SRLS Company in Italy | Simplified Limited Company in Italy

Legal and tax support for international entrepreneurs establishing a business presence in Italy.
An SRLS (Società a responsabilità limitata semplificata) is a simplified version of the standard SRL in Italy, designed to reduce incorporation costs and administrative complexity for small businesses and early-stage entrepreneurs.

While the SRLS offers lower entry barriers, it comes with structural limitations compared to a standard SRL, particularly in terms of flexibility and long-term scalability.

The SRLS is a type of Italian limited liability company introduced to encourage entrepreneurship by simplifying incorporation procedures and reducing initial costs.

It retains the core principle of limited liability, but operates under a more rigid legal framework defined by law.

Key Features of an SRL

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  • Legal Form

    Società a responsabilità limitata semplificata (SRLS)

  • Minimum Share Capital

    From EUR 1 (up to EUR 9,999)

  • Liability

    Limited to the share capital

  • Shareholders

    Individuals only (natural persons)

  • Articles of Association

    Standard template required by law

  • Registration Authority

    Registro delle Imprese (Italian Commercial Register)
The SRLS is generally suitable for small local businesses with minimal capital and early-stage projects without external investors

Limitations in Practice

In practice, the main constraints of an SRLS arise not from the law itself, but from how the structure is perceived and used.

  • banks may apply stricter compliance procedures
  • standard articles of association limit flexibility in shareholder arrangements
  • conversion to an SRL is often required at a later stage
  • the structure is rarely used for scalable or investment-driven projects

As a result, the initial cost savings are often offset by reduced flexibility and the need for restructuring.

SRLS or SRL — Which One to Choose?

For most business cases, particularly those involving foreign shareholders, growth plans or structured operations, the SRL is the preferred and more robust option.

The SRLS may be considered only where:

• the business is simple and local
• capital is minimal
• no corporate shareholders are involved
• no external investment is expected

In all other cases, establishing an SRL from the outset avoids future restructuring and provides greater legal certainty.
Typical Timeline for SRLS Formation in Italy
Establishing a company in Italy involves several legal, administrative and tax procedures coordinated between the founders, legal advisors, an Italian notary and public authorities. The process usually takes two to four weeks, depending on the corporate structure and banking procedures.
Corporate Structure Definition
Shareholders and directors are defined.

Difference with SRL:
Only individuals (natural persons) can be shareholders. Corporate shareholders are not allowed.
Obtaining Codice Fiscale (Italian Tax Identification Numbers)
Foreign shareholders and directors must obtain an Italian codice fiscale issued by the Agenzia delle Entrate. This tax identification number is required for incorporation, notarial procedures and corporate registration.
Drafting and Signing Articles of Association
Key difference:

SRLS: Mandatory use of a standard statutory template provided by law.

SRL: Articles are fully customizable.
Simplified Notarial Procedure
The statuto and atto costitutivo (articles of association and incorporation deed) must still be executed before an Italian notaio but with reduced notarial involvement, lower notary fees and faster processing in standard cases
Coordination with the Italian Notary
Italian company incorporation requires notarisation. A notaio verifies the identity of shareholders, reviews the incorporation documents and ensures compliance with Italian law before executing the incorporation deed.
Notarial Incorporation of the Company
The company is formally incorporated when the atto costitutivo is executed before the notary. At this stage the share capital of the company (for example for an S.r.l.) is formally declared and the legal entity is created.
Registration with the Commercial Register
Following notarisation, the company must be registered with the Registro delle Imprese, the Italian commercial register administered by the local Camera di Commercio.
Tax Registration and VAT Number
After incorporation, the company must obtain its partita IVA (VAT number) and complete tax registration with the Agenzia delle Entrate. This allows the company to issue invoices and conduct commercial activities.
Opening a Corporate Bank Account
Italian banks require extensive KYC and compliance documentation before opening a corporate account. This typically includes corporate documents, shareholder identification and information about the company’s business activities.
Operational Setup and Compliance
Once the company is registered and the bank account is active, the business can begin operations. At this stage companies typically establish accounting systems, appoint accountants (commercialisti) and ensure compliance with Italian tax and corporate reporting requirements.

Costs of Opening a Company in Italy

The total cost of establishing a company in Italy depends on the corporate structure, the share capital and the complexity of the ownership structure. In most standard cases involving a Società a responsabilità limitata (S.r.l.), the initial costs consist of notarial fees, registration charges and professional advisory services.
Typical Timeline and Costs of Opening a Company in Italy
Stage
Description
Typical Timeframe
Estimated Cost
Initial Consultation
Assessment of the client’s business activity, shareholder structure and entry strategy for the Italian market
1–2 days
usually included in advisory
Corporate Structuring
Selection of the appropriate legal form (typically S.r.l.), definition of governance and shareholder arrangements
2–3 days
EUR 500 – 1,500
Obtaining Tax Identification
Obtaining codice fiscale for foreign shareholders and directors through the Agenzia delle Entrate
1–3 days
EUR 100 – 300
Preparation of Incorporation Documents
Drafting the atto costitutivo and statuto, preparation of corporate documentation
2–3 days
included in legal services
Notarial Incorporation
Execution of the incorporation deed before an Italian notaio, verification of shareholders and company formation
1 day
EUR 1,200 – 2,500
Registration with Registro delle Imprese
Registration with the Commercial Register maintained by the Camera di Commercio
2–5 days
EUR 200 – 500
Tax Registration
Issuance of partita IVA and tax registration with the Agenzia delle Entrate
1–3 days
EUR 100 – 300
Bank Account Opening
Opening a corporate bank account and completing banking compliance procedures
3–10 days
varies by bank
Accounting Setup
Appointment of an Italian commercialista and organisation of accounting and tax reporting
1–2 days
EUR 300 – 800
Operational Launch
Company becomes fully operational and can begin commercial activities
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Corporate Taxation in Italy

Companies operating in Italy are subject to several corporate taxes.

IRES (Imposta sul Reddito delle Società)
Corporate income tax applied at a standard rate of 24%.

IRAP (Imposta Regionale sulle Attività Produttive)
Regional tax on productive activities, generally around 3.9%, although rates may vary by region.

VAT (IVA)
The standard VAT rate in Italy is 22%, with reduced rates applicable to certain goods and services.

International companies must also consider issues such as permanent establishment rules, transfer pricing regulations and withholding taxes on cross-border payments.

Our Services

Our firm supports international clients at every stage of establishing and operating a business in Italy.

  • Corporate structuring and legal advisory

  • Incorporation of Italian companies and branches

  • Preparation of corporate and shareholder documentation

  • Coordination with Italian notaries and public authorities

  • Tax advisory and regulatory compliance

  • Ongoing corporate and legal support

Planning to open a company in Italy?
Please provide some basic information about your project. Our team will review your request and contact you to discuss the appropriate corporate structure.