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Corporate: Start a Business in Italy

Starting a business in Italy as a foreigner, or bringing a company already active abroad into the Italian market, means gaining access to the third largest economy in the European Union and to a market positioned at the centre of the Mediterranean. It is also a decision that brings together three distinct dimensions, and it is precisely this overlap that makes it complex for those coming from outside.

The first dimension is corporate law: choosing the right legal form, drafting the deed of incorporation, completing the formation before a notary. The second is immigration law: for a non-EU national, the position of shareholder or director cannot be improvised, but must be built around the appropriate visa and residence permit. The third is international tax: the way the new structure interacts with the legal system of the country of origin, the double taxation treaties, the preferential regimes that may be available.

Those who turn to us generally belong to two profiles. On one side, the individual foreign entrepreneur, who wants to start their own business in Italy and needs both the corporate structure and the residence title. On the other, the foreign company that intends to expand into the Italian market by opening a subsidiary, a secondary office or a lighter form of presence. In both cases, the difficulty lies not in the single step, but in coordinating them: a corporate choice made without considering the immigration position of the shareholders, or without assessing the cross-border tax impact, is paid for in time and in cost.

Studio Legale Internazionale Boschetti was created to be, on this terrain, a single point of contact. We handle the entire chain, from the initial business planning to day-to-day operations, in several languages, with a solid track record advising clients from the United States, the United Kingdom, Germany, the United Arab Emirates, China and Brazil. The aim is simple: that the entrepreneur can focus on the project, while the legal complexity stays on our shoulders.

Can a foreigner start a business in Italy?

Yes. The possibility of forming a company in Italy is not reserved for Italian citizens, but the path changes substantially depending on nationality.

For European Union citizens there is no restriction. Under the freedom of establishment guaranteed by the Treaties, an EU citizen can start a company in Italy on the same terms as an Italian citizen, without the need for any particular residence title.

For non-EU citizens the matter is different. Forming the company itself is legally possible, but in order to take on a stable role as an operating shareholder or director, and above all to live and work in Italy, an appropriate visa and the corresponding residence permit are required. The available routes include the self-employment visa, the startup visa and the investor visa, each designed for a different kind of project.

It is also worth recalling that doing business in Italy does not necessarily require the birth of a new company. A company already incorporated abroad may choose different routes: opening a branch or a secondary office, or setting up a representative office, a lighter presence suited to the early stages of exploring the market. Studio Legale Internazionale Boschetti manages both sides of the operation, the corporate one and the immigration one, identifying the correct option according to the objectives and to the position of the people involved.

Our corporate services for foreign entrepreneurs and companies

Company formation in Italy calls for skills that rarely coexist in a single adviser. Studio Legale Internazionale Boschetti has built around this need a dedicated international business law practice, organised into eleven services that cover the entire life cycle of a foreign business presence in Italy.

    Each service is one piece of the picture: our role is to combine them into a coherent design, calibrated on the business project and on the position of the people involved.

    Business structures available in Italy for foreign investors

    There is no single best legal form. There is the form suited to a particular project, to a given level of risk and to a precise growth strategy. The main options for those who want to establish a business presence in Italy are three.

    The limited liability company (Srl) is the most widely used structure. It limits the liability of the shareholders to the capital contributed, protecting personal assets, and it suits both the small entrepreneur and the subsidiary of a foreign group. Its simplified variant, the simplified Srl (Srls), allows incorporation with reduced capital and limited costs, and is the typical entry point for those starting a business of modest initial size. The joint-stock company (Spa) is instead designed for larger projects, for raising capital from outside investors and for listing prospects: it requires higher capital and a more structured governance.

    Alongside the formation of a new company, the foreign company may opt for a secondary office, which does not give rise to an autonomous legal entity but to a permanent establishment of the parent company in Italy, with full operational capacity and the related tax obligations. When, on the other hand, the aim is only to monitor the market, gather information and maintain relations with clients and suppliers without concluding contracts, the representative office is the most streamlined solution: it does not constitute a permanent establishment and does not generate taxable income in Italy.

    This page presents the structures in outline. The choice between them, with all its consequences on the applicable tax regime and on the immigration position of those who will run the business, is addressed in the dedicated company formation page and in a preliminary consultation with the firm.

    Business visa and permits for foreign entrepreneurs in Italy

    For the non-EU national, the corporate structure alone is not enough. Operating on a stable basis in Italy requires a title that authorises entry and residence, and choosing the right title depends on the nature of the business project.

    • The self-employment visa is the route for the individual entrepreneur who intends to carry out an economic activity on their own account, subject to the quotas of the immigration decree and to the issuance of the clearance by the Chamber of Commerce.
    • The startup visa, linked to the Italia Startup Visa programme, is reserved for those launching a high-technology business and follows a dedicated channel, outside the quotas.
    • The investor visa is aimed at those who make a qualified investment in Italian companies, innovative startups, government bonds or philanthropic projects.
    • Alongside these, for multinational groups, the intra-company transfer permit allows managers and specialist staff to be moved from the foreign parent company to the Italian structure.

