Expand Business in Italy
Global Upside help you expand your business in Italy by providing talent acquisition, human resources, accounting, payroll, tax, incorporation, and professional employer organization (PEO)/employer of record (EOR) services. Our comprehensive offerings create an end-to-end solution to help you establish your business and optimize your operations, all while maintaining compliance with Italian laws and regulations.
The hiring and incorporation processes in Italy are often complex, time-consuming, and involve numerous legal and compliance challenges. Global Upside simplifies this process and lifts the compliance burden for your business. Our teams have the experience and expertise required to help you establish a legal entity in Italy. We also offer PEO/EOR solutions to companies interested in hiring employees quickly, without setting up a legal entity in the country.
Set in South-central Europe, Italy, or the Italian Republic, historically is the land of diverse cultures and people. It has a strong and adaptable economy. Ranked amongst the seven most industrialized countries in the world, Italy has an extremely developed production industry. The population is around 60 million and is one of the most economically progressive countries in the world.
The economy of Italy has been divided into two segments. The northern part is more developed and has higher economic growth. While, the southern part is less developed, which makes the economy a bit more sluggish. Here are some interesting facts about Italy:
- Ranks as the 8th largest economy in the world in terms of nominal GDP.
- Ranks as the 4th largest economy in the Eurozone.
- Foreign investors are given incentives by the government.
- Up-to-date infrastructure, high levels of globalization and entrepreneurship.
On March 10, Italy declared a nationwide lockdown which brought a halt to the lives of its 60 million residents. Employers had also announced work from home and the government prohibited the employers from dismissing an employee for the following two months, lest there is a reason. Global Upside continues to guide our clients on ways to retain the employees while they are working remotely.
A representative office is a legal entity that is a part of the parent company, however, it does not represent the latter. A representative office can advertise and promote marketing activities but not carry out any business activity and thus not liable to taxation.
A branch office is an office that represents the presence of an overseas company here in Italy. There is no discrete legal existence and the parent company is subject to all kinds of obligations. In a branch office setup, the costs involved are lower than the other setups.
i) Società a responsabilità limitata (S.r.l.) – this is a common form of entity used for small or medium sized businesses as the management is extremely flexible. It requires a minimum corporate investment of €10,000.
ii) Società per azioni (S.p.A.) – the number of shareholders in this kind of a setup is unlimited and it requires a minimum corporate investment of €50,000.00.
The Italian Employment Act (Jobs Act) is employee friendly and also flexible for the employers. Italian employment law has been based on:
- Italian law
- European Union law
- Mutual labor pacts a) National collective labor agreementb) Territorial collective labor agreement
It is stated that, within a month of hiring an employee, the contract needs to be shared with them mentioning details regarding:
- Name of the employer and employee in full
- Date of joining and training period
- Expiry date of the contract or termination period
- Salary details and all relevant benefits
- Working hours
- Entitlement to paid leaves
- Duties of employee
For further details, kindly visit the website and start your registration.
According to the Italian Civil Code (ICC) and the Generally Accepted Accounting Principles (Italian GAAP/IAS – IFRS), companies here need to keep a consistent record of accounting.
According to the General Data Protection Regulation, GDPR, employers need to notify the employees where the data is being processed. There are many data protection policies that companies need to be aware of under the Italian Data Protection Code.
Anti-bribery & Anti-corruption Law
Anti-bribery and corruption law in Italy is divided into two distinct sections:
Bribery of public administrators – people who work for either the administrative, legislative, judicial sector are known as public administrators.
- For individuals – Imprisonment of at least 1 to 10 years
- For a legal entity – A fine is enforced on the company or legal entity of up to 200 to 600 quotas, i.e. EUR 258 to EUR 1,549
Bribery of private individuals
- For individuals – Directors and officers will be imprisoned for 1 to 3 years
- For a legal entity – A fine is enforced on the company or legal entity of up to 200 to 400 quotas, i.e. EUR 258 to EUR 1,549