Starting a business in Italy

Every citizen who has a residence permit in Italy and a financial base, according to the legislation of the country, can open his own business. The conditions for registering a business in Italy do not imply confirmation of the project's profitability for the state, which advantageously distinguishes them from those for other EU countries.

General information about business immigration to Italy

The attractiveness of sunny Italy for foreign investors is explained by many factors:

• Recognition of Italian quality;
• Economic stability;
• Availability of bank loans at Italian interest rates;
• Implementation of innovations and reforms established by the government, reduction of bureaucracy.

A significant advantage of investing capital in your own business is the ability to open branches of the company in other EU countries.

Features of business immigration to Italy

The opening of your own business in Italy is preceded by the definition of the type of company to be created and the legal form of your own company. The registration procedure does not provide for special requirements for the size of the annual turnover, the number of mandatory labor agreements.

The main requirement is the timely payment of taxes. Business efficiency is a personal matter for the founder.

What is a business visa and what type of visa can you get in Italy?

Entry of foreigners to the country for doing business (lavoro autonomo) possible with an immigration visa, which differs significantly from a document called a "business visa". The latter does not give the right to engage in self-employment in Italy.

Such a visa document is a long-term one and is drawn up by the consular department of the country of residence within one to two weeks.

How profitable doing business is ensured

It is really possible for a Russian to "land" in a small or medium-sized business in Italy.

At the same time, the creation of small enterprises is best carried out in the following areas:

• Hotel industry;
• Services sector;
• Agriculture;
• Trade.

Considering that the competition from Italian companies in these sectors is very strong, it will not be superfluous to create your own original market niche for doing business or focus on a service that is not very common in the Republic.

Conditions of immigration to Italy for Russian entrepreneurs

Italian law and the norms of the convention between Italy and Russia provide for the establishment of companies by immigrants on the territory of a foreign state. According to its laws, regulations and by-laws, depending on the type of business chosen, the requirements for founders in terms of their financial solvency also change.

The amount that needs to be confirmed to enter for the purpose of starting a business must be equal to 10-50 thousand euros.

Choosing the required visa, conditions for obtaining it

A national visa for starting your own business from scratch or transferring a business is category D.

When applying for a visa for business immigration, it is necessary to stipulate the following points:

• The purpose of entering the country;
• Proof of temporary residence (declaration of hospitality from an Italian citizen, EU resident or hotel reservation);
• Possession of a sufficient amount of finance;
• Availability of a medical insurance policy valid in this country (in the amount of 30 thousand euros or more).

If all the requirements are met, a Russian citizen can be issued a visa for a period of several years.

How to get a residence permit, permanent residence, citizenship in Italy

Obtaining a residence permit must be ensured that the following conditions are met:

• No prohibition on the chosen line of business;
• Economic profitability of the future enterprise;
• The applicant for a residence permit has no violations of international, European and Italian legislation.

Subject to these conditions, a Russian businessman can establish a partnership, individual enterprise or LLC in Italy.

Italian laws provide an opportunity for foreign investors living in the country for at least 5 years to have permanent residence (permanent residence). This type of residence permit is unlimited.

It becomes possible to obtain an Italian passport under the following circumstances:

• On the basis of the conclusion of a marriage union with citizens of Italy;
• With legal residence in Italian territory for a decade;
• At the birth of a baby, if one of the parents is Italian, the newborn becomes an Italian citizen.

If the parents are stateless or unknown, the person born in the country will be recognized as Italian.

Buying a ready-made business or opening it from scratch

To buy a ready-made business and then not regret it, it is imperative to conduct a full audit of the company being sold, which includes:

• Analysis of the last balance;
• Assessment of the value of funds;
• Verification of legal data, company history;
• Getting information about the state.

Information about the object in the mass media should be of particular interest.

For a foreigner who opens a new innovative business from scratch, there is an opportunity to receive benefits for doing business.

These privileges relate to questions:

• Hiring and remuneration;
• Stamp Duty Exemptions;
• Payments to the Chamber of Commerce, etc.

What options for doing business are most often used by Russian businessmen

The profitability of a business is highly dependent on the region of residence. In the north, where industry is a developed sector of the economy, it is most profitable to do design, real estate renovation, construction, open a restaurant or a service company in the IT field. Profitability when creating software products can reach 200%.

