Country Profile Fact Sheet ITALY

Doing Business in the European Union

For the Chamber of Commerce
Department: Enterprise Europe Network
2010
2










Tutors
Vakkuri Madeleine
Perttu Matti
Jokinen Janne


Group members Team 2
Chi Roland
Huttunen Yasmin
Keskinen Oona
Martin Alessandra
Obert Steffi
Vihinen Lauri
3
Table of content
1. OVERALL VIEW OF THE COUNTRY ITALY 6
2. ITALYS MACROECONOMY 8
2.1. GENERAL ECONOMIC DEVELOPMENT 8
2.2. KEY INDICATORS 9
2.3. FORECAST 12
2.4. EXPORT-IMPORT BALANCE 13
2.5. LISBON AGENDA TARGET 14
2.6. SWOT ANALYSIS 15
3. ITALYS MICROECONOMY 15
3.1. INTRODUCTION 15
3.2. MACHINERY AND MOTOR VEHICLES 17
3.2.1. THE AUTOMOTIVE INDUSTRY FACTS 17
3.2.2. THE INDUSTRIAL SECTOR ALL TOGETHER FACTS 18
3.2.3. DURING THE RECESSION 18
3.3. TOURISM 19
3.3.1. THE TOURISM SECTOR FACTS 19
3.3.2. DURING THE RECESSION 21
3.4. AGRICULTURE AND FOOD PROCESSING 21
3.5. TEXTILES, FOOTWEAR, AND FASHION 22
3.5.1. TEXTILES, FOOTWEAR, AND FASHION IN THE EU 23
3.5.2. TEXTILES, FOOTWEAR, AND FASHION IN ITALY 23
4. RESEARCH AND DEVELOPMENT IN ITALY 24
4.1. BASIC INFORMATION 24
4.2. RESEARCH TARGET AREAS 24
4.3. IMPACT OF EU DEVELOPMENTS 25
4.4. STRUCTURE OF RESEARCH SYSTEM 25
4.5. RESEARCH AND DEVELOPMENT FUNDING 26
5. INWARD INVESTMENT INCENTIVE 27
5.1. DIRECT FOREIGN INVESTMENTS IN ITALY 27
5.2. INVESTMENT INCENTIVES 28
5.3. SPECIAL ECONOMIC ZONES IN ITALY 28
5.4. FISCAL INCENTIVES 28
5.5. SECURITIES MARKET 29
5.6. COMPETITION 30
4
6. HOW TO SET UP A COMPANY IN ITALY 30
6.1. COMMERCIAL CODE/ LEGAL FRAMEWORK 31
6.1.1. SETTING UP A BUSINESS 31
6.1.2. FOUNDING A BUSINESS WITH MORE PEOPLE 33
6.1.3. EUROPEAN WIDE PRIVATE LIABILITY COMPANY (SOCIETAS PRIVATA EUROPAEA SPE) 34
6.1.4. TAKING OVER AN EXISTING BUSINESS 34
6.2. DIFFERENT FORMS OF BUSINESS (LIST) 35
6.3. SELECTING A BUSINESS NAME 36
6.4. LAWS AND REGULATIONS FOR THE FORMS OF BUSINESS 37
6.4.1. STOCK COMPANY (SOCIET PER AZIONI - S.P.A.) 37
6.4.2. PRIVATE LIMITED LIABILITY COMPANY (SOCIET A RESPONSABILIT LIMITATA S.R.L.) 40
6.5. FORMATION PROCEDURES 41
6.6. REGISTRATION REQUIREMENTS 41
6.6.1. ESTABLISHING A LIMITED LIABILITY COMPANY 42
6.6.2. ESTABLISHING A BRANCH 43
6.7. ACCOUNTING 43
6.8. AUDITING 44
6.9. BUSINESS SUPPORT 46
6.9.1. AT THE EUROPEAN UNION LEVEL 46
6.9.2. NATIONAL LEVEL 47
7. LABOUR LAW AND REGULATIONS 48
7.1. GENERAL INFORMATION ON EU LABOUR LAW 48
7.2. INDIVIDUAL WORKING CONDITIONS 49
7.3. ITALIAN LABOUR LEGISLATION 50
7.3.1. CONTRACT OF EMPLOYMENT AND WORKERS RIGHTS 51
7.3.2. HOURS OF WORK 52
7.3.3. PAID LEAVES 52
7.3.4. MATERNITY LEAVE 52
7.4. ITALY LABOUR MARKET 53
7.4.1. GENERAL INFORMATION 53
7.4.2. WAGES 53
7.4.3. SOCIAL SECURITY 54
7.4.4. MARKET DEVELOPMENT AND CONDITIONS 54
8. TAXATION 55
8.1. CORPORATE INCOME TAX (IMPOSTA SUL REDDITO DELLE SOCIET - IRES) 55
8.2. REGIONAL CORPORATE TAX (IMPOSTA REGIONALE SULLE ATTIVIT PRODUTTIVE - IRAP) 56
8.3. FILING TAX RETURNS (IRES AND IRAP) 56
8.4. VALUE ADDED TAX (IMPOSTA SUL VALORE AGGIUNTO - IVA) 56
8.5. PERSONAL INCOME TAX 57
8.6. ITALY REPORTING DATES AND PAYMENT OF THE TAXES 58
5
8.7. EXCISE DUTY 58
8.8. REAL ESTATE / LAND TAX 58
9. BANKING SYSTEM & NATIONAL BANK 59
9.1. LOCAL CURRENCY & MONETARY ISSUE 59
9.2. PAYMENT SYSTEMS 60
9.3. SINGLE EURO PAYMENTS AREA (SEPA) 60
10. CONSUMER AFFAIRS 61
10.1. CONSUMER PROTECTION AND SUPPORT AT EU LEVEL 62
10.2. CONSUMER PROTECTION AND SUPPORT IN ITALY 63
11. MARKET DEVELOPMENT AND MARKET CONDITIONS FOR SMES 64
11.1. OVERALL VIEW OF SMES IN ITALY 64
11.2. SMES FINANCIAL SCHEMES 65
11.2.1. STATE AID 65
11.2.2. INDIRECT AND DIRECT FUNDING 66
11.2.3. STATE GUARANTEES 66
11.2.4. EUROPEAN SUPPORT PROGRAMMES FOR SMES 67
12. INTELLECTUAL PROPERTY RIGHTS 67
12.1. TRADEMARKS 68
12.2. PATENTS 69
13. ENVIRONMENTAL POLICIES 70
13.1. THE MINISTRY OF ENVIRONMENT 71
14. FURTHER USEFUL INFORMATION 72
15. USEFUL LINKS 74
16. APPENDICES 77
17. SOURCES 79
18. SOURCE PERMISSIONS 86

6
1. Overall view of the country Italy
Official name: La Repubblica Italiana, Italian republic
Official abbreviation: IT
Surface area: 301,340 km(including Sardinia and Sicily)
Population: 60.4 million (2/2010)
Official language: Italian (two bilingual regions: Alto Adige - German and Italian; Valle
d'Aosta - French and Italian)
Government form: Parliamentary Republic
Capital: Rome
Currency: Euro
(Eurostat 2010; Invitalia Country profile 2010.)
The peninsula of Italy is located in Southern Europe and extends into the Mediterranean Sea. The
location enables links all over Europe by land, air and sea and to 436 million consumers in Europe
and 240 million consumers in Northern Africa and the Middle East. Italy has 7,600 km of coast line.
98 % of Italys surface is land and 2 % is water. (CIA 2010; Invitalia Why Italy 2010.)
Italy has Europes second largest network of infrastructure. It cover more than 1 million kilometres
of road, including 13, 7 % of the motorways in the whole EU. Italian railways have a network of
16,300 kilometres of track and Italys total number of ports is 263. (Invitalia Why Italy 2010.)
Italy has land boundaries with six countries: Austria, France, Vatican City, San Marino, Slovenia and
Switzerland. The Republic of San Marino and the Vatican City are located inside the peninsula, but
they are two independent countries. (Invitalia Country profile 2010.)
Italy has 3 big islands Sardinia, Sicily and Elba with about 70 small islands. (Member states of the
EU Italy 2010.)
The major climate in Italy is Mediterranean, but in North of the country the climate is alpine. In the
very south of the country the climate is hot and dry. Italy is geographically very mountainous. (CIA
2010; Member states of the EU Italy 2010.)
Italy is one of the six founding member states of European Union (EU), creating the European Eco-
nomic Community (EEC) in 1957 by signing the Treaty of Rome. EEC later became the EU. In 1999
Italy joined the European Economic and Monetary Union and the Euro was introduced as the official
currency in 2002. The currency formerly was the Lira. Italy is also a charter member of the military
alliance NATO. (Info Italy 2005.)
7
The chief of state is President Giorgio Napolitano (since 2006) and the head of government is Prime
Minister Silvio Berlusconi (since 2006). The prime minister represents Italy in the Council of Minis-
ters and is appointed by the parliament and approved by the president. The presidential elections
are held once every seven year term; the next presidential election will be held 2013 and there are
no restrictions to re-election. Italy has a two chamber- parliament system. The chambers are: the
Senate (Senato della Repubblica) which is a upper house and the Chamber of Deputies (Camera dei
deputati). Elections of the parliament are held every five years. Italy has been divided into 20 admin-
istrative regions, of which 5 are autonomous (Friuli-Venezia Giulia; Sardegna (Sardinia); Sicilia (Sic-
ily); Trentino-Alto Adige; Valle d'Aosta). The legal system used in Italy is based on the civil law. (CIA
2010; Invitalia Country profile 2010.)



Figure 1: Percentage of GDP from the economical sectors (Ministry of foreign affairs 2009).
The structure of the Italian economy is similar to developed OECD countries, with a decreasing, but
important primary sector, a still significant industry and a growing tertiary sector. With a consider-
able strong tourism, the service industry represents more than two thirds of the national GDP. (Min-
istry of foreign affairs 2009.) Italy is ranked 7
th
regarding the industrialized countries of the world.
The northern parts of Italy are amongst the richest in Europe (per capita).The development of the
Italian economy however depends geographically. In the north good infrastructure and a trained
labour force can be found, whereas the South (also called Mezzogiorno) lacks these characteristics
and therefore incentives are given towards the development and especially for the industrialization.
(Member states of the EU Italy 2010; Uhy International Ltd. 2009, 3-4.)
99.9 % of the enterprises in Italy are small and medium sized. Representing especially more micro
enterprises than the EU-27 average (94.6 % in comparison to 91.8 %). The most important economic
sectors of Italy are tourism, fashion, agriculture, chemicals, engineering and motor vehicles. 68 % of
the population of Italy lives in the cities. 90 % of Italians are Roman Catholics. (CIA 2010; European
Commission 2008; Member states of the EU Italy 2010.)

2%
29%
69%
primary sector
secondary sector
tertiary sector
8
2. Italys macroeconomy
2.1. General economic development

Regarding to the development of the macro economy in Italy we can notice a moderate growth after
the recession:
Decline of GDP 2008: mainly due to structural problems which affected the productivity
growth.
The GDP 2009: relative growth in Italy (0.6 %), compared to the average GDP growth of 0.4 %
in the Euro Area.
High government debt (115.8 % of the GDP in 2009) put burden onto the economy of Italy.
The industrial production has been 1 % lower than average as an effect of the structural
problems, will probably increase now as well as in the whole Euro Area.
At the same time imports fell accompanied by a fall in domestic demand. With the remaining
sentiment of an uncertain growth in the economy and furthermore the slow growth in Italy
itself investment expenditures fell by 12 % in total for the year 2009.
Due to the structural problems the private consumption started already to drop at the be-
ginning of 2008 and continued to fall because of the economic crisis. With the measures from
the government to especially support poor, low income and the consumption of daily pur-
chase of consumables the private consumption recovers and has already a 0.5 % higher
growth than average. For 2010 private consumption is expected to be the main driver of
growth in Italy.

With the highest government debts in the whole Euro Area, which are forecasted to increase to
118.9 % by 2011, Italy is facing a challenging future where only a moderate growth in the economy is
forecasted.
9
2.2. Key indicators










Figure 2: Evolution of GDP in volume (European Commission 2010d).
A slowdown of the Italian economy could be observed even before the deepening of the financial
crisis with the GDP decreasing since 2007. Even if the indebtedness of the household was low and
Italy had some shelter from the financial trouble owing to a relative solid financial system, the deep-
seated structural problems lead to an unsatisfactory productivity growth. This is what weakened the
internal economy. When the global crisis appeared, Italy cumulated a loss of real GDP up to 6.5 %
(between 08Q1 and 09Q2), which is the highest loss in the Euro Area countries. Italys economy is
forecasted to become positive in 2010 (+0.8%).
The economy activity is projected to recover gradually thanks to the domestic factor. Indeed, the
private consumption is going to improve and according to the European Commission, this improve-
ment will rely on several factors:
As the global financial crisis is over, the precautionary savings made in 2008 and 2009 are ex-
pected to be reduced by the household sector.
The role of pension funds and the absence of a housing bubble are expected to help mini-
mize negative wealth effects on aggregate consumption.
The moderate inflation anticipated for the 2009/2011 period is going to help for the recover-
ing of the purchasing power after the losses of 2008.
10







Figure 3: General government gross debt (European Commission 2010d).
The gross government debt are expected to rise up to approximately 118.2 % for the year 2010, and
to continue rising over the forecast horizon, to around 118.9 % in 2011.







Figure 4: HICP (European Commission 2010d).
The Harmonised index of consumer prices (HICP) was created especially in order to be able to com-
pare European inflation figures. This inflation figure shows the change in price of a standard package
of goods and services which Italian households purchase for consumption. To determine the rate of
inflation, the percentage increase in the HICP is calculated over a given period. The inflation, as it was
projected, decelerated to 0.8 % in 2009, the inflation has been squeezed by the fall in energy prices
and the compression of business profit margins. It is then projected to increase, to 2 % in 2011, fur-
ther widening the differential with the Euro Area. Core inflation is anticipated to remain below 2 %
over the forecast horizon. Therefore Italy is perfectly matching the Maastricht criteria concerning the
HICP.
11





Figure 5: Unemployment rate (European Commission 2010d).
Italys unemployment rate is staying stable. Even if its growing up to 7.8 % its still one of the lowest
rates in Europe. The labour force has been falling since the second half of 2008. This evolution was
particularly visible in the poorest regions of Italy. One reason is the discouragement of finding a job
in these regions. As a consequence, the unemployment rate has increased only moderately 2009.
The regularisation of immigrant workers, most of them in-home caregivers, at the end of 2009
should have a favourable impact. However, the rate continues to increase for 2010 due to the as-
sumed further decline in employment, and to stabilise in 2011.







