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.
1
Notary Appointment
Sign incorporation documents
2
Chamber of Commerce Registration
Business register filing
3
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