2418 Business name or Ltd Co?

[QUOTE=Colibri]Does anyone know the options for types of self employment in Italy, for example, can a sole trader operate under a business name as in the UK, i.e. a businesslike trading name that is not his own personal name, or is it necessary to form a Ltd Co? Any other alternatives? Any ideas of procedures and costs involved?[/QUOTE]

Don`t know really, but I think it`s probably best to consult a commercialista. There are plenty around and it would be better to get proper professional help than risk getting it wrong.

Hi

We're setting ourselves up eventually in Puglia, just doing the rounds of internet sites at the moment. I posted a question about this subject or similiar about a month ago but my expertise does not allow me to return to the original thread. Notaio, should be able to help you here as there are also different tax implications for companies and self employed people and it's not as generous a system as in the UK where you pay taxes in arrears so look into all options a part from trading name before you go into it fully. The Smiths are absolutely right, get a Commercialista, they'll save you taxes and point you in the right direction. Apparently the law changes rapidly and you need to be on top not behind!!

Not that we've actually seen the Commercialista ourselves, but we've found one who is willing to direct us. A start!!!

I'll try and find the various webs we've looked at and send you an PM but I'm doing UK tax returns and VAt so I'm up to my eyes in papers, could be awhile.

Hi,

My wife is a commercialista, working in the Rome area, so maybe I can help out (don't know where you want to work). Her website is [url]www.bizweb.it/sit[/url] and you can contact her for free advice directly from the site.

IN general, howvere, there are 2 basic options for you.

The first is to operate as a sole trader, and you can operate under a business name so that it would be something like "Roger's Pasta di Roger Smith". In order to do this you need to have a "Partita IVA" (VAT number), and register yourself at your local "Camera di commercio" (chamber of commerce). Also, depending on what sector you want to work in, you may need permits or licences, or prove your qualifications.

The second option is to set up an SRL (PLC in English). As in England this would limit your liability but involves an investment of cash at the beginning. You would have to pay a commericalista and also pay a notary for the offial documents of the company.

I know it is what you would expect me to say, with my wife being a commercialista, but from the experience of being a foreigner who has worked as a sole trader, and then opened my own company, it is too difficult to try and do it on your own (it is a minefield). You would only end up losing time and money.

Feel free to ask for advice, howvere, and best of luck.

Ronan

[QUOTE=Colibri]Does anyone know the options for types of self employment in Italy, for example, can a sole trader operate under a business name as in the UK, i.e. a businesslike trading name that is not his own personal name, or is it necessary to form a Ltd Co? Any other alternatives? Any ideas of procedures and costs involved?[/QUOTE]

You can do that indeed, it's calle "societa' di persona" if I'm not mistaken. You'll became part of the "popolo della partita IVA" (the VAT registration people), a defined ethnic group in Italy.

All those people have their accountant "commercialista" because you need always up to date information plus the commercialista will give you lots of advice on tax brakes and will take care of all the proper registration and tax returns. So the best thing is to talk to a commercialista about your business idea and you should get advised on what is the best way to register.

If you have some partners another simple type of company is the S.N.C. you have to personally respond in case of default.

There are many types of self employment in Italy.
A - The first, and the simplest, is [B]"imprenditore individuale" [/B] - sole trader -
As already mentioned, all you need is a partita IVA - VAT number - to register yourself in the Camera di Commercio and, depending on what sector you want to work in, you may need permits or licences, or prove your qualifications.
As a sole trader you are fully liable with all your patrimony in case of default and the incomes are fully taxed at your name.
B - You can split the incomes with your family (if you work with relatives) using an [B]"impresa familiare"[/B]. This is not a company, you'd remain a sole trader and the sole liable, but it might be useful because it lowers the tax impact on your income
Then we have
[B]COMPANIES[/B]
They can be "società di persone" or "società di capitali"
Società di persone have a very simple accounting and do not need a minum capital, of course they need a partita IVA and may need permits etc.
There are two types of "società di persone"
- [B]SOCIETA' IN NOME COLLETTIVO[/B]
It needs at least two partners and all the partners are liable in case of default
-[B] SOCIETA' IN ACCOMANDITA SEMPLICE[/B]
This kind of company has two different categories of partners:
"accomandatari", which are the only one who are allowed to administer the company, but personally respond in case of default
"accomandanti", they do not administer the company and in case of defoult they only risk to lose the capital invested.
There are three types of "società di capitali"
- [B]SOCIETA' A RESPONSABILITA' LIMITATA[/B]
It is the most common.
It limits your liability, but involves a minimum capital of €. 10.000 and a more formal accounting: balance sheets etc.
It can be esablished with a sole shareholder, so you do not need partners.
- [B]SOCIETA' PER AZIONI[/B]
It is the most formal, used for big companies, with many shareholders.
It has a very complex accounting and the partners have, of course, a limitated liability
- [B]SOCIETA' IN ACCOMANDITA PER AZIONI[/B]
It is very rare and not so interesting here
****.
For a general idea of all the system, written in better english than mine, you can visit [url]http://www.notariato.it/eng/notaio/listing.aspx?lml_language_id=0&trs_id=504000&id=1668[/url]

