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.
Global Upside is an end-to-end service where we not only hire your employees, but also take care of all other aspects to ensure your business operates smoothly.
- We take care of the human resources, talent acquisition, payroll and accounting on a global level.
- The hiring process in France can be complicated, not to mention the time-consuming and expensive process of starting a branch office. We help to lift that burden from your business.
- Our team of expert business advisors also take care of all the legal formalities that are involved in your country.
The economy of Italy has been divided into two segments. The northern part is more developed and has a 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.
Legal Entity Setup
The different forms of establishment of a business in Italy are –
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.
It takes at least 2-4 weeks to establish a legal entity setup in France, depending on the kind of arrangement required.
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.
Employers should pay the wages once a month and also provide a pay slip which mentions all details.
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.
Tax & Compliance
The national tax rate here ranges from 23%-43% in addition to another 3% as local taxes.
Data Privacy/ GDPR
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
Italy’s new Law No. 3/2019 that was launched on January 31, 2019, with reference to corporate liability and will take action against legal entities, private individuals and even public officials. The rules are divided into 2 distinct sections –
- Bribery of public administrators – people who work for either the administrative, legislative, judicial sector are known as public administrators. Penalty comprises –
- 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.