Last updated: 29 October 2026 · Written by the Peoitaly team, helping foreign companies hire and operate in Italy.
Key takeaways
- Short answer: foreigners can open a sole proprietorship, a partnership (SNC or SAS), a limited liability company (SRL or the simplified SRLS), a joint-stock company (SpA), or a branch of a foreign company.
- The SRL is the most common choice for foreign-owned businesses: liability is limited and the share capital can start from €1.
- An SpA requires at least €50,000 of share capital and is designed for larger operations.
- Non-EU citizens need a residence permit that allows self-employment or business activity.
- If you only need to hire staff in Italy, you may not need a company at all: an authorised Employer of Record can employ them for you.
Italy offers several legal forms for doing business, and foreigners can use all of them. The right one depends on how much risk you want to take personally, how much capital you plan to invest, and whether you want to trade, hire staff or simply test the market. This guide compares the main types of business you can open in Italy as a foreigner. For the practical steps of incorporation, see our guide on how to set up a company in Italy.
Types of companies in Italy at a glance
| Structure | Liability | Minimum capital | Typical use |
|---|---|---|---|
| Sole proprietorship | Unlimited | None | Freelancers, small local activities |
| SNC / SAS (partnerships) | Unlimited for (at least some) partners | None | Small businesses run by partners |
| SRL | Limited | €1 (€10,000 standard) | Most foreign-owned SMEs |
| SRLS | Limited | €1 to €9,999.99 | Small start-ups owned by individuals |
| SpA | Limited | €50,000 | Large or capital-intensive businesses |
| Branch (sede secondaria) | Foreign parent is liable | None | Foreign companies operating in Italy |
Sole proprietorship (ditta individuale)
The simplest form for one person offering services or selling goods on a small scale. It is quick to set up and needs no minimum capital, which suits freelancers, tradespeople and consultants.
The downside is unlimited liability: the owner’s personal assets answer for the business’s debts. Setting one up requires an Italian tax code (codice fiscale), a VAT number, registration with the Business Register where required and with INPS, and, for non-EU citizens, a residence permit that allows self-employment.
Partnerships: SNC and SAS
Italian law has two main partnership forms (società di persone):
- SNC (società in nome collettivo): all partners are jointly and personally liable.
- SAS (società in accomandita semplice): general partners have unlimited liability, limited partners risk only what they invest but cannot manage the business.
Partnerships have lower running costs and no minimum capital, but limited liability is not automatic. If protecting personal assets matters, a company is usually a better choice.
Limited liability company: SRL and SRLS
The SRL (società a responsabilità limitata) is Italy’s limited liability company and the most common structure for foreign-owned SMEs. It can be owned by individuals or companies, and the shareholders’ liability is limited to the capital they invest.
- Share capital: the standard amount is €10,000, but an SRL can be set up with as little as €1. Below €10,000 the capital must be paid fully in cash, and part of the yearly profits must be set aside until the reserve and capital reach €10,000.
- Incorporation: by notarial deed, with articles of association, a registered office in Italy and registration in the Business Register.
- SRLS (SRL semplificata): a simplified version with capital between €1 and €9,999.99, standard articles of association and lower notarial costs. It can only be owned by individuals.
Source: Italian Civil Code, arts. 2463 and 2463-bis
Most foreign entrepreneurs who plan to stay long-term choose an SRL: it balances credibility, protection and flexibility.
Joint-stock company: SpA
The SpA (società per azioni) is designed for large operations, external investors or a future listing. It requires minimum share capital of €50,000, of which at least 25% is paid in at incorporation, and a more formal governance: a board of directors or sole director and a board of statutory auditors. It can issue shares and bonds. Source: Italian Civil Code, art. 2327
Branch and representative office
- Branch (sede secondaria): part of the foreign company, not a separate legal entity, but with an Italian address, a legal representative and Italian tax and reporting obligations. The foreign parent is fully liable.
- Representative office (ufficio di rappresentanza): a presence for market research, promotion or liaison only. It cannot sell, sign contracts or issue invoices.
Need staff in Italy before you set up a company? We can employ them for you, legally, from day one.
Talk to PeoitalyCan a foreigner open a business in Italy?
Yes. EU citizens can open a business on the same terms as Italians. Non-EU citizens can own shares in an Italian company, but to live in Italy and run the business themselves they need a visa and residence permit that allow self-employment or business activity. Documents usually required:
- passport and, for non-EU citizens, a visa or residence permit;
- Italian tax code (codice fiscale) for owners and directors;
- an Italian business address;
- an Italian bank account to pay in the share capital;
- notarised articles of association, for companies.
Which structure should you choose?
- Freelancing or a small solo activity: a sole proprietorship.
- Launching a business with employees, investment or contracts: an SRL.
- Large operations or external investors: an SpA.
- An existing foreign company starting to sell in Italy: a branch or an Italian subsidiary (SRL).
- A foreign company that only needs to hire a few people in Italy: an Employer of Record, without opening any entity. In Italy this must be an agency authorised by the Ministry of Labour: see is EOR legal in Italy?.
Frequently asked questions
What types of companies exist in Italy?
The main ones are the sole proprietorship, partnerships (SNC and SAS), the limited liability company (SRL and simplified SRLS), the joint-stock company (SpA) and, for foreign companies, the branch.
What is the best business structure in Italy for foreigners?
For most foreign entrepreneurs and companies, the SRL: liability is limited, capital can start from €1 and it is credible with banks, clients and suppliers.
What is the minimum capital for an SRL in Italy?
An SRL can be set up with €1. The standard capital is €10,000; below that amount the capital must be paid in cash and part of the profits set aside as a reserve.
Can a non-EU citizen open a company in Italy?
Yes, they can own shares in an Italian company. To live in Italy and run it themselves they need a visa and residence permit that allow business or self-employed activity.
Do I need a company in Italy to hire employees?
No. A foreign company can hire in Italy through an Employer of Record, provided it is an agency authorised by the Italian Ministry of Labour.
Expanding to Italy? We help you hire your first employees, with or without an Italian company, and reply within 24 hours.
Book a callUpdated October 2026. This article provides general information; for incorporation, tax and immigration questions, speak to a notary, accountant or immigration adviser.
