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Set up a Construction Company in Italy

Set up a Construction Company in Italy

The construction sector in Italy is expected to grow in the next years (projects estimated up until 2021), due to the fact that the local government will sustain investments in this sector related to infrastructure, utility projects and other similar construction projects. More importantly for foreign investors who want to open a company in Italy in this sector is the fact that the Italian government also aims at supporting foreign direct investments for the construction industry

What types of permits do Italian construction companies need? 

Companies that operate as the contractors of a construction project in Italy (building companies, engineering companies) will need to obtain a set of business licenses and permits that will allow the development of the construction project. Such permits have to be issued prior to starting the construction activity and our team of Italian lawyers can assist on the requirements imposed for the following: 

  • obtaining a building permit, which is a permit that is generally imposed to most of the construction projects, but certain exemptions can be granted, depending on the destination of the construction;
  • • in the case in which the construction company will demolish a building, a demolition permit will be needed;
  • • if the construction project includes removing a green area, the company will need a felling permit;
  • • the project will also need a planning permission, which is usually employed for infrastructure projects

A construction company set up in Italy will be registered following the standard registration procedure – this implies choosing a suitable business form (which can depend on the size of the company), choosing a trading name, obtaining the certifications required for this business sector; it is also necessary to establish a company headquarters and to register with the Italian Business Register

As the company will develop commercial activities, it is also compulsory to register for taxation in Italy, including for value added tax. In this sense, the company has to receive a tax identification codeForeing companies can also expand on the Italian market by registering a branch office or a subsidiary, this aspect being decided depending on the liability the parent company wants to assume for the business operations carried in this country. 

Are there any penalties for the delay of a construction project in Italy?  

Yes, Italy prescribes penalties for the delay of a construction project, a provision that has to be included in any construction contract. Penalties are prescribed on a daily or weekly basis, starting with the date on which the construction project was supposed to be completed (as mentioned by the contract signed in this sense). Our team of lawyers in Italy can assist with legal information regarding the provisions that have to be included in this type of contract

It is necessary to know that such contracts can include special clauses regarding an agreed extension time for completing the construction project, provided that the extension is granted by the employer of the contractor company or in the case of a force majeure clause. Businessmen are invited to contact our law firm in Italy for further advice regarding the legislation addressed to construction companies.