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Insured for over 10 million euros
Opening a Permanent Establishment in Italy
Opening a Permanent Establishment in Italy may be:
- a strategic choice made by a foreign enterprise aimed to directly control the Italian market
- an obligation provided by tax law whenever one of the requirements of stability and continuity of business is me
Studio Arletti&Partners offers qualified assistance to foreign enterprises wanting to operate in Italy with a Permanent Establishment.
A foreign enterprise wanting to operate in Italy can choose between two main options:
- Opening a New-Co, a new independent legal entity on national territory; operating through a corporation such as a limited liability company, a partnership or as a freelance.
- Opening a Branch, i.e. a second enterprise which is not an independent legal entity from the former foreign enterprise but with a fixed place of business in Italy.
How to set up a Permanent Establishment in Italy: the support from our Firm
We support our customers from the very beginning:
- planning of strategies and operational set-up in Italy
- selecting the most suitable legal form
- establishing a company
We continue to assist throughout the course of business activities by:
- ensuring compliance with all mandatory accounting and tax obligations
- identifying effective solutions to optimize the tax burden
Online consultancy are provided by licensed Tax Counselors
Our Firm will manage the entire establishment process and ongoing annual administration remotely, leveraging digital tools to ensure maximum efficiency and optimization.
Our Customers can manage all administrative matters and comunications with our Firm without the need to move from their operating place of business.
Why request an analysis and our professional opinion
Foreign enterprises based abroad often have the need to operate on Italian territory without having to establish a permanent and continous presence. However, a company that carries out part of its activities in Italy or performs VAT-relevant operations in Italy may, in certain cases, be qualified as a permanent establishment under current tax legislation.
The support of Studio Arletti&Partners
- Specialized consultancy provided online by Chartered Accountants
- Document collection through dedicated checklists
- Analysis of the risk of a Permanent Establishment
- Preparation of written opinion and supporting documentation
- Entire process carried out remotely
- Progress of the case monitored by the client through a dedicated portal
- Preparation and submission of rulings to the Italian Revenue Agency (only upon client request)
Permanent Establishment as a Construction site
One of the most common scenarios, subject to a particular attention in risk analysis, is the Permanent Establishment as a Construction site. Our form also provides written opinion concerning the following situations identified by paragraph 3 of of article 162 of TUIR:
- A construction site
- An assembly or installation site
- Supervisory activities related to the construction/assembly/installation sites
Aiming of ensuring full compliance with national legislation.
Personal Permanent Establishment: dependent agent
Our Firm provides written opinions regarding the presence of foreign enterprises operating in Italy, including the following cases:
Presence through an entity that habitually conclude contracts on behalf of the foreign company
Relevant types of contracts:
- Contracts related to the transfer of ownership of the company’s assets.
- Contracts granting the right to use the company’s assets or assets that the company is authorized to use.
- Contracts concerning the provision of services by the company.
Our Firm will:
- Collect information and documentation relevant to the specific case of the company
- Analyze the nature of the entity operating in the Italian territory (independent agent or non-independent)
- Provide a professional opinion with guidelines the company must follow to ensure compliance with Italian regulations.
Operating in Italy without a Permanent Establishment
We handle all the administrative and tax aspects necessary to enable a presence in Italy without a permanent establishment, while ensuring compliance with local regulations:
- Registration of a local unit at the Camera di Commercio
- Opening of a representative office
- Registration of the company for social security purposes
- Direct identification or appointment of a tax representative in Italy for VAT purposes.
How the service works
The whole process is carried out remotely, coordinating each step with the Italian competent authorities.
The client can manage all their procedures and interactions with our Firm without having to leave their operational headquarters.
Service Duration
Our Firm’s support is active from the moment the company decides to operate in Italy, and continuous annual support is guaranteed for all subsequent mandatory tax obligations by law.