    Once the visa has been obtained, on entry into Italy the corresponding residence permit is applied for at the competent Police Headquarters. Opening a VAT number as a foreigner also presupposes a residence title that allows the activity to be carried out: it is not an isolated step, but the outcome of a path that starts with the visa.

    The point we stress with every client is one only: the visa and the corporate structure are planned together, from the very first day. Deciding the form of the company without knowing whether the shareholders will be able to enter and remain in Italy, or starting the immigration procedure without a coherent business structure, exposes the project to delays and costs that integrated planning avoids from the outset.

    Typical scenarios / Case studies

    The typical scenarios have been developed by drawing on the most significant corporate immigration cases that the firm regularly handles, with the aim of creating structured, complex examples that help the reader navigate their own situation. The case studies, by contrast, illustrate individual real-life matters, anonymised to protect client confidentiality, presented with full factual and contextual detail.

    Relocation

    US professional chooses Italy: elective residence obtained and future planned

    American professional obtains an elective residence visa while maintaining ties with the USA. Integrated assistance from legal strategy to property search..

    Application completed in approximately 3 months without additional requests
    Business

    US opera singer obtains work authorization in 7 days

    American opera singer with contracts already signed with an Italian theatre. Self employment work authorization obtained on an urgent basis to meet professional commitments.

    Work authorization issued within 7 days from submission of the application
    Real Estate

    US client purchases property in Rome: secure transaction

    American client assisted in the purchase of a property in Rome. Urban planning issues and contractual risks identified and resolved before signing, transaction completed through notarial power of attorney.

    Purchase completed within one month, entirely managed remotely
    Business

    American investor: from New York to a villa in Tuscany

    Cross-border property transaction with full relocation service. Purchase of a high-end property, with tax status, residency and NHS registration handled remotely.

    Complete relocation service, from property due diligence to handing over the keys
    Retirement

    Canadian couple, retirement property in Puglia

    From Toronto to the Itria Valley. Purchase of a farmhouse with cadastral issues, 7% flat tax on foreign pensions, elective residence visa and healthcare transition.

    7% flat tax activated, cadastral issues resolved before the deed of sale
    Business

    British entrepreneur, opening a business in Milan

    Post-Brexit, a London-based tech entrepreneur establishes an operational headquarters in Milan. Immigration pathway as a non-EU national, company incorporation, and tax planning.

    European operational hub established with self-employment visa successfully obtained
    Tax Planning

    Swiss retiree: 7% flat tax regime in Southern Italy

    A banking executive relocates from Zurich to Calabria. Management of the Swiss occupational pension pillar, Italy-Switzerland Tax Convention, and deregistration from the cantonal tax register.

    7% flat tax activated on all foreign-sourced income
    Retirement

    American couple: retirement project in Abruzzo with visa and flat tax

    From Connecticut to Abruzzo. Elective residency visa, 7% flat tax coordinated with IRS and FATCA obligations, and transition from Medicare to the Italian NHS (SSN).

    7% flat tax activated on Social Security and 401(k) pension income
    Relocation

    German couple, from Munich to Tropea

    Retired engineers from the Bavarian automotive sector. Multi-tier pension management, Italy-Germany Tax Convention, and the 7% preferential tax regime.

    Three German pension pillars optimised with Italian flat tax
    Business

    Startup tech: apertura filiale italiana per il mercato EU

    A Bay Area SaaS company establishes a Milan headquarters. Innovative startup SRL, EU Blue Card for the team, transfer pricing, impatriates tax regime, and GDPR compliance.

    Operational within 5 months, payroll cost −35% with impatriates tax regime
    Business

    Fashion brand, representative office in Milan

    Brand premium newyorkese apre presidio a Milano. Strutturazione per evitare stabile organizzazione, trasferimento direttrice creativa e gestione showroom.

    Rischio stabile organizzazione prevenuto, presidio EU operativo
    Corporate

    Manufacturing company, ICT transfers to Italy

    Multinazionale giapponese trasferisce 3 figure chiave in Piemonte. Permessi ICT per manager e specialista, coordinamento consolare e regime impatriati per tutti i dipendenti.

    3 trasferimenti completati in 4 mesi e mezzo, linea produttiva avviata nei tempi previsti

      How Studio Legale Internazionale Boschetti can help foreign entrepreneurs in Italy

      Studio Legale Internazionale Boschetti is a point of reference for foreign entrepreneurs and companies that want to start a business in Italy. Our strength lies in combining knowledge of corporate and business law with a solid expertise in immigration law, a pairing that becomes a concrete advantage whenever the person creating or expanding a business in Italy is a foreigner, and in particular a non-EU national.

