditions for those interested in opening and developing innovative businesses. Our team of agents specializing in company formation in Italy highlights some of the main principles of the Startup Law in this article. We invite investors to reach out to our agents if they have any questions on the startup in Italy schemes applicable to non-EU innovators and on opening a business in Italy.
Quick Facts | |
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Business structures for startups |
– public limited company (SpA), – limited partnership with share capital (SAPA), – limited liability company (SRL), – simplified limited liability company (SRLS), – cooperatives |
Minimum share capital |
– EUR 1 for SRL & SRLS; – EUR 50,000 for SpA; – 0 for SAPA and cooperatives |
Innovative Italian startup – characteristics |
Corporations focused on innovation in high-tech sectors that can access various benefits to support their development. |
Opening a startup in Italy as a foreigner | Via the Italian Startup Visa (ISV) |
Requirements for ISV |
Show proof of at least EUR 50,000 for startup development; Principal headquarters in Italy; Annual income less than 5 million euros; No profit distribution; Be operational for no more than 4 years; Engage primarily in technological innovation. |
Additional criteria for ISV (one of the following) |
15% of expenses dedicated to R&D; 1/3 of the team are PhD students/holders or researchers with 3+ years of work experience; Own, file, or license intellectual property with SIAE (Italian Society of Authors and Publishers). |
Documents required for ISV |
– application form, – ID documents, – Certificate of No Impediment (Nulla Osta) copy, – proof of financial resources, – proof of annual income, – proof of paid visa fee, etc. |
Opening a startup as a sole trader (YES/NO) |
NO, our company formation specialists will help you open a corporation for your startup. |
Registration of innovative startups |
In the special section of the Commercial Register |
Regulatory framework for innovative startups in Italy |
Decreto Crescita 2.0 (D.L. 179/2012) |
Tax incentives for startup investors |
– 50% personal income tax reduction for natural persons, – 30% corporate tax reduction for legal entities |
Why open a startup in Italy |
– tax incentives, – support programs, – regulation of temporary contract extensions, – obtaining residence permit, – exemption from stamp and administrative duties, etc. |
Startup ideas |
– renewable energy, – healthcare technology, – e-commerce, – smart city technologies, etc. |
Programs for financing a startup |
– Smart&Start Italia, – Italia Startup Hub, – Start-up Lab Italy, – National Innovation Fund, – New Enterprises “Zero Interest Rate” |
Assistance and additional services |
Our company incorporation specialists will help you with all the requirements of opening a startup in Italy. Additionally, we also offer payroll services for those interested. |
Table of Contents
The characteristics of an innovative startup in Italy
Investors who are interested in starting a business in Italy need to know that the law clearly defines innovation. These regulations are important for those who open a company in Italy with the desire to qualify as an innovative startup. Below, we list the requirements that should be taken into consideration when launching a startup in Italy:
- Company longevity: the company needs to be a new one or to have been operational for no more than 5 years. The company cannot be the result of a merger or split-up;
- Headquarters: have to be located in Italy or in another EU country. It must have at least a production site branch in Italy;
- Turnover and profits: the company needs to have an annual turnover of no more than 5 million Euros and it cannot distribute profits;
- Activity: it must be involved in the production, development and commercialization of innovative goods and/or services that have important technological value.
Our team can help you open a business in Italy that complies with these requirements. The company’s innovative character is also assessed in order for the business to be part of the startup program. It must comply with at least one of the following:
- at least 15% of the expenses incurred by the business need to be attributed to research and development activities;
- at least 1/3 of the company’s employees need to be PhD students or researchers. An alternative is to have at least 2/3 of the workforce with a Master’s degree;
- own, file, or license a patent, industrial property right, or registered software with the Italian Society of Authors and Publishers (SIAE).
Already established companies can also take advantage of the same benefits for a startup in Italy, under certain conditions. Our agents can provide more details.
Starting a business in Italy is quite simple. However, you will also need a team of accountants in Italy to be able to respect and apply the legislation in force. You will need payroll services, support for the preparation of annual financial statements, bookkeeping, audits, and administration of human resources. The double taxation issue is another aspect for which you can receive complete support from our certified accountants.
Here is an infographic about startups in Italy:
Maintaining the innovative status for startups in Italy
To maintain the status of an innovative startup in Italy, companies must follow a specific procedure for confirming their requirements.
The company must submit a self-certification form known as the “comunicazione unica.” The representative of the startup is responsible for completing and submitting this form. Before submitting the form, the company profile on the Italian Business Register portal must be updated. This update needs to be done after filing the company’s financial statements and must be completed by June 30th each year. Our accountants in Italy can help with the financial statements.
Please note this step is very important for startups in Italy. If the company does not update its profile, it cannot submit the comunicazione unica. This can lead to the loss of the innovative startup status and its benefits.
Once the profile is updated, the comunicazione unica must be submitted no later than 6 months after the end of the fiscal year. Exceptions might apply in some cases.
Our specialists in company incorporation in Italy can assist with the process of maintaining your startup’s innovative status.
Legal forms for startups in Italy
Under the Startup Law (specifically Decree Law 179/2012), a startup in Italy must be structured as a type of capital company. Therefore, an innovative startup in Italy can be incorporated under one of the following several types of capital companies:
- Public Limited Company (S.p.A.) – this type of company has its capital divided into publicly traded shares. It is generally suited for startups that aim for significant business goals and which plan to go public. Our company formation specialists in Italy can help you open an S.P.A.;
- Limited Partnership with Share Capital (S.a.p.a.) – includes general partners (who manage the company and have unlimited liability) and limited partners (who are only liable for their investment);
- Limited Liability Company (S.r.l.) – a popular choice for startups, where the founders’ liability is limited to their capital contribution;
- Simplified Limited Liability Company (S.r.l.s.) – a variant of the S.r.l. with fewer formalities, where founders can only be natural persons;
- Co-operatives – this type allows its members to share the profits or benefits.
