February 20, 2020
Setting up a Company in Italy
Italy is known worldwide for its enchanting places to visit, and when fortunately, there is tourism, investors also arrive.
A “professional” investor operates through “Law firm Italy” companies set up in the individual country, and it is precisely at this point that, if not well informed and advised by the right professionals, he faces various difficulties.
We approach the situation by points, considering only profit-making companies and not all other entities, such as cooperatives and foundations.
Types of existing companies in Italy:
In Italy companies can be divided into two categories:
- “Partnerships”: They are partnership-based companies, who work with their limited partner in Italy. In addition to that of the company (imperfect patrimonial autonomy).
- “Joint stock companies”: These are companies based more on the capital put into the company, and less on the personal contribution of the individual shareholders, who remain outside the administration of the company. The debtors of the company can attack only the assets of the company, and not also that of the individual shareholders (perfect patrimonial autonomy).
In Law firm Italy there are other types of entities, which serve non-profit compared to the companies. Imperfect patrimonial autonomy is characteristic of unrecognized entities and partnerships. There is a common fund of the company, on which, in the first place, creditors assert their rights, but they are also jointly and personally responsible with their assets, also the shareholders.
Where and how is a company established in Italy?
A company must be incorporated (except in special cases, which I will not deal with here) through a public deed received by an Italian Notary.
The notary, as the National Council of Notaries himself points out, is a public official to whom the Italian State entrusts the power to attribute public faith, that is, the value of legal proof, to the deeds it stipulates. Therefore everyone – including the judge – must assume that what he certifies is true, unless the crime of forgery is ascertained. For this, the notary must personally ascertain what the will of the people who turn to him is and the purpose to be achieved, in order to prepare the deed, in accordance with the law, more suitable and economic. We therefore recommend that you also request the notary’s consultancy activity before signing the deed.
In the exercise of his function, the notary must be, by law, independent and impartial: he must therefore protect the interests of all contractors in equal measure, regardless of who gave him the assignment. Unlike the Notary present in Common Law countries, such as England, the Italian Notary must check, in addition to the authenticity of the people in front of him, also that the content of the deed he receives complies with Italian law.
Setting up a company in Italy: Who can Build Company There
To establish a company in Italy it is necessary to have full legal capacity and to act.
For those who are not Italian, different situations must be analyzed.
It is essential to analyze the concept of the general condition of the foreigner (i.e. citizen with citizenship, or company based in any country not a member of the European Union), who wants to voluntarily establish a legal shop in Italy.
More simply, we answer the question: can every foreigner easily make an “investment” (including setting up a company) in Italy?
In general, a relationship between two Italian (legal or physical) persons is governed by Italian law.