Expand your business in Italy: Where Renaissance heritage meets modern enterprise.
From Milan’s fashion hubs to Turin’s tech and automotive industries, Italy’s economy thrives on a unique mix of tradition and emerging sectors. Its vibrant economy spans diverse industries, from fashion and automotive to technology and manufacturing, making it an attractive hub for innovation and business.
By establishing your presence in Italy, you gain access to one of Europe’s largest consumer markets while positioning your business at the heart of the EU’s thriving economic network.
The business benefits of registering your company in Italy
Italy is a prime destination for businesses seeking growth in Europe. Positioned at the heart of the European Union, it offers seamless access to a market of over 50 million consumers. Renowned for its skilled workforce, modern infrastructure, and government-backed incentives, Italy provides fertile ground for companies with global expansion plans.
Here’s why businesses choose to register their business here:
- Access to one of the world’s largest markets through Italy’s central position in the EU.
- Tax incentives and government subsidies in key sectors and regions.
- A skilled workforce renowned for expertise in engineering, design, and manufacturing.
- Italy’s advanced infrastructure and trade networks.
- Well-defined processes for company registration through the Italian Chambers of Commerce.
- The global credibility associated with “Made in Italy” brands.
There are two options for growing your presence in Italy: traditional company registration and Employer of Record (EOR). Let’s discuss the differences so you can select what aligns best with your business objectives.
What is the difference between standard company registration and expanding through an EOR?
Registering your own entity or partnering with an EOR—each option has its unique strengths and fits different needs.
Here’s a side-by-side comparison:
Aspect | Standard Registration | Employer of Record (EOR) |
Purpose | Establishes a legal entity, granting full control over operations and finances in Italy. | Allows hiring in Italy without entity setup; the EOR handles compliance, payroll, and contracts. |
Control | Provides complete operational and financial control. | Operational control over employees, while the EOR manages administrative and legal responsibilities. |
Compliance | Full responsibility for adhering to Italian labor laws, tax regulations, and reporting. | The EOR ensures full compliance with labor laws, taxes, and reporting on your behalf. |
Setup Time | Longer, as it requires documentation, legal approvals, and multiple registrations. | Quick, enabling businesses to hire and operate in weeks instead of months. |
Cost | Includes entity setup costs, legal fees, operational expenses, and ongoing maintenance. | Predictable service fees to the EOR are often more cost-effective than setting up a local entity. |
Scalability | Best for long-term, substantial physical operations in Italy. | Ideal for flexible workforce expansion without the burden of entity management. |
Both approaches cater to different operational goals and levels of control. While standard registration gives you full ownership and authority, an EOR simplifies entry by managing compliance, payroll, and HR tasks, enabling businesses to operate without creating a local entity. Let’s explore how.
How an EOR simplifies company registration in Italy
Establishing your business in Italy can be exciting, but setting up a legal entity can feel like a complicated maze. That’s where an Employer of Record (EOR) like Multiplier steps in.
An EOR helps you start operations quickly by hiring local talent, managing compliance, and handling payroll without the need to set up a legal entity. This makes entering the Italian market faster, simpler, and less expensive.
Here’s how an EOR makes it easy:
- Start your operations immediately without the hassle of company registration.
- Focus on growing your business while leaving paperwork and costs to the EOR.
- The EOR handles Italy’s labor laws, taxes, and reporting requirements.
- Add employees as needed without worrying about long-term commitments.
- Access Italy’s skilled workforce without navigating local hiring complexities.
- Offer employees locally tailored benefits while the EOR manages the details.
- Let the EOR prevent legal risks and reduce your administrative responsibilities.
An EOR makes it easy to enter the Italian market without the hassle of legal processes and compliance hurdles. It is, most often, the quickest way to grow your team in Italy.
For some companies, though, registering their company in Italy is vital. Let’s explore how they can do this in eight steps.
A step-by-step guide to registering a company in Italy
Incorporating a company in Italy is one way to expand in one of Europe’s largest and most diversified economies. The process, while detailed, is well-organized and straightforward, allowing you to establish your business securely.
