Setting Up a Company in Italy for Israelis: S.R.L. or S.p.A., Minimum Capital, the Notaio, Documents from Israel and Post-Registration Obligations

Italy is one of the largest markets in the European Union, and many Israeli companies reach it through a distributor, a local partner or a subsidiary. This guide is intended for Israeli business owners and entrepreneurs who want to set up an Italian company: which legal form to choose, what registration looks like, which documents to prepare in Israel and what awaits once the company is registered. Taxation and taking profits out to Israel, and the option of operating without a subsidiary, are set out in separate guides in the Italy cluster.

1Can an Israeli set up a company in Italy?

Yes. There is no requirement of Italian residence or citizenship for shareholders, and the shareholder can be an Israeli individual or an Israeli company. Formation goes through a notaio, an Italian public notary, who checks the identity of the parties, the documents and the legal conditions before signing.

Under Article 16 of the Preliminary Provisions of the Italian Civil Code, a foreigner enjoys civil rights on condition of reciprocity, meaning on condition that an Italian enjoys a similar right in his country. EU citizens are exempt from the check. For Israelis, the notaio checks the condition according to the information published by the Italian Ministry of Foreign Affairs on Israel. For the purchase of real estate the condition is met, as we explained in the guide to the purchase process in Italy, and it is worth asking the notaio to confirm in advance that there is no obstacle to forming a company either. An Israeli who is also a citizen of an EU member state forms a company as a European citizen.

2Which legal form suits Israeli owners?

For most small and medium-sized businesses, and for almost every subsidiary of an Israeli company, the choice is an S.R.L. (società a responsabilità limitata), a limited liability company. An S.p.A. (società per azioni) suits large-scale activity, raising capital from investors and companies planning a listing. The table summarises the main differences.

In an S.R.L.S. the articles must follow a standard model set by the Minister of Justice, and its clauses cannot be changed. According to the provisions accompanying the model, no notaio fee is paid for the standard articles, but the registration tax and Chamber of Commerce fees remain. The important limitation for Israelis: only individuals can set up an S.R.L.S., so an Israeli company that wants a subsidiary will set up an ordinary S.R.L. We devote a separate guide to the branch and to options for operating without a subsidiary.

3What are the steps for setting up an S.R.L. in Italy?

In short: you prepare the documents and the codice fiscale, sign the deed of incorporation before a notaio, pay in the capital, and the notaio registers the company in the Companies Register (Registro delle Imprese). Formation relies on the notaio: he drafts or reviews the deed of incorporation (atto costitutivo) and the articles (statuto), has the parties sign and files the registration. When the documents are ready, the steps are usually as follows:

1. Planning the structure: who holds the shares (an individual or the Israeli company), who the director is and where decisions are made, and how much capital is injected. The decision affects tax in both countries, so it is coordinated in advance with an Israeli accountant.
2. Italian tax number (codice fiscale): foreign shareholders and directors need a codice fiscale. It can be requested through a representative in Italy, and the notaio or the local accountant usually helps with this.
3. Name check and registered office: choosing a name and a registered address in Italy (sede legale). A company that does not yet have an office sometimes uses an address service or the accountant's office.
4. Preparing documents in Israel: passports, and for a corporate shareholder also a certificate of incorporation, a current company extract and a board resolution approving the investment and appointing an authorised signatory. The documents are required with an apostille and in Italian translation.
5. Power of attorney, if not travelling: anyone who does not sign in person in Italy signs a notarised power of attorney in Israel with an apostille, in a form approved in advance by the Italian notaio.
6. Signing before the notaio: the deed of incorporation and the articles, as a public deed. If a party does not understand Italian, the notaio will require an interpreter or a bilingual document.
7. Paying the capital: with capital below 10,000 euros all the capital is paid in cash. The notaio explains what is paid on signing and how.
8. Registration in the Companies Register: the notaio files the documents with the Registro delle Imprese of the Chamber of Commerce (Camera di Commercio). In the combined filing (ComUnica) a VAT number (partita IVA) and registration with the social security institutions, if there are employees, are also requested.
9. PEC: the company needs a certified email address, and each director also needs a personal PEC.
10. After registration: opening a bank account, appointing a local accountant (commercialista) and setting up a reporting calendar.

4Which documents from Israel need to be prepared?

You usually need passports and, where the shareholder is a company, also a certificate of incorporation, an up-to-date company extract and a board resolution, all with an apostille and an Italian translation. Israel and Italy are both parties to the Hague Apostille Convention, so an Israeli public document is authenticated with an apostille and not additionally at the consulate. In Israel an apostille is issued by the Ministry of Foreign Affairs and by the registrars of the magistrates' courts. An Italian translation is almost always required, and it is worth asking the notaio in advance which translation he accepts and in what form.

• An Israeli individual: a valid passport, codice fiscale, and address details. Sometimes proof of address is also requested.
• An Israeli company as shareholder: a certificate of incorporation, a current company extract from the Israeli Registrar of Companies, articles as needed, and a board resolution on the investment and the appointment of the authorised signatory.
• Ultimate beneficial owner: details of the individuals who own or control at the end of the chain, for the anti-money laundering checks of the notaio and the bank.
• Source of funds: documentation of where the capital comes from. Italian and Israeli banks alike ask about it; see also delays in transfers abroad at an Israeli bank.

