Mergers & Acquisitions
10.1 Legal Framework M&A transactions in Italy are governed by the Civil Code, the Consolidated Financial Act (TUF), and EU regulations. Key authorities include: Cross-border deals may also trigger foreign investment screening under the Golden Power regime. 10.2 Deal Structures Common M&A structures include: Each structure has different tax, legal, and operational implications. Due diligence […]
Business Tax
9.1 Corporate Taxation Italian companies are subject to two main taxes: Taxable income is calculated according to Italian GAAP, with adjustments for non-deductible expenses and exemptions. Losses may be carried forward indefinitely, subject to limits. 9.2 VAT and Indirect Taxes Italy applies a standard VAT rate of 22%, with reduced rates (10%, 5%, 4%) for […]
Executive Performance and Compensation
7.1 Executive Roles and Titles Italian companies typically appoint executives such as: Amministratore Delegato (CEO) – Chief executive with delegated powers Direttore Generale – General manager overseeing operations Chief Financial Officer (CFO) – Responsible for financial strategy and reporting Board Chair – Leads board meetings and governance oversight Titles and roles vary by company size […]
Accounting and Reporting
6.1 Accounting Standards Italian companies generally follow the Italian GAAP (OIC) for statutory reporting. Listed companies and large groups must use IFRS as adopted by the EU. The choice of standards depends on company type, size, and listing status. 6.2 Bookkeeping Requirements All companies must maintain accurate books, including: Journal (Libro giornale) Inventory book (Libro […]
Directors and Management
4.1 Appointment and Eligibility Directors are appointed by shareholders and must meet basic eligibility criteria: Be at least 18 years old Hold a valid Italian tax code (codice fiscale) Not be disqualified or bankrupt Foreign nationals may serve as directors, subject to reciprocity rules. Residency is not required, but practical considerations (e.g., signing authority, tax […]
Introduction
This guide is intended to give a high level introduction to carrying on business in Italy 1. Legal Background 2. Business Structures 3. Shareholders and Members 4. Directors and Management 5. Conducting Business 6. Accounting and Reporting 7. Executive Performance and Compensation 8. Employment Matters 9. Tax 10. Mergers & Acquisitions 11. Financial Crime 12. […]