Italy allows both Italian and eligible foreign nationals to establish and operate businesses subject to Italian and European Union legislation. Businesses must comply with registration, taxation, accounting, licensing, employment and regulatory requirements. The most appropriate business structure depends on the nature of the activity and the entrepreneur's objectives.
Choosing the correct legal structure affects taxation and liability, registration with the appropriate authorities is mandatory, and certain regulated activities require licences or professional authorisation.
Eligibility depends on nationality, immigration status, right to work or conduct business in Italy, and professional licensing requirements where applicable. Foreign nationals should ensure their immigration status permits self-employment or business activities before commencing operations.
Italy recognises several forms including the Sole Proprietorship (Impresa Individuale, suitable for many small businesses run by one individual), the Limited Liability Company (Società a Responsabilità Limitata — SRL, one of the most common structures, generally providing limited liability for shareholders), the Simplified Limited Liability Company (SRLS, a simplified SRL available where statutory conditions are met), the Joint Stock Company (Società per Azioni — SpA, typically used by larger businesses), and various Partnership structures with differing liability rules. The legal structure should be selected before registration, considering liability, taxation, capital requirements, ownership, governance, accounting obligations and future investment.
Most businesses must register with the Registro delle Imprese (Business Register) maintained by the Chambers of Commerce, with requirements varying by business structure. The local Camera di Commercio (Chamber of Commerce) plays an important role in business registration, maintenance of company records, corporate filings, certificates and public registers.
Businesses generally require registration with the Agenzia delle Entrate, including a Tax Identification Number, VAT number (Partita IVA) where applicable, and tax reporting obligations. Businesses carrying out taxable activities may need to register for VAT (IVA), depending on business activity, turnover and applicable legislation.
Employers and many self-employed persons must register with the appropriate social security institution, with contribution requirements depending on business activity, employment status and legal structure. Businesses are generally required to maintain accounting records — bookkeeping, invoices, tax records, annual accounts and statutory filings — with requirements differing according to business type.
Certain regulated activities require operating licences, professional registration, municipal authorisation or sector-specific approvals — businesses should confirm licensing requirements before commencing operations. Businesses employing workers must comply with Italian employment legislation on contracts, wages, social security, workplace safety and taxation (see Employment). Most businesses require a dedicated business bank account to receive customer payments, pay suppliers, manage payroll and pay taxes, subject to each bank's documentation requirements.
Business closure generally requires deregistration with the Business Register, settlement of outstanding liabilities, tax compliance, employee obligations where applicable, and statutory notifications — the procedure depends on the legal structure.