1. Choose Your Business Structure
The first step in starting a business in Italy is choosing the right legal structure. The most common options for foreigners are:
SRL (Societa a Responsabilita Limitata)
- Limited liability protection
- Minimum capital: 1 EUR
- Corporate tax rate: 24%
Partita IVA (Freelance)
- No minimum capital required
- Flat tax rate: 15% (5% startup)
- Simple administration
2. Register for VAT Number (Partita IVA)
Every business in Italy needs a VAT number. This is your fiscal identification number.
What you need:
- Valid ID document
- Tax code (Codice Fiscale)
- Address in Italy
- Business activity description
3. Complete Company Formation
If you've chosen to form a company (SRL), you'll need to complete the formal incorporation process with a notary.
Notary Appointment
Sign incorporation documents
Chamber of Commerce Registration
Business register filing
Tax Office Registration
Tax authority notification
Understanding Italian Taxes
Corporate Tax (IRES)
24% on company profits
Regional tax (IRAP) additional 3.9%
Personal Income Tax (IRPEF)
Progressive: 23% to 43%
Based on annual income
What you need to decide first
Choose the legal structure
Start by matching the business model to a legal form. The company-formation guide describes the SRL as a separate limited-liability entity and the SRLS as a simplified form for individual shareholders. An SRL can be incorporated from €1, while the standard amount commonly used for credibility is €10,000; the SRLS uses a standard model and capital from €1 up to €9,999.99. A sole proprietorship is simpler but leaves business and personal assets together. Compare expected receipts, risk, partners and planned hiring before choosing. Also consider where management decisions will be made, whether clients need an Italian contracting party and how profits will be distributed. A foreign founder should check residence, work authorization, banking access and the tax position in the home country. Ask the accountant to model both the first year and a normal year, because startup costs and social-security obligations can change the comparison. Choose a structure that remains practical after the launch period.
Plan the incorporation documents
Once the structure is selected, prepare the documents the notary confirms: identity documents, Italian tax codes for participants who need them, ownership and beneficial-owner information, the company name and purpose, governance terms, registered-office details and contribution arrangements. The incorporation guide describes finalising the deed and articles, completing cash or in-kind contribution formalities, executing the notarial deed in person or by valid power of attorney, and registering the company in the Business Register. Legal personality begins when registration is completed. Foreign documents may need translation, legalisation or an apostille, depending on their origin and the notary’s requirements. Keep spellings identical across passports, tax records, powers and ownership charts. Define signing powers, fiscal domicile, correspondence address and the activity codes before the deed is drafted. A complete ownership file also helps the bank perform beneficial-owner checks without delaying the account.
Budget the notary and registrations
Formation costs depend on the structure and complexity. The cost breakdown lists SRL notary fees of roughly €1,500–4,000, business registration of €200–400, legal or statutory documents of €1,000–2,500 and accountant setup of €1,500–3,000. The same guide gives SRL initial totals of €4,200–19,900 and lower SRLS totals of €1,200–12,500. These are planning ranges, not regulated tariffs: request written quotes for the ownership structure, capital and activity. Separate one-off formation expenses from recurring bookkeeping, payroll, registered-office, bank and filing costs. Ask whether a quote includes VAT, translations, powers of attorney, beneficial-owner filings and later amendments. Keep a cash reserve for the first tax payments and for delays that postpone invoicing. A low notary quote may exclude the accountant’s onboarding work or a complex foreign shareholder review. Compare complete scopes rather than headline prices.
