Having a GDP of 1.95[1] trillion Euros, WTO ranks Italy 10th in terms of world trade for merchandise. Besides Italy offering international entrepreneurs the opportunity to leverage the global image of the nation. Its rich and vibrant cultural life is also one of the reasons for its industrial and global business growth. This makes seeking Italy Residency for Founders a great idea.
As of 2020, more than 631k businesses have already been set up by the foreigners in this region. Also, the nation has various pioneered aspects including capital raising tools for startups, making it an excellent ecosystem for their development and growth.
Why is it best to seek Italy Residency for Founders?
There being abundance of advantages for international entrepreneurs in this region, which renders to pursue Italy Residency for Founders, as a great investment. Italy not only offers amazing resources like highly educated workforce, extensive network of SMEs, strategic location benefits, etc. but some of the other additional benefits of investing in this region include the following-
- Favourable tax incentives - Founders are granted favourable tax incentives against their investment in innovative startups.
- Access to Italian Central Guarantee Fund (CGF)- CGF refers to a guarantee scheme that is established to support small and medium scale businesses, which enables them to access credit by offering lucrative bank credits and capital investments.
- Access to Smart & Start Italia program- This program enables founders to gain access to interest-free loans for the effective functioning of their innovative startups. This is a special program designed to empower female entrepreneurs, to promote the development of underdeveloped regions or to foster scientific projects.
Some of the essential requirements to attain the aforesaid benefits are listed below[2]-
- Must be a limited company;
- Must be a new business or operational for less than 5 years;
- Headquarters must be in Italy or in any other EU country, with at least a production site branch in Italy;
- It should not distribute profits;
- Not a result of company merger, split-up or selling-off
- It shall not be listed on a regulated market or multilateral trading system;
- Annual turnover must be below €5 million;
- Develop, produce and commercialize innovative products or services that is solely and primarily focused on technological innovation
Apart from the above, the company's innovative subject should cover any one of the following requirements –
- Expenses in R&D and innovation are at least 15% of either its annual costs or its turnover (the largest value is considered); or
- employs highly qualified personnel (at least 1/3 PhD holders and students, or researchers, or at least 2/3 Master’s graduates); or
- is the owner, depositary or licensee of a registered patent, or the owner of a registered software
Ways to incorporate a company in the region?
Choosing the appropriate equity framework for your Italian business is crucial to ensure that you achieve the favorable results. This decision carries significance implications on aspects like regulatory compliances, taxation, organizational expansion, etc.
The region has two types of entity classifications –
- Private limited company or S.R.L
- Limited partnership or S.A.S.
The S.R.L is the premier option for individuals seeking to leverage all the benefits of a company while avoiding the associated complexities. This provides high investment flexibility with the initial capital requirement of €1.
[1] https://www.statista.com/statistics/1201202/gdp-italy-current-prices/
[2] https://www.mimit.gov.it/images/stories/documenti/Slides%20innovative%20startups%20and%20SMEs%2007_2019.pdf
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