5Can a company be set up in Italy without going there?

Usually yes. A person who does not travel signs a notarised power of attorney in Israel with an apostille, and a representative in Italy signs on his behalf before the notaio. The wording must cover all the actions: signing the deed of incorporation, paying the capital, appointing directors and requesting a codice fiscale if there is none yet. A power of attorney that is too general, or one not adapted to the notaio's requirements, is a common cause of delay.

The stage at which presence is often required is opening the bank account. Some banks ask for a meeting with the director or the ultimate beneficial owner, even when the company itself is already registered.

6How much does it cost to set up a company in Italy and how long does it take?

There is no fixed total amount. As of November 2026, according to NotaiOnline, the registration tax on the deed of incorporation is a fixed amount of 200 euros. Added to it are stamp duty, Chamber of Commerce fees, an annual fee (diritto annuale) and the notaio's fee, which is the largest and most variable component. In an S.R.L.S. with standard articles some of the costs are not charged. We do not give a total amount here, because it depends on the notaio, the capital and the complexity of the articles. It is worth asking for a written quote in advance.

As for timing: when the documents from Israel are ready and the codice fiscale exists, the signing and registration themselves are relatively short. Most of the time goes on preparing the documents, the apostille and translation, and opening the bank account.

7Who can be a director, and what is a director's PEC?

An S.R.L. can be run by a sole director (amministratore unico) or a board of directors, and the law does not require the director to be Italian or resident in Italy. Appointment as a director does not give the right to live or work in Italy. Anyone who will actually work in Italy should check his immigration status separately.

The 2025 Budget Law (Law 207/2024, Article 1, paragraph 860) required company directors to register a personal certified email address (PEC) in the Companies Register. According to the clarification of the Italian Ministry of Enterprises (MIMIT), the obligation applies to each director separately, and the address must be separate from the company's.

8How do you open a bank account for the Italian company?

Almost every Italian bank will ask for the company documents, details of the directors and ultimate beneficial owners, an explanation of the expected activity and documentation of the source of the capital. When the shareholder is an Israeli company, the bank also checks its ownership structure. It is worth preparing a single organised file in advance, in translation, and expecting the bank to ask follow-up questions.

A bank account is needed early on: to receive payments, pay taxes using form F24 and pay salaries. The capital is usually paid before the account is opened, and the notaio explains how to make the payment at the signing stage.

9What needs to be done after the company is registered?

As of 2026, the financial statements are approved within 120 days of the end of the financial year, and according to PwC Tax Summaries the IRES and IRAP returns are filed by the end of the tenth month after the end of the tax year. An Italian company is required to keep books, file VAT returns and annual returns, so a local accountant is needed from day one. The main obligations:

• Financial statements: approval by the shareholders within 120 days of the end of the financial year (180 days only in cases permitted by the articles and the law), and filing with the Companies Register within 30 days of approval.
• Corporate tax: IRES and IRAP returns are filed by the end of the tenth month after the end of the tax year, i.e. 31 October for a company whose tax year is the calendar year. The balance is paid by the end of the sixth month, and the advances in two instalments.
• VAT: a standard rate of 22%. An Italian company issues electronic invoices and files periodic returns and an annual return.
• Chamber of Commerce: an annual fee and updating any change in directors, address or capital.
• PEC: keep the addresses of the company and directors active. Official notices are sent to them.
• Ultimate beneficial owners: update the information on ultimate beneficial owners according to the Chamber of Commerce's instructions. The Italian register has undergone changes and legal challenges, so check with the accountant what applies at the time of registration.

The taxation itself, including IRES and IRAP rates, withholding on dividends to an Israeli shareholder and what happens in Israel, appears in our tax guide for Italy. In the overview of Israel's tax treaties you can see where the Israel-Italy treaty stands among the other treaties.

10What must be reported in Israel about an Italian company?

An Israeli resident who holds a foreign company must report it in the annual return, and sometimes there are further obligations: reporting related-party transactions where there is a shareholder loan or services between the companies, and checking the controlled foreign company rules when the company mainly generates passive income. An Israeli company holding the Italian company reports the holding and the dividends in its own returns. All of this is coordinated with an Israeli accountant already at the planning stage.

11What should be checked before signing before the notaio?

Before signing, make sure that the legal form, the power of attorney, the articles, the decision-making arrangements and the bank file are ready and coordinated between Italy and Israel. These are the points to check:

1. That the legal form suits the shareholders: an Israeli company cannot set up an S.R.L.S.
2. That the notaio has approved in advance the wording of the power of attorney and the list of documents from Israel.
3. That the articles include rules on share transfers, appointing and removing directors and decision-making, and not just the minimum.
4. That there is a separate shareholders' agreement if there is more than one partner. On this, see a founders' agreement.
5. That it has been decided who the director is, where he operates from and how decisions are documented, from the point of view of tax residence in both countries.
6. That there is an Italian accountant willing to take on the company from day one.
7. That the bank file is ready: documents, source of funds and an explanation of the activity.

This guide is general information correct as of November 2026 and is not legal or tax advice, and every case needs a specific review in Italy and in Israel.

More on doing business in Italy: Corporate tax and transferring profits to Israel from Italy · An Israeli company operating in Italy · Commercial disputes and litigation in Italy · Comparison of 8 countries · All guides for companies and businesses

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