Representation of a foreign company in Italy.

The Italian representative office of the foreign company “Ufficio di Rappresentanza" meets the generally accepted international rules, but there are several “local features” that should be taken into account.

Representation ensures the presence of the parent company in order to promote the company’s products (services). The key word here is “promotion,” not “commerce." Therefore, your representative office cannot bill and accept customer payments - in other words, it is deprived of the right to conduct business.

So then what is the point of organizing a representative office of a foreign company in Italy? Firstly, to introduce potential customers to your products. The local business culture is based on personal relationships, and not on the formal interactions of business structures. Secondly, to ensure the low cost of the presence of the parent company in Italy. Today, a representative office is the most accessible form: it does not pay taxes and does not even have a VAT registration. The only exceptions are taxes related to the salaries of employees of the mission. Thirdly, a representative office is often created for the sole purpose of obtaining a residence permit for the head and members of his family. The main disadvantage is only the fact that using a representative office it is impossible to obtain permanent residence. But this circumstance does not stop many ...

What should be borne in mind when organizing the business structure in Italy:

• Italian tax authorities are closely monitoring to ensure that representative offices do not conduct commercial activities. Otherwise, serious problems arise and the resulting fines. Moreover, attention is drawn to seemingly trifles, such as a site registered in the it domain zone;
• if we are talking about obtaining a residence permit, then the regular payment of wages and related taxes is a prerequisite checked at the time of the extension of the residence permit. It should not be assumed that the annual income of the head of the representative office may be limited to 10 - 12 thousand euros. Alas, these times have long sunk into oblivion ...

How to register an Italian representative office of a foreign company?

To do this, you need to become the owner of two numbers. The first is provided by the tax authority “Agenzia delle Entrate” and is called “Codice Fiscale”. Even if you are not required to pay taxes, you need to get Codice Fiscale, and not one, but two: for you - as the director of the representative office (and as an individual), and the second - in fact, for your representative office.

The second issue is the result of the registration of the representative office in the Chamber of Commerce “Camera di Commercio“. To receive and update this number annually you must pay a registration fee.

A representative office (as a legal address) often uses a virtual office provided by a company engaged in the registration of business structures and accounting. The possibility of organizing a “local office” at the place of residence of the director of the representative office is not ruled out.

If you are interested in organizing a representative office, branch or Italian company, as well as obtaining a residence permit on this basis, please contact us and we will solve all your pressing problems.