Figure 6: General government balance (as a % of the GDP) (European Commission 2010d).
The government deficit had fallen to 5.3 % of GDP in 2009 (from 2.7 % in 2008) and is going to stay
around this level for 2010 and 2011. The government's response to the crisis was carefully balanced
considering the high government debt and global risks. Therefore measures to support low-income
groups and major industrial sectors have been financed mainly by reallocating existing funds.

12
2.3. Forecast

The economic future of Italy in comparison with the Maastricht criteria:

Figure 7: Main features of country forecast (European Commission 2010d).
According to the Commission services autumn 2009 forecast, Italy is not going to match the Maas-
tricht criteria in all its indicators.
Concerning the government debt, Italy has the highest rate in the whole Euro Area and its gross debt
is going to increase up to 118.9 % of the GDP. However, Italy succeeded in having mainly long term
debt and that is why the countrys economy is still active.
Concerning the government deficit, the rate was matching the Maastricht criteria before the global
crisis came. In 2008, the balance was -2.7 %. The economic crisis worsened the situation, but an im-
provement can be seen after 2010, especially thanks to the increase of the trade balance
Annual percentage change Maastricht criteria
Key indicators 2009 2010 2011
HICP 0.8 1.8 2 < 2 %
gov. gross debt (% of GDP) 115.8 118.2 118.9 < 60 % of the GDP
gov. balance (% of GDP) -5.3 -5.3 -5.0 < -3 % of the GDP
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2.4. Export-Import balance







Figure 8: Trade balance (goods and services) (European Commission 2010d).
Because of the collapse in global demand, Italy's external performance went into trouble:
The export volumes declined by 19 % in 2009 as a whole
Demand for goods across most manufacturing sectors is being hard hit
Exports of services declined as well, although at a less marked pace
The significant fall in domestic demand in 2009 affected the imports volume

Although the exports dropped significantly the assumed lower commodity prices should lead to an
improvement in the trade balance of Italy.
Trading Partners (CIA 2010.)
Italys first import partners (2008):
Country % of imports
Germany 15.9 %
France 8.5 %
China 6.2 %
Netherlands 5.3 %
Libya 4.6 %
Russia 4.2 %
Italys first export partners (2008):
Country % of exports
Germany 12.7 %
France 11.2 %
Spain 6.5 %
US 6.2 %
UK 5.2 %
14
The forecasted demand increase from Italys trading partners will have a positive impact on exports.
Imports are projected to regain even more strength and therefore the trade balance will remain sta-
ble in 2010 and 2011.
(European Commission 2010d.)
2.5. Lisbon agenda target

The Lisbon agenda, also known as Lisbon Strategy or Process, is a plan of development for the Euro-
pean Union. The purpose of the agenda is to make the EU the most competitiveness and dynamic
knowledge-based economy in the world capable of sustainable economic growth with more and
better jobs and greater social cohesion, and respect for the environment by 2010.
The APGJ (Action Plan for Growth and Jobs 2008-2010) is the governments strategy for increasing
the economic competitiveness. It helps the Lisbon Agenda targets and thus the European Union
growth and job strategy.
In order to maintain and increase the competitiveness of the Italian economy, the government sets
important objectives in the plan for the year 2010, also know for the Italian National Reform Pro-
gramme (NRP).
Especially because of the crisis, Italy, like several country in Europe, had to change their expectation
concerning the economic forecast in their national reform programme. According to the Inter-
ministerial Committee for EU Affairs, the need of reform to meet the Lisbon Agenda are the follow-
ing:
Stability of the public finances
More free choice for public and businesses
Incentives for research and innovation
Adjustment of tangible and intangible infrastructures
Environmental protection
Education and training
Policies for employment and social inclusion
(European Commission 2009c.)
15
Figure 10: Triangolo Industriale.
2.6. SWOT Analysis

Strengths
Exporting nation
Government support shows effect on
public demand
Tourism is very stable
Leader in leather and textile production
Stable market share in the wine and olive
oil exports (1st or 2nd)
Weaknesses
Fragile public finances
The high deficit hindering economy
growth
Very high public debt
Heavy industry
Slow, inefficient administration
Unbalanced labour market participation
High gender gap
Opportunities
Increase market for luxury product (cars
and fashion)
Improve financial structure
Attract more investments
Labour force available
Threats
Strong competition in manufacturing and
automotive sectors
Economic inequality between the regions
Not matching the Maastricht criteria
Figure 9: SWOT analysis for the Italian economy.
3. Italys Microeconomy
3.1. Introduction

Italy can be divided in three economic regions between which the main
sectors differ. Northern Italy is very industrialized and counts as the
countrys economic center with cities like Milan, Turin and Genoa,
which form the so called triangolo industriale (industrial triangle).
In 2007 GDP in this region: 837,463 Million Euros (54.5 % of It-
alys total GDP)
38.6 % of agricultural employees
59.7 % of industry workers
48.6 % of service employees
Industry dominates this region (ISTAT 2009.)
16
North
54%
Center
22%
South and
Islands
24%
Share of GDP per Region
Central Italy depends on textile and clothing industry. Services are the biggest sector in central Italy,
including especially tourism. Due to the fact that Rome with its many administration offices is located
here, this region hosts many international companies and organizations.
In 2007 GDP 331,683 Million Euros (21.6 % of total GDP)
12.8 % of agricultural employees
18.6 % of industry workers
22.1 % of service employees (ISTAT 2009.)
Relatively small part of the country, therefore quite productive region
Southern Italy and Italys Islands are the least developed region of the country and counted among
the most economically undeveloped regions of Western Europe. Agriculture is dominating this re-
gions output. Organized crimes and the countrys underground economy are at the highest level
here and have control over many economic branches.
GDP 364,920 Million Euros (23.8 % of total DGP)
48.5 % of agricultural employees
29.3 % of service employees
21.6 % of industry workers (ISTAT 2009)
Lack of industrialization in this area





Figure 11: Share of GDP per Region (ISTAT 2009).
Overall, the main sectors in the Italian economy are:
Machinery and motor vehicles
Tourism
Agriculture and food processing
Textiles and clothing
17
3.2. Machinery and Motor Vehicles

Italys major car producer is the Fiat Group, which increased its revenues by 1.5 % to 59.4 billion
Euros in 2009. Automobile producers belonging to the Fiat Group are:
Fiat
Alfa Romeo
Lancia
Maserati
Ferrari
Iveco (trucks)
CNH (agricultural equipment)

Also, components and production system producers as Fiat Powertrain Technologies, Magneti Ma-
relli, TEKSID, and COMAU belong to it. (Fiat group 2010.)
Other Italian motor vehicle producers are:
Aprilia
Ducatio
Piaggio

The car and everything around it has a very high value in Italy. Racing, design and engineering are
aspects that all matter and reasons why this industry is so successful in the country. Also, the general
appreciation of status symbols and luxury trigger this industry and create a big market around it.

3.2.1. The automotive industry facts

Contribution to Italys GDP with 8.5 %
Directly-employed labor force: around 200,000 people
Biggest producers in EU27 are Germany, France, Spain, the UK and 5
th
Italy
968,656 produced vehicles in 2007
Car density per 1000 Italians is at 598 (on average more than every second Italian owns a car)
(European Automobile Manufacturers Association.)
18
Interpreting these numbers it is clear that there is great potential in this relatively stable and secure
business area. The country is very advanced concerning technology and manufacturing and therefore
the environment for a successful company in the automotive industry is given.

3.2.2. The industrial sector all together facts

Contribution to Italys GDP with 25 % (Index Mundi 2010)
98.8 % of industrial enterprises are manufacturing companies
0.6 % are in mining business
0.5 % of are producers of energy
Industrial centre of Italy is the north (59.7 % of all industry workers)
Average personnel costs 35,000 Euros
Value added per person: 47,600
Wage adjusted labour productivity 135.9 % (Johansson, U. 2006.)
Relative value added by industry sector: 20.8 % of the total value added
- construction adds another 6.2 % (ISTAT 2009)
Germany most specialized EU member state in terms of value added in manufacturing and
machinery (6.1 %)
Italy 2
nd
(5.2 %) (Johansson, U. 2006.)
In 2007 total value of exported goods: 358.6 billion Euros
- 87.3 % of this was manufactured goods (313.06 billion Euros)
- Machinery and vehicle export had a value of 137.2 billion Euros
- = 43.8 % of manufactured goods, 38.2 % of all exports (Eurostat 2002)

Italy is the second largest producer of metals & metal products, machinery & equipment and furni-
ture & other manufacturing behind Germany (Eurostat 2009). This shows that Italy is a great choice
as host country for a company in this sector.

3.2.3. During the recession

Industrial production decreased drastically
Since the middle of 2009: trend is positive again
19
Countrys industry is recovering since July 2009, compared to the month before (Eurostat
2010b)
Exports increasing drastically again

Italy is home of six of the worlds 100 biggest companies, the biggest being the Fiat group and ENI, an
oil and gas producer (Forbes 2009). However, 99.9 % of Italian companies are SMEs with 94.6 % of
which being micro companies. These values are above the EU27 average. 81.3 % of all employees
work in SMEs and the value added by SMEs is 70.9 %. SMEs are very common in Italy and operate in
all fields of business. Usually they are very successful due to specialization in serving niche markets.

3.3. Tourism

Tourism means the activities of persons travelling to and staying in places outside their usual envi-
ronment for not more than one consecutive year for leisure, business and other purposes (De-
munter, Dimitrakopoulou, Eurostat 2010).

3.3.1. The tourism sector facts

Within Europe Italy has 4
th
highest number of employees in the tourism sector (23,203,000 in
2009Q2)
Behind Germany, the UK, and France
Before Turkey and Spain
Italy 5
th
in national arrivals of foreign tourists in 2008 with 43,498,154
20
0
2
4
6
8
10
12
14
Finland France Germany Italy Spain The UK
Tourism in % of GDP
Tourism in % of Labor Force

Figure 12: Tourism's percentage of GDP and Labour Force (Demunter, Dimitrakopoulou, Eurostat
2010).
Tourism in Italy contributes to almost 5 % of the countrys GDP (Demunter, Dimitrakopoulou,
Eurostat 2010.)
Employs almost 10 % of Italys labour force (OECD 2010)
22.5 % of total value added from tourism
Compared to 20.8 % from industry excluding construction (ISTAT 2009)
One of fastest growing and most profitable industrial sectors:
- Estimated revenue of 31.4 billion (2008)
- Because: stable industry and all-year-round travel destination
This sector is very well suited for opening a new and fresh business.

53,277,000 Italians went on vacation inside Italy in 2007 (ISTAT 2009)
On average 4 nights spent in Italy
53.6 % of all tourists stay in Northern Italy
27.7 % go to Central Italy
18.7 % go to the South and the Italian Islands
Most visited Italian regions:
- Tuscany (10.9 %)
- Art towns (33.7 %)
- Seaside and lake locations (23.8 and 11.6 %)
- Alps (11.1 %)
21
There are three main seasons for tourism in Italy:
Winter for skiing in the Alps and visiting Rome during Christmas since it is a Christian holiday
Spring and around Easter many people visit the country to go on city trips or again for reli-
gious reasons
Summer: beaches on the Mediterranean Sea, lakes, the historical cities, etc.
Italy is interesting all year round.

3.3.2. During the recession

Tourism is a very stable industry in Italy. This is proven by the fact that with the crisis there was a
decrease of only 3.4 % in the number of nights spent in collective accommodation in 2009 compared
to 2008 in total. Nights spent in hotels in Italy dropped by 4.3 % to 238 million, which is below the
5 % average of the EU27 in 2009. (Demunter, Dimitrakopoulou, Eurostat 2010.)

3.4. Agriculture and Food Processing

Big companies in the Italian food processing sector are:
- Ferrero
- The Barilla Group
- Martini & Rossi
- Campari
- Parmalat
Contribution to GDP: 2.1 %
Value Added in 2007: 2.03 % (OECD Stat Extracts 2010.)
3.8 % of Italys labour force
This does not seem to be a lot but there are some very special features about Italys agriculture.
The country is:
- The biggest producer of wine in the world with 1,826,635 tons before France with
1,492,933 tons
- The second biggest producer of olive oil with 291,074 tons behind Spain with 620,772
tons (Food and Agriculture Organization of the United Nations 2009)
6 % of Italys total exports are food and beverage products
Because of these characteristics it could be very lucrative to open a business in agriculture.
22
The main crops are:
- Citrus and fruit trees (24.7 %)
- Maize (24.4 %)
- Wheat (17.8 %)
- Tomatoes (16.2 %)
- Sugar beets (8.6 %)
- Olives (8.1 %)
- Grapes (2.6 %) (ISTAT 2009)
North: grains, sugar beets, soybeans, meat and dairy products
South: fruits, vegetables, olive oil, wine and durum wheat (US Department of State 2009)
About 42.3 % of Italys area (that is 324,961,290 ha) in agricultural use
- 45.3 % of this area in South
- 36.5 % in North
- 18.2 % in Centre
Most farms and firms for the production of agricultural products are small or medium sized, usually
family owned and most of them are located in the south.