[QUOTE=notaio]
B - You can split the incomes with your family (if you work with relatives) using an [B]"impresa familiare"[/B]. This is not a company, you'd remain a sole trader and the sole liable, but it might be useful because it lowers the tax impact on your income

Notaio, Thanks for the information, very useful and informative as usual. With regards to "impresa familiare" can this be man and wife as a business partnership?

[QUOTE=paula hampson][QUOTE=notaio]
B - You can split the incomes with your family (if you work with relatives) using an [B]"impresa familiare"[/B]. This is not a company, you'd remain a sole trader and the sole liable, but it might be useful because it lowers the tax impact on your income

Notaio, Thanks for the information, very useful and informative as usual. With regards to "impresa familiare" can this be man and wife as a business partnership?[/QUOTE]

This is the "impresa familiare" article of the italian civil code (art. 230 bis c.c.):

Salvo che sia configurabile un diverso rapporto, il familiare che presta in modo continuativo la sua attività di lavoro nella famiglia o nell'impresa familiare ha diritto al mantenimento secondo la condizione patrimoniale della famiglia e partecipa agli utili dell'impresa familiare ed ai beni acquistati con essi nonché agli incrementi dell'azienda, anche in ordine all'avviamento, in proporzione alla quantità e qualità del lavoro prestato. Le decisioni concernenti l'impiego degli utili e degli incrementi nonché quelle inerenti alla gestione straordinaria, agli indirizzi produttivi e alla cessazione dell'impresa sono adottate, a maggioranza, dai familiari che partecipano all'impresa stessa. I familiari partecipanti all'impresa che non hanno la piena capacità di agire sono rappresentati nel voto da chi esercita la potestà su di essi [c.c. 316].

Il lavoro della donna è considerato equivalente a quello dell'uomo.

Ai fini della disposizione di cui al primo comma si intende come familiare il coniuge, i parenti entro il terzo grado, gli affini entro il secondo [c.c. 74, 75, 76, 77, 78]; per impresa familiare quella cui collaborano il coniuge, i parenti entro il terzo grado, gli affini entro il secondo.

Il diritto di partecipazione di cui al primo comma e intrasferibile, salvo che il trasferimento avvenga a favore di familiari indicati nel comma precedente col consenso di tutti i partecipi. Esso può essere liquidato in danaro alla cessazione, per qualsiasi causa, della prestazione del lavoro, ed altresì in caso di alienazione dell'azienda. Il pagamento può avvenire in più annualità, determinate, in difetto di accordo, dal giudice [disp. att. c.c. 38].

In caso di divisione ereditaria [c.c. 713] o di trasferimento dell'azienda [c.c. 2556] i partecipi di cui al primo comma hanno diritto di prelazione sull'azienda. Si applica, nei limiti in cui è compatibile, la disposizione dell'articolo 732.

Le comunioni tacite familiari nell'esercizio dell'agricoltura sono regolate dagli usi che non contrastino con le precedenti norme

Sorry it's in italian.
About your question, of course there can be a partnership between spouses: it can be a company or an inpresa familiare.
A company is... a company, a contract where the partners decide how to share profits, the one who administer the company etc.
An impresa familiare is not a company: it still remains an impresa individuale and it's the "sole trader" who decides how to administer the enterprise, pays for debits etc
He/she is the boss, but if there are relatives cooperating with the sole trader (they can be children, wife, housband, parents, brother/sister - even in law etc.) the "boss" can split the incomes with them and they have rights on the most important decisions.

Thank you again, thats great and interesting to know for the future. :p

Lots of excellent advice especially on the structures available but do not forget that Italy is a high tax economy and, depending on the enterprise under consideration, there are likley to be tax planning considerations which in the long run, can save significant amounts of business taxes and, the potentially expensive, INPS.

No two cases are ever the same but annual tax savings on income of circa €60k could be as high as €7k if one structure is used as opposed to another.

There are many variables to consider.