Company Formation in Italy: Types & Costs

Italian Company Types at a Glance

Italy offers several legal forms for conducting business. For most foreign founders, the SRL is the recommended starting point, but understanding the full range of options helps you make an informed decision.

Legal basis: Art. 2463 §2 n.4 CC (SRL standard capital), Art. 2463 §4–5 CC (low-capital variant), Art. 2463-bis CC (SRLS), Art. 2327 CC (SpA capital), Registro delle Imprese requirements (branch).

For most foreign founders, the SRL is the optimal choice. It accepts both corporate and individual shareholders, permits custom bylaws, and does not impose the natural-person-only restriction that limits the SRLS. For a deeper comparison of all Italian company types, see our dedicated guide.

How to Form a Company in Italy: Step-by-Step Overview

Registering a company in Italy follows a structured nine-step sequence coordinated between the notary, the Registro delle Imprese, and the Agenzia delle Entrate. Here is a pillar-level overview of the full process.

1. Choose entity type and structure. Decide on the legal form (SRL, SRLS, SpA, or branch), the number of shareholders, the share capital amount, and the governance model (sole director vs. board).

2. Obtain a Codice Fiscale for all founders and directors. A Codice Fiscale is a 16-character Italian tax identification code. Every founder and director must hold one before the notarial deed can be executed. Foreign nationals can apply at an Italian consulate in their home country or in person at any Agenzia delle Entrate office in Italy. There is no application fee.

3. Prepare the atto costitutivo and statuto. The incorporation deed (atto costitutivo) and the bylaws (statuto) are drafted with the notary. For an SRL, the statuto governs shareholder rights, profit distribution, and governance. SRLS founders must use the standard inderogable bylaws prescribed by law.

4. Pay in the share capital. The capital is paid at signing to the directors named in the deed, which records the means of payment. For a standard SRL with multiple members, at least 25% of cash contributions must be paid in at signing. A single-member SRL must pay in 100% of capital at formation (Art. 2464 CC).

5. Execute the notarial public deed before an Italian notary. The atto costitutivo is signed before a licensed Italian notary (notaio) as a notarial public deed (atto pubblico), as required by Art. 2463 CC. This step legally constitutes the company.

6. Notary deposits deed with the Registro delle Imprese. The notary must deposit the executed deed with the local Registro delle Imprese (Registro Imprese) within 10 days of signing (Art. 2330 §1 CC).

7. Registry inscribes the company. After the notary's deposit, the Registro delle Imprese reviews and inscribes the company. An application filed electronically must be registered within 5 days of its protocol date (10 days for paper filings; Art. 11(8) DPR 581/1995). The company acquires legal personality upon inscription.

8. Obtain a Partita IVA via Comunicazione Unica. The Partita IVA (11-digit Italian VAT number) is applied for through the Comunicazione Unica single-window filing, which simultaneously notifies the Registro delle Imprese, the Agenzia delle Entrate, INPS, and INAIL. The codice fiscale and Partita IVA are communicated immediately once the Comunicazione Unica is filed (Art. 9(4) D.L. 7/2007).

9. Post-incorporation setup. Once registered, the company must: open a corporate bank account, activate a PEC (certified email) address for the company and a personal PEC for the sole director or managing director, register with INPS and INAIL, file a SCIA (certified notice of start of activity) if the business activity requires one, and set up accounting books and e-invoicing through the SdI system.

For the complete step-by-step guide including timeline tables and notary-appointment checklists, see our full step-by-step guide to opening a company in Italy.

Can Foreign Founders Incorporate Remotely?

Yes. A foreign founder does not need to travel to Italy to incorporate. The most common route is granting a procura speciale (special power of attorney, apostilled) to a local representative, who then appears before the Italian notary on the founder's behalf. Virtual notarial meetings are also permitted under recent Italian law in certain circumstances.

Non-EU nationals must satisfy the condizione di reciprocità (Art. 16 Preleggi) before the notary can proceed. For a full walkthrough of the remote-incorporation and non-resident process, see our guide on forming an Italian company as a non-resident.

Documents and Requirements for Company Formation in Italy

Every formation begins with gathering the correct documents. Missing even one item can delay the notarial appointment.

Core documents required for most formations:

• Valid passport or national ID for each founder and director.
• Codice Fiscale for each founder and director. Obtainable at an Italian consulate abroad or at an Agenzia delle Entrate office in Italy; no fee.
• Proof of a registered company address in Italy. This is the company's legal domicile for official correspondence. A registered office service address is acceptable.
• Draft statuto (bylaws). For an SRLS, only the standard inderogable bylaws are permitted. For an SRL, custom bylaws are drafted with your notary.
• Means of paying in the share capital. The required capital is paid to the directors at signing, and the deed records the means of payment (Art. 2464 CC).
• Non-EU nationals: apostilled copies of founding documents and documentation supporting reciprocity eligibility (Art. 16 Preleggi).

For the full list of requirements and documents for each entity type, including apostille requirements and consulate procedures, see our dedicated requirements guide.

Company Formation Costs and Timeline in Italy

Cost and timeline are two of the most common questions foreign founders ask before committing to Italian incorporation. The figures below are indicative. Actual amounts depend on the entity type, share capital, and the specific notary and commercial registry you work with.

On timeline: The notary deposits the signed deed with the Registro delle Imprese within 10 days (Art. 2330 §1 CC). The registry inscribes the company within 5 days of that deposit for electronic filings. The Partita IVA is communicated immediately once the Comunicazione Unica is filed. For a non-resident founder, the whole process to an operational company typically takes 4–8 weeks, mainly because of bank account KYC.