3.5. Textiles, Footwear, and Fashion

Italys most famous names for this business sector are:
Armani
Valentino
Versace
Dolce & Gabbana
Cavalli
Benetton
Prada
Luxottica, the worlds largest eye glass producer (Eurostat 2009.)
23
3.5.1. Textiles, Footwear, and Fashion in the EU

SMEs based sector
- Companies of less than 50 employees account for more than 90 % of the workforce
(238,000 employees)
- Produce almost 60 % of the value added within the EU
Clothing widespread in the southern countries
- = clothes that can be worn by people
Textiles (= fabrics, it does not matter whether those are for clothing or for other use)
- 20 % of all textiles and clothing products sold on the external market
- Biggest textiles and clothing producers within the EU are:
- Italy with 21.8 billion Euros of value added (33.6 % of EU-27 value added in
2006)
- Germany (12.1 %)
- France (11.6 %)
- Spain (9.2 %)
- The UK (7.8 %)
- Italy specialized in manufacture of textiles, clothing and leather
- Specialization in this business area only stronger in Romania and Bulgaria
- Exports of textiles, clothing and leather goods 4.1 % of all industrial exports of EU27
Italy largest trade surplus in this field (16.7 billion Euros)

3.5.2. Textiles, Footwear, and Fashion in Italy

Italy is largest manufacturer for:
- Textiles with value added of 8.7 billion Euros (28.9 % of EU)
- Leather products with value added of 5.9 billion Euros (49.5 % of the EU, which is the
largest share of any industrial subsection in the EU, it is equivalent to 0.9 % of the value
added generated across the non-financial business economy)
Due to Italys great specialization in these fields and the strong position and famous reputa-
tion of the country when it comes to luxurious brands creates a great environment for new
companies with great potential for success and profits.
24
4. Research and development in Italy
4.1. Basic information

The most remarkable event in the field of research and development (R&D) was the creation of Min-
istry of Education and Research in 1989. Before that, it was the task of the National Research Council
to be responsible for coordinating the public research system. (Erawatch 2010.)
The R&D expenditure as a share of GDP in 2008 was 1.18 %. Private business research is concen-
trated in the few large companies that form the industry along with very numerous small and me-
dium sized enterprises. The R&D expenditure of the business enterprise sector was in 2008 0.6 % of
GDP and in 2009 the percentage was 0.65. The percentage what business enterprise sector expends
on R&D has been growing since 1999 (0.5 % of GDP of the year) but the growth has been signifi-
cantly slow. (Erawatch 2010, Eurostat R&D 2010.)
In Italy there were in 2006 137,163 researchers and 35,350 of them worked in the business enter-
prise sector. In 2006, 88,430 of the total researchers were full-time equivalent and the comparable
amount in 2008 was 96,303, which shows the development in this area. However, in 2008 the
amount of the research and development personnel was only 0.94 % of the labour force. This is even
lower than the EU average which was 1.03 %. The percentage in the business enterprise sector was
0.4 in Italy and 0.54 in the European Union. (Eurostat R&D 2010.)

4.2. Research Target Areas

The Research Policy of Italy mainly focuses on developing the scientific base of the country on fol-
lowing areas:
The development of the Italian Institute of Technology
Promoting the internationalisation and growth of human capital
Improving the technological level of the economic system
Sustaining the participation of national science into the EU and other international research
programmes
Public welfare
(Erawatch 2010.)

25
The abovementioned goals are pursued with 12 different fields of strategic programmes of innova-
tion, which are:
Health
Pharmaceuticals
Biomedical
Manufacturing systems
Motor design and manufacture
Shipyard and aviation industry
Ceramics
Telecommunications
Agro food
Advanced logistics and transportation
Information and communication technology and electronic components
Energy micro generation
(Erawatch 2010.)

4.3. Impact of EU developments

The recent developments in the EU have significant impacts on the Italian R&D system. As a result,
R&D activities form a relevant area in Italian policy actions based on measures related to the Na-
tional Growth Strategy and to the development of the research system and its performers. The EU
enlargement can be identified as a concern to the productive system because Italian firms are
strongly committed to investments in new EU countries. (Erawatch 2010.)

4.4. Structure of research system

The Italian research system is mainly governed by two main bodies: the Council of Ministers and the
Inter-Ministry Committee for the Economic Planning (CIPE). The operational level is also handled by
two main ministries: MIUR - Ministry of University and Research and the ministry for economic de-
velopment. MIUR coordinates national and international scientific activities and distributes the funds
appropriated to universities and research agencies. The Ministry for Economic Development supports
the industrial R&D by managing financial tools of intervention in industrial research.
26
Other research institutions are as follows:
National Research Council
Italian Aerospace Research Centre
National Institute for Astrophysics
Agency for New Technologies, Energy and Environment
Higher institute for Health
Council for Research and Experimentation in Agriculture
Italian Space Agency
National Institute of Nuclear Physics
Health Ministry
IIT (Italian Technology Institute)
(Erawatch 2010.)
The structure of the Italian research system is explained more detailed in a graph in appendix 1.

4.5. Research and development funding

Most government funding for R&D is under the responsibility of central government which in prac-
tice is the MIUR.
MUIRs funding can be divided into two main categories:
General funding to higher education institutions: this includes the Ordinary Fund for Higher
Education (FFO) provided by MIUR to public and private universities. FFO covers expendi-
tures for both teaching and research activities.
The Fondo ordinario per ricerca e sviluppo (Ordinary Fund for R&D): this represents the core
funding of the public non-university institutes. The Fund is a framework included in the
yearly national financial law, whose aim is to plan R&D by areas, domains and themes.

Other ministries care for the general funding of non-university public research institutes under their
control. (Erawatch 2010.)
27
5. Inward investment incentive
5.1. Direct foreign investments in Italy

The Italian Trade Commission (ICE) reported in January 2007 that there were 7,200 foreign compa-
nies operating in Italy. These companies employ about 1 million people. The stock of foreign invest-
ments in Italy equals only 12 % of the GDP, which is far less than in other EU countries. Over of all
foreign companies operate in the wealthy north, namely in Lombardia. The main reasons for pre-
venting a company from entering the Italian market according to ICE: labour taxes, lack of labour,
flexibility, bureaucracy and high corporate taxes. Net direct investment inflows in 2007 were 28.5
billion Euros.
The Italian government encourages foreign investors to invest in Italian companies. There has been a
lack of domestic ventures capital in Italy so the Italian government is pursuing investments in to the
country.
As an EU member state, Italy has to follow many rules and treaties issued by the EU. These treaties
also have an impact on business investments. Generally speaking Italy and the EU are very liberal
when it comes to foreign trade and investments in particular. Foreign investments can be made to
nearly all fields of business but there are some specific fields that are off limits or allow limited par-
ticipation for non-Italians. Exceptions include film industry: added capital is required for banks from
non EU-states. There are also limits in the shipping industry. Defence industries are completely off
limits to non-Italians.
The Italian government has the right to intervene in business that it considers to be suspicious or to
be able to create a monopoly. For instance, mergers and acquisitions over a certain financial thresh-
old are subject to review. The government can also prohibit entrance into the Italian market if the
business is essential for the national economy or if the home government of the entering company
applies discriminatory measures against Italian companies.
Foreign investors are allowed to invest in the privatization of government owned companies, exclud-
ing defence industry. There is a rule that stipulates that the Italian government or an Italian share-
holder must retain a golden share of the ownership of the company. This is to keep the controlling
authority in Italy. Italy is the only EU state to have this kind of regulations.
(Advameg Inc. 2010; Buyusa 2010.)
28
Italy has an agency run by the government to promote inward investment and enterprise develop-
ment - Invitalia
1
. On their website information about the investment opportunities in Italy and other
useful information regarding inward investments can be found.

5.2. Investment incentives

The Italian government offers only modest incentives to foreign investors. These incentives are
mainly targeted to boost the economy of the more depressed areas, southern Italy in particular. The
Ministry of Universities and Research has created the Framework Programme Agreements with
eleven specific fields to boost the development of different industries. These specific fields of devel-
opment are created to ease cooperation between public and private researchers and venture capital-
ists, support the research and development of key technologies, strengthen industrial research activi-
ties, and promote innovative behaviour in SMEs. (Buyusa 2010.)

5.3. Special economic zones in Italy

There are two free trade zones in Italy. The zones are Venice and Trieste in the northern part of the
country. In the free trade zones the companies are given benefits such as an exemption from taxes
and duties on imported raw materials that are used to produce products that will be exported. Com-
panies also have a right to bring employees from foreign countries subject to the labour laws of the
country of origin. (World Tax Inc 2010b.) In the free trade zones there are numerous of warehouses
located in the ports and cities that have no limitations as to the type of origin of the products that
can be stored. The limit for the storage is 5 years.

5.4. Fiscal incentives

The Italian tax system considers all companies, foreign and domestic, the same. In 2008, a reform of
corporate tax system was created renewing corporate taxation. Corporate tax level was lowered
from 33 to 27.5 %. There is also a union wide competition on investments going on. Especially new

1
http://www.invitalia.it/on-line/eng/Home.html
29
member states are really appealing to foreign investors due to low labour costs. So Italys corporate
taxation cuts are their response to this competition. (Buyusa 2010.)

5.5. Securities market

The Milan Stock Exchange named as Borsa Italiana S.p.A. is the main stock exchange in Italy. The
Borsa Italianas main responsibilities are managing Italys derivatives market (IDEM and MIF) and its
fixed income market (MOT= Electronic Government Bonds and Securities market). On the MOT the
buy and sell contracts are traded on government securities and nonconvertible bonds.
There are two ways of listing bonds: procedures for financial instruments issued under programme
and stand alone procedure. A company which intends to become public by issuing a programme for
bonds may apply to the Italian exchange for a declaration of qualification to listing of the bonds. The
Italian exchange has to prove the declaration within sixty days of the date of the documentation. The
issuer has to satisfy the conditions and requirements laid by Borsa Italiana S.p.A. After receiving the
declaration of admissibility and after the bonds are made public by the company, in order to list
bonds under the programme the company shall apply listing to the Italian Exchange. Within five trad-
ing days of the date of the documentation the Italian Exchange shall decide and notify the company
of their decision and announce disclosure.
In standalone procedure the company has to apply the listing from the Italian Exchange. Within two
months from the date of the documentary the Italian Exchange will announce their acceptance or
rejection and notify the company. The admission shall be completed when the Italian exchange es-
tablishes a starting date for the trading and announces it in disclosure.
Issuer requirements:
The company has to be published and filed
Consolidated annual accounts for the last three financial years
Auditors opinion of the last financial year
Recently established firms need a pro forma income statement, a pro forma cash flow state-
ment and a pro forma balance sheet accompanied with a report of the auditing firm contain-
ing its opinion on the reasonableness of the plans (also the firms whose assets and liabilities
have undergone changes in the financial year preceding the application year)

A monthly statistics of the Bonds can be seen in appendix 2. (Borsa Italiana 2010.)
30
5.6. Competition

In Italy there is an authority called Autorita Carante Della Conconrenza e Del Mercanto that is deal-
ing with competition issues. Its tasks involve controlling agreements that prevent competition,
abuses of dominant position and mergers & acquisitions which create or strengthen a dominant posi-
tion in a market. The authority is working closely with the parliament and government of Italy and it
is required to report and give consultancy services to them.
If malpractices occur the authority may impose penalty to the offenders. The amount of penalty,
depending on the seriousness of the offence, can be up to ten per cent of the gross turnover. If the
malpractices continue the authority can put down the companys operations up to 30 days period. If
the company is not willing or its information to the authority is untruthful other fines are possible.
Companies also have to inform the authority about mergers and acquisitions before hand or other-
wise fines can be considered and the actions can set to be restored until further investigations.
Information about the competition laws, forms, new releases and publications can be found on the
Autorita Carante Della Conconrenza e Del Mercantos web site
2
. The authority also publishes annual
reports and the executive summary can be read in English. (Auorita Garante Della Concorrenza e Del
Mercato 2010.)
6. How to set up a company in Italy
Starting a business in Italy usually includes 6 procedures and can be handled within 10 days, which is
faster than the OECD average of 13 days. The ease of doing business in Italy is ranked 78 out of 183
according to the World Bank. The minimum capital required is significantly low in Italy. It is only at
9.7 % as a percentage of income per capita, in comparison to 15.5 % among OECD countries. How-
ever, the costs for establishing a business in Italy are higher (17.9 % income per capita as to an aver-
age of 4.7 %). In Italy closing a business is quite expensive (22 % of estate, more than double the
price of average (8.4 %)). (The International Bank for Reconstruction and Development, The World
Bank 2009b.)
Requirements for a Company owned by a foreigner are:
Properly filled out documentations and notices in a local Italian Chamber of Commerce
The company is recorded in the Company Register the same way as Italian companies

2
http://www.agcm.it/eng/index.htm
31
Repertorio Economico-Amministrativo (REA) is joined by Sole Traders, representatives offices
and branches
(Invitalia 2009, 5-6.)

