Doing business in Italy

Self-employment and the partita IVA

Anyone carrying on a professional or business activity on a regular basis opens a VAT number (partita IVA) with the Agenzia delle Entrate, stating the ATECO code of the activity. For businesses the request for a tax code and VAT number is included in the Comunicazione Unica to the Registro delle Imprese, the online procedure that fulfils in a single filing the obligations towards the Chamber of Commerce, Agenzia delle Entrate, INPS and INAIL and, where needed, forwards the SCIA to the Comune's SUAP. Digital nomads holding the dedicated permit must request a VAT number under art. 35 of DPR 633/1972.

For social security, professionals without a professional fund register with the INPS Gestione separata; artisans and traders with the corresponding INPS schemes; members of a professional register pay into their own fund. Those who meet the requirements may choose the flat-rate regime (see the Money and taxes page). Electronic invoicing through the Sistema di Interscambio is compulsory for all VAT-registered persons, including flat-rate taxpayers, from 1 January 2024 (decree-law 36/2022, art. 18).

Regulated professions (health, legal, technical and others) require registration with the professional body and, for foreign qualifications, recognition. For qualifications obtained in the EU the professional qualifications directive applies: the Italian authority decides within three months of complete documents, cannot demand sworn translations, and for some professions a European Professional Card exists; non-EU qualifications follow national rules. The EU regulated professions database says whether a profession is regulated in Italy; the Ministry of Universities, through CIMEA, issues statements of comparability for academic qualifications.

Obligations after formation

All businesses, sole proprietorships and companies alike, must file their digital domicile (PEC address) with the Registro delle Imprese: if they fail to, the Chamber of Commerce assigns one by default and applies the fine, doubled for companies and tripled for sole proprietorships (art. 37 of decree-law 76/2020). Activities subject to control (retail, food and drink, crafts, personal services and others) start with a SCIA to the Comune's SUAP, filed through the impresainungiorno.gov.it portal, also together with the Comunicazione Unica. Every year registered businesses pay the Chamber of Commerce the annual fee (diritto annuale), whose amount is calculated on the dedicated portal.

Capital companies formed no more than 60 months ago that develop, produce or sell innovative products or services of high technological value may register in the special section of the Registro delle Imprese as innovative startups: annual production value not above 5 million euro from the second year, no distribution of profits, exclusive or prevalent innovative corporate purpose, not resulting from a merger, spin-off or transfer of business. Benefits include reduced formation costs, corporate flexibility, financial instruments for staff, an R&D tax credit, fundraising through crowdfunding portals and tax breaks for investors. A recent legislative change introduced new requirements applying from the third year of registration: the startup portal notes that profile updates are in progress.

Foreigners starting a business and first hires

EU, EEA and Swiss citizens start a business under the same conditions as Italians. Non-EU citizens need a residence permit that allows self-employment: the self-employment visa (art. 26 TUI) requires that the activity is not reserved by law to Italians or EU citizens, adequate resources, the requirements to carry it out, suitable accommodation and an income above the minimum for exemption from health-care co-payments, and is issued within the numerical limits of the decreto flussi, with a decision within 120 days; whether other permits already held allow self-employment should be checked with the questura. Alternatively there is the Investor Visa for Italy, valid for two years, for those investing 2 million euro in government bonds, 500,000 euro in an Italian capital company, 250,000 euro in an innovative startup or 1 million euro in a philanthropic initiative: the application is filed on the platform of the Ministry of Enterprises and Made in Italy, which issues the clearance before the visa (programme suspended for Russian and Belarusian citizens).

Anyone hiring applies the sector's national collective agreement (CCNL), registers as an employer with INPS, insures employees with INAIL by paying the annual premium and notifies the Ministry of Labour online of the start, changes and end of each employment relationship (mandatory communication, UNILAV), which the system makes available to the other bodies. Almost all small businesses entrust payroll and filings to a labour consultant (consulente del lavoro) or an accountant.