Cost of Setting Up a Company in Italy

Published on September 30, 2025 and written by Cyril Jarnias

Italy, with its rich cultural heritage and dynamic economy, attracts many foreign entrepreneurs eager to establish their businesses there. However, before embarking on this entrepreneurial adventure, it’s crucial to fully understand the costs associated with setting up a company in this Mediterranean country. In this article, we’ll explore in detail the various financial aspects to consider and provide you with tips to optimize your budget.

The Essentials: Registration Fees and Administrative Procedures

The first step in creating your company in Italy involves paying registration fees and completing the necessary administrative procedures. These costs can vary depending on the legal structure you choose for your business, but it’s important to anticipate them in your initial budget.

For a limited liability company (SRL), which is the most common legal structure for small and medium-sized businesses in Italy, registration fees typically range between €2,000 and €3,500. This amount includes notary fees, stamp duties, registration fees with the Business Register, and costs related to obtaining your VAT number.

It’s also important to note that since 2015, Italy has introduced the possibility of creating a simplified limited liability company (SRLS) with a minimum share capital of one euro. This option can be particularly interesting for entrepreneurs with limited budgets, as registration fees are reduced to approximately €200-300.

However, be aware that these costs may vary slightly depending on the Italian region where you wish to establish your business. It’s therefore recommended to inquire with local authorities or a specialized lawyer to obtain an accurate estimate of registration fees in your target location.

Navigating Compliance Requirements: A Necessary Investment

Once your company is registered, it’s essential to budget for ensuring compliance with Italian regulations. These compliance costs can represent a significant portion of your budget, but they’re indispensable to avoid any legal or tax problems later on.

Among the main compliance costs to consider are:

• Accounting professional fees: between €1,500 and €3,000 per year for a small business
• Bookkeeping maintenance fees: approximately €200-300 per month
• Costs related to preparing and filing tax returns: between €500 and €1,000 per year
• Chamber of Commerce membership fees: approximately €200 per year

It’s also important to budget for compliance with regulations specific to your industry. For example, if you operate in the food industry, you’ll need to comply with HACCP standards, which may incur additional costs.

To optimize these compliance costs, it may be wise to hire an accounting firm specialized in assisting foreign businesses in Italy. These professionals can effectively guide you through administrative procedures and help you avoid costly mistakes.

The Bottom Line: Initial Investment to Launch Your Business

Beyond registration and compliance fees, it’s crucial to assess the initial investment needed to actually launch your business in Italy. This amount can vary considerably depending on your industry and the scale of your project.

Here are some elements to consider in your initial investment calculation:

• Share capital: for a standard SRL, the legal minimum is €10,000 (of which 25% must be paid at incorporation)
• Office space rental or purchase costs: prices vary considerably by region, but budget an average of €150-300/m²/year for an office in a major city
• Equipment and materials necessary for your business
• Staff recruitment and training costs
• Marketing and communication expenses for launching your business

It’s recommended to set aside sufficient cash reserves to cover at least 6 months of your company’s operations. This precaution will allow you to handle unexpected situations and navigate the startup phase of your business smoothly.

To reduce this initial investment, several options are available to you:

• Opt for an SRLS with a minimum share capital of one euro
• Start your business working remotely or in a coworking space to reduce rental costs
• Choose leasing or rental options for expensive equipment
• Use freelancers or interns initially rather than hiring full-time employees

Daily Business Operations: Managing Your Operational Expenses

Once your company is established and your business is launched, it’s crucial to properly assess and manage your operational expenses to ensure your company’s profitability. These recurring costs can quickly accumulate if you don’t pay attention to them.

Among the main operational expenses to consider are:

• Salaries and social security contributions: in Italy, social security contributions represent approximately 40% of gross salary
• Rent and utility charges
• Electricity, water, and telecommunications expenses
• Professional insurance
• Travel and entertainment expenses
• Equipment maintenance and repair costs

It’s important to note that the cost of living and doing business can vary considerably from one region to another in Italy. For example, operational expenses will generally be higher in major cities like Milan or Rome than in medium-sized cities or rural areas.

To optimize your operational expenses, here are some strategies to consider:

• Negotiate long-term contracts with your suppliers to benefit from preferential rates
• Opt for remote work or flex office solutions to reduce real estate costs
• Invest in energy-efficient equipment to reduce your electricity bills
• Implement a rigorous expense control policy within your company

Optimizing Your Budget: Strategies to Reduce Costs Without Compromising Quality

Creating and managing a business in Italy can represent a significant investment, but there are numerous strategies to optimize your budget without compromising the quality of your products or services. Here are some avenues to explore:

1. Take advantage of tax incentives: Italy offers various tax benefits to businesses, particularly in certain southern regions or for innovative startups. Inquire with local authorities or a tax advisor to identify opportunities you might benefit from.

2. Choose digitalization: Using digital tools can help you significantly reduce your operational costs. For example, prefer cloud computing solutions rather than investing in expensive physical servers.

3. Explore partnership possibilities: Collaborating with other businesses can help you share certain costs, such as office space rental or equipment purchases.

4. Train yourself in the basics of Italian accounting and business law: Although hiring professionals is essential, a good understanding of these areas will allow you to better manage your business day-to-day and reduce your dependence on external consultants.

5. Prioritize “Made in Italy”: Working with local suppliers can help you benefit from the “Made in Italy” reputation while reducing your transportation and logistics costs.

Remember that cost reduction shouldn’t come at the expense of your products’ or services’ quality. It’s crucial to find the right balance between budget optimization and maintaining high standards to ensure your business’s success in the Italian market.

Creating a company in Italy certainly represents a significant investment, but it’s also an extraordinary opportunity to develop your business in one of Europe’s most dynamic markets. By thoroughly understanding the various associated costs and implementing appropriate optimization strategies, you can maximize your chances of success in this opportunity-rich country.