{"id":554,"date":"2022-03-29T10:50:09","date_gmt":"2022-03-29T08:50:09","guid":{"rendered":"https:\/\/adelinarossano.com\/?p=554"},"modified":"2022-03-29T10:50:09","modified_gmt":"2022-03-29T08:50:09","slug":"starting-a-business-in-italy-corporations","status":"publish","type":"post","link":"https:\/\/www.adelinarossano.com\/en\/starting-a-business-in-italy-corporations\/","title":{"rendered":"Starting a business in Italy: Corporations"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">The series of posts on the types of companies that can be set up in Italy continues. We talked about<a href=\"https:\/\/www.adelinarossano.com\/blog\/2022\/02\/25\/starting-a-business-in-italy-partnerships\/\" target=\"_blank\" rel=\"noreferrer noopener\"> partnerships<\/a> in February, this time let&#8217;s move on to corporations.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"definition\">Definition<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Corporations are companies characterized by <strong>legal personality<\/strong> and <strong>perfect patrimonial autonomy<\/strong>: this means that they are liable for the company\u2019s obligations arising from the economic activity carried out and that if the company incurs debts, the personal assets of the shareholders are not affected, and the creditor can only draw on the company\u2019s capital.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"types-of-corporations\">TYPES OF CORPORATIONS<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Corporations can be classified in:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>limited liability company (Societ\u00e0 a responsabilit\u00e0 limitata, S.r.l);<\/strong><\/li><li><strong>simplified limited liability company (Societ\u00e0 a responsabilit\u00e0 limitata semplificata, Srls);<\/strong><\/li><li><strong>public limited company (Societ\u00e0 per azioni, S.p.A.);<\/strong><\/li><li><strong>limited partnership with share capital (Societ\u00e0 in accomandita per azioni, S.a.p.a).<\/strong><\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"main-features\">MAIN FEATURES<\/h2>\n\n\n\n<ol class=\"wp-block-list\" type=\"1\"><li><strong>Prevalence of capital<\/strong> at a regulatory level concerning shareholders. In fact, it constitutes the only guarantee for third parties;<\/li><li>depending on the type of company, the capital may vary (in terms of the minimum limit) and consist of <strong>units<\/strong> or <strong>shares<\/strong>;<\/li><li><strong>legal personality<\/strong> and <strong>perfect patrimonial autonomy<\/strong> (except for the S.a.p.a, as we will see later);<\/li><li><strong>limited liability of shareholders<\/strong> with respect to corporate obligations: as mentioned above, the shareholders are liable only limited to the shares of capital conferred;<\/li><li>the <strong>setting up<\/strong> of the company takes place <strong>by official deed<\/strong>: the shareholders stipulate the memorandum of association, define the articles of association, and register the company with the competent business register. Registration in the business register is essential for the establishment of the company;<\/li><li><strong>the shareholders do not hold administrative functions<\/strong> but only control and participate in profits and losses. However, they can appoint directors;<\/li><li>the law establishes the presence of specific <strong>management and control bodies<\/strong>: Shareholders\u2019 meeting, Board of Directors, Board of Auditors.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"the-limited-liability-company\">The limited liability company<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">S.r.l. is the most common type of company in Italy (governed by articles 2462-2483 of the Civil Code), mainly due to certain organizational flexibility and limited liability.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Being a corporation, it inherits the key features mentioned above but presents the following peculiarities:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>the <strong>share capital is paid in units<\/strong>, not in shares;<\/li><li>the <strong>minimum share capital is \u20ac 1;<\/strong><\/li><li><strong>statutory autonomy and flexible administration:<\/strong> in practice, ordinary decisions are taken by the sole director or by the board of directors, if applicable, unless exceptions are provided for in the articles of association;<\/li><li>the <strong>setting up takes place by official deed<\/strong> executed by the notary (S.r.l.) or with <strong>contract or unilateral deed by natural persons<\/strong> (Srls).<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"conditions-for-setting-up-a-limited-liability-company\">Conditions for setting up a limited liability company<\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>For limited liability companies with a <strong>capital equal to or greater than 10,000<\/strong> <strong>EUR, <\/strong>25% of the contributions must be paid in cash (the rest must be paid afterwards) and the entirety of the contributions in kind;<\/li><li>for limited liability companies with a <strong>capital of less than 10,000 euros<\/strong>, but equal to at least 1 euro, it is necessary to <strong>pay all of the contributions in cash<\/strong> at the time of signing the memorandum of association;<\/li><li>the <strong>contribution of the entire amount of the share capital<\/strong> is required even if the company is <strong>unipersonal<\/strong>, i.e., with a single shareholder.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"the-simplified-limited-liability-company\">The simplified limited liability company<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">As can be seen from the above, the <strong>simplified limited liability company<\/strong> is a form of S.r.l. which provides for <strong>concessions <\/strong>concerning the amount of the <strong>minimum share capital<\/strong> (below 10,000 euros), the <strong>costs<\/strong> to be supported and the <strong>setting up procedure<\/strong> (notary fees are not due).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, the articles of association must always be drawn up by public deed, following the \u201cstandard model\u201d.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Previously, this form of S.r.l. was only accessible to individuals up to 35 years of age, but today this limitation has lapsed.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">These are the key features of Italian limited liability companies. Obviously, <strong>the topic is much broader and cannot be covered in a single article.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, my expertise on the subject ends here: for any further information, I invite you to refer to an accountant first, who will be able to advise you on the possibility of opening an S.r.l. in Italy according to your needs; I also invite you to consult the relevant <a href=\"https:\/\/www.altalex.com\/documents\/news\/2014\/09\/15\/della-societa-a-responsabilita-limitata\" target=\"_blank\" rel=\"noreferrer noopener\">references to the legislation<\/a>, which contain all the information on the subject.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The series of posts on the types of companies that can be set up in Italy continues. We talked about partnerships in February, this time let&#8217;s move on to corporations. Definition Corporations are companies characterized by legal personality and perfect patrimonial autonomy: this means that they are liable for the company\u2019s obligations arising from the [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":790,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[19,22],"tags":[32,23,33,34],"class_list":["post-554","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-expand-your-business-abroad","category-internationalization","tag-corporations","tag-internationalization","tag-investing-in-italy","tag-setting-up-a-company-in-italy"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Starting a business in Italy: Corporations &#183; Adelina Rossano<\/title>\n<meta name=\"description\" content=\"Corporations are companies characterized by legal personality and perfect patrimonial autonomy\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.adelinarossano.com\/en\/starting-a-business-in-italy-corporations\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Starting a business in Italy: Corporations &#183; 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