6.1. Commercial code/ legal framework

Italys legal framework is based on the Civil Code, whose body of the company law was reformed in
2003. The companys structure chosen and the business activities determine the procedure to follow.
(Invitalia 2009, 6.)
Choices for the establishment of a business:
Setting up a business
Founding a business with more people
Taking over an existing business

6.1.1. Setting up a business

The Italian company law distinguishes between:
Partnership (shared liability with partners for the company)
- Simple and general partnership (unlimited liability of partners) societ in nome collet-
tivo Snc
- Limited partnership (liability limited to the assets given) societ in accomandita sem-
plice Sas
- Silent partners with limited liability to their capital contribution soci acco-
mandanti
- General partners with joint liability soci accomandatari
Cooperation (limited liability, free transferable ownership, separated obligations)
(Invitalia 2009, 7)
32
The alternatives forms for setting up a business can be:
Sole Proprietorship
The owner of the business or the entrepreneur is fully liable.
Branches
Branches are units of a foreign company operating in Italy which can either be considered as a sec-
ondary office or a proper branch.
General facts about branches:
Usually they are managed by a permanent company representative (called institore)
Are regarded as established companies by the taxation law (own bookkeeping, submit VAT
and income tax returns)
Institore must have an Italian tax ID number (codice fiscal)

Representative office
A representative office usually helps to gain knowledge of the Italian market, the competitors or to
promote the business in a new country.
A mere representative office, which is only involved in information gathering activities, is not a sub-
ject of taxation and therefore only imposes to:
Request a tax ID number (codice fiscal) with the jurisdiction of the offices location
Register with the Commercial and Administrative Register (Repertorio Economico Adminis-
trativo REA)

Representative offices engaged in non-commercial but in preparatory business for the company (e.g.
advertising, research, purchasing and storing goods, etc.) are considered as subject of taxation and
need to request a VAT number (codice fiscal) additionally.
(Invitalia 2009, 21-24 and Uhy International Ltd. 2009, 9.)
33
6.1.2. Founding a business with more people

The following business corporations with a legal personality can be established:
Stock Company (societ per azioni - S.p.A.)
Partnership Limited by Shares (societ in accomandita per azioni - Sapa)
Limited Liability Company (societ a responsabilit limitata S.r.l.)
European wide private limited liability company (societas privata europaea SPE)

Each shareholder of a corporation is only liable to the contribution brought to the company.
After registration into the Business Register (usually done by a public notary) the corporation be-
comes a legal person.
Stock Company (societ per azioni - S.p.A.)
Capital contribution by shareholders
Minimum share capital 120,000
Drawing up a public record
Shares freely transferable
Yearly publication of annual financial statement

Partnership Limited by Shares (societ in accomandita per azioni - Sapa)
Similar to stock and limited liability companies
But stakeholders are divided into two groups limited and general partners
At least one member needs to have unlimited liability

Private Limited Liability Company (societ a responsabilit limitata S.r.l.)
Shares are represented as quotas
Minimum share capital 10,000
Quotas can be restricted by the articles of incorporation
Yearly publication of annual financial statement
34
6.1.3. European wide private liability company (societas privata europaea SPE)

To make it easier for companies to expand on a European level a new legal form of a private limited
liability company has been designed based on the EU laws and should enter into force on 1
st
July
2010. The Societas Privata Europaea (SPE), European Private Company, will set the same rules of law
related to the company form throughout Europe. It will regulate for example the corporate life and
the required information covered in the article of association i.e. increasing or reducing share capital,
adopting shareholder resolutions and the organization of the SPEs management. However, matter
that is related to labour and tax law, accounting or contractual rights and obligations of the SPE, and
other areas not covered by the regulations of the EU fall under the same national laws as for private
limited liability companies. To ease business the member states have to offer an electronic possibility
to apply for an SPE.
Exists in all member states with the same management structure
Set up by an individual, a group or companies
Transformation to this legal form possible
Share capital has to be a minimum of 1
Shares may not be offered to public
(Europa 2008 and Commission of the European Communities 2008.)
(Invitalia 2009, 7-21 and Uhy International Ltd. 2009, 9-17.)

6.1.4. Taking over an existing business

An Italian business can be either taken over by purchasing the shares of the established business or
the business assets. This form of entering the market brings along various advantages, however, the
value of the business should always be examined before the sale is set. Information and data regard-
ing the company can easily be obtained with the help of the Chamber of Commerce.
When acquiring a business the notary forwards the contract to the Business Register. Further these
following needs to be taken into consideration:
New owner has to have all the necessary authorisations
A new VAT number is requested when taking over a business from a sole proprietorship
- Note: companies can continue to work with the VAT number of the business
35
Existing businesses are entered in the Business Register and information can be gathered from the
website
3
. The European Union Enterprise Europe Network can help to find partners, technology and
advice
4
. (European Commission 2008.)

6.2. Different forms of business (list)

The most common forms of businesses established by foreign investors in Italy are Stock Companies
(societ per azioni - S.p.A.) and Private Limited Liability Companies (societ a responsabilit limitata
S.r.l.).

Form of business Italian legal name Abbreviation
General partnership Societ in nome collettivo Snc
Limited partnership Societ in accomandita semplice Sas
Partnership limited by shares Societ in accomandita per azioni Sapa
Private Limited Liability Company Societ a responsabilit limitata S.r.l.
Stock Company Societ per azioni S.p.A.
European wide private limited
liability company
Societas Privata Europaea SPE
Figure 13: Different forms of business.

3
http://www.registroimprese.it/
4
http://www.enterprise-europe-network.ec.europa.eu/index_en.htm
36
6.3. Selecting a business name

By selecting a business name the entrepreneur must take into consideration that the name is:
Not offensive
Not misleading to the business you are doing
Not the same or similar to a business name already registered
Not a trademark
Still available as a domain name

In Italy the government reserved domain names of regions, provinces, municipalities and their two-
letter abbreviations. They also retained these domain names translated into English and other lan-
guages. (Miotti 2007.) There are many companies providing domain name registration and the price
competition is high. A company can register as well a .eu domain
5
.
Regarding the business name the abbreviation of the chosen business form must be placed at the
end of the enterprise name. It is not allowed to indicate another business form than the one regis-
tered.
Employees at the Chamber of Commerce help determining if the chosen business name does not
include any sensitive words forbidden in Italy.
Entering and receiving the right to operate the business name into the Business Register does not
protect against counterfeits. To avoid future problems the availability of the business name has to
be checked carefully. Information about already registered company names can be found on the
website of the business register in Italy
6
. When European or global trade is included in the future
strategies of the company, applying for a trademark registration after starting the business is highly
recommended. More information regarding trade mark can be found in chapter 12.

5
http://www.eurid.eu/en/eu-domain-names
6
http://www.registroimprese.it/
37
6.4. Laws and Regulations for the forms of business

Every company founded in Italy requires a notification to the Business Register.
When establishing a limited liability company in Italy, the service of a notary public, who is familiar
with the procedures and drafts the memorandum and the articles of association, is required. The
notary public has a special legal validity in Italy and is usually a self-employed professional. The rates
for their services are set by the law and they belong to the civil law notaries. A directory and further
information about this profession are accessible on the website
7
. Information that has to be included
in the memorandum for the limited liability companies is available in appendix 3.

6.4.1. Stock Company (societ per azioni - S.p.A.)

Founders of an S.p.A. company subscribe with portions of share capital to the company and enjoy
limited liability. Stock companies in Italy are also able to issue bonds, hybrid financial instruments
without voting rights and segregate the asset pool for special business deals. Since 2003 an S.p.A. can
also be established by a single shareholder.
Further laws and regulations:
Share capital has to be over 120,000
- Multiple shareholders can pay 75 % of the deposit at a given point of time from the ad-
ministrative body
- Single shareholder has to pay up front
- The certificate of the deposit will be issued by the Italian bank and attached to the deed
of incorporation (Studio Internazionale Tornamb 2010.)
Usually the chairman and managing directors are entitled as legal representatives

In Italy an S.p.A company can choose from three different models of corporate management:
1) Traditional model
The most used corporate governance provides the greatest level of protection, as well separating the
management and control functions. The three components creating this structure are:

7
http://www.notariato.it/portal/site/notariato
38
Board of directors
Board of statutory auditors
Registered auditor/auditing firm

Board of Directors (Management Body - Organo di gestione)
Need to be individuals
Need to appoint one chairman
Simple majority resolution
Directors appointed by the stakeholders (exception for those appointed by the articles of in-
corporation) for a renewable three years term
Resolution of stakeholders can remove director(s)
Board meeting duly constituted if the majority of directors are present
Directors may not vote by proxy
Directors remuneration stated in the articles of association

Managing directors (direttori)
Members of the board of directors performing specific tasks
Can be assisted by general directors (direttori generali), whose responsibility is regarded the
same as the one from the director by the Civil Law

The following tasks cannot be delegated to the managing directors:
Preparing the financial statements
Increasing the share capital
Asking the court to reduce share capital
Calling a shareholders meeting in the case of losses higher than one-third of the share capi-
tal
Decide merger or de-merger projects

Board of statutory auditors (Management control body - Organo di controllo sulla gestione)
Made up by three to five effective members (sindaci) and two alternates the board of statutory audi-
tors (collegio sindacale) is obligatory for an S.p.A. It is prohibited that the members are employees or
directors or close relatives of directors. They cannot be statutory auditors for subsidiaries or other
39
company bodies. The main duty of this body is to control the management in respect of the law and
the articles of association.
Board members have to be qualified and competent to their duties
Remuneration determined in articles of association or general meeting of shareholders
Appointed for a three year period (no removal possible)
Meet every 90 days (telecommunication eligible)
Simple majority resolution

Registered auditor/auditing firm (Audit body - Organo di controllo contabile)
The accounting control is the main duty of the registered auditor or auditing company.
Appointed by the shareholders meeting (after the report of the board of statutory)
Remuneration determined by the shareholders meeting for the whole term
3 year term (with only one renewal possible)

2) Two level or dualistic model
The Board of Management (Consiglio di gestione) conducts the business and the control is being
done by the Board of Surveillance (Consiglio di sorveglianza), which is similar to the shareholder
meeting of an S.p.A. led by the traditional model (e.g. approval of the financial statement). The
shareholders appoint the members of the board. An auditing company or auditor supervises the ac-
counts.
3) One level or monistic model
Here the Board of Directors (Consiglio di Amministrazione) is conducting the business and is ap-
pointed by the shareholders. The controlling force is the Management Control Committee (Comitato
per il controllo sulla gestione), assigned within the Board of Directors. Also here an auditing company
or auditor supervises the accounts.
(Invitalia 2009, 7-14 and Uhy International Ltd. 2009, 10-13.)
40
6.4.2. Private Limited Liability Company (societ a responsabilit limitata S.r.l.)

Other than with an S.p.A., founders of a private limited liability company can subscribe for a quota of
the share capital. Since 2003 an S.r.l. can also be founded by a single shareholder. The S.r.l. company
is only able to apply the traditional model of corporate governance. General laws and regulations for
an S.r.l. are:
Share capital has to be over 10,000
- Multiple shareholders 75 % of payment made in cash can be paid at a given point from
the administrative body
- Single shareholder has to pay up front
- Contribution with value of services possible
- The certificate of the deposit will be issued by the Italian bank and attached to the Deed
of incorporation (Studio Internazionale Tornamb 2010.)
Shareholder meetings
- Less formal
- Absolute majority for resolutions
- Duly constituted with at least half of the share capital present
- Quota holders have the right to vote for:
- Approval of the financial statements
- Appointment of directors
- Appointment of statutory auditors or an auditor
- Changes to the articles of association
- Material change in the companys purpose
Minutes done by the notary public only if changes to the article of associations
Management body
- One or more shareholders
- Chosen by the shareholders themselves for an undefined time
Control body only mandatory if:
- Capital is greater than or equal to 120,000
- At least two of the following limits are exceeded in two financial years in a row:
- Total assets of 4,400,000
- Revenues from sales and services of 8,800,000
- An average of 50 employees during the year
(Invitalia 2009, 14-17 and Uhy International Ltd. 2009, 14-15)
41
6.5. Formation Procedures

When setting up business the knowledge of the language is essential. All the forms needed to be
filled are in Italian and therefore it is recommended to have a business advisor to help the process.
(Welsh Assembly Government 2010.)
With the aim of the European Union to decrease the red tape one-stop shops have been designed to
ease formalities for setting up a business. They are called Sportello Unico and can be found in every
municipality. (Business-in-Europe.)
The single notification, introduced in Italy in 2007, has as well the goal to simplify the establishment
of a business by applying online to the Business Register with one notification including all informa-
tion for the tax identification number, VAT number, and registration with Social Security Administra-
tion (INPS) and Accident Insurance Office (INAIL). Although it is not mandatory for every municipal
yet, Padua and Rome have already shown a significant improvement of faster business registration.
(The International Bank for Reconstruction and Development, The World Bank 2009, 3.)
Most documentation to be filed out for the chamber of commerce can only be done online and re-
quires a digital signature. The signature can be done with a smart card ordered from the Italian gov-
ernment or by contacting professional service providers like notary public or accountants who pos-
sess the smart card. (Invitalia 2009, 6.)
The software recommended to send electronic files to the Business Register is a web-based system
allowing safe e-mailing (Telemaco), enabling the filling of applications (Fedra), and for signing and
checking one or more signatures in any file (Dike) and can be downloaded from the website of the
Chamber of Commerce Italy
8
.
All founding shareholders of a limited liability company have to be present or be represented by
someone with the power of attorney at the time of founding the company for the signing of the
memorandum and articles of association with the notary public. (Invitalia 2009, 17-18.)

6.6. Registration requirements

The costs of registration are around 4,592 in Italy (The International Bank for Reconstruction and
Development, The World Bank 2009b, 55).

8
http:/www.chamberofcommerce.it/
42
The registration process for the Business Register depends on the type of business organisation cho-
sen, however in general it is required (Invitalia 2009 and European Business):
For some professions to have an administrative permit or a license to start business
Professions in the food and drink industry and which involve activities in tourism are entered
in the Traders Register (Registro degli Esercenti il Commercio) at the Chamber of Commerce
(European Information Centre Vilnius)
Apply for a value added tax (VAT imposta sul valore aggiunto/IVA) number (codice fiscale)
at the Italian Revenue Agency or at the Italian consulate in another country (no online possi-
bility)
Contact the Chamber of Commerce (camera di commercio) in the province were the business
will be operating and register at the Business Register (registro delle imprese) and the Na-
tional Social Security Institute (Istituto Nazionale Previdenza Sociale/INPS) within 30 days af-
ter the start of the business
At the beginning of the business the Business Register has to be informed with a copy of the
start-of-business notice (denuncia di inizio attivit, filled at the Chamber of Commerce) and if
needed the administrative permit or license
Businesses including a higher risk of incurring work-related accidents have to register with
the Italian Workers' Compensation Authority (INAIL)

6.6.1. Establishing a limited liability company

For the process of establishing a limited liability company these steps have to be taken into consid-
eration (Invitalia 2009, 17-21):
Contact notary public and draft together the memorandum and articles of association
Establish companys share capital (deposit at a temporary Italian bank account)
If assets or services are being contributed to the share capital it needs approval of an expert
(sworn report)
The notary public has 20 days to fully register the company with the Business Register
Fully established the deposit can be put into the final account
43
6.6.2. Establishing a branch

The case of establishing a branch requires the following procedures (Invitalia 2009, 22-23):
Authenticated copy of the memorandum and the articles of association of the head company
by the notary public of the country of origin
Legalise the copy by the Italian consulate or other diplomatic authority or provide with an
apostille (issued by a competent public authority, simpler than legislation)
Translate copy into Italian, if necessary
A declaring certificate that the company is an existing business with validity to the law of the
origin country issued by a competent body in the companys country (e.g. the chamber of
commerce, Business Register, etc.)
- Name the representative of the branch
- Including a sworn translation into Italian, certified by the Italian court or an Italian em-
bassy in the companys country of origin
Copy of the document stating the intention to open a branch in Italy (the form of the docu-
ment depends on the legal system in the country of origin)
- Indicate the address of the branch
File the document by an Italian notary public
Complete forms requested by the Chamber of Commerce (depending if you open a secon-
dary office or branch)

6.7. Accounting

A company that operates in Italy needs to keep accounts on the following issues:
Every good/service delivered (issuing receipt for fiscal purposes)
Every good/service bought
Register of invoices
(Your Europe 2010.)
The accounting books that the Italian law requires to keep are:
General ledger
VAT sales register
VAT purchases register
44
Depreciable assets
(UHY International Ltd. 2009, 29.)
It depends on the statutory structure of the enterprise how the specific procedure of registration of
invoices proceeds. For sole proprietorships, its allowed to keep simplified accounting. The European
Standards and Italian regulations must be followed by the companies in bookkeeping. The accounts
have to be held safe for the next 10 years in the fiscal domicile, in case of inspection by the Guardia
di Finanza, the financial police forces. (Your Europe 2010.)
The annual financial statements must be prepared in the end of the accounting period, which has
been defined by the company at the start of business. The financial statements must contain balance
sheet, profit and loss account and explanatory notes. The format of the annual financial statements
must be compatible with the regulations of the Italian Civil Code. (UHY International Ltd. 2009, 27-
28.)
The company can prepare condensed annual financial statements if it hasnt exceeded two of the
following requirements in the first year, or the two consecutive years:
3,650,000 of total assets in balance sheet
7,300,000 of revenues from sales and services
50 employees as a average of the during year
(UHY International Ltd. 2009, 27-28.)
Requirements of accounting in Italy have been written in the Italian Civil Code. The complex rules of
accounting have been changing constantly and thats why it has been suggested that the accounting
is done by a professional who is part of professional accountants body recognized by the Ministry of
Justice. The list of these authorized accountants can be found through International Federation of
Accountants
9
. (Your Europe 2010.)