Below is a step-by-step guide to help you navigate the process:
Step 1: Choose your business structure
Selecting the right legal structure is essential for defining your company’s responsibilities, tax obligations, and operational flexibility.
These are some popular business structures in Italy:
- Public limited company (Società per Azioni or S.p.A.): Ideal for larger companies; its incorporation requires a minimum capital of € 50,000.
- Limited Liability Company (Srl): Ideal for small-to-medium businesses with limited liability for shareholders. Minimum share capital is €10,000 (€1 for simplified Srls).
- Joint Stock Company (SpA): Suitable for larger companies requiring significant capital investment. Minimum share capital is €120,000.
- Innovative Startup: If your company qualifies to register as an ‘innovative startup’, you will gain significant tax and visa benefits.
- Branches: Extensions of foreign companies without independent legal status. The parent company assumes all liabilities.
- Representative Office: A non-trading entity for market research or advertising with no legal liability.
Step 2: Draft the Articles of Association
The Articles of Association outline your company’s purpose, structure, and governance.
- It must be notarized as a public deed.
- It must include essential details like share capital, director information, and registered office address.
Step 3: Obtain tax codes for shareholders and directors
All directors and shareholders must acquire a Codice Fiscale (Italian tax code) from the Agenzia delle Entrate (Revenue Agency). This ensures compliance with Italian tax regulations.
Step 4: Register your company with the Business Register
Next, you must submit the notarized Articles of Association and supporting documents to the Registro delle Imprese (Business Register) via the local Chamber of Commerce.
Documents you will require:
- Articles of Association
- Proof of tax codes for directors and shareholders
- Certified translations of any foreign documents (if applicable)
- Proof of registered office address
Step 5: Open a corporate bank account
A corporate bank account is mandatory for depositing share capital and conducting financial transactions.
Documents you will require:
- Certificate of Incorporation (Visura)
- Articles of Association
- Identification documents of directors or shareholders
Traditional banks like UniCredit and Intesa Sanpaolo often offer robust options and simplified management for global businesses.
Alternatively, for paying employees based in Italy, an Employer of Record (EOR) is ideal. It simplifies payroll management while ensuring full compliance with local regulations. Many companies choose this option as the smarter, faster way to manage operations and cut unnecessary expenses, so they can focus on growth.
Step 6: Obtain a VAT number (Partita IVA)
Apply for a VAT number through the Agenzia delle Entrate. This is necessary for tax compliance and issuing invoices. The application process is quick and typically completed on the same day.
Step 7: Register for social security and additional permits
- To hire employees in Italy, you must register with INPS (National Social Security Institute) for contributions.
- Additionally, many businesses need industry-specific permits or licenses to operate in Italy.
Step 8: Maintain compliance with Italian regulations
After registering you company in Italy, you need to remain compliant with local regulation by filing annual tax returns and financial statements. You must also adhere to labor laws, including drafting employment contracts in compliance with local regulations.
Setting up a company in Italy and ensuring you remain compliant involves multiple legal and administrative steps, which can be time-consuming and costly.
An Employer of Record (EOR) offers a quicker, hassle-free alternative. Using an EOR like Multiplier allows you to focus on growing your business while leaving the complexities of compliance, payroll, and hiring to experts.
Let’s explore the costs of registering a company in Italy and see how an EOR like Multiplier can simplify your expansion.
What is the real cost of registering a business in Italy?
Understanding the financial commitments of company registration in Italy is crucial for effective business planning. A clear grasp of upfront and ongoing costs will help you make informed decisions and allocate resources appropriately.
Here’s a list of expenses you will incur when registering your business in Italy:
1. Registration costs
- Trade register fee: Can be up to €520 (one-time fee for registering your company with the Italian Business Register).
- Incorporation fee: Approximately €2,300 (includes document preparation, notary costs, and filing).
2. Share capital
- Limited Liability Company (SRL): Minimum of €1; however, amounts below €10,000 require allocating profits to reserves until this threshold is met.
- Joint Stock Company (SpA): Minimum €50,000 (25% must be paid upfront).
