Company in Italy
SHELF COMPANY WITH VAT
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Italy has recently taken new steps to position itself as a welcoming home for foreign investment. The result is that Italy is slowly emerging as a land of opportunity, although you will need specialist local advice to help navigate your way through the bureaucracy.
LIMITED LIABILITY COMPANY (S.r.L.) FOR TRADING
Most popular format for businesses in Italy is S.r.L., Limited Liability Company.
The standard rate of Italy corporate tax (IRES) is 27.5%%. In addition, local tax (IRAP) is imposed at a rate of generally 3.9%, bringing the effective tax rate to 31.4%.
Government duty €310 and Chamber of Commerce duty €200 must be paid annually.
For new companies VAT registration is usually manageble. Please note that it might take up to 40 days.
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REPRESENTATIVE OFFICE OF A FOREIGN COMPANY & BRANCH OFFICE
“Light Branch” is a type of Representative Office registered at the Labour Office and authorized to employ and to use an Italian bank account. A Light Branch cannot trade, issue invoices or to have VAT. However, it is a very cost effective tool for promoting services in Italy. As soon as the entity needs to start trading activities, the Light Branch should be upgraded to a Branch.
An Italian branch can be used as a trading partner to import / export or buy / sell within the EU and beyond its borders. The Italian branch can have a VAT number obtain a tax residency certificate.
Chamber of Commer duty €200 must be paid annualy.