Italy at a glance
Italy is one of the EU jurisdictions founders most often use today, especially while the EU-wide 28th Regime (EU Inc) is still a proposal. Below are the verified essentials: company types, tax, capital, timing and whether you can set up remotely.
Company types in Italy
- SRL (Società a responsabilità limitata) Italy's standard private limited company, the most popular form for SMEs and foreign founders. It can legally start with EUR 1 (EUR 10,000 is the traditional figure); shareholders may be individuals or companies, resident or not.
- SRLS (simplified SRL) The simplified SRL: capital of EUR 1 to EUR 9,999 paid fully in cash, members must be natural persons, and it uses a fixed ministry template with no notary fees.
| Corporate tax | Companies pay IRES (corporate income tax) at a flat 24% plus IRAP (regional production tax) at about 3.9%, a combined burden of roughly 27.9% (IRAP varies slightly by region). |
|---|---|
| VAT rate | Standard VAT (IVA) is 22%, with reduced rates of 10%, 5% and 4%. Domestic e-invoicing through the SDI system is mandatory. |
| Dividends & payroll taxes | Dividends carry a 26% flat tax. Personal income tax reaches 43% plus regional surcharges, employer social contributions run near 30%, and the 3.9% regional IRAP still applies to many companies on top of corporate tax. |
| Minimum share capital | An SRL can be formed with as little as EUR 1, though EUR 10,000 remains traditional. Capital under EUR 10,000 must be paid fully in cash, and 20% of annual profit goes to a legal reserve until it reaches EUR 10,000. An SPA requires EUR 50,000. |
| Setup time | Once documents (tax codes, bylaws, KYC) are ready, an SRL is typically incorporated within about one to three weeks, built around a notary deed and registration with the Business Register. Reaching fully operational status (VAT, bank account) can extend to 8 to 12 weeks for non-residents. |
| Remote setup | Yes. Non-residents can incorporate remotely through a power of attorney notarised abroad, apostilled and translated into Italian. A founder still needs an Italian tax code (codice fiscale), a certified email (PEC) and a digital signature. |
| Director / residency | No residency requirement. An SRL needs at least one director, who may be a non-resident, and a single non-resident can own 100% of the shares. All directors and shareholders need an Italian tax code (codice fiscale). |
| Banking options | A corporate account is usually opened after the deed, subject to strict KYC. Options include Italian banks (Intesa Sanpaolo, UniCredit, BPER) and EU fintechs (Qonto, Wise, Revolut Business). Many banks prefer in-person onboarding. |
| Our formation service | from around €100 to €200 (estimated). You get a fixed quote in your free plan before you commit. |
Italy is an EU and eurozone member. Domestic e-invoicing via SDI is mandatory, and every company needs a certified email (PEC) and digital signature. The SRLS carries no notary fees but only individuals may be members; SRLs under EUR 10,000 must build a legal reserve from 20% of profit.
How to register a company in Italy
Step by step, this is how a Italy formation actually runs:
- Choose SRL or SRLS. The standard SRL allows custom articles; the SRL semplificata uses a fixed statute, EUR 1 to 9,999 capital and waives notary fees.
- Get Italian tax codes. Each founder needs a codice fiscale, obtainable through consulates or a local representative.
- Sign the deed. A notary executes the incorporation, in person, by video procedure, or through a notarised, apostilled and translated power of attorney.
- Register with the Registro Imprese. The notary files electronically; registration follows within days, alongside VAT number activation.
- Banking and INPS/INAIL. Open the corporate account under strict KYC and register with social security bodies if employing.
We handle each step with licensed local counsel, so the paperwork, registered address and filings are done correctly the first time.
What company formation in Italy costs
A traditional SRL costs real money: notary, taxes and registry commonly total EUR 1,500 to 2,500. The SRLS route cuts the notary fee to zero, leaving roughly EUR 300 to 500 of taxes and duties. Annual accounting for a small SRL typically runs EUR 150 to 350 a month, plus the ~EUR 310 annual chamber-of-commerce dues.
Form your Italian company in days
Tell us where you live and what you are building. Our formation service starts from around €100 to €200 (estimated); we confirm the right structure for Italy, give you a fixed quote, and form the company with licensed counsel.
Get your free planWho can form a company in Italy
Founders from outside the EU can own and run an Italian company, with the cross-border requirements handled for you. We flag any residency or local-agent rule for Italy up front, so there are no surprises.
Italy fits businesses with Italian clients, founders relocating under the impatriati tax incentives, and anyone needing a local vehicle for property or operations. As a pure remote EU base it is heavier and costlier than the Baltic options; the SRLS softens entry but not the running costs.
After registration: what Italy expects each year
Annual financial statements are approved and filed with the Registro Imprese (filing fee around EUR 130), the corporate tax return follows late in the year, and VAT settlements are periodic with an annual return. The chamber dues and stamp duties recur. Small SRLs avoid audit below thresholds.
Italy and the 28th Regime (EU Inc)
EU Inc, the proposed 28th Regime, would let you register one company valid across all 27 EU member states. It is not law yet (expected around 2027-2028), so an Italian company is one of the ready options you can use today. Forming an EU company now also positions you to adopt EU Inc later, as we cover in how to prepare an EU Inc company. To weigh Italy against other countries, see company formation in Europe.