Published on and written by Cyril Jarnias
Italy, the land of la dolce vita and Made in Italy, is also fertile ground for entrepreneurship and innovation. With its rich industrial fabric, legendary creativity, and growing openness to new technologies, the Italian peninsula offers fertile soil for promising startups to flourish. Whether you’re a French entrepreneur dreaming of conquering the transalpine market or a local innovator eager to launch your project, here is a comprehensive guide to creating your startup in Italy.
Italy, a Startup Paradise?
Italy has long suffered from an image of being unfavorable to startups, wrongly so. In recent years, the country has undergone a true revolution to become one of the most attractive destinations in Europe for innovative young companies.
A Thriving Ecosystem
The land of Dante is experiencing a true entrepreneurial renaissance. According to the latest data from the Osservatorio Start-up Hi-tech del Politecnico di Milano, Italy now counts over 14,000 innovative startups, a number that continues to grow. This growth is explained by several factors:
- A favorable legal framework, with the 2012 innovative startup law offering numerous tax and administrative benefits
- The emergence of dynamic innovation hubs, particularly in Milan, Rome, Turin, and Naples
- A new generation of talented and ambitious entrepreneurs
- Growing interest from foreign investors in Italian potential
Promising Sectors of Excellence
Italy excels in several areas that offer great opportunities for startups:
- Fashion and luxury, with innovations in smart textiles and personalization
- Food and agriculture, with foodtech and solutions for sustainable farming
- Design and manufacturing, with 3D printing and Industry 4.0
- Green technologies and the circular economy
- Fintech and innovative financial services
A Springboard Market to International Expansion
With its 60 million inhabitants and one of Europe’s highest GDPs, Italy offers a substantial domestic market to test and develop your concept. Moreover, its strategic geographic position makes it an excellent base to expand to the rest of Europe, North Africa, and the Middle East.
Good to Know:
Italy has implemented a special “startup” visa to attract foreign talent. This visa facilitates the relocation of non-European entrepreneurs wishing to launch their innovative project in the country.
Which Legal Structure to Choose for Your Italian Startup?
Choosing the legal structure is a crucial step in creating your startup in Italy. Several options are available, each with its advantages and specificities.
The SRL Innovativa: The Star Status for Italian Startups
The “Società a responsabilità limitata innovativa” or SRL innovativa is the most suitable and popular status for startups in Italy. Created in 2012, this status offers numerous advantages:
- Minimum share capital of 1 euro
- Exemption from registration fees
- Flexibility in share distribution
- Ability to issue special categories of shares
- Easier access to crowdfunding
- Tax benefits for investors
To benefit from this status, your startup must meet certain criteria, including:
- Be an unlisted capital company
- Have its main headquarters in Italy
- Have as its corporate purpose the development, production, and marketing of innovative products or services with high technological value
- Not distribute profits
- Invest at least 15% of its revenue in R&D
The SPA: For Ambitious Projects
The “Società per Azioni” or SPA is the equivalent of the French société anonyme. It is suitable for large-scale projects requiring significant capital. Its main characteristics are:
- Minimum share capital of 50,000 euros
- Ability to issue stocks and bonds
- More complex structure with a board of directors
- Increased credibility with partners and investors
The Società Semplice: For Professional Services
For startups in the intellectual services field (consulting, design, etc.), the “società semplice” can be an interesting option. It offers great management simplicity and advantageous taxation but does not allow commercial activities.
Good to Know:
Regardless of the legal form chosen, it is highly recommended to be assisted by an Italian lawyer or accountant to navigate the subtleties of local corporate law.
How to Finance Your Italian-Style Startup?
Financing is often the lifeblood for startups. Fortunately, Italy offers an increasingly developed and diversified financing ecosystem.
Public Aid: Valuable Support
The Italian government has implemented several programs to support innovative startups:
- Smart&Start Italia: Zero-interest loans and grants for innovative startups
- Nuove Imprese a Tasso Zero: Financing for young entrepreneurs and women
- Fondo Nazionale Innovazione: Public investment fund for tech startups
- R&D Tax Credit: Up to 50% of research and development expenses
Venture Capital: A Booming Market
The Italian venture capital market is experiencing exponential growth. According to data from AIFI (Italian Association of Private Equity, Venture Capital and Private Debt), investments in Italian startups reached 2.9 billion euros in 2024, a historic record. Among the main players are:
- P101
- 360 Capital Partners
- United Ventures
- Primomiglio
- CDP Venture Capital
Crowdfunding: The Power of the Collective
Italy is one of the most dynamic European countries in equity crowdfunding. Platforms like Mamacrowd, CrowdFundMe, or OpStart allow startups to raise funds from the general public, sometimes with spectacular campaigns.
Business Angels: Expertise Plus
Business angel networks are developing rapidly in Italy. Associations like Italian Angels for Growth (IAG) or Italian Business Angels Network (IBAN) connect entrepreneurs with private investors, bringing not only funds but also their experience and networks.
Good to Know:
Italy has implemented attractive tax incentives for investors in innovative startups, with deductions of up to 50% of the invested amount.
Keys to Success for Your Startup in Italy
Launching a startup in Italy can be an exciting and potentially very lucrative adventure. Here are some tips to maximize your chances of success:
- Master the language: Italian remains essential to navigate the local ecosystem and build strong business relationships
- Integrate into the ecosystem: Participate in events, join incubators or coworking spaces to get known
- Focus on quality: “Made in Italy” is synonymous with excellence; your products or services must live up to it
- Think international: Italy can be an excellent springboard to other markets; plan your expansion from the start
- Cultivate your relationships: Networking and personal connections are particularly important in Italian business culture
Italy today offers fertile ground for innovative startups. With its dynamic market, thriving ecosystem, and numerous support programs, the Boot is more than ever a destination of choice for bold entrepreneurs. Whether you want to revolutionize fashion, innovate in food and agriculture, or develop the next tech unicorn, Italy welcomes you with open arms. So, ready to conquer the land of Leonardo da Vinci with your startup?
Good to Know:
Despite the progress made, Italy retains certain administrative and cultural particularities. Patience and perseverance remain essential qualities to succeed in this fascinating country full of potential.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
