How to develop a business in Italy with Permanent Establishment of a foreign company.
How to create a business in Italy with a permanent establishment in Italy or a representative office
Fiscal legislation of foreign companies in Italy expected that these are subject to tax if they carry out income-generating activities and then in the State through a permanent establishment.
To do business in Italy a foreign company has the following options, in relation to the objectives it aims to achieve by opting for one of the three types of structure listed below, which are different from each other in terms of legal and tax matters.
1. Local unit without legal autonomy with auxiliary or preparatory activity of the enterprise. It becomes, therefore, as a cost center, devoid of equipment for carrying out the activity and devoid of power of attorney. From the fiscal point of view, the representative office has no relevance for the purposes of direct taxes and is not subject to IRES or IRAP in Italy was held in the collection of documents related to passive operations in order to forward it to the foreign parent company.
For VAT purposes is regarded as a consumer, and is bound by the requirements typical of withholding in the case of services
provided by professionals or in the presence of employees or agents. In the latter case, activate a relationship with the Enasarco which is a pension fund provided for agents, manage the withholding and INTRASTAT. Can be realized with a Representative Office.
2. Separate legal entity: it is a subject completely autonomous legal, tax and accounting, and is subject to all the rules provided in these materials, state of residence. Normally in this case it is preferable to establish a Invested company by the parent company to 100% preferably Srl, This would support an autonomous taxation in Italy and the parent company will pay tax on any dividends applying the Spanish regulations governing double taxation.
3. Permanent establishment: it represents a middle way between the two previous alternatives.
It can be said that the permanent establishment in Italy does not have legal autonomy with respect to the parent company (who is therefore fully liable for the acts and transactions carried out through the permanent establishment), but is fully relevant for tax purposes.
Can be realized with:
a) a place of management;
b) a branch;
c) an operating office;
d) a factory;
e) a workshop;
Requires the appointment of a fiscal representative in Italy. The requirements are the same as those of the second type.
Our accounting firm, together with our services company instrumental ABSV Consulting Srls, offers foreign companies a 360 degree service for the realization of its presence in Italy with a significant cost containment.
For option 1) Representative Office, it is possible for us to offer the following services:
a) Assumption of professional assignment as procurator towards public administrations financial, tax, social security institutions, such as Enasarco and INPS and third in Italy, with complete management of compliance relating to tax legislation, social security and civil Italian.
b) Registration of the Representative Office with the Registrar of Companies and competent offices with preparation of the necessary documentation. Registration Office representative INPS, Enasarco, etc. INAIL.
c) Management of the relationship with the parent company with periodic reports as needed, and administrative / accounting office.
d) Carrying out tasks on behalf of the parent company
e) Management Certified Electronic Mail
f) Payroll management
By ABSV Consulting Srls
g) Domiciliation at our business center in Piossasco or domiciliation agreement at business center in other cities.
h) Receiving and managing correspondence.
i) Availability of spaces for meetings, meetings, conferences, co-working area.
k) Hospitality for your managers or assistants in hotel, apartment, furnished apartments, close to the business center
The costs for services), c), e), g), h) start from € 650.00 per month for the direct debit to Piossasco, any other choices are to be quoted separately. For the start-up (service b)) the cost will be € 1,200.00 / 1,500.00. Also, for the eventual management of an employee the cost per payslip (service f), inclusive of all the requirements is 50 euro per coupon.
For options 2) separate legal entity, or 3) permanent establishment notwithstanding the possibility to provide you with all the services mentioned above and possibly an activity of selection and coordination of personnel, will need to determine in advance the type, the organization, the tasks to be play our part and those to be carried out by your staff after which we will provide a detailed quote.
If interested in the service or to analyze your situation by an accountant you can request a free consultation or a detailed quote by filling out the form below. We will take you from birth in the stable growth of your organization in Italy.