How to Start a Small Business in Italy Legally

Launching a new activity in Italy requires dealing with several legal and administrative steps, from choosing the right structure to registering with public authorities. Understanding how these pieces fit together helps you avoid delays, penalties, or unexpected obligations. This guide focuses on the essential requirements for setting up a small business legally in Italy, giving you a practical overview you can use as a reference while you develop your project.

Start a business info for Italy

Before you submit any forms, it is useful to gather start a business info that is specific to Italy. The first decision is usually the legal structure. Many very small initiatives begin as a sole proprietorship, known as an impresa individuale, where one person owns and manages the activity and is personally responsible for obligations.

Other common options include partnerships such as società in nome collettivo (SNC) and limited liability companies such as società a responsabilità limitata (SRL) and its simplified version (SRLS). Professionals and freelancers often operate as a lavoratore autonomo with a VAT number. Each form has different implications for liability, taxation, governance, and start-up formalities, so comparing them carefully is important.

When you collect start a business info, consider your sector, level of risk, expected turnover, and whether you plan to work alone or with partners. Many entrepreneurs discuss these aspects with an accountant or notary to evaluate which structure aligns with their goals and resources.

Start a Business Guide: legal steps in Italy

Once you have chosen a structure, you can move through the main legal steps. This Start a Business Guide outlines the typical sequence for many small activities:

1. Define your business name and activity description. Check that the name is available and not misleading or confusing with existing businesses. The local Chamber of Commerce can assist with checks for company names.
2. For companies such as SRL or SRLS, prepare the articles of association with a notary. The notary formalizes the incorporation deed, which is required for registration.
3. Register with the Business Register (Registro delle Imprese) through the ComUnica procedure at the Chamber of Commerce. This one-stop notification typically covers the Business Register, tax agency, social security (INPS), and workplace insurance (INAIL).
4. Obtain a tax code (codice fiscale) and a VAT number (partita IVA) from the tax authority, Agenzia delle Entrate. In many cases this is integrated in the ComUnica process.
5. Submit any required certified notice of commencement of activity (Segnalazione Certificata di Inizio Attività, SCIA) to the local municipality. This often applies to retail, hospitality, crafts, and similar sectors.
6. Register for social security and welfare contributions with INPS and, where applicable, for workplace injury insurance with INAIL.

This Start a Business Guide is general and some sectors, such as food service, health, or construction, may require additional permits, professional registrations, or technical certifications. Always check specific regional and municipal rules for your activity.

Start a Business Article: compliance and taxes

This Start a Business Article also needs to address what happens after registration, because legal compliance continues during the life of your business. Italian law requires proper bookkeeping that matches the size and type of your activity. Very small businesses may qualify for simplified regimes, while larger or more complex structures must use ordinary double-entry accounting.

Italy has mandatory electronic invoicing (fatturazione elettronica) for most transactions. In practice, this means issuing invoices through approved software that sends data to the central exchange system, known as Sistema di Interscambio. You must keep invoices and accounting records for the legal retention period and ensure that your invoices contain all necessary details, such as VAT number, description of goods or services, and tax amounts.

In terms of taxation, business income is generally subject to income tax (IRPEF for individuals, IRES for companies), regional tax on productive activities (IRAP), and value added tax (VAT) where applicable. Some small businesses may access a simplified flat-rate scheme, often referred to as regime forfettario, if they remain under turnover limits and meet other conditions established by law. This regime applies a fixed percentage to calculate taxable income and a specific tax rate, but the rules can change, so up-to-date advice is important.

Compliance is not limited to taxes. If you employ staff, you must respect labour law, collective agreements, and workplace safety obligations. Even if you have no employees, data protection rules, including those deriving from the General Data Protection Regulation, may apply when you handle customer information. Local rules can also affect signage, opening hours, environmental impact, and noise.

Practical arrangements support legal compliance. Opening a dedicated business bank account helps separate personal and business finances, which is particularly relevant for limited liability structures. Written contracts with suppliers and clients clarify responsibilities and can reduce disputes. Keeping a simple calendar of deadlines for tax payments, social contributions, and annual filings reduces the risk of missing important dates.

Starting a small business in Italy legally involves planning, informed choices, and careful respect of procedures, but the steps become manageable when broken down into clear stages. Selecting an appropriate legal form, registering with the authorities, and understanding your tax and compliance duties provide a framework within which your idea can grow. With accurate information, such as that offered in this Start a Business Article, and where necessary tailored professional support, you can build a sustainable activity that operates confidently within the Italian legal system.