Starting a Business in Italy as a Foreigner: An Expert Guide

Starting a business in Italy as a foreigner is a great chance to be part of a strong and growing economy. In 2023, Italy attracted over €22 billion in foreign direct investment which shows how open the country is to international entrepreneurs. Italy offers a skilled workforce, good infrastructure, and access to the entire European market, which makes attractive for anyone looking for a diverse place to do business.

To start a business in Italy as foreigner you need to follow specific steps such as choosing the right business structure, preparing important documents, and getting the required permits.

This article will explain everything you need to know about starting a business in Italy as a foreigner from business types to paperwork and licenses and more.

• Can I Start a Business in Italy as a Foreigner?
• Business Structures in Italy
• What Steps will be needed to start a business in Italy for foreigners?
• Documents needed to start a business in Italy
• Legal requirements for starting a business in Italy as a foreigner
• How much does it cost to start a business in Italy as a foreigner?
• Licenses and Permits Needed to Start a Business in Italy as a Foreigner
• How to Obtain the Deed of Incorporation
• Taxes on businesses in Italy

Yes, you can start a business in Italy as a foreigner, but the process depends on whether you’re an EU/EEA/Swiss citizen or a non-EU national. Citizens from the EU, EEA, or Switzerland can freely establish and operate a business in Italy without needing a visa or residence permit, following the same procedures as Italian citizens.

Non-EU nationals, however, must first obtain a self-employment visa and a residence permit that allows for business activity. This involves presenting a viable business plan, providing sufficient financial resources, and securing authorization from the local Chamber of Commerce before applying for the visa. Once in Italy, non-EU entrepreneurs must register the business with the appropriate authorities, including the Chamber of Commerce, tax office, and social security institutions.

Starting a business in Italy is possible whether you’re from the EU or a non-EU country, but foreign entrepreneurs must follow specific procedures that differ from those for Italian citizens.

The steps below explain what you need to do, why each one matters, and how they apply specifically to foreigners setting up a business in Italy.

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• Valid Passport or Identification Document: Required for all founders, directors, and shareholders, especially for foreigners.
• Codice Fiscale (Italian Tax Code): This personal tax identification number must be obtained by all individuals involved in the business.
• Business Plan: Particularly important for non-EU nationals applying for visas or permits, it should outline the business objectives, market analysis, financial forecasts, and operational plans.
• Articles of Association (Atto Costitutivo) and Company Bylaws (Statuto): Required for incorporated entities (e.g., SRL, SRLS). These documents define the company’s purpose, governance, share distribution, and internal rules, and must be signed before a Notary Public.
• Proof of Address for the Business: You need to provide documentation verifying the registered business address, such as a lease agreement or property deed.
• Chamber of Commerce Registration Forms: Documents submitted to the Registro delle Imprese to officially register your business.
• Partita IVA Application: Application for the VAT number through the Italian Revenue Agency (Agenzia delle Entrate).
• Social Security Registration: Registration with INPS (National Social Security Institute) for pension and contribution purposes.
• Insurance Registration: If you plan to hire employees, registration with INAIL (National Institute for Insurance against Accidents at Work) is mandatory.
• Nulla Osta (Authorization) from the Chamber of Commerce: Required for non-EU nationals applying for self-employment or startup visas to prove business viability.

Italy has made efforts to simplify the business setup process and attract international entrepreneurs. While some rules still apply remains, the legal route is well defined.

These are the key legal requirements for foreigners starting a business in Italy:

Articles of Association: If you are setting up a company like an SRL or SRLS, you must draft the company’s founding documents, also known as the Statuto and Atto Costitutivo, which outline its purpose, structure, and operations. These must be signed in front of a Notary Public, either in person or via a legal representative.

Codice Fiscale (Italian Tax Code): All foreign shareholders, directors, or business owners must obtain a Codice Fiscale, issued by the Agenzia delle Entrate. This personal tax identification number is required for contracts, banking, and business registration.

