Doing business

Italy

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Setting up a company | FDI in figures | Why you should choose to invest | Procedures relative to foreign investment | Finding assistance for further information

Setting up a company

Types of companies and capital (max/min)	Number of partners/shareholders and liability
La Societa a responsabilita limitata (SRL) is a limited liability company. EUR 10,000 minimum, 3/10 fully subscribed and paid up at the creation of the company.	no limitations Liability is limited to the amount of capital contributed.
La Societa per azioni (SpA) is a public limited company EUR 120,000 minimum, 3/10 fully subscribed and paid up at the creation of the company.	no limitations Their liability is limited to the amount of capital contributed.
La Societa in nome Collettivo (SNC) is a general partnership no minimum capital.	no limitations Their liability is joint and indefinite.
La Societa in Accomandita Semplice (SAS) is a limited joint-stock partnership . no minimum capital.	There are two types of partners, the active partners and the silent partners. The liability of the active partners is unlimited.
La Societa Cooperativa (SC) is a cooperative society. no minimum capital.	no limitations Their liability is limited or unlimited according to the Articles of Association.

Business setup procedures

Setting up a company	Italy	OECD
Procedures (number)	6.0	5.6
Time (days)	6.0	13.8

Source: Doing Business.

For further information: Consult Doing Business Website, to know about procedures to start a Business in Italy.
Infocamere, only in Italian.
The competent organization: The administrative procedures must be analysed by a legal affairs office of the Ministry of Justice.

The activity of the company is subject to abilitazioni (certificate of professional aptitude), to autorizzazioni o licenze (licenses) and to the denuncia di inizio attività (declaration of beginning of activity).
Chambers of Commerce provide companies with support services in training and internationalization and gather necessary economic information concerning aspects of entrepreneurial activity.

FDI in figures

Foreign Direct Investment	2008	2009	2010
FDI inward flow (millions USD)	17,031	20,073	9,498
FDI stock (millions USD)	339,926.7	364,427.3	337,401.2
Performance Index*, ranking on 141 economies	126	96	-
Potential Index**, ranking on 141 economies	32	-	-
Number of Greenfield investments***	223	166	-
FDI inwards (in % of GFCF****)	3.6	28.0	-
FDI stock (in % of GDP)	14.8	18.6	-

Source:

Note: * The UNCTAD Inward FDI Performance index is based on a ratio of the country's share in global FDI inflows and its share in global GDP. ** The UNCTAD Inward FDI Potential index is based on 12 economic and structural variables such as GDP, foreign trade, FDI, infrastructures, energy use, R&D, education, country risk. *** Green field investments are a form of foreign direct investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up. **** Gross fixed capital formation (GFCF) measures the value of additions to fixed assets purchased by business, government and households less disposals of fixed assets sold off or scrapped.

Why you should choose to invest Italy

Strong points: Thanks to the State withdrawal, the market is opening up to competition in several sectors (energy, telephone, etc.). The SME grouping allows for great capacity for adaptation. Italy also has a qualified work force (technical knowledge and high quality production).
Entrepreneurs are creative and innovative.
Weak points: The procedural costs, slow administration processes, red tape and financial scandals do not encourage investments. In some regions, infrastructures are poor, especially in the south of the country.
Government measures to motivate or restrict FDI: Thereis hardly any assistance in Italy for promoting foreign investment. This trend is reinforced by the European Union which wants Italy to harmonize its tax incentives with the Community regulations. Italy only promotes the development of its regions which are in difficulty, in order to facilitate SME activity and job creation. The defense sector and other sectors likely to compromise public safety are not open to foreign investors.
The Italian Institute for Foreign Trade lists and makes available a guide to aids for setting up business in Italy.
Bilateral investment conventions signed by Italy: Italy has signed bilateral agreements with fifty or so countries.
To see the list of countries, click here.
To see the conventions, click here.

Procedures relative to foreign investment

Freedom of establishment: As a member of the European Union, Italy applies the principle of freedom of establishment and non-discrimination. Thus, foreign investors can carry out any type of activity in the same conditions as a local investor. In addition, no specific legal text governs foreign direct investment. The regime is in alignment with that applicable to local investment.
Acquisition of holdings: Acquiring a majority holding in the capital of a local company is authorized in Italy, except in certain sectors (petroleum exploitation).
Obligation to declare: The agency for the promotion of foreign investment in the country gives information about the authorizations necessary for setting up business.
Competent organization for the declaration
Requests for specific authorizations: Foreign investors are subject to particular measures (prior authorization issued by the competent ministry and restrictions concerning the permitted amount of equity acquisitions) in certain sectors only:
- telecommunications and the press;
- airline and shipping companies;
- electricity and gas (liberalized in 1999 and in 2000 by respective legal decrees n° 79/99 and n° 167/00);
- petroleum exploitation.
For further information, consult the ICE website.

Finding assistance for further information

Investment aid agency: Institute for foreign trade (ICE)
Other useful resources: Confindustria
Invest in Italy