Introduction

One of the first choices to be made by anyone starting up a business is what type of management to use. In a nutshell, you need to decide on the juridical formthat you want to adopt. The type of accountancy, the fiscal conduct and the connected administrative operations will all depend on this choice.

The different juridical forms

There exist diverse juridical forms for the exercise of company activities and it is indispensable to assess their characteristics (in association with specialized professionals capable of assisting the launch of the company in full respect of the legal and administrative restrictions) in order to make the best choice. Distinction is made between companies implemented on an individual level (individual companies, family companies, husband and wife companies) and companies implemented on a collective level, the so-called general partnership companies. In these last, we can distinguish between partnerships, joint stock companies and cooperatives.

For more information on the characteristics of the different juridical forms >>>

Different systems of accountancy

As with the juridical forms, companies can choose between different systems of accountancy. This kind of choice, which will condition the consequent fiscal obligations, depends on a great number of factors, the most important being the volume of business, the juridical form adopted and the size of the company.

The accountancy systems available today are the following:

• ordinary administration (ordinary accountancy)
• super-simplified administration
• simplified administration
• a down payment ‘lump sum for ‘minimum’ tax payers
• stand-in administration for new types of productive initiatives

A description of the characteristics of these different accountancy systems is available on the Agenzia delle Entrate(Income Tax Agency) web site.

Fiscal obligations

Whoever operates an activity on Italian territory has to fulfil certain fiscal obligations, the most important of which are the following:

VAT

When setting up a company it is necessary to consider that it will be subject to a series of actions in connection with VAT. VAT is a tax (regulated by D.P.R. 633/72) applied to transactions of goods and services carried out in Italy by holders of VAT numbers, for whom it is, however, ‘neutral’, in the sense that it does not represent a cost or a profit. It is, in fact, paid by the final consumer. The ordinary rate of the tax is 20%, though for some goods and services the law foresees reduced rates of from 4% to 10%.

INCOME TAXES

Depending on the juridical form, the taxes on the income produced by the company are the following:

• Irpef and Irap for individual companies
• Irap for partnership companies

ANNUAL TAX RETURNS

Individual business men and partnership companies who carry on business have to present the following returns:

• Declaration of income
• Declaration Irap
• Declaration VAT
• Declaration of substitution on taxes

For further information about fiscal obligations consult the site of the Agenzia delle Entrate (Income Tax Agency).

PARTICULARITIES FOR FOREIGN INVESTORS

Generally speaking, the concepts we have set out above are valid for foreign investors as well. As far as these last are concerned, however, there are also a number of specific indications that can be summed up in the following list:

• Even in the presence of a stable organization on the State territory, non-residents can nominate a fiscal representative, or alternatively, they can identify themselves as such (art. 35-ter of the D.P.R. n° 633/1972) so as to carry out those obligations and exercise those rights deriving from the performance of operations relative to the effects of VAT in Italy not covered by the stable organization. For this reason, the non-resident subject can take on a double VAT position for which he will be given two distinct VAT numbers by the Anagrafe tributaria (Tax Registry Office).
• Both non-residents who profit from a stable organization in Italy and the fiscal representatives nominated by them must arrange for the opening of a VAT position using one of the specific documents (AA 7/7 or AA 9/7) depending on the Juridical system they have chosen. Those that wish to identify themselves directly, on the other hand, must draw up the declaration of the opening of activities on the form ANR/1 (also available on the Income Tax Agency’s site) and present this, either in person or through the post, exclusively to the local Office of Rome 6, competent to manage the relationship with such tax payers. This kind of declaration cannot be sent by fax, though it is possible to do so for declarations regarding data variations or cessation of activities.

SOME LEGAL REFERENCE POINTS

Juridical form and accountancy system: Code of Civil Law, Book V, Title V, Fiscal system: T.U.I.R. law n° 917/86

USEFUL CONTACTS IN THE AREA

Chamber of Commerce, Industry, Craft and Agriculture, Massa-Carrara,
Address: Via VII Luglio, 14 – 54033 Carrara (MS)
Phone: +39.0585.7641
Fax: +39.0585.776515
General E-mail: info@ms.camcom.it
Opening hours: from Monday to Friday from 8.30 to 12.30 (Tuesday and Thursday also from 15.00 to 16.30)

Office of the Agenzia delle Entrate (Income Tax Agency), to contact in relation with fiscal obligations:

Conzorzio Zona Industriale (Industrial Zone association), to contact in relation with subject matter specifically connected with the placement of the company in the area of the industrial zone;
Address: Via Sforza, 5 – 54100 Massa Carrara (MS)
Phone number: +39.0585.41701
Fax: +39.0585.41702
General e-mail: info@zia.ms.it

Sviluppo Italia Toscana (Italy Development Tuscany), to contact in relation to the opening of new companies and economic, technical, commercial and financial assistance for business operators in the area.
Address: Via Dorsale, 13 – 54100 Massa (MS)
Phone number: +39.0585.7981
Fax: +39.0585.792482
General e-mail: info@sviluppoitaliatoscana.it

USEFUL LINKS

• www.agenziaentrate.it
• www.unioncamere.it
• www.minindustria.it