The Italian legislation regulating the activity of the commercial companies set up here prescribe that a local or foreign investor can change the type of the legal entity under which his or her company is carrying the current operations. The company type can be modified in Italy due to the fact that the legal entity chosen when the business was incorporated no longer represents the interests of the investors. Our team of Italian lawyers can offer legal assistance to the investors who want to carry their business operations in Italy under the regulations of a different company type.
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Why change the company type in Italy?
Businessmen who are carrying business operations in Italy can change the company type at the moment when the current entity no longer provides sufficient advantages to the business itself. At the same time, the business form can be changed if another legal entity can provide more financial advantages. The investor may be better represented under another company type, in accordance with the roles he or she wants to assume; our team of Italian attorneys can offer more details on the legal grounds under which the business form can be changed here.
Change an Italian sole proprietorship into a limited liability company
One of the most common changes referring to the legal entity of the company refers to the transformation of a sole proprietorship into a limited liability company (LLC). The sole proprietorship is the simplest way to perform business activities in Italy. This entity is not a business form, as there is no distinction between the investor and the company. Moreover, the investor is liable for the debts incurred by the company and this provision may not represent an advantage as the business grows.
As such, it is recommended to close the sole proprietorship and opt for the limited liability company, which provides several advantages to the shareholder, one of them referring to the liability limited to the value of shares owned in the company.
When changing the business type into a LLC, the investor will have to register for taxation purposes. The LLC is liable to corporate tax, while the sole proprietorship is not required to pay it.
Businessmen interested in receiving more details on how to change the company type in Italy can address to our Italian law firm for legal assistance.