Company formation in Italy

COMPANY FORMATION IN ITALY

“Light Branch” and Branch - popular company forms in Italy

An Italian company branch with a UK registered parent company can be used as a trading partner to import / export or buy / sell within the EU and beyond its borders. The Italian company branch can have a VAT number and if it pays minimal tax, it can obtain a tax residency certificate.

The “Light Branch” acts almost like a company's representative office. If the “Light Branch” receives any form of income and passes it immediately to the parent company, it is not taxed in Italy. Nevertheless, if the “Light Branch” is used like a normal trading company (funds remain in the branch’s bank account) then the “Light Branch” becomes a “Branch”, which is a taxable entity in Italy.

Italy is not a tax haven: corporate tax rate is 27.5% on net income. A potential tax solution using a company branch registered in Italy:

• Parent company registered outside Italy produces / buys at €100
• Market value of product is €150
• Parent company sells to the company branch registered in Italy for €145
• Italian branch sells to client for €150
• Branch pays tax in Italy only on €5 profit

A personal visit to Italy for company registration purposes is not necessary if the Italian branch opens a bank account elsewhere in Europe (e.g. Cyprus or Latvia). We can arrange to open an Italian bank account for the company branch, but the bank will want to meet the account signatory in person.

REQUIREMENTS FOR COMPANY BRANCH FORMATION IN ITALY

• EU registered parent company recommended (we suggest a UK LP)
• If parent company is within EU but does not have a VAT number, the client will require an Italian resident as a company branch director. (The branch director can be a non-Italian citizen but he should be an Italian resident.) We can provide the nominee director services for company branch in Italy. Please contact us for more details.
• Audited company branch accounts to be filed annually.
• Company branch annual tax return and VAT filed quarterly.
• Codice Fiscale required for parent company of the branch (Italian tax reference number).

COMPANY ITALIAN BRANCH REGISTRATION FEES

Please contact us for recent company branch formation prices in Italy.

TIMESCALES FOR COMPANY BRANCH REGISTRATION IN ITALY

The whole branch registration process in Italy takes approximately 4 – 6 weeks. We offer the ready made companies in Italy on the shelf as well.

OFFICES FOR COMPANIES REGISTERED IN ITALY

• Virtual office for Italian company branch (includes telephone, fax and mail forwarding facilities): €290 per month payable quarterly in advance plus €870 deposit refundable within 30 days upon termination of your company office contract.
• Serviced offices for companies in Italy: cost as per requirement. Please contact us for serviced office fees available to companies registered in Italy.

HOW TO REGISTER A COMPANY IN ITALY?

To open an Italian company, we will require the following:

• 100% of the Italy company formation cost
• A completed application form for company registration in Italy
• A copy of each Italy company's director/shareholders / beneficial owners’ passport
• Utility bill copy that is less than three months old, showing residential address of beneficial owner
• Apostilled copies of parent company documents:
  • Certificate of Incorporation of mother Company
  • Memorandum & Articles of Association
  • Power of Attorney for company Managing Director
  • Annual reports for the last two years (if applicable)
  • Apostilled Certificate of Good Standing for parent company (if applicable)
  • VAT Certification (where required)

Please send your documentation for company formation in Italy to:

SIA IBC Konsultants
Antonijas St. 22-4, LV-1010

Riga, Latvia
Fax: +371 67333957
Email: info@eurocompanyregistration.com
Skype: Contact_IBC

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