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Insured for over 10 million euros
Opening a Permanent Establishment in Italy
The opening of a Permanent Establishment in Italy may constitute:
- a strategic choice by the foreign company, aimed at directly overseeing the Italian market
- an obligation provided for by tax legislation where one of the requirements of stability and continuity of the company’s activity in Italy is met.
The Firm provides qualified assistance to foreign companies interested in operating in Italy through a permanent establishment.
A foreign company intending to operate in Italy may choose between two main options:
- incorporating a New-Co, a new independent legal entity on the national territory; therefore operating through a capital company, such as a limited liability company – SRL, a partnership or a sole proprietorship/freelance business.
- establishing a Branch, i.e. a secondary office of the foreign company, without independent legal personality but established in Italy.
How to set up a Permanent Establishment in Italy: the support from our Firm
We support clients from the initial stages:
- planning the methods for entering and carrying out business activities in Italy
- choosing the most appropriate legal form
- incorporation
and throughout the performance of the activity, by handling
– accounting and tax compliance requirements required by law
– useful solutions aimed at optimising the tax burden.
Online consultancy provided by qualified Chartered Accountants
Our Firm will manage the entire incorporation process and the subsequent annual management directly remotely, thanks to the use of IT tools that ensure maximum efficiency and optimisation.
Clients will be able to manage all their procedures and relations with our Firm without having to travel from their place of business.
Risk of a Permanent Establishment. Why you should request an analysis and our professional opinion
Companies based abroad often need to operate in the Italian territory without establishing themselves in a stable and continuous manner.
However, a company that carries out part of its business activity in Italy or performs transactions relevant for VAT purposes in the Italian territory may, in certain cases, be classified as a permanent establishment under the applicable tax legislation.
Support provided by Arletti&Partners
- specialised consultancy provided via videoconference by Chartered Accountants
- collection of documents through dedicated checklists
- analysis of the risk of permanent establishment
- preparation of a written opinion and delivery of the supporting documentary dossier
- entire process carried out remotely
- progress of the procedure monitored by the client through the dedicated portal
- preparation and submission of ruling requests to the Italian Revenue Agency, Agenzia delle Entrate, only upon the client’s request
The Permanent Site Organisation
One of the most frequent cases, subject to particular attention in the risk analysis, is the construction-site Permanent Establishment.
Our Firm also issues written opinions in relation to the following situations identified by paragraph 3 of Article 162 of the Italian Income Tax Code:
- A construction site
- An assembly or installation site
- The performance of supervisory activities connected with the above-mentioned sites
with the aim of ensuring companies’ full compliance with national legislation.
Permanent Staffing Arrangements: the non-independent agent
The Firm provides written opinions regarding the presence of companies operating in Italy, including in the following cases:
- Presence through a person who habitually concludes contracts in the name of the foreign company.
- Types of relevant contracts:
- Contracts relating to the transfer of ownership of the company’s goods.
- Contracts granting the right to use goods owned by the company or goods that the company has the right to use.
- Contracts relating to the provision of services by the company.
The Firm will handle
- collecting the information and documentation relating to the company’s specific case
- analysing the nature of the person operating in the Italian territory whether independent agent or otherwise
- providing a professional opinion with the guidelines that the company must follow in order to comply with the applicable legislation
Operating in Italy without a Permanent Establishment
We handle all administrative and tax aspects necessary to enable a presence in Italy without a permanent establishment in the territory, while ensuring compliance with the applicable local legislation:
- registration of a local unit with the Chamber of Commerce
- opening of a representative office
- registration of the company for social security purposes
- direct VAT identification or appointment of a tax representative in Italy for VAT purposes
How the service is provided
The entire process is carried out remotely, coordinating each step with the competent Italian authorities.
Clients will be able to manage all their procedures and relations with our Firm without having to travel from their place of business.
Duration of the service
The Firm’s support is active from the moment the company decides to operate in Italy, and ongoing annual support is guaranteed also for all subsequent mandatory tax compliance requirements provided for by law.