3. Legal services and notary fees
- Legal counsel and documentation: €1,000–€2,000 (depending on the complexity of your business structure).
- Notary services: €800–€1,500 (for notarizing the Articles of Association and related documents).
4. Annual maintenance costs
- Corporate accounting: Starting at €1,500 annually (varies based on transaction volume and company size).
- Registered office: €1,200 annually (for businesses without a physical location in Italy).
- Statutory audits (if applicable): €2,000–€5,000 annually (mandatory for larger companies).
5. Taxes
- Corporate Income Tax (IRES): 24% of taxable income.
- Regional tax on production (IRAP): 3.9% (varies by region and business activity).
- Value Added Tax (VAT): Standard rate of 22%, with reduced rates of 4% and 10% for specific goods and services.
6. Other costs
- Address renewals: €100–€500 annually (for renewing virtual office or registered office services).
- Permits and licenses: €100–€2,000 (industry-specific and location-dependent).
While these numbers give you a ballpark estimate of the costs, actual expenses often vary due to new regulations or your specific company structure. We advise that you consult an expert before planning your investment in Italy.
Alternatively, if you choose our EOR to grow your team in Italy, our in-house experts will help you stay compliant and minimize your expenditure.
Cost comparison: standard registration vs. EOR
See how partnering with an Employer of Record (EOR) can save you money compared to traditional company registration with this clear breakdown.
Cost Aspect | Standard Registration | Employer of Record (EOR) |
Setup Fees | High upfront legal and registration costs | No entity setup required; fixed service fees |
Share Capital | €1(S.R.L.) to €50,000 (S.P.A.) depending on structure | Not applicable |
Legal and Compliance | Ongoing costs for legal filings, tax registration, and labor law adherence | Managed entirely by the EOR |
Accounting and Admin | Monthly bookkeeping, payroll processing, and filings | Included in service fees |
Annual Maintenance | Variable costs based on compliance complexity | Fixed, predictable fees |
Traditional registration involves upfront investments and ongoing administrative responsibilities, making it a better fit for long-term, large-scale operations. In contrast, an EOR offers a streamlined, cost-effective alternative that’s easy for companies of any size to set up and scale.
With flat fees covering compliance, payroll, and other operational needs, an EOR offers a cost-effective, hassle-free market entry solution. Let’s see how these solutions can accelerate your business growth in Italy.
Take the stress out of your Italian expansion with Multiplier
Expanding your business into Italy should feel like an opportunity, not an obstacle. With Multiplier’s Employer of Record (EOR) solution, you can focus on scaling your business while we handle the complexities of compliance, payroll, and HR management.
Here’s how Multiplier simplifies your expansion into Italy:
Local hiring expertise
Build your Italian team effortlessly. Multiplier manages compliant employment contracts and ensures smooth onboarding, giving you immediate access to the best local talent.
Effortless payroll management
Say goodbye to payroll headaches. Multiplier handles taxes, social contributions, and payouts in compliance with Italy’s labor laws, ensuring accuracy and transparency.
Comprehensive HR solutions
Streamline your HR processes with Multiplier’s all-in-one platform. Manage onboarding, expense approvals, and time-off requests in one place, giving you full visibility and control over your team.
Compliance assurance
Navigate Italy’s labor laws and tax codes confidently. Multiplier ensures your business stays risk-free by managing all compliance and legal requirements.
Attractive benefits packages
Offer locally tailored benefits packages that help you attract and retain top talent in Italy. Multiplier manages all the administrative details so you can provide competitive perks without extra effort.
Reliable support and secure systems
Get dedicated support when you need it, backed by GDPR-compliant systems and industry-leading data security. With Multiplier, your business is in safe hands.
Multiplier streamlines your Italian expansion by managing the complexities of hiring, payroll, and compliance so you can focus on driving growth. Whether you’re building a local presence or scaling operations, we strive to make your journey easy, risk-free, and pleasant.
Take the next step toward smarter growth. Book a demo with Multiplier today and discover the hassle-free way to grow your business in Italy.
