When expanding your business into Italy, selecting the right Employer of Record (EOR) provider is an important decision. Beyond ensuring compliance with labour laws, your EOR provider acts as a bridge between your business and the local systems, culture, and authorities. This makes choosing between a global or local EOR provider a significant factor in the success of your operations in Italy.
Yes, global providers may offer broad reach, but they often lack the specific cultural and procedural knowledge that only a local provider can deliver. Moreover, many do not possess the required authorizations to legally operate in Italy.
Here’s why going local first is the best approach for businesses looking to succeed in Italy.
The Value of Cultural and Local Knowledge
An EOR provider in Italy must do more than ensure legal compliance—they must understand how to navigate the unique cultural and bureaucratic processes that define Italian business.
For instance, Italy’s administrative systems often require in-person interactions. A local provider can walk into the immigration office, speak directly to the officer managing a case, and expedite processes in ways that a global provider cannot.
Sometimes, when working with visas and work permits, having someone on the ground who can physically visit the relevant authorities and liaise in Italian speeds up the process dramatically. Global providers, even with representatives in Italy, often lack senior decision-makers who can engage effectively with local authorities.
Relationships with Local Authorities
In Italy, having strong connections with local authorities can be a significant advantage—but not in a negative way. It’s about knowing the right people, built on years of working within the system.
A local EOR provider will:
- Have established relationships with key offices like immigration or tax agencies.
- Know exactly who to contact for specific issues, avoiding general call centres or long bureaucratic processes.
These networks allow local providers to handle issues more efficiently than their global counterparts, who rely on standardised processes that may not align with Italy’s traditional systems.
Handling Italy’s Unique Requirements
Italy’s bureaucratic processes can be unusually paper-heavy compared to other countries. Some documents still require handwritten signatures or specialised digital signatures issued by specific local agencies.
- Handwritten Signatures: In certain cases, a managing director must physically sign a document, scan it, and return it to the relevant office.
- Specialised Digital Signatures: These differ from standard platforms like DocuSign. Instead, businesses may need devices such as smart cards for authentication, which local EOR providers can manage directly.
Global providers often face delays navigating these requirements because they lack immediate access to local offices or the tools to fulfil these demands quickly.
The Importance of Speaking the Local Language
Language barriers play a significant role in the effectiveness of an EOR provider in Italy. While global providers may offer services in English, the real challenge arises when they need to interact with local authorities, labour consultants, or accountants who may not be fluent in English.
One of the primary concerns is the accuracy of communication. English proficiency levels in government offices and administrative agencies in Italy can vary significantly, which can sometimes lead to communication challenges. Miscommunications may result in mistakes in documentation or missed deadlines, complicating compliance and operational efficiency.
Additionally, with international providers, there’s often a chain of communication—client to global provider, global provider to local expert, and back again. This increases the likelihood of information being lost in translation, as messages must pass through multiple intermediaries before reaching their final destination.
A local EOR provider eliminates these risks by communicating directly in Italian, ensuring nothing important is overlooked or misunderstood.
Speed and Efficiency in Italian Bureaucracy
Italy has complex bureaucratic processes, and global providers often struggle to meet tight deadlines or navigate unexpected obstacles without local expertise on the ground.
For example, certain processes in Italy—such as obtaining tax codes or registering employees—require face-to-face interaction with local offices. A local EOR provider, familiar with these requirements, can act quickly, whereas a global provider may face delays due to their reliance on distant decision-makers or lack of local networks.
An experienced local provider also ensures compliance with safety and insurance requirements mandated by the National Institute for Insurance against Accidents at Work (INAIL).
Tailored Advice from Local Experts
Italy’s regulations are often subject to interpretation and regional variation. A local EOR provider brings value by offering tailored advice that global providers cannot match.
A local expert will:
- Inform you of practices or rules that can save you time and money.
- Alert you to common pitfalls, such as regional variations in bureaucracy.
- Provide practical solutions for navigating Italy’s administrative processes efficiently.
While some regions in Italy may have streamlined procedures for certain applications, others may rely on older, slower systems. A local provider will know these differences and guide you accordingly.
The Role of Local Networks
In Italy, the phrase “knowing who to call” carries real weight. A local provider doesn’t rely on standardised helplines but instead has direct connections to the right people within offices like immigration, tax, or labour.
This isn’t about cutting corners but about working efficiently within the system. Knowing who to approach and how to approach them allows local providers to resolve issues faster and with fewer complications.
For example, a global provider may rely on a centralised customer service number for an immigration office, while a local provider will call a specific individual they’ve worked with before, speeding up the process dramatically.
Why Local Providers Offer a Better Experience?
Global providers often subcontract to local experts or maintain minimal on-the-ground staff, many of whom lack the seniority to make decisions or address complex cases. This can create inefficiencies and lead to frustration for clients who need quick solutions.
A local EOR provider offers:
- Direct communication with decision-makers.
- Immediate action on pressing matters.
- Fewer intermediaries, reducing the chance of errors.
The result is a faster, smoother experience for businesses looking to establish themselves in Italy.
Choosing the right EOR provider in Italy is about more than just compliance—it’s about finding a partner who understands the country’s culture, bureaucracy, and unique administrative processes.
A local EOR provider brings unparalleled expertise, faster solutions, and better communication to the table. From navigating Italy’s signature-heavy processes to building strong relationships with local authorities, the advantages of a local provider far outweigh the broad but often shallow services of a global provider.
If your goal is to expand successfully into Italy, remember to go global, go local first.
Ready to expand into Italy? Contact Peoitaly today to see how we can help you achieve your goals.
