Are you considering setting up a business in Italy? With its convenient location, stable political situation, strong economy and skilled workforce, Italy remains one of the best places to set up a new business.
This guide will walk you through the steps you need to take to open your new Italian business, even from outside of the EU. Let's dive in!
What are the advantages of setting up your business in Italy?
Italy isn't just pasta, pizza and impeccable fashion tastes. It's also well-known as a great place to establish a company and start trading. Here are some of the reasons why.
Logistics: Italy is well-connected for international trade and shipping, making international logistics relatively easy and inexpensive.
Investment culture: there's a strong culture of business investment in Italy.
Market potential: there are loads of opportunities for Italian cross-market investment.
Technology and innovation: Italy is already a hub for tech and innovation, and it's getting more prominent every year.
Strategic location: central geographic location gives easy access to the wider European market.
How to open a business in Italy
So, you've decided that Italy will be the home for your new business venture. Now what?
What documents do you need to prepare and have ready? What admin stands between you and business success? What common pitfalls litter your path? Let’s take a closer look at what you’ll need to get started.
#1. Choose your business structure
There are a few ways to structure a business in Italy, and each has implications for your company.
- Sole proprietorship (ditta individuale) - When an individual operates the business without legal separation between personal and business assets. This structure works well for digital nomads but is less suitable for companies with employees.
- Partnership (associazione) - When two or more individuals or entities run the business. Owners share both profits and liabilities. This structure can be complex to manage remotely.
- Corporation (società) - Corporations are separate legal entities from their owners, offering limited liability to all shareholders. This structure is most suitable for small businesses planning to hire employees and engage in import/export activities. There are two kinds of società:
- SrI (Società a responsabilità limitata) - Similar to an LLC, the SrI suits small to medium-sized enterprises.
- SpA (Società per azioni) - Equivalent to a joint stock company, the SpA is ideal for larger businesses planning to trade shares publicly.
#2. Register your Italian business
To register your company with the appropriate authorities, you need to tick three boxes.
- Choose a company name - this must be unique, must comply with Italian naming conventions, and must accurately represent your business activities.
- Draft your Articles of Association - you need to draft your Articles of Association to outline your company's purpose, share capital and governance rules.
- Register with the Italian Business Register - submit an application through the local Chamber of Commerce, alongside your Articles of Association.
The process and requirements to register your business may vary based on the type of business and the region where you plan to operate. In general, you'll need to gather necessary documents such as identification, proof of residence, and any relevant business documentation.
#3. Get an Italian tax number
Before you begin trading, you'll need to choose one of the above structures for your business, register your business, and then apply for a tax number from the Italian Revenue Agency either at your local tax office (Agenzia delle Entrate) or by downloading an application from their website.
The type of tax number you need depends on the structure of your business. For example, if you're starting a sole proprietorship (ditta individuale), you'll need a codice fiscale (personal tax number) for yourself, whereas a legal entity like a company will require a partita IVA (VAT number).
You'll need to support your application with documents including ID (either passport or ID card), proof of business registration, and any other required documentation specific to your business type.
Once complete, deliver your application and supporting documents to the local tax office (Agenzia delle Entrate). You may need to make an appointment or follow specific procedures, so it's advisable to check the requirements beforehand.
Once submitted, you must wait for the tax office to process your request. This can take some time, so it's essential to be patient. Once approved, you'll receive your tax number.
#4. Set up your office
To start trading, you'll need an Italian address to list as your company address.
If you don't want to rent an office in Italy to begin with (or at all!) you can rent a virtual office space to get an address. There are plenty of companies, including Regus, Clevver and Davinci Virtual, that can provide this service, meaning you can open a company with minimal upfront office costs.
#5. Get your permits and licenses
All new Italian businesses must register with the trade registry within 30 days of establishment. This mandatory registration usually takes somewhere between 10-14 days to process.
Additional permits and licenses you'll need will depend on your business activities. For example, if you're opening a standard retail business you might only need a Licenza di esercizio. But if that retail business is going to sell specialist culinary ingredients, you'll also need a Licenza di importazione (an import license) and a Registrazione sanitaria (a food safety registration) among other things.
