Starting a business in Italy for Eur1 (and no, there aren't any zeros missing)

Earlier this week I was interviewed on starting a business in Italy by Katie Morell for AmEx OpenForum. As part of that, I was explaining how you should never ever underestimate the amount of time it's going to take you to get things done. What take a two-minute phone call in the UK, can drag on for months over here. If you really are determined to start a business in Italy, then don't let this put you off. But it is somethng you need to be aware of. 

On the upside, I mentioned how things are slowly getting easier because Italy is finally catching up with the rest of of Europe. Of course, much of that has been due to the dire economic situation Italy's found itself in and the reforms that the caretaker prime minister Mario Monti has pushed through as a result (two sentences don't do justice to the situation or the steps that have been taken to reverse Italy's fortunes but I'm not interested in discussing that here). One of those is the società semplificata di responsabilità limitata or, to put it into English, a semplified limited company. 

The beauty of this reform is that you can now launch a start-up for just Eur1 and also bypass all the longwinded, faffy red tape that usually goes hand-in-hand with doing just about anything in Italy. For example, instead of making an appointment to see the notary, you simply send an online notification to the Registro delle Imprese (Companies' Registry Book) of your new venture and hey-ho, you're in business. 

Monti explained this decision on the Italian current affairs show Otto e Mezzo when he was grilled by the journalist Lilli Gruber. He said: "I don't know how many Bill Gates there are in Italy but if there are any, we don't want complicated and time-consuming procedures to prevent the birth of start-ups. 

On a personal note, there is one aspect that miffs me mightily. Monti's governemnt brought in these reforms a month after my 35th birthday, the cut off age for taking advantage of this new law. Since I'm too old (eek) to pay my Eur1 and start a new business, I hope you do. 

Comments

[Scott]

Hi Emma,

I am so lucky to have found your blog. It's great! Thanks for all your work.

I have just learned that I must start working as an Italian, no longer as an Australian, and pay Italian tax and be an Italian business entity. I am a really small fish, and want to keep things as simple as possible. Is this SSRL option worth considering for a sole proprietor expecting a turnover of maybe EUR20k? Or would you recommend I just register for IVA to keep it simple?

Sorry, I know it's not the simplest question, and I will do all my own research, but I would like your opinion. Why do you wish you could have become SSRL if you fitted into the age bracket?

TIA,

Scott

[Emma]

Hi Scott,

I'm glad you like the blog and you're finding it useful.

Without knowing what line of business you're in and your expected turnover/expansion (if any) for the coming years it's difficult for me to give specific advice.

If you're a sole trader and your annual turnover is Eur20k, you can register for the regime dei minimi, which is where you just have a Partita Iva (VAT for anyone else reading). You're exempt from paying Iva but equally you can't offset it either. There are also other restrictions. You can't hire anyone and you can't spend more than Eur15k on rent in three years.

Again, as for 'just' registering for a P.Iva it depends what business you're in so I can't answer that.

As to why I wish I could have become a SSRL, that wording might be slightly misleading. I have a couple of business ideas. If I only had to pay Eur1 to set the business up, I might be more likely to jump in and try it out. When you have to wade through a swamp of red-tape before you've even begun, I think that's offputting and you're likely to think twice about doing something.

I hope that helps.
Emma