Agriculture is more developed in the south of the country. Here our compatriots conduct business, cultivating cereals, grapes, olives, sugar beets, and tobacco. The profitability of tourist business enterprises is typical for all regions of the Republic and reaches 250 – 300%.

Business ideas with minimal investment

Without large capital investments, our fellow countrymen are successfully doing business in the provision of services, opening companies in the following areas:

• Electronic equipment repair service;
• Services for the care of the frail and elderly citizens;
• Offline and online translation agency;
• Development of computer programs, their provision and maintenance.

The most popular types of business for a Russian entrepreneur are:

• Opening of a mini-hotel, beauty salon;
• Acquisition of a vineyard or agritourism business.

What Russian entrepreneurs who immigrated to Italy talk about

For Tatiana, the question arose: "What to do?" When she arrived in Verona, and has been living there for four years. Tanya noticed that Italians are really interested in Russian culture, doing business in Russia, etc. To satisfy the interest of her acquaintances local residents, she created her own business - "Russian Center".

Here consultations are held for those wishing to sell Italian branded clothing, cheeses, olive oil in Russia, and there are culinary courses in Russian cuisine. She recently opened a small shop of Russian souvenirs and books of Russian classics at the Center. Now she works with a travel agency specializing in Russian cultural tourism.

Our compatriot Alexander Kotlyar opened a business in Genoa, the nuances of which he knows firsthand. His agency provides assistance to Russian citizens who want to immigrate to Italy in order to create a business.

Legal nuances

The independent establishment and registration of an individual entrepreneur (individual entrepreneur) or a company takes a lot of time, but as a result, the immigrant becomes the full owner of his company in Italy, not dependent on anyone. He independently chooses the most acceptable form of organizing his business.

Stages of business registration in Italy

Having received a residence permit, a future businessman must go through the following stages of formalizing his business:

1. Develop and approve notarized statutory documents;
2. Open a bank account;
3. Pay the duty to the state;
4. Obtain an appropriate license;
5. Notify the local labor office about hiring workers;
6. Prepare accounting documentation.

If the documents comply with the norm, the Chamber of Commerce will register a new company. The cost of registration will be 220-300 euros.

The most popular types of businesses - legal entities in Italy - are the following:

• Full partnership – Società in nome collettivo, or SNC... This form provides for the presence of several founders of a business with an agreed distribution of profits;
• Limited partnership – Società in accomandita semplice, or SAS... This form assumes both the presence of participants and contributors or commanders;
• Opening an LLC is typical for large businesses, such firms have a staff more than 250 people.

Opening your own individual entrepreneur (individual enterprise) is most suitable for starting an entrepreneurial career.

Taxation

Italy's taxation system is the most complex in the entire Eurozone. State budget revenues are 80% from all government revenues.

The state provides for the following tax rates:

• Income tax calculated at a progressive rate - 23–43%;
• Tax to the state budget on profits - 24%, in the regional - 4,25%;
• VAT – 22% (for food - 10,5%, book products - 4%).

Stamp tax is supposed to be paid when processing legal documents for doing business.

Other nuances

To be recognized among business partners - Italians, it is better to learn the intricacies of local life for a while, learn the language, customs and mores of the inhabitants of the country. The Italians' mentality affects the way Russian entrepreneurs do business. The inhabitants of the country lead a measured way of life; they prefer the same rhythm in business relations.

They may be an hour and a half late for a business meeting, but they pay great attention to how the business partner is dressed and what they are wearing, to his grooming and tidiness. There is also corruption in the country, but in a veiled form: none of the officials will take a bribe from a stranger. Everything is decided by family or friendship.

Reviews of failures in doing business in Italy

The restaurant business in Italy is not always profitable. Our compatriots Igor and Elena K. were convinced of this, who closed after a year and a half - they could not withstand the competition. The owners could not find a common language with suppliers, did not study the peculiarities of local outlets, and overly trusted the chef. They rented the restaurant and almost all the profits were spent on rent.

Franchising also comes with pitfalls, which our fellow countrymen (the Polyakov brothers from Smolensk) did not suspect. The franchisor, who promised preferential terms for the business, after receiving the lump-sum payment, dramatically changed the relationship. Franchisees have lost money and hope for support. The business was closed.

Starting a business in Italy should be preceded by a deep study of the legal foundations of doing business, the nuances of the taxation system, and the local mentality. The efforts spent, perseverance and resourcefulness in business will allow you to first get out of the "minus", then - from the "zero", and then - to receive a stable income and prosperity of the company.