You'll need to research to determine exactly what permits and licenses you need.
#6. How to open a business account in Italy
After you’ve registered your company in Italy and laid your initial business foundations, you’re ready to start transacting. Hooray! But to do business, you'll need a business account.
At this point in an entrepreneurial journey, we're often drawn towards traditional banking institutions as our first choice. They've been around for eons, they're familiar, and their service is generally OK. It often feels like the least effort decision to make.
If you think that's the right avenue for you, here's what you need to open a business account in Italy:
- Personal identification documents
- Proof of Italian address
- Tax identification number
- Business registration documents, including your Partita IVA number and your codice fiscale or C.F. (commercial register ID)
- Previous financial statements (or a robust business plan if you're just starting out)
Once you have all these details and documents ready, here's how you actually open an account:
- Head into the bank of your choice and get an application form (these are sometimes also available online)
- Fill out the application form with all required information, including your company's details and financial goals
- Submit documents proving that you have obtained both a tax number and VAT registration
Even though it's only three steps, this process can be very time-consuming, often requiring an in-branch visit and a lengthy application process. And, obviously, traditional Italian banks will conduct business almost exclusively in Italian, which means that the application can be very confusing for non-natives.
So if you’re looking for an easier and more efficient way to get a business account, you can look outside of traditional institutions. And wamo might just be the perfect fit for your business.
Make it a bit easier: open a business account in Italy with wamo
At wamo, we don’t believe in making things harder than they need to be. Quite the opposite, in fact!
While opening a business account with a traditional institution takes huge amounts of time, and often more money than you want to spend, opening a wamo account is fast, easy and done entirely online.
As a business account provider and a payment platform in one, wamo is much more than an app. All our features and services are designed with small businesses and entrepreneurs in mind, and they're there to meet your specific needs with human-centered support every step of the way.
If you have all your documents ready you can whiz through your wamo application process in under 10 minutes (we’ve timed it!). We’ll get back to you within 24 hours and, if everything's in order, you’ll have a fully-functioning account ready for business immediately. You can then:
- Order wamo Visa debit cards (get up to 10 for you and your team and more on request)
- Instantly create and use virtual debit cards
- Open multiple sub-accounts with either EUR or GBP IBANs
- Take advantage of wamo Connect perks and special offers
And so much more!
What documents do I need to open a business account with wamo
Depending on where you are, and the type of business you run, the requirements for opening an account might vary slightly. But, in general, you’ll need to provide the following documents to open a business account with wamo:
Necessary documents
- Memorandum and Articles of Association (M&A)
- Proof of shareholder structure
- Proof of company address
Not necessary, but could be required at a later stage
- Registry extracts
- Certificate of Incorporation (COI)
An easier option for freelancers
For freelancers considering taking advantage of Italy's flat tax regime, our partnership with Xolo means you can get your business up and running in no time at all.
Xolo is an all-in-one e-Residency platform, designed to turn cross-border bureaucratic hassle into effortless and easy to understand administration. Their services include:
- Fast, free VAT registration for your business
- Simple online accounting tools to track turnover
- Tax specialists to help you make sense of what you owe
- English language support with any query
With Xolo, freelancers get an online commercialista to guide them step-by-step through getting set up and staying compliant. Their team of accountants and tax experts are even accredited by the Italian authorities, so you can rest easy knowing their advice is solid.
And, best of all, when you take out a wamo and Xolo account at the same time you get 6 months of wamo Grow totally free, plus €100 deposited into your account.
That's all you need to know!
So now that you’ve got the low-down on the ins and outs of setting up an Italian business, you should be confident taking the next step. Between Xolo simplifying your admin, and wamo providing you with easy cross-border banking, running your Italian business from anywhere just got even easier!
Remember, though, we're always here if you need any support or advice! Just get in touch with us using the wamo website live chat to get talking with one of our specialists in minutes.
İlayda Birol
İlayda Birol
İlayda Birol