6.8. Auditing

In Italy auditing has two purposes:
Controlling accounting
Controlling the management and corporate monitoring

9
http://www.ifac.org/
45
(UHY International Ltd. 2009, 29.)
Auditing can be done either by authorized auditor/auditing firm or by a board of statutorily audi-
tors or a combination of these options. However, the companies that have to perform a full annual
financial statement have to use registered auditor/auditing firm at least for the controlling of the
accounting. The National Commission for Companies & Stock Exchange (CONSOB) has registered a
special class of auditing firms that has to be used while auditing listed companies, statecontrolled
companies, municipalitycontrolled companies, large consortia, insurance companies, brokers, (secu-
rities traders) and publishing companies
10
. (Financial Standards Foundation 2010.)
An auditor completes two reports; accounting controls and management controls. The accounting
control report is presented in international accounting control form and management control report
is presented in form used by national accounting bodies. Auditors are responsible for the truthful-
ness and accuracy of their statements. They need to be independent and they can be charged if it is
shown that mistakes were made due to lack of their professionalism. (Financial Standards Founda-
tion 2010.)
Selecting an Auditor
An auditor needs to be liable and objective.
Company form Account Control Management Control &
Corporate Surveillance
Sole proprietorship board of statutorily auditors board of statutorily auditors
Small Ltd. (no requirement of
full annual financial state-
ments)
board of statutorily auditors board of statutorily auditors
Ltd. (full annual financial
statements)
registered auditor/auditing firm board of statutorily auditors
Public company CONSOB special class registered
auditing firm
board of statutorily auditors
Figure 14: Minimum auditor requirements in Italy (UHY International Ltd. 2009, 29.)

10
http://www.consob.it/
46
6.9. Business support

The EU and the state of Italy itself provide a variety of support for businesses. Entrepreneurs find
besides personalised support also incentives for setting up a business or promoting entrepreneur-
ship.

6.9.1. At the European Union level

European portal for small and medium sized enterprises (SMEs)
A useful new website providing all relevant information, important links and services regarding EU
topics for SMEs - in 21 different languages
11
(European Commission 2009).
Enterprise Europe Network (EEN)
Launched in 2008, it brings together business support organisations from 45 countries. Their aim is to
support the European Single Market and to enable small businesses to make the most out of the
various business opportunities in the EU. They are connected through powerful databases and know
Europe inside out. What's more, they have been working together for years, some even for decades.
Local network branches act as one-stop-shops and are able to assist on topics like cross-border activi-
ties, innovation and technology transfer, access to finance, research funding, EU law and standards,
intellectual property and programmes and business cooperation
12
. Your local EEN is at the Helsinki
Region Chamber of Commerce. (European Commission 2009 and Enterprise Europe Network 2010.)
European Business Test Panel
As some laws and regulations have particular impact on specific businesses this panel offers the pos-
sibility to comment directly and individually by filling out a questionnaire - available in all official lan-
guages. This voluntary action can be taken 8 times a year, guaranteeing that only relevant issues are
being commented by the businesses
13
. (European Commission 2009.)



11
http://ec.europa.eu/small-business/index_en.htm
12
http://www.enterprise-europe-network.ec.europa.eu/index_en.htm
13
http://ec.europa.eu/yourvoice/ebtp/index_en.htm
47
Solvit
Problems encountered with public authorities applying the Internal Market law of the EU wrongly are
solved with the help of local offices of Solvit in the Member States and the body of the European
Commission itself. Helping consumer and businesses Solvit tackles issues like: market access for
products; provision of services; going self-employed; public contracts; tax or VAT reimbursements
and border controls. This service guarantees a solution within ten days14. (European Commission
2009.)
FIN-Net
Since 2001 the FIN-Net network helps to solve financial disputes between consumers and financial
services providers (i.e. banks, insurance companies, investment firms and other). The provision of
easy access to out-of-court complaint procedures in cross-border cases is their main goal.
15

European associations such as BUSINESSEUROPE
16
, the confederation of European business, and the
European Association of Craft Small and Medium-sized Enterprises (UEAPME)
17
are recognised as
European social partners and represent the companys interest before and in European institutions.

6.9.2. National level

Chamber of commerce
La camera di commercio dItalia can be found in every region and is the official contact point for
SMEs covering matters like setting up a business, registering, advising and financial support.
Impresa.gov
This website provides businesses with online information and services published by local and na-
tional public authorities. Covering quite useful topics it is unfortunately only available in Italian.


14
http://ec.europa.eu/solvit/site/index_en.htm
15
http://ec.europa.eu/internal_market/fin-net/index_en.htm
16
http://www.businesseurope.eu/Content/Default.asp
17
http://www.ueapme.com/
48
Financial access
The websites of Unicredit Banca
18
and Contributi
19
cover issues as loans, grants and other relevant
financial information, especially concentrating on SMEs. However both of them are in Italian only.

Becoming a member of a national entrepreneurial association can as well offer access to a wide
range of information. The leading associations representing the craft and SME sector in Italy are:
Confesercenti
20
, Confartigianato
21
, Confapi
22
, CNA
23
and Confindustria
24
.
7. Labour law and regulations
7.1. General information on EU labour law

EU Labour law is a body of legislation that defines employers and workers rights and obligations in
the workplace.
At Community level, labour law covers two main areas:
Working conditions, including working time, part-time and fixed-term work, and posting of
workers
Information and consultation of workers, including in the event of collective redundancies
and transfers of undertakings

The role of the European Community (EC) is to support and complement the activities of the Member
States in the area of social policy, in line with the provisions of the EC Treaty (Art. 136-139).
To this aim, the EC adopts legislation defining minimum requirements at EU level in the fields of
working and employment conditions and the information and consultation of workers. The Member

18
http://www.unicreditbanca.it/it/legge488/
19
http://www.contributi.it/index.php
20
http://www.confesercenti.it/en/index.php
21
http://www.confartigianato.it/
22
http://www.confapi.org/
23
http://www.cna.it/
24
http://www.confindustria.it/
49
States then transpose the Community law into their national law and implement it, guaranteeing a
similar level of protection of your rights and obligations throughout the EU.
Labour law also has a key role in ensuring that a high level of employment and sustained economic
growth is accompanied by continuous improvement of the living and working conditions throughout
the European Union. The main areas of the EC labour legislation are:
Health and safety at work
Equality between women and men
Anti-discrimination
Free movement of workers
Social security coordination

On national level it is on the responsibility of courts and national authorities to enforce the national
transposition measures. The EU is in charge of monitoring the transposition process. Disputes be-
tween member states and the EU are settled by The European Court of Justice. (European Commis-
sion 2010.)
The main points regulated by the EU labour law are:
Individual working conditions
Fixed-term work
Part-time work
Temporary agency workers
Health and Safety in Fixed- term and Temporary employment
Young people at work
Working time directive
(European Commission 2010c.)

7.2. Individual working conditions

The EU defines minimum requirements at European level and the requirements have to be imple-
mented on national level. An EU Directive has been created to obligate the employers to inform em-
ployees on the essential elements of his working contract or employment relationship.

50
Several elements regarding the job have to be specified in a working contract:
Description of the work
Working times
Leave entitlements
Arrangements for either side to give notice
General conditions of work

Also, if the worker is required to work in another country all elements regarding different conditions
have to be specified in the contract (e.g. currency of payment and duration of working period
abroad). (European Commission 2010b.)

7.3. Italian labour legislation

The foundations of Italian labour policy (excerpts):
Article 1 Form of State
Italy is a democratic republic based on labour

Article 4 Work
The republic recognizes the right of all citizens to work and promote conditions to fulfil this
right.
According to capability and choice, every citizen has the duty to undertake an activity or a
function that will contribute to the material and moral progress of society.

Article 35 Labour
The republic protects labour in all its forms.
It provides for the training and professional enhancement of workers.
It promotes and encourages international treaties and institutions aiming to assert and regu-
late labour rights.
It recognizes the freedom to emigrate, except for legal limitations for the common good, and
protects Italian labour abroad.
(The Constitution of Italy 2003.)
51
7.3.1. Contract of Employment and Workers Rights

The main types of working contracts in Italy are:
Apprenticeships
Part-time solidarity contracts
Work-training contracts
Fixed-term contract
Domestic work

Generally speaking, all contracts are considered indefinite except in cases specified by the law. Fixed
term contracts are permitted as long as it is based on legal grounds. Seasonal work and replacement
of employees on sickness or maternity leave are good examples of reasonable causes for fixed-term
contract. Fixed-term contracts are set to end automatically at the end of the specific duration or
completion of the specified task.
In indefinite contracts, both parties (employer and employee) are allowed to terminate the contract
but have to respect the notice period. However, the employer has to provide the worker with a justi-
fied cause. On the other hand, the employee does not have to present any kind of cause to terminate
the contract. Termination without grounds is permitted only during trial period. Also domestic work-
ers, employees who have reached retirement age and directors can be dismissed without grounds.
Termination based on race, political opinions etc. are strictly prohibited. Also, members of workers
committees are entitled to immunity from termination for the following one year period after the
cessation of their duties in the committee.
If the worker is dismissed illegally, remedies vary depending on the size of the company. Generally
speaking, the employer is required to offer remuneration and ask the employee to return to work.
The worker is entitled to refuse and require a remedy equal to 15 months pay. In companies with
15-60 employees, the worker is no right to reinstatement, but is entitled to compensation ranging
from 2.5 to 6 times the monthly pay. (ILO 2010.)
52
7.3.2. Hours of work

The normal weekly working time is determined in the collective agreements. Normally, there are 40
working hours per day and a maximum of 48 hours of work per week on a reference period of 4
months. Generally speaking, all work in excess of 40 hours a week is overtime. Different overtime
limits can be fixed by collective agreements. In general, overtime should be occasional and caused by
reasons that hiring new workers cannot eliminate. For part-time work, the distribution of working
hours is determined in a separate contract and cannot be modified by the employer without em-
ployers consent or if there is an increase in the hourly salary. (Invitalia 2010.)
Overtime must be compensated with no less than 10 per cent increase over the regular rate. How-
ever, it has happened that Italian courts have ruled that the overtime provision applies to all the re-
muneration the employee gets from the employer (e.g. living cost bonus, allowances for night and
shift work). Thus in practice, the overtime salary can rise up to 30 per cent above the basic pay. (ILO
2010.)

7.3.3. Paid Leaves

All workers in Italy have the right to rest at least on one day a week. Italian law recognizes four na-
tional holidays. On these days workers are entitled to get normal pay. If they have to work, they get
double the normal salary. Collective agreements determine the yearly paid holiday period which is 4
weeks minimum. Senior workers may also be entitled to additional holidays. During their holiday,
workers get their normal salary excluding only indemnities related to their work. Generally speaking,
employees get to choose the exact time frame of their holiday unless it is not incompatible with the
companys activities. (ILO 2010.)

7.3.4. Maternity leave

Female workers have right to special protection in case of pregnancy. The female employee cannot
be dismissed from beginning of the pregnancy until one year after the childs birth. Maternity leave is
compulsory from two months before and three months after the childbirth.
The mother is entitled to get 80 % of the normal salary from the social security during the compul-
sory maternity leave. Collective agreements usually stipulate the worker to make up the gap be-
53
tween the normal salary and the maternity leave benefit. Also, time spent on maternity leave counts
as actual work time. (ILO 2010.)

7.4. Italy labour market

7.4.1. General information

In the 1990s labour force participation and employment grew drastically in Italy. The cumulative
labour force growth was almost twice the labour force resulting in fairly low unemployment rates in
the mid-2000. This is the result of several reform programmes performed in 1997 and 2003. Most
jobs created in the 1990s were part-time or temporary work. In absolute terms, the number of tem-
porary based workers doubled between years 1995-2007, whereas during the same period perma-
nent employment increased only 7 %. A similar gap can be seen between part-time and full-time
working as part-time working grew by 65 % and full-time working reached only a moderate 9 % cu-
mulative growth. (Schindler, M. 2009, 4.)
In 2009, Italys unemployment rate was 7.8 % of total population. It comprises people be-
tween 15-74 years of age.
In EU-27, the total unemployment rate was 8.9 % so Italy is doing a little better than EU on
average.
If shared into sex-based categories, we can see that mens unemployment rate in Italy was
6.8 % and womens 9.3 %. Male unemployment rate is significantly above the EU-27 average
whereas female unemployment rate is below the average. (Eurostat 2010c.)

