Start Your Own Business in Italy
Self-employment is the starting point. When you are ready to protect your personal assets, bring on partners, or unlock tax advantages, it may be time to form a company in Italy.
HustleHub AI provides general information only, not tax, legal, or financial advice. Italian tax and business rules vary by region and activity type. Always check official guidance from Agenzia delle Entrate or INPS, or speak to a qualified commercialista.
From side hustle to business owner
Many successful businesses start as side hustles. The typical progression in Italy:
Side activity (lavoretto)
Earning extra alongside employment. Often informal or via occasional collaboration (prestazione occasionale) under €5,000/year.
Partita IVA
Registered freelancer or ditta individuale. Regime forfettario or ordinario. INPS contributions. Personal liability.
S.r.l.
Private limited company. Separate legal entity. Limited liability. IRES 24% corporate tax.
Not everyone needs to progress to step 3. Many self-employed people stay that way permanently and do very well.
Business structures compared
| Feature | Ditta Individuale | S.r.l.s. (Semplificata) | S.r.l. |
|---|---|---|---|
| Setup | Agenzia delle Entrate + INPS | Notary (standard model, reduced costs) | Notary + Camera di Commercio (€2,000-€5,000) |
| Minimum capital | None | €1 minimum | €10,000 |
| Liability | Personal (unlimited) | Limited to company assets | Limited to company assets |
| Tax | Forfettario 5%/15% or IRPEF 23-43% | IRES 24% + IRAP ~3.9% + personal tax on dividends | IRES 24% + IRAP ~3.9% + personal tax on dividends |
| Admin | Minimal (forfettario) or full accounting | Full double-entry accounting | Full double-entry accounting + audit (if large) |
| Best for | Solo freelancers, low-moderate revenue | Small companies wanting limited liability cheaply | Established businesses with growth plans |
This is a simplified comparison. The right structure depends on your income, risk, and growth plans. Always consult a qualified professional.
When to stay solo vs form a company
Stay self-employed when...
- Your revenue is within the forfettario threshold (€85,000)
- You work alone without significant liability risk
- You want minimal admin and low costs
- You are testing a business idea
Consider an S.r.l. when...
- You want personal liability protection
- Your income exceeds the forfettario threshold
- You want to bring in partners or investors
- Clients require a company structure
How to form a company in Italy
- Choose a company name and check availability at the Registro Imprese
- Draft the Atto Costitutivo and Statuto (articles of incorporation)
- Deposit minimum share capital in a bank account
- Execute the incorporation deed before a notary (notaio)
- Register at the Camera di Commercio (Registro Imprese)
- Obtain Partita IVA and Codice Fiscale for the company at Agenzia delle Entrate
- Register with INPS for employee/administrator contributions
- Get PEC and digital signature for the company
- Set up full double-entry accounting
- Appoint an administrator (amministratore)
Italy's regime forfettario is one of the most attractive flat-rate tax regimes in Europe for small freelancers. The 5% rate for the first five years, combined with IVA exemption and simplified bookkeeping, makes it an excellent starting point. However, the inability to deduct individual expenses means it is less beneficial for businesses with high costs.
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HustleHub AI provides general information only, not tax, legal, or financial advice. Italian tax and business rules vary by region and activity type. Always check official guidance from Agenzia delle Entrate or INPS, or speak to a qualified commercialista.