Investing in an Italian Business

A fair number of people move to Italy in order to retire or semi-retire. But about a quarter of British residents are well qualified professionals in their thirties and forties who want to enjoy la dolce vita, and want, or need, to work as well.

You may be after a hands-on project or an investment that needs less involvement but still brings in a good return. Both are possible and to inspire you, we plan to feature on these pages case studies of those who have already paved the way.

Buy or Start from Scratch?

You have two main choices when deciding to invest in Italy

• take over, become a partner or an investor in an existing business
• set up on your own or with a group of like-minded colleagues or friends

Clearly the first option has its advantages. The company has already been set up, has an established list of clients and a track record verifiable through its accounts.

When considering buying an existing business in Italy first get in touch with the Chamber of Commerce who will give you advice on the market value and the legal procedure. Put simply this involves:

• obtaining or taking over the relevant official licences. For example, if you are taking over a hypnotherapy business, you will need to ensure your qualifications are recognised in Italy and get any documents and certificates translated. Some businesses may require that you undergo some kind of training or have an Italian certificate of competence, so check it out first.
• The paperwork for both buying and selling, including official transfer of ownership and entry in the Italian Business Register, must be done via a notaio (notary).
• The business will be registered for iva – the Italian equivalent of VAT. You will need to check if this partita iva (VAT number) can simply be transferred to you or whether you need to get one of your own. This is necessary if you are taking over as sole trader.

If you want to start your own business, then the Chamber of Commerce will guide you through the process. They have a nationwide service dedicated to doing just that called Olimpo.

The old adage holds true – stick to what you know, or at the very least something that is connected to what you know and are skilled in. Opening a restaurant near the beach in Salento may sound idyllic, but unless you have experience of the restaurant trade you could come unstuck. Also consider the time and effort involved. It may be that you don’t get time to enjoy the life you moved to Italy for in the first place.

The basic procedure for setting up a new business depends a lot on what you plan to do. Opening a real estate agency is very different from starting a vineyard, with different paperwork and documentation required. (And by the way - you can’t set up in Italy as an estate agent without sitting a lot of exams and following an official course, in Italian, which takes about a year.)

The following is a brief outline of the stages:

• Make a business plan
• Using the business plan decide what type of business (in legal terms) you will set up. This may be an srl (Società a Responsabilità Limitata) the Italian equivalent of a limited company, an src (Società in nome collettivo) a general partnership and so on.
• Register your business on the Business Register and get a tax number.
• Obtain any required certificates, licences and authorisations
• Get a Business Start Up Statement

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