7.4.2. Wages

According to Italian constitution workers are entitled to get a pay for the work they have performed.
The Italian law does not define any minimum wage but it is standard procedure to refer to national
collective labour laws when establishing a minimum wage. These laws also cover workers who are
not members of any union.
Gross salary composes of all factors contributing to the workers salary. Social security payments are
compulsory as they are payable by law and consist of worker-paid part and employer-paid part.
54
Some factors are not subject to taxes, for example: family allowances, student grants and nursery
schools. (EURES 2010.)
Factors contributing to employees salary:
Basic pay or minimum wage tariff consisting of the remuneration of the persons job
Cost of living allowance to adjust the salary with inflation
Wage supplement
Seniority increase
Additional bonuses based on, for example, persons professional skills
(EURES 2010.)

7.4.3. Social Security

In general, one has to be employed before being accepted to the social welfare system. When the
employee starts working deductions are then made from the salary and they will be paid in by the
employer. The national social security system is called INPS (Istituto Nazionale di Previdenza So-
ciale). It is responsible for social security and welfare benefits. Social security benefits are granted on
the basis of compulsory insurance payments and they are funded by the collection of contributions.
Welfare benefits in Italy are designed to support income in case of unemployment, sickness or ma-
ternity.
To register with the social welfare system, the employee has to deliver all the required documents
issued and filled in by the employer. The workers contributions are deducted from the gross pay.
Those who are self employed must pay contributions to a separate social security fund.
Italian law obliges employers to ensure workers against occupational diseases and hazards. This is
normally handled by the National Institute for Insurance against Occupational Accidents and Diseases
(INAIL). (EURES 2010.)

7.4.4. Market development and conditions

According to the Italian Statistics Institute (ISTAT) 22.9 million Italians were employed at the end of
2009. This gives Italy an employment rate of 57.1 %. The unemployment rate in February 2010 was
8.5 % with 1.2 percentage points of growth compared to February 2009. It is though still below the
55
EU average. Youth employment in Italy remained very high at 28.2 % in February 2010 and it is
clearly above the EU average. Male unemployment has been hit harder than female unemployment,
which has declined since December 2009.
Unemployment has augmented especially in the Centre-North part of the country. The amount of
self-employed and temporary workers has gone down with permanent workers especially in small
businesses.
The hours worked by temporary workers were down 5.6 % in January 2010 compared to last year.
Also, there is a decline in employers hiring expectations in the second quarter of 2010 as the labour
input is predicted to go down. (Monthly Monitor 2010.)
8. Taxation
8.1. Corporate Income Tax (Imposta sul Reddito delle Societ - IRES)

Since 2009 the standard rate for the Italian corporate tax is at 27.5 %. It is regulated by the stan-
dardization law, the Testo Unico delle Imposte sui Redditi (CTC) and is paid twice a year. This direct
tax applies to a companys income from any source. For Italian resident companies, their worldwide
revenues serve as basis and non-Italian based companies have to pay IRES on the revenues made in
Italy. (European Commission 2008.)
For tax purposes, the following forms of corporation are considered resident in Italy:
Societ per Azioni (S.p.A.)
Societ a responsabilit limitata (S.r.l.)
Societ in accomandita per azioni (Sapa)

Foreign companies with their headquarters or main activities in Italian territory for the majority of
the tax period are also considered Italian residents (Invitalia 2009b).
An additional 5.5 % corporate income tax charge is due for companies if their revenues in the rele-
vant fiscal period are higher than 25 Million Euros AND if they are operating in one of the following
fields:
Research and exploitation of hydrocarbon
Oil refining, production and sale of petrol, gasoline, gas, lubricating oil
Liquefied gas of patrol and natural gas
56
Production and sale of electricity (PKF International Limited 2009)

Partnerships (societ in nome collettivo, societ in accomandita semplice) are not subject to IRES but
usually to the personal income tax (IRPEF). Since the 2008 tax period, partners may, however, choose
to tax such income at 27.50 %, which is the same rate as the corporate income tax. For further in-
formation please check the Invitalia website
25
.

8.2. Regional Corporate Tax (Imposta Regionale sulle Attivit Produttive - IRAP)

Resident and non-resident companies pay IRAP based on income made in Italy:
3.9 % 1.0 % (regulated by regional authorities)
Will be gradually eliminated in near future (Petsch Frosch Klein Arturo Rechtsanwlte 2010,
5.)

8.3. Filing tax returns (IRES and IRAP)

Must be filed within 7 months of statutory year end (calendar year or fiscal year)
Electronic transmission (F24 form)

8.4. Value Added Tax (Imposta sul Valore Aggiunto - IVA)

The EU value added tax-code is fully applied in Italy. The IVA is carried by consumers; in earlier stages
suppliers deduct input IVA. It applies to all products and services produced in the Italian territory.
(Stanley St Labs 2009.)
Standard rate (IVA): 20 %
Other rates: 4 % and 10 % for basic products and services like restaurant and catering ser-
vices, books, hairdressing etc. (complete list on European Commissions Web Site
26
)
IVA is to be paid once a month or quarterly

25
http://www.invitalia.it/on-line/eng/Home/BusinessEnvironment.html
26
http://ec.europa.eu/taxation_customs/taxation/vat/key_documents/legislation_recently_adopted/
index_en.htm
57
Annual return is filed once a year, March 15
th

Electronic transmission (F24 form)
More information about Italys tax system and all necessary online forms can be found on the home-
page of Agenzia delle Entrate
27
. and Invitalia
28
.

8.5. Personal income tax

In Italy, the taxation for individuals income is progressive. It means that the higher the income is,
the higher the rate of tax payable is.
Individual tax and additional taxation (in 2009):
Individual tax rate between 23 % and 43 %
Regional tax of 0.9 % to 1.4 %
Municipal tax of 0.1 % to 0.8 %

An individual in Italy is responsible for taxing ones income as an employee and ones income as a self-
employed person. The tax must be paid on income earned in Italy and overseas by an individual who
meets the requirement of a "permanent resident" of Italy. A foreign resident who is employed in Italy
pays tax only on income earned in Italy.

Italy individual income tax rates 2009






Figure 15: Individual income tax rates (World Tax Inc 2009).


27
http://www.agenziaentrate.it/ilwwcm/connect/Nsi/
28
http://www.invitalia.it/on-line/eng/Home.html
Tax (%) Tax Base (EUR)
23% 0 - 15,000
27% 15,001-28,000
38% 28,001-55,000
41% 55,001-75,000
43% 75,001 and over
58
8.6. Italy reporting dates and payment of the taxes

In Italy the tax year ends on December 31
st
. The payments of taxes are made on the following basis:
An individual whose only income is from a salary is not obligated to file an annual tax return.
The employer deducts the tax from the employee and transfers the payment immediately to
the tax authorities on a monthly basis.
A self-employed individual is obliged to pay 100 % of the tax forecast for a year, or an
amount that is the equivalent of 98 % of the tax paid in the previous year. The pre-payment
is made in two instalments:
- 40 % of the total are paid by June 20
th

- The remaining 60 % are paid on November 30
th

- The date for filing an annual return for an individual is July 31
st

A limited company must submit the financial statements within 30 days of the date of ap-
proval.
Before the date of approval of the statements, the company must pay the amount of tax
due for the previous year and in additional 40 % of the tax forecast for the current year.
(World Tax Inc 2009.)

8.7. Excise duty

Excise duty or taxes concern certain commodities, usually "luxury" goods. The excise tax is normally
assessed against tobacco products, perfumes and alcohol products but can include other goods as
determined by Italian regulations. (FedEx 2010.)

8.8. Real estate / Land tax

In Italy, there are two local property taxes, which are based on the property's theoretical rental value
according to the local land registry and are adjusted in line with inflation. The rate of tax can vary due
to the tax imposed by the regional and local governments:


59
Imposto municipale or Imposta Comunale sugli Immobili (ICI)
The local municipal property tax (ICI) is paid by every owner of property or land in Italy. The amount
of the tax is calculated referring to the rendita catastrale (official value of the property). The rates
value is around 0.4 % - 0.7 % of the value of the property. If a property does not fit for habitation it
could be qualify for a 50 % reduction.
Tassas Comunales
Some Municipalities raise additional taxation for the services that they supply to the resident of the
area (rubbish collection, cleaning of the streets, etc.). Municipalities have the right to raise a charge
for the use of a vehicle in their area and it varies between 200 and 250 per year. (Properties in
Europe 2005.)
9. Banking System & National Bank
The central bank of Italy Banca DItalia
29
is part of the European System of Central Banks (ESCB) and
the Eurosystem. Banca DItalia is a public-law institution and it aims at fulfilling the monetary and
financial goals set by the European Union. It is an independent bank following the Italian law. (Banca
DItalia 2010.)

9.1. Local currency & monetary issue

The currency in Italy is the Euro. The European Central Bank (ECB) and the national bank in Italy
Banca DItalia control monetary issues. Banca DItalia participates in decision making and the imple-
mentation of the monetary policy. The main objective of European Union monetary policy is price
stability. The ECB provides official statements and regular publications such as monthly bulletin and
annual report that can be found from the web site of the European Central Bank
30
. (Banca DItalia
2010.)




29
www.bancaditalia.it/bancaditalia
30
http://www.ecb.int/stats/html/index.en.html
60
9.2. Payment systems

European Central Bank and national banks in the European Union are promoting smooth operations
in the payment systems. Banca DItalia together with the banking community is developing efficient
and reliable payment systems. The aim is to have common procedures and harmonize the legal
framework for the European Union payment system. Banca DItalia together with the central banks
of France and Germany has developed a new European payment system - TARGET2:
No differences in handling of national and cross-border payments
Harmonized legal framework
Common technical features

9.3. Single Euro Payments Area (SEPA)

Paying with euro banknotes and coins everywhere in the euro area has been easy since 2002. How-
ever non-cash payments have continued to be expensive and complicated. In 2001 the European
Union adopted a law to ease payments. Banks have to charge the same fees in both national and
cross-border payments. Banks created the European Payment Council (EPC) to be in charge of the
SEPA project. The aims of SEPA:
Have one pan-European payment market
Quick and uncomplicated payments everywhere in the Euro area
Europe as one payment area at the end of 2010

In 2008 the SEPA credit transfer was launched which includes harmonized electronic payment in-
struments (credit transfers, direct debits and cards) in the Euro Area.
Within the SEPA area all the payments are treated as national payments. Individuals and companies
can make receive payments in Euros via the same bank account as easily as national payments. SEPA
will increase competitiveness in the European economy and forward new innovations. Notice:
For SEPA transfer IBAN and BIC numbers are needed
Italy is using IBAN numbers as only identification
Execution time of transfer is at most 3 days

New payment cards are issued that can be used in Italy and in the other countries in Europe.
61
10. Consumer Affairs
The EU is committed to improving the quality of life of its citizens and also SMEs. As the single market
and the single currency open trading borders and the use of the internet and electronic commerce
grows it is important that citizens benefit from the same high level of consumer protection.
Consumer Policy promotes the interests, health and safety of European consumers with the help of
the directorate for Health and Consumers
31
. The aim of the EU is designed to ensure that the inter-
nal market is open, fair and transparent, allowing consumers to exercise real choice and to helping
consumers and businesses take full advantage of the markets potential.
Increased Consumer confidence makes good Business sense.
The EUs new consumer protection programme for the period 2007-2013 has two main objectives:
To ensure a high level of consumer protection, notably through improved evidence, better
consultation and better representation of consumers interests
To ensure the effective application of consumer protection rules, notably through enforce-
ment

In December 2007, the EU banned a series of unfair commercial practices
32
. They include misleading
advertising and aggressive selling practices like harassment, coercion and using undue influence. The
new directive gives consumers but also SMEs the same protection from sharp business practices and
rogue traders whether they buy from the shop around the corner or from a website in another EU
country. (European Commission 2009d.)
Standardization and standards play an important role in SME daily activities as their prod-
ucts/services may need to comply with standards for legal and/or market reasons. The implementa-
tion of standards can be beneficial for SMEs if standards are:
Market driven
Fit for their business model
Not used to make them go out of business by larger stakeholders
Not developed by certifiers and/or consultants as business support means


31
http://ec.europa.eu/dgs/health_consumer/index_en.htm
32
http://ec.europa.eu/consumers/cons_int/safe_shop/fair_bus_pract/ucp_en.pdf
62
The European office for crafts, trades and SMEs for standardisation (NORMAPME)
33
is a representa-
tive in standardisation changes, offers current information and sometimes intervenes in alternations
by the standardisation bodies for the benefit of SMEs. Also the Enterprise Europe Network
34
offers
information on standardisation and changes in the regulations. (Normapme 2010.)

10.1. Consumer protection and support at EU level

ECC-Net
The European Consumer Centres Network
35
helps consumers to solve problems occurred with busi-
nesses when shopping across the borders within the EU, including Norway and Iceland. Having a local
office in each member state it also provides information for the consumers on national and European
consumer protection rules. In 2008 72 % of complains at the ECC-Net were addressed to the sectors
transport services, recreational and cultural services, and restaurant, hotel and accommodation ser-
vices. (European Commission 2009 and ECC-Net 2009.)
Links to the consumer associations in Italy can be found on the national website of European Con-
sumer Centres Network
36
and under useful addresses at the end of the report.
FIN-NET
The financial dispute resolution network
37
within the European Economic Area helps consumers to
find out-of-court solutions in cross-border cases with financial providers, i.e. banks, insurance and
investment companies and others.