Open the Partita IVA and set up operations
After obtaining a codice fiscale and selecting the structure, register the Partita IVA with the Agenzia delle Entrate. The registration itself is free; Chamber of Commerce registration is commonly €50–100 for a sole proprietor, while SRL filings are handled within formation. With documents ready, the Partita IVA process takes about 1–3 business days online and Chamber registration 3–5 business days; an SRL adds about 2–4 weeks for notary preparation, for an overall 4–6 weeks. Then configure invoicing, banking and required registrations. Confirm the correct activity code before issuing the first invoice, and decide whether the business needs a fiscal representative or an Italian operational address. Set up certified electronic channels, document retention and payment approval rules. If the founder remains abroad, agree who can sign filings and collect official notices. The opening date should match the real commercial start, because contracts, invoices, social security and bookkeeping must reconcile to it.
Choose the tax regime
A foreign founder should compare ordinary taxation with the regime forfettario before opening the VAT position. The forfettario guide states an €85,000 prior-year receipts threshold, a 15% substitute tax and a 5% rate in the start year plus the following four tax periods when every new-activity condition is met. Corporate entities instead pay IRES at 24% and ordinary IRAP at 3.9% on the statutory net-production-value base, as explained in the corporate-tax guide. The right choice depends on structure, expenses and eligibility. The forfettario is designed for qualifying individuals, not an SRL, and its practical result depends on the activity coefficient, pension contributions and invoicing profile. Ordinary taxation may be preferable when real costs, employees or international VAT work are substantial. Check related employment, participation and residence restrictions before relying on the 5% rate. Recalculate after the first full year.
Open a business bank account and organise invoicing
A company account is part of the operating setup, not a cosmetic final step. The business-bank-account guide says banks commonly request the incorporation deed, Business Register extract, tax identifiers, proof of address, identity documents and beneficial-owner evidence; foreign ownership can trigger extra checks. Prepare a short description of activities, expected countries, payment flows and source of funds so the compliance review is coherent. Once the account is active, separate capital contributions, customer receipts, payroll and tax payments from personal spending. The electronic-invoicing guides explain that Italian invoices must follow the required exchange-system workflow and contain correct customer and VAT data. Set an approval calendar for invoices, bank reconciliations and F24 payments. If clients pay in foreign currency, document conversion and retain contracts. Reliable records make tax returns, treaty analysis and a later bank review easier.
Hire staff and manage recurring compliance
Hiring changes the cost and compliance profile immediately. The Italian hiring guide identifies employment contracts, INPS and INAIL registrations, payroll withholding, payslips and TFR as recurring responsibilities. Before making an offer, define the role, workplace, working time, applicable collective agreement and whether the person is an employee or genuine contractor. Budget the employer cost rather than gross salary alone: the guide estimates a broad 130–138% relationship between total employer cost and gross pay, depending on sector and circumstances. Give the payroll provider accurate start dates, residence details and bank data, then reconcile monthly reports with payments. Foreign founders should also distinguish an Italian employee from a person working abroad, because place of work can affect social-security and employment obligations. Keep personnel files, leave records and safety documentation organised. Late registrations can create penalties and make the first year harder to close.
Operate remotely and sell across borders
A foreign owner can often plan formation without moving immediately. The remote-SRL guide describes notarial videoconference routes for qualifying cash-only incorporations, while documents may still require apostille or translation and the bank may require an in-person visit. Before signing, confirm the notary’s eligibility checklist, the registered-office arrangement and who will receive official communications in Italy. For cross-border sales, the VAT guide distinguishes domestic supplies, B2B reverse charge and consumer regimes; the €10,000 EU threshold and OSS can matter for qualifying distance sales. Double-tax treaties and permanent-establishment analysis remain separate from incorporation. Keep contracts, delivery evidence, invoices and proof of customer status together. Remote management works best with a local accountant, a secure signing process, monthly reporting and a clear escalation path for notices. Reassess residence and management substance as the business grows.
Key topics
Company formation guide
Step-by-step incorporation process
Real company formation costs
Notary, registration and setup ranges
SRL vs sole proprietorship
Compare liability and administration
Partita IVA for foreigners
VAT registration requirements and timing
Regime Forfettario
€85,000 threshold and flat-tax rules
Corporate tax in Italy
IRES and IRAP for companies
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