      Our involvement begins with a preliminary consultation that brings the project into focus, identifies the most appropriate corporate form and defines, alongside the business path, the immigration position of the shareholders and directors. From that moment we accompany the client through every stage: the formation of the company, the handling of the bureaucratic procedures, the coordination of the visa and the residence permit, through to the definition of an efficient and law-compliant tax structure. Timing is decisive: bringing the corporate steps and the immigration steps into a single schedule prevents one from being held up while the other is awaited.

      It is worth stating clearly what the firm is not. We are not an accounting firm and we do not handle the ordinary bookkeeping of the business: for recurring accounting and tax obligations we work with partner accountants, whom we coordinate in the client’s interest. Our perimeter is that of legal and strategic advice, of structuring the operation and of protecting the interests of the foreign entrepreneur.

      With the support of Studio Legale Internazionale Boschetti, starting a business in Italy as a foreigner becomes a clear path: a single point of contact, multilingual, holding together the corporate, immigration and tax threads, so that you can devote yourself fully to the growth of your project.

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      Can a US citizen start a business in Italy?

      Yes. A US citizen can form a company in Italy, but as a non-EU national must hold an appropriate residence title in order to take on a stable role as an operating shareholder or director and to live in Italy, typically a self-employment, startup or investor visa, followed by the related residence permit. The condition of reciprocity between Italy and the United States is generally satisfied. Alternatively, a US company may open a branch, a secondary office or a representative office in Italy.

      Can foreigners start a business in Italy?

      Yes. EU citizens can start a business in Italy with no restrictions, on the same terms as Italian citizens. Non-EU citizens can form a company, but in order to operate it on a stable basis and to live in Italy they need an appropriate visa and residence permit, and the condition of reciprocity with their country must be verified. A foreign company may also establish a presence through a branch, a secondary office or a representative office, without creating a new company.

      What business structures are available in Italy?

      The main structures are the limited liability company (Srl), the most widely used, with its simplified variant (Srls) for businesses of modest initial size, and the joint-stock company (Spa) for larger projects and listing prospects. A foreign company may also operate through a secondary office, which is a permanent establishment of the parent company, or a representative office, a light presence that does not constitute a permanent establishment and does not generate taxable income in Italy.

      How long does it take to register a business in Italy?

      The formation of a company before a notary and its registration with the Business Register are, in themselves, relatively quick steps. The overall timeline, however, depends on the preliminary stages: gathering and legalising the documents issued abroad, obtaining the Italian tax code, opening a bank account and, for non-EU nationals, completing the immigration procedure. For this reason, a realistic timeline can only be estimated once the specific project and the nationality of the people involved are known.

      What documents do I need to start a business?

      Each shareholder needs a valid identity document and an Italian tax code, which can be obtained from the Revenue Agency or through Italian consulates abroad. The company must have a deed of incorporation and articles of association, drawn up and registered with the assistance of an Italian notary, and an Italian bank account for the deposit of the share capital. Non-EU nationals will, in many cases, also need a residence permit that allows economic activity. Documents issued abroad usually require sworn translation and legalisation.

      Do I need a visa to start a business in Italy?

      If you are an EU citizen, no: you can start a business in Italy without a visa. If you are a non-EU citizen, you can form the company, but to manage it on a stable basis and to live in Italy you need an appropriate visa, generally a self-employment visa, a startup visa or an investor visa, depending on the nature of the project, followed by the corresponding residence permit. The visa and the corporate structure should be planned together from the start.

      Are there minimum capital requirements?

      Yes, and they vary with the legal form. The simplified Srl can be incorporated with a reduced capital and limited costs. The ordinary Srl requires a higher minimum capital. The joint-stock company (Spa) requires a substantially higher capital, suited to larger projects. Choosing the structure therefore also means choosing the level of capital commitment, which should be assessed together with the growth objectives of the business.

      How much does it cost to start a business in Italy?

      The cost depends on the legal form and on the professional services required. Beyond the share capital, it includes notarial fees, registration fees with the Business Register, Chamber of Commerce dues and the cost of legal and tax advice. A simplified Srl involves contained initial expenses, while a joint-stock company entails higher costs. A realistic estimate can only be built once the corporate form and the specific project have been defined.

      What taxes apply to businesses in Italy?

      Companies in Italy are subject to corporate income tax and to the regional tax on productive activities, in addition to VAT on transactions and to recurring Chamber of Commerce dues. The actual tax burden, however, also depends on the preferential regimes that may apply, on the incentives for innovative startups and for research and development, and on the double taxation treaties between Italy and the country of origin. Tax planning carried out before the business is started is what makes the difference.

      Can I hire employees as a foreign business owner?

      Yes. A company established in Italy can hire employees and must, in that case, comply with the related obligations: registration with the social security and insurance bodies, registration of the employment contracts and management of payroll. Where the workforce includes non-EU nationals, their position must in turn be examined under immigration law. The firm assists the foreign business owner in coordinating the corporate and the immigration aspects of hiring.

      The ItalyVisaInvestment website is owned by Studio Legale Boschetti and is the go-to resource for foreigners who wish to invest in Italy, obtain elective residence, or apply for an investment visa.

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