33
http://www.normapme.com/english/standatabase.htm
34
http://www.enterprise-europe-network.ec.europa.eu/index_en.htm
35
http://ec.europa.eu/consumers/ecc/
36
http://www.ecc-net.it/
37
http://ec.europa.eu/internal_market/fin-net/index_en.htm
63
10.2. Consumer Protection and support in Italy

As a member state of the EU, Italy is bound by the consumer protection directive of the EU. Domestic
laws are influenced by EU law. Consumer Protection issues are dealt with when complaints are made
to the institutions and unions.
National council of consumers and users
The nationwide consumers and users association (CNCU)
38
is part of the Ministry of Economic De-
velopment and aims to improve and strengthen the consumers position. 16 recognised associations
are part of this council and promote the consumer and user rights. The following topics are covered
by the council:
Consumerism
Liberalization of public services
Food processing
Product safety and quality
Environmental and health protection
Credit system and financial services
Insurances
Relationship with the Regions
International relations
Access to legal system
Corporate social responsibility

National consumer union
The national association for consumer protection
39
has 30 offices throughout the country and offers
information to raise the consumer awareness and defend the consumer right. It also provides an
online advice service.
Adoc.org
The national association for consumer defence and orientation
40
offers current information to con-
sumer issues in different subjects.

38
www.tuttoconsumatori.it/eng_fra.html
39
www.consumatori.it
64
Non-governmental consumer protection associations, like for example Adiconsum
41
, Confconsuma-
tori
42
, ADUC
43
and others, provide additionally useful information.
11. Market Development and market conditions for SMEs
11.1. Overall view of SMEs in Italy

In Italy, nearly 40 % of people are self-employed and this probably explains the substantially high
number of SMEs in Italy. The total number of enterprises is one of the highest in the EU with some 65
small and medium size enterprises per 1,000 inhabitants while the EU average is around 40. (Euro-
pean Commission 2008.)
The total amount of SMEs in 2007 was 3,902,731 and most of the companies were micro firms with
less than 9 employees (94.4 %), small companies were 5.0 % and medium companies 0.5 % of total.
This means that 99.9 % of all companies were SMEs. Figure 16 shows the precise distribution and
how the enterprises are divided between various business sectors. (OECD Stat Extracts 2010b.)
Business sector
Micro Medium Large
1-9 10-19 20-49 50-250 250 + Total
Mining and quarrying 2 432 609 278 58 3 3 380
Manufacturing 422 373 52 347 24 745 10 062 1 408 510 935
Electricity, gas and water supply 2 384 185 218 163 66 3 016
Construction 581 939 25 202 7 105 1 531 85 615 862
Wholesale and retail trade, repair of motor
vehicles/cycles, personal and h/hold goods 1 203 816 26 953 8 713 2 791 439 1 242 712
Hotels and restaurants 256 652 13 392 2 790 744 109 273 687
Transport,storage and communications 139 805 7 585 3 600 1 728 349 153 067
Real estate, renting and business activities 1 079 287 14 653 5 662 2 929 645 1 103 176
Total 3 688 688 140 926 53 111 20 006 3 104 3 905 835
Enterprises in Italy 2007
Small
Size of enterprise

Table 16: Enterprises in Italy 2007 by size and business sector (OEDC Stat Extracts 2010b).
SMEs in Italy employed 81.3 % of all persons in work in enterprises while the equivalent number in
the EU was 67.1 % (European Commission 2008).

40
http://www.adoc.org/
41
http://www.adiconsum.it
42
http://www.confconsumatori.com/
43
http://www.aduc.it/
65
The value added percentage of Italian SMEs was also higher than EU average of 57.9 %, while it was
70.9 % in Italy. This means that the impact of SMEs in Italy on the economy is very significant. (Euro-
pean Commission 2008.)
Figure 17: Number of persons employed and value added of enterprises in Italy 2004/2005 (Euro-
pean Commission 2008).
Womens share of the SME entrepreneurs is only around 3 %, more than 1 % lower than the EU av-
erage (European Commission 2008).
However, SMEs do not seem to internationalize, but this is not a new phenomenon as it has been low
throughout its history (European Commission 2008).

11.2. SMEs financial schemes

11.2.1. State aid

The Commission encourages member states to target investment to SMEs in order to create more
jobs and increase competitiveness. The de minimise regulation allows member states to grant
state aid to SMEs very rapidly without notification to the Commission and without administrative
procedure. Regulation specifies that the amount of aid can be up to 200,000 per company over 3
fiscal years.
The European Union is granting indirect aid to the SMEs by:
Reduction of the taxation of labour and social costs
Number of persons employed Value added (MEUR)
Value % Value %
Micro 7 066 111 47,1 % 188 012 31,8 %
Small 3 257 900 21,7 % 137 145 23,2 %
Medium 1 858 001 12,4 % 94 756 16,0 %
SMEs 12 182 012 81,3 % 419 913 70,9 %
Large 2 804 688 18,7 % 172 234 29,1 %
66
Boosting investments
Education and training
Guidance and counselling
Improvements in labour law
Reducing payment delays to improve cash-flows

11.2.2. Indirect and direct funding

The European Union helps SMEs through indirect and direct funding. The main sources of indirect
funding are the Competitiveness and Innovation framework programme (CIP) and EU structural
funds (used by the member states).
Indirect
Bank or venture capital fund
Guarantee institutions
Counter guarantees for new and small companies
Participates in venture capital fund

Direct
Direct grants (co-financing projects) usually 50 % to help implementing
Project costs source

11.2.3. State guarantees

The state guarantees are for helping the SMEs to get access to finance. Usual guarantees are associ-
ated with a loan or another obligation by a borrower to a lender. Guarantees can be granted indi-
vidually or within a scheme.




67
11.2.4. European support programmes for SMEs

The European Union has numerous support programmes to help SMEs. Programmes are divided be-
tween different fields of businesses such as transportation and environmental friendly solutions.
There exist also programmes for education and training as well as for entrepreneurs.
The website of the Enterprise Europe Network
44
can help to connect with partners throughout
Europe, give access to technology and provide information on the various financing options. With a
network of more than 45 support organisations in Europe this information source can also help at
local level and assist entrepreneurs in relevant topics.
Launched 2009, the Erasmus program for young entrepreneurs can help to learn from experienced
SMEs and build a useful network
45
.
More detailed information about different support programmes can be found from the European
Commission web site
46
or from the Access2finance website of the European Union
47
.
(European Commission 2009e; European Commission 2007.)
12. Intellectual property rights
All the existing international treaties for intellectual property rights have been signed by Italy and
therefore foreign companies enjoy the same protection as Italian companies. Being one of the found-
ing members of the EU, Italy has set very high standards in the development of intellectual property
rights and now provides one of the most modern and up to date intellectual property practices in
the world. Recently Italy has introduces new measures to combat counterfeiting, protect internet-
related intellectual property, offer online filing options for claims and merged and simplified patent
and trademark rules.
In 2003 the government has established 12 intellectual property tribunals in major cities of Italy and
the label of made in Italy has become more protected - supporting Italian companies with funds to
use this label and prosecuting misuse. Regarding the infringement of industrial property rights the
Italian law is stricter than other countries.

44
http://www.enterprise-europe-network.ec.europa.eu/index_en.htm
45
http://www.erasmus-entrepreneurs.eu/
46
http://ec.europa.eu/enterprise/newsroom/cf/itemlongdetail.cfm?item_id=3537&tpa_id=201&lang=en
47
http://www.access2finance.eu/en/Italy/what_is_available.htm
68
2005 the government set out a new legislation (called the Industrial Property Code) which rede-
fines industrial property including designations of origin (denominazioni dorigine), geographical indi-
cations (indicazioni geografiche) and company confidential information. (Invitalia 2009.)

12.1. Trademarks

In Italy the patent and trademark office is called Ufficio Brevetti. There are two options for register-
ing trademarks.
Hire a consult to help with the procedure
Apply registration personally

The trademarks are registered in the Chamber of Commerce in which is the area office of the Italian
Patent and Trademarks. The application forms are also available in the Ufficio Brevetti website
48
.
It is possible to apply registration for words, graphics or even colours and shapes. Analysis of the
already existing trademarks has to be conducted before proceeding with the registration in order to
avoid conflicts with already registered trademarks. It is possible to register the trademark not only in
Italy but also in the European Union area or in just some foreign country.
Form C is necessary when registering a trademark. It indicates the classes of services and products
covered by the trademark. All the costs and fees also have to be paid. The cost of the registration can
be estimated in the Italian patent office website by filling a cost evaluation form
49
. (Ufficio Brevetti
2010.)
General information on trademarks:
Registered for unlimited time
Can be renewed every 10 years
It is possible to register: name, one or more words, graphics, a sound or colours or their
combinations
It is possible to register existing trademark if its not Italian
An area can be marked where the trademark is protected
Application forms are available also in Internet

48
http://www.ufficiobrevetti.it/en/trademarks/trademark_home.htm
49
http://www.ufficiobrevetti.it/en/costs_evaluation.html
69
Can be used without registration but the protection is then poor
(Ufficio Brevetti 2010.)

12.2. Patents

The patent gives to its holder an exclusive right to produce and commercialise an object or system in
the country where it has been registered. Inventions and utility models are the two main types of
patents in Italy and aside from them a special design or a model can also be patented. (Ufficio Bre-
vetti 2010b.)
The invention patent
Objects have to be thoroughly tested and examined to obtain an invention patent
Represents highest level of innovation
Patent lasts 20 years from the filing date
Cannot be renewed after expiry

The invention patent can be granted for the following forms of object:
Products
Productive procedures
Vegetable varieties

The following objects cannot be patented as inventions:
Discoveries
Scientific theories
Mathematical methods
Plans
Principles and methods of intellectual activities
Games or commercial activities
Elaborators programmes
Informations presentations
(Ufficio Brevetti 2010b.)
70
The utility model patent
Utility model patents exist in Italy and in few other countries. A utility model is an intellectual prop-
erty right to protect inventions. It can be granted without any kind of test. It is the easiest to obtain
but hardest to preserve. The duration is 10 years and cannot be renewed. The utility model patent
protects the objects (not procedures) that make a modification in an existing product. Usually these
modifications make it easier to use the modified product or enhance the utilisation. (Ufficio Brevetti
2010b.)
It can be hard to choose between invention and utility model patents. This is why it is possible to
perform a double filing which means simultaneous patent application for both the types of patent.
The object of the patent has to be absolutely new. It cant have been patented elsewhere before. If a
product is patented in another country, it cant be patented in Italy, but can be produced and sold
there. (Ufficio Brevetti 2010b.)
A cost estimate of patenting a product can be obtained at Italian patent office website
50
.
13. Environmental Policies
In Environmental issues there is a shared authority between EU and the member states. This means
that great amounts of environmental policy decisions are made together with other EU countries. It
also means that most of Italys environmental policy is common throughout the EU. The full text of
environmental legislation in EU can be found from the treaty establishing the European Community
Articles 2 & 6 and title XIX
51
. (Environment policy of EU 2010.)
Italy is one of the three EU member states that have not achieved their Kyoto targets. There have
been problems especially with greenhouse gas emissions, waste management in some parts of Italy,
air pollution and climate change. In 2009 Italy had a budget of 200 billion to meet the Kyoto tar-
gets. (Environment policy review of Italy 2008, 1, 7.)
Italy has made a promise that it will meet its targets that was set for the climate and energy package
in December 2008. This means that Italy has to reduce greenhouse gas emissions in non-ETS sectors
(e.g. buildings, road transport and farming) by 13 % by 2020 compared to 2005 levels and energy
coming from renewable sources has to have a share of 17 % of total energy consumption. This is 5 %
more than it was in 2005. The Italian government has also set its own targets about electricity pro-

50
http://www.ufficiobrevetti.it/en/patents/costs_evaluation.htm
51
http://eur-lex.europa.eu/en/treaties/dat/12002E/htm/C_2002325EN.003301.html#anArt175
71
duction from renewable sources for the years 2007-2012. The goal is to increase the production by
0.75 % per year. Italy has received the largest amount of money among the 27 member states from
the EU cohesion fund to support its sustainable energy investments. (Environment policy review of
Italy 2008, 3.)
In late 2007 Italy made a national plan considering agricultural biodiversity. It specifies actions to be
made for better collection, cataloguing and conservation of animal breeds and for organic agricul-
ture. Italy is one of the top member states in organic farming and is still struggling with severe air
pollution, despite many implementations of sustainable mobility policies at local level. (Environment
policy review of Italy 2008, 4.)
The current issues to be tackled are: air pollution from industrial emissions, for example sulphur
dioxide, industrial and agricultural effluents polluting coastal and inland rivers, acid rain is damaging
lakes, deficient industrial waste treatment and disposal facilities. (International education media
2010, 5.)

13.1. The Ministry of Environment

Environmental policy is dealt by the Italian ministry for Environment and the Protection of Land and
Sea (Ministero dellAmbiente e della Tutela del Territorio e del Mare). The European Union in 2000,
gave a warning as Italy had failed to present information about their environmental issues. (Com-
manding Heights Italy 2010, Italian Ministry of environment 2010.)
Italy renewed its environmental legislation in 2006 by implementing the Environmental Code. The
new legislation includes new general environmental principles, guidelines of Environmental Impact
Assessments and Strategic Environmental Assessment and some more straight regulations about
water resources, water protection and waste. (Environment policy review of Italy 2008, 6.)
In Italy there are various agencies that work under the Ministry of Environment and take care of the
implementation of the environmental law and developing environmental protection. One of the
most important is the Institute for Environmental Protection and Research, (ISPRA - Istituto Superiore
per la Protezione e la Ricerca Ambientale). It has been established in 2008 and replaces some former
environmental agencies like Italian Environment Protection and Technical Services Agency (APAT),
National Institute for Wildlife (INFS) and Central Institute for Scientific and Technological Research
(ICRAM). (ISPRA 2010.)
72
Italy has signed most of the following international environmental agreements:
Air Pollution, Air Pollution-Nitrogen Oxides, Air Pollution-Sulphur 85, Air Pollution-Sulphur 94,
Air Pollution-Volatile Organic Compounds, Antarctic-Environmental Protocol, Antarctic
Treaty, Biodiversity, Climate Change, Desertification, Endangered Species, Environmental
Modification, Hazardous Wastes, Law of the Sea, Marine Dumping, Nuclear Test Ban, Ozone
Layer Protection, Ship Pollution, Tropical Timber 83, Tropical Timber 94, Wetlands, Whaling

Italy has also signed the Climate Change-Kyoto Protocol and the Air Pollution-Persistent Organic Pol-
lutants, but these agreements have not been ratified. (International education media 2010.)
More information about environmental policy in Italy can be found from the websites of the Italian
Ministry of Environment
52
. The websites are in Italian.
14. Further Useful Information
Small Business Act (SBA
53
) is an instrument to do business with more ease in the Single Market. SBA
(2008) which followed the Think Small First principle has introduced some useful measures for
small businesses. It aims to improve the overall approach to entrepreneurship. The SBA for Europe
applies to all companies which are independent and have fewer than 250 employees.
SBA instruments include:
The European Private Company (Societas Privata Europaea -SPE ) form.
General Block Exemption Regulation on state aids simplifies procedures and reduces costs.
It increases the aid intensity for SMEs and makes it easier for SMEs to benefit from aid for
training, research and development, environmental protection and other types of aid.
An amendment to the directive on late payments to help to ensure that SMEs are paid
within the 30 days time limit stipulated.
Commitment to cut administrative burden by 25% by 2012. The time needed to start a new
company should be no more than one week, the maximum time to obtain business licenses
and permits should not surpass one month and one-stop-shops should assist to facilitate
start-ups and recruitment procedures.