For a detailed cost and timeline breakdown including professional service fees and regional differences, see our dedicated cost guide.

Taxes for Italian Companies: An Overview

An Italian SRL is subject to two primary corporate taxes plus VAT. Understanding the headline rates before formation helps you model post-tax returns and evaluate Italy's tax treaty network.

Italy has an extensive network of double-tax treaties in force, which can reduce withholding tax on dividends, interest, and royalties paid to foreign shareholders. e-invoicing through the SdI (Sistema di Interscambio) has been mandatory since 1 January 2019 and, since 1 January 2024, also covers all flat-rate taxpayers.

For the complete rates, calculation base, and treaty analysis, see our guide to corporate tax rates in Italy.

Ongoing Compliance After Formation

Forming the company is only the beginning. Italian law imposes a set of ongoing annual obligations that every SRL must meet to remain in good standing with the Registro delle Imprese and the Agenzia delle Entrate.

Key compliance requirements after formation:

• Financial statements (bilancio). Must be approved within 120 days of year-end (up to 180 days where the bylaws allow it and the company prepares consolidated accounts or particular needs relating to its structure and object require it) and filed with the Registro delle Imprese within 30 days of approval.
• e-invoicing via SdI. Mandatory since 1 January 2019 (D.Lgs. 127/2015), and since 1 January 2024 also for all flat-rate taxpayers. Every sales invoice must be transmitted through Italy's Sistema di Interscambio.
• PEC (certified email) for the company's sole director or managing director. The sole director (amministratore unico) or managing director, or the chair of the board if there is no managing director, must register a personal PEC different from the company's own (Art. 5(1) D.L. 179/2012, as amended by Law 207/2024 and Art. 13 D.L. 159/2025). It is given with the registration application at formation; companies registered before 31 October 2025 had to communicate it by 31 December 2025.
• IRES and IRAP tax filings. Annual corporate income tax and regional production tax declarations.
• INPS and INAIL contributions. Social security (INPS) and workplace injury insurance (INAIL) contributions, due depending on whether the company has employees or managing directors who contribute.
• Statutory auditor (sindaco). Mandatory under Art. 2477 CC when the SRL prepares consolidated accounts, controls a company subject to statutory audit, or exceeds, for two consecutive years, at least one of three thresholds: €4M total assets, €4M revenues, or 20 employees (D.Lgs. 14/2019 as amended by D.L. 32/2019).
• SCIA (certified notice of start of activity). Required before commencing certain regulated business activities. Filing obligations depend on the specific ATECO activity code.

For help with accounting requirements for Italian companies, or if you need a compliant address for your registration documents, see our Italian registered office service.

Why the Italian SRL Is the Recommended Entity for Foreign Founders

The Italian SRL (Società a Responsabilità Limitata) is Italy's closest equivalent to a US LLC or UK private limited company. It provides a liability shield between the company and its shareholders: members are generally liable only up to the amount of their subscribed capital (Art. 2462 CC). One important exception applies when the SRL has a single member: if the company becomes insolvent, the sole shareholder is personally liable for company debts that arose while they held all the quotas if share capital was not fully paid in, or if the single-member status was not publicly registered (Art. 2462 §2 CC).

Capital thresholds are accessible for most founders. The standard minimum is €10,000 (Art. 2463 §2 n.4 CC). A reduced-capital SRL can be formed with as little as €1, but all capital must be paid in cash at formation and 20% of annual net profits must be set aside as a legal reserve each year until the combined capital and reserve reaches €10,000 (Art. 2463 §4–5 CC). This 20% reserve requirement is widely misreported in English-language content as 5%; the correct figure is one-fifth of annual net profits per annum.

The SRL also offers governance flexibility that the SRLS does not. An SRL accepts corporate shareholders alongside individual members, allows fully custom bylaws, and can scale to larger capital structures without changing legal form. For multi-national founding teams or structures that include a holding company as a shareholder, the SRL is the only appropriate choice: only natural persons can form an SRLS (Art. 2463-bis CC).

For a full breakdown of the entity, including governance rules, director liability (Art. 2476 CC), shareholder agreements, and the single-member regime, see our full guide to the Italian SRL (Società a Responsabilità Limitata).

Ready to register your Italian SRL? Contact us for a formation quote for your case. We coordinate entity selection, notary scheduling, and post-formation compliance setup.

Our services include:

• Entity type guidance (SRL, SRLS, SpA, branch)
• Notary coordination and deed preparation
• Post-formation compliance setup (PEC, SdI, INPS/INAIL)

Request a formation quote

Company Formation by City

We provide company formation services across Italy's main business centers. Each city has its own commercial registry, local Chamber of Commerce fees, and business ecosystem. Click below to explore what formation looks like in your preferred location.

• Milan: Italy's financial and commercial capital. Company formation in Milan, Via Dante 14, 20121 Milano MI. Phone: +39 02 9475 8210.

• Rome: Italy's national capital and center of government contracting, public administration, and professional services. Company formation in Rome, Via Barberini 50, 00187 Roma RM. Phone: +39 06 9480 3360.

• Florence: The hub for Tuscany's fashion, design, tourism, and agri-food sectors. Register a company in Florence, Via Cavour 22, 50129 Firenze FI. Phone: +39 055 200 1450.