Business Registration: The business must be registered with the Registro delle Imprese at the local Chamber of Commerce, which makes the company legally recognized in Italy.

VAT Number (Partita IVA): Issued by the Tax Agency, this number is essential for issuing invoices and paying taxes. It must be obtained before starting any commercial activity.

Social Security and Insurance Registration: Entrepreneurs must register with INPS for pension and welfare contributions and, if hiring employees, with INAIL for accident insurance.

Residence and Migration Permits for Non-EU Citizens: Non-EU nationals planning to live and operate a business in Italy must apply for a residence permit, known as Permesso di Soggiorno. This process involves a valid self-employment visa or startup or investor visa, proof of a registered business or business plan, authorization from the Chamber of Commerce known as Nulla Osta, and a valid passport with supporting documents.

The cost of starting a business in Italy as a foreigner ranges from €5,000 to €6,000 in the first year, depending on the business structure and professional services required. In the following years, the cost can drop to around €1,500 to €2,500 annually, covering ongoing legal, tax, and compliance obligations.

To start a business in Italy as a foreigner, the licenses and permits you need depend largely on the type of business and its location. Here’s an overview of the common licenses and authorizations required:

Business License / SCIA (Segnalazione Certificata di Inizio Attività): This is a certified notification of the start of your business activity, which must be submitted to the local municipality. It applies to many commercial activities, including retail stores, restaurants, and services. Once submitted, you can start operating immediately unless the municipality raises objections.

Municipal Authorizations: Depending on the business sector, you may need specific permits from the local municipality, such as health and safety certifications, waste management permits, or opening permits for physical locations.

Professional or Sector-Specific Licenses: Certain professions or businesses require special qualifications or licenses. For example:

• Food and beverage businesses need health and hygiene permits issued by local health authorities (ASL).
• Tourism, travel agencies, and hospitality services require licenses from regional authorities.
• Construction and real estate companies may need urban planning or environmental agency authorizations.

Environmental Permits: If your business impacts the environment, you might need authorizations from environmental protection agencies, especially for waste disposal or emissions.

Special Permits for Regulated Activities: Some activities, such as alcohol sales, financial services, or transportation, require additional permits or registrations with national or regional authorities.

The Deed of Incorporation (known in Italian as Atto Costitutivo) is a formal legal document that establishes a company’s existence under Italian law. It contains essential information such as the company’s name, purpose, registered address, share capital, founders, and the distribution of shares. Along with the company’s bylaws (Statuto), it sets out the rules governing the company’s structure and operations.

The Deed of Incorporation is a crucial step because, without it, the company cannot be legally recognized or registered in Italy.

• Draft the Document: The Deed of Incorporation and the company bylaws must be carefully prepared. This can be done with the help of a lawyer or notary, ensuring compliance with Italian corporate law and reflecting the specific agreements among founders.
• Sign in Front of a Notary Public: The document must be signed by all founding members before a Notary Public (Notaio). The notary officially certifies the signatures, verifies the legality of the document, and ensures all formalities are met.
• Notary’s Role: The Notary Public files the Deed of Incorporation with the Business Register (Registro delle Imprese) at the local Chamber of Commerce. The notary also confirms payment of the initial share capital, if applicable.
• Payment of Fees and Taxes: The notary will calculate and collect the necessary fees, including registration taxes and notary fees. These costs vary depending on the company type and share capital.
• Company Registration: Once the notary submits the Deed of Incorporation to the Registro delle Imprese, the company is officially incorporated and legally recognized. You will receive a registration number, which allows you to proceed with obtaining the VAT number and other necessary permits.

Global Citizen Solutions is a boutique migration consultancy firm with years of experience delivering bespoke residence and citizenship by investment solutions for international families. With offices worldwide and an experienced, hands-on team, we have helped hundreds of clients worldwide acquire citizenship, residence visas, or homes while diversifying their portfolios with robust investments. 

We guide you from start to finish, taking you beyond your citizenship or residency by investment application. 

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