52
www.minambiente.it
53
http://ec.europa.eu/enterprise/policies/sme/small-business-act/index_en.htm
73
It is planned to help boost small businesses in Europe and on the global market. The European Small
Business Portal
54
gathers together all the information provided by the EU on and for SMEs, ranging
from practical advice to policy issues, from local contact points to networking links.
Erasmus for young entrepreneurs
55
programme helps upgrade the skills of new entrepreneurs and
contribute to the networking among SMEs in Europe.
Information on access to finance can be found on the website for EU finance for SMEs
56
, where spe-
cific information is given to the country of interest.
The Commission makes direct financial contributions in the form of grants in support of projects or
organisations
57
which further the interests of the EU or contribute to the implementation of an EU
programme or policy.
Your Business Europe
58
offers online information regarding Starting a Business, Managing a Business,
Doing Business responsibly, Profiting from the EU Market, Expanding a business, Competing through
Innovation, Deciding to Stop, Access to finance and Business support in all the 27 Member States.



54
http://ec.europa.eu/small-business/
55
http://www.erasmus-entrepreneurs.eu/
56
http://www.access2finance.eu/en/Finland/what_is_available.htm
57
http://ec.europa.eu/contracts_grants/index_en.htm and
http://ec.europa.eu/enterprise/policies/finance/guide-to-funding/index_en.htm
58
http://ec.europa.eu/youreurope/business/index_en.htm
74
15. Useful links
Setting
up a
business
in Italy
www.invitalia.it Italys government agency for inward investment promotion and enterprise development
www.eubusiness.com/europe/italy Information from the Commission on how to set up a business
www.chamberofcommerce.it Chamber of Commerce Italy
www.uibm.gov.it/ Patent and Trademark Office
www.cna.it/eng/index.htm CNA, the National Confederation of Crafts and Small and Medium-Sized Enterprises
www.confcommercio.it
Italian General Confederation of Enterprises, Professional Occupations and Self-
employment
http://www.ueapme.com/ European association of craft, small and medium-sized companies
www.inail.it INAIL - The Workers Compensation Authority
http://www.confesercenti.it/en/index.php Business associations in Italy
www.registroimprese.it The official business register of the Italian Chamber of Commerce
www.enterprise-europe-network.ec.europa.eu Enterprise Europe Network
http://www.eurid.eu/en/eu-domain-names.eu Domain names
www.notariato.it Italian notaries
www.ifac.org International Federation of accountants
www.consob.it The public authority responsible for regulating the Italian securities market
http://ec.europa.eu/small-business/index_en.htm European portal for small and medium sized enterprises
http://ec.europa.eu/yourvoice/ebtp/index_en.htm European Business Panel Test
http://ec.europa.eu/solvit/site/index_en.htm Solvit - problem solving with public authorities
http://www.businesseurope.eu/ Business Europe representation of Europes federations
http://www.ueapme.com/ European Association of Craft Small and Medium-sized Enterprises
www.unicreditbanca.it/it/legge488/ Unicredit Bank information on financial access
http://www.contributi.it/index.php Contributi - financial access information
http://www.confesercenti.it/en/index.php Italian business association representing over 270,000 businesses
http://www.confartigianato.it/ Italian business association representing over 521,000 businesses
http://www.confapi.org/
Italian business association for small and medium enterprises in the private industries
representing over 120,000 businesses
www.confindustria.it/
Italian business association for manufacturing and service companies representing over
140,000 businesses
75




Con-
sumer
Affairs
http://ec.europa.eu/dgs/health_consumer/index_en.htm Directorate for Health and Consumers in the EU
http://ec.europa.eu/consumers/cons_int/safe_shop/fair_bus_pract/
ucp_en.pdf
Directive for Unfair Commercial Practise
http://www.normapme.com European office for crafts, trades and SMEs for standardization
http://ec.europa.eu/consumers/ecc/ European Consumer Centres Network
http://www.ecc-net.it/ European Consumer Centres Network Italy
http://ec.europa.eu/internal_market/fin-net/index_en.htm Financial dispute resolution network
www.tuttoconsumatori.it/eng_fra.html Nationwide consumers and users association
www.consumatori.it National association for consumer protection
http://www.adoc.org/ National association for consumer defense and orientation
http://www.adiconsum.it Adiconsum: Non-governmental consumer protection associations
http://www.confconsumatori.com/ Confconsumatori: Non-governmental consumer protection associations
http://www.aduc.it/ Aduc: Non-governmental consumer protection associations
http://www.normapme.com/english/standatabase.htm NORMAPME: Standard databases
http://www.elearning.normapme.com/start.htm NORMAPME: e-Learning - The reality of SME
http://www.enterprise-europe-network.ec.europa.eu/index_en.htm EEN: Enterprise Europe Network
Environ-
mental
issues

http://www.minambiente.it/ The websites of the Italian Ministry of Environment
http://www.isprambiente.it/site/en-GB/ The Italian Institute for Environmental Protection and Research
http://europa.eu/pol/env/index_en.htm Environment policy of EU
http://ec.europa.eu/environment/index_en.htm European commission - Environment






76
Taxes
http://www.agenziaentrate.it/ilwwcm/connect/Nsi/ Agenzia delle Entrate. Web Site of the Italian Revenue Agency :
http://ec.europa.eu/taxation_customs/taxation/vat/key_documents
/legislation_recently_adopted/index_en.htm
European Commission (2010). How VAT works.
http://ec.europa.eu/taxation_customs/taxation/vat/how_vat_works
/index_en.htm
European Commission (2010). Legislation Recently Adopted
http://www.justlanded.de/english/Italy/Italy-Guide/Money/Income-
tax
An introduction to Italys income tax
http://www.justlanded.de/english/Italy/Italy-Guide/Money/Income-
Tax-Liability
Income Tax Liability
http://www.justlanded.de/english/Italy/Italy-
Guide/Money/Taxable-Income
Taxable Income
http://www.justlanded.de/english/Italy/Italy-Guide/Money/Income-
tax-allowances
Income tax allowances
http://www.justlanded.de/english/Italy/Italy-Guide/Money/Income-
Tax-Rates
Income Tax Rates
http://www.justlanded.de/english/Italy/Italy-Guide/Money/Income-
Tax-Returns
Income Tax Returns
http://www.agenziaentrate.it/ilwwcm/connect/Nsi/ Agenzia delle Entrate
http://ec.europa.eu/taxation_customs/taxation/vat/how_vat_works
/index_en.htm
European Commission: VAT Legislation Recently Adopted

Macro
and Mi-
croecon-
omy

http://ec.europa.eu/economy_finance/publications/publication160
55_en.pdf
European economy forecast per country (key indicators)
http://ec.europa.eu/archives/growthandjobs_2009/ Introduction to the Lisbon Strategy
http://epp.eurostat.ec.europa.eu/cache/ITY_OFFPUB/KS-BW-09-
001/EN/KS-BW-09-001-EN.PDF
Full report about the business situation in Europe divided by business sectors
http://epp.eurostat.ec.europa.eu/cache/ITY_OFFPUB/KS-BW-09-
001/EN/KS-BW-09-001-EN.PDF
Data for short-term economic analysis, Issue number 02/2010, Principal European Eco-
nomic Indicators (PEEIs) for the European Union, the euro area and by countries
http://en.istat.it/dati/catalogo/20090511_00/italyinfigures2009.pdf Istat Italy in Figures 2009, giving a broad overview about Italy and its industrial sectors
77
16. Appendices










Appendix 1: The structure of the Italian research system (Erawatch 2010).
Appendix 2: Monthly statistics of the bonds (Borsa Italiana 2010).
78
Appendix 3. Requirements by the Italian law for the memorandum of association (Invitalia 2009).


79
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Auorita Garante Della Concorrenza e Del Mercato 2010. Italian competition authority.
http://www.agcm.it/eng/index.htm. Visited on 21.04.2010.
Banca DItalia 2010. Bank of Italy. www.bancaditalia.it. Visited on 12.04.2010.
Bank of Finland 2010. Exchange rates. http://www.bof.fi/en/tilastot/valuuttakurssit/kuvaus.htm.
Visited on 12.04.2010.
Borsa Italiana 2010. The Milan exchange stock.
http://www.borsaitaliana.it/homepage/homepage.en.htm. Visited on 26.04.2010.
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28.02.2010.
Buyusa 2010. Italy investment climate. http://www.buyusa.gov/italy/en/investment_climate.html.
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factbook/geos/it.html. Visited on 15.02.2010.
Commanding Heights Italy 2010. PBS web pages.
http://www.pbs.org/wgbh/commandingheights/lo/countries/it/it_env.html. Visited on 17.04.2010.
Commission of the European Communities 2008. Proposal for a COUNCIL REGULATION on the Stat-
ute for a European private company.
http://europa.eu/rapid/pressReleasesAction.do?reference=MEMO/08/434&format=HTML&aged=0&
language=EN&guiLanguage=en. Visited on 28.03.2010.
Demunter, C., Dimitrakopoulou, C., Eurostat 2010. Tourism in Europe: first results for 2009.
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18. Source permissions
Dear Alessandra,

Thank you for your request. you may use the information from our website for your report.

Please make sure to acknowledge the International Bank for Reconstruction and Development, The
World Bank as the source and the copyright holder of the data used.

Kind Regards,

Blaine Theodros
External Affairs, Office of the Publisher
The World Bank / 1818 H Street, N.W. / MSN U 11-1104 / Washington, D.C. 20433
+ 1-202-458-1715 btheodros@worldbank.org http://www.worldbank.org/publications

Dear Mrs. Martin,
with reference to your e-mail dated 16 April, we confirm that you certainly can use some of informa-
tion available on the Banca dItalia website, with the notation of the source.
Kind regards,
Paolo Baffi Library
Banca dItalia - Structural Economic Analysis Department - Library and Historical Archives Division
Via Nazionale, 91
00184 Rome Italy
Fax no. +39 06 47922059

Dear Alessandra
Thanks for your mail.
You are welcome to do so.
87
Please kindly add a link to www.worldwide-tax.com <http://www.worldwide-tax.com/> as the source
(we prefer it to "Taxes portal").

Best Regards
Tsahi Bensadoun.
Customers Relationship Coordinator.
World Tax Inc.
Information Architecture Systems.

www.worldwide-tax.com is "BBC Recommended" and rated in "BBC Best Links".

Please visit us at:
Email: tbs@worldwide-tax.com
WebSite: http://www.worldwide-tax.com

Hello Alessandra,

That is not a problem. I would like to see a copy of the final version, however, to make sure we have
not been misrepresented, and that we have been referenced properly (unfortunately we have given
our permission to do this with others and they entered incorrect information).
Regards,
Ronan
ronan@bizweb.it
Studio Internazionale Tornamb

Dear Alessandra,
Thank you for your e-mail.
You may use access the Doing Business Guides on our website and use the data on your report, pro-
viding of course that you credit the source of the report.
I wish you and your team all the best with your report.

88
Kind regards,
Sofia
Sofia Godinho Murwill
Membership/Meetings Manager
UHY International
Tel: +44 (0)20 7216 4622
http://www.uhy.com/

Response (Ron Patrick L.) - 04/27/2010 12:44 PM
Dear Alessandra:

Thank you for your inquiry.
There is a wealth of FedEx information on the FedEx Web site at:
http://www.fedex.com/us/about/more/contact/students.html
Also, you may be able to find the information you are seeking by doing a keyword search using Ya-
hoo, Google or another Web search engine.
Trade publications are another excellent source of FedEx information.

If you are specifically asking for information about our scanners, the requested information follows.
FedEx owns a satellite, which is used to transmit data. An innovation unique to FedEx, the Digitally
Assisted Dispatch System (DADS) takes tracking technology and puts it on the street. Couriers use
DADS terminals in vans to upload data for every package they pick up or deliver. They plug the scan-
ner (Called a Supertracker) into this terminal, which transmits it to the tracking satellite and from
there to the FedEx tracking system.

We appreciate your interest and trust that you will be able to locate the information you are request-
ing.

Ron Patrick L.
FedEx Customer Service

89
Dear Ladies and Gentlemen,

we (a group of 6 people) are currently working on a country report of Italy in a course called "Doing
business in the European Union" at the Haaga-Helia University of Applied sciences in Hel-
sinki/Finland. As your website provides some very good information we would kindly like to ask if it is
possible to use some of your information online with the notation of PKF as a source in our report.
Thank you for your help.
Cordialmente
Alessandra Martin

Cari signore e signori,

we (a group of 6 people) are currently working on a country report of Italy in a course called "Doing
business in the European Union" at the Haaga-Helia University of Applied sciences in Hel-
sinki/Finland.
As your website provides some very good information we would kindly like to ask if it is possible to
use your information online with the notation of the Ministry of Foreign affairs Italy as a source in
our report.
From my understanding you work closely together with Invitalia. We have already sent a request to
them as well asking for the permission to use the information of their website. But we did not get a
reply (at the end of the e-mail see what and to whom we have sent our request).
Could you give us the permission to use your information and the information from Invitalia as well?
Cordialmente
Alessandra Martin