Startups in Italy cannot be structured as:
- Sole Proprietorship (s.s.) – where the business is owned and operated by a single individual;
- General Partnership (s.n.c.) – where all partners are liable for the partnership’s obligations;
- Limited Partnership (s.a.s.) – where all partners are only liable for their invested capital.
Our team can help you select the appropriate structure for your startup in order to start a business in Italy.
How you can register an LLC in Italy
As we mentioned earlier, a limited liability company is the easiest form of business available in Italy, which can be registered without complications. Here is general information on how to start a business in Italy using this structure:
- The Articles of Association are the main documents of an LLC (or SRL in Italy). These must comprise complete details about the owners, business address, operations, general rules, and more.
- At least one shareholder can register an SRL in Italy. He/she can also be the director of the firm.
- The minimum share capital of EUR 1 must be deposited in a local bank account in Italy.
- A single director or a board of managers can be appointed for a limited liability company in Italy.
- Another important aspect refers to the tax registration in Italy that is mandatory for all types of companies.
- Certain licenses and permits must be obtained for specific activities, before opening a business in Italy.
A great advantage in registering companies in Italy is the extremely simplified and fast incorporation procedures that allow the start of operations in a relatively short time. Find out from our specialists the formalities for the smooth registration of an SRL and the best business to start in Italy. Here is a video presentation about startups in Italy:
The Italian Startup Visa
Non-EU entrepreneurs can obtain a visa after opening a startup in Italy. This can be applied directly or through a certified incubator in the country. The direct application can take place online or at the Embassy or Consulate in the foreign entrepreneur’s country of origin. They can also apply for the self-employed residence permit (valid for 1 year) no more than 8 days after their arrival in the country or apply for the two-year self-employment residence permit after the initial year (no later than 60 days before the expiry date of the current permit).
Our team can help you open a company in Italy and apply for the Italian Startup Visa accordingly. We can provide detailed information about the documents that need to be prepared and the waiting time for starting a business in Italy.
15 startup ideas in Italy
Italy is the optimal destination for those who want to develop their business ideas, in a stable and appealing climate. We present below 15 startup ideas in Italy from which to be inspired if you have decided to start a business in Italy.
1. Tourism agency
Italy is one of the most visited countries in the world, and a travel agency can be a good startup in Italy. It is important to decide on the services offered, inbound or outbound travel packages.
2. Insurance company
This type of business has a huge potential, especially if it targets several categories of consumers. The formalities are quite relaxed.
3. Car rental Company
Services related to tourism in Italy may also involve car rental companies. You can turn your attention to both local and foreign customers.
4. Home delivery
The concept of home delivery has gained rapid development in recent years. It would be advisable to put on the list the establishment of such activities, with the help of a startup in Italy and rely on technology to facilitate ecological services.
5. Ecological laundry
If you are aware of what is happening to the environment and if you want a business that can become successful in a relatively short time, then ecological laundry can be an optimal solution. The application with which to offer various facilities will play an important role here.
6. Website graphics services
The creation of websites is in full expansion thanks to the demand for digital innovation and online presence. If you are passionate about site graphics and you want to make money from it, you can open a startup in Italy.
7. Online shop
Do you want to sell products and services online? Then it’s time to open an online shop. The formalities are quite simple, but you have to consider the help of specialists in the field.
8. Consultancy company
Consulting firms can be active in many fields. You can turn your attention to those who want financial support, for example.
9. Jewelry shop
Opening a jewelry store in the touristic areas of Italy can be a successful business. It is important to decide if you want to import such products or if you want to open a workshop.
10. Advertising and marketing
Promotion and marketing services are necessary for any company owner who wants to assert himself in the market. If you rely on the experience you have in this field and you want to share it, then begin with a startup in Italy.
11. Art galleries
Are you passionate about art and want to make money from it? You can think of opening an art gallery for selling items. Here you will have to create good contacts in order to be able to purchase various works or even use your personal ones.
12. Investment company
Those with experience in the field of investments can open a company of this kind.
13. Health care company
Companies operating in the health care field record consistent revenues in Italy. If you want to import medical products or offer services in this field, then a startup in Italy would be the optimal solution.
14. A local restaurant
Italy is known all over the world for its world-famous gastronomy and cuisine. You can adopt the model of an Italian restaurant and benefit from a specialist in the field in order to be safe.
15. Car service company
Although the car service company may seem like a classic business, this can be improved with the help of technology. The facilities are multiple, and customers can be attracted with fast, personalized services and at advantageous costs.
Support for foreign investors in Italy
Startups in Italy can be easily set up, with specialized help from our local agents. As the formalities can be difficult, especially for foreigners, it is good to ask for advice and assistance in order to meet any problems. You can rely on professionalism, efficiency, and a good collaboration if you turn your attention to our company formation agents in Italy.
Statistics about startups in Italy
Setting up a startup in Italy is an excellent idea, as highlighted by these statistics demonstrating the country’s startup ecosystem:
- Italian startups secured funding accounting for 1.54 billion euros in 2022;
- Fintech attracted the most investments with 504 million euros;
- Milan had 2,669 innovative startups, approximately 19% of the total startups in Italy;
- Rome was the second-largest startup hub with 1,667 innovative startups.
If you need payroll services in Italy for your startup, our team can also assist you.
Contact us for more information on how to register a startup in Italy, the advantages and main issues for EU and non-EU investors.