Choosing a legal status in Italy: Partita IVA, SRL, SRLs, SPA (2026)

Partita IVA (VAT number) is assigned by Agenzia delle Entrate to any person exercising an independent economic activity in Italy. It is the equivalent of the French SIRET number combined with the VAT identifier. To start, two main fiscal regimes are possible: ordinario (taxation at progressive IRPEF on real profit) or forfettario (flat taxation at 15% or 5% on a turnover coefficient).

The forfettario regime, instituted in its current form in 2015 and extended in 2019, applies a unique 15% tax rate on a flat coefficient base varying by activity (40% for craftspeople, 67% for traders, 78% for liberal professions, 86% for intellectual professions). For a new founder, this rate is reduced to 5% for the first 5 years under conditions (not having exercised similar activity in the previous 3 years, not having held more than 50% of an active company). The turnover ceiling is €85,000 per year since 2023.

Forfettario presents several structuring advantages: no VAT to invoice or recover (franchise regime), no IRAP, no IVA, simplified accounting (keeping a single revenue register), no IRPEF withholding tax, exclusion of cross-border operations declaration (esterometro). INPS contributions gestione separata (26.07% of taxable income in 2025) or INPS artigiani/commercianti (annual flat €4,200 to €4,800 minimum + additional contributions beyond €17,504 of income) remain due.

Ditta individuale (sole proprietorship) in ordinario regime remains accessible to independents exceeding the €85,000 forfettario ceiling, or whose real professional expenses represent more than 60-80% of turnover (typical for retail commerce, restauration, transport). Profit is calculated on real basis and taxed at IRPEF per the Italian progressive scale: 23% up to €28,000, 35% between €28,000 and €50,000, 43% beyond (2025 rates, after scale simplification).

IRAP (Imposta Regionale sulle Attività Produttive) applies to Ditte individuali under ordinary regime, at regional average rate 3.9% (variable by region, from 3.9% to 4.82%). It is calculated on « net production value » (turnover minus certain costs) — not on profit. This Italian specificity represents an additional charge that other EU countries do not practice. IRAP exemption applies however to Ditte individuali without autonomous organization (typically the solo freelancer without employees or heavy equipment).

INPS contributions for Ditta individuale depend on activity: craftspeople and traders pay a fixed contribution (€4,200 to €4,800 per year minimum) + a proportional contribution to income beyond €17,504 (24% in 2025). Liberal professions without dedicated professional fund (programmers, consultants) contribute to Gestione Separata INPS (26.07% of taxable income). Regulated professions (lawyers, doctors, architects) contribute to their Cassa di Previdenza professional (variable rate by cassa).

Italian SAS (Società in Accomandita Semplice, French limited partnership equivalent) and SNC (Società in Nome Collettivo, general partnership) are partnership forms between two or more partners without separate legal personality (fiscal transparency). Partners are jointly and personally liable in SNC; in SAS, general partners are but limited partners only up to their contribution. These forms are little used in practice in favor of more protective SRLs.

• Ditta individuale ordinaria: IRPEF progressive 23-43% + IRAP 3.9%
• INPS artigiani/commercianti: flat €4,200-4,800/year + 24% beyond €17,504
• Gestione Separata: 26.07% of taxable income
• IRAP exemption possible if no autonomous organization
• SAS / SNC: fiscal transparency, unlimited liability
• Recommended switch to SRL beyond €70,000 income

SRL (Società a Responsabilità Limitata, French SARL equivalent) is the reference form for Italian SMEs. Minimum share capital €10,000 (in principle), reduced to €1 for SRL semplificata created in 2012. Partners are liable only up to their contribution. Registration is done at Registro Imprese held by the local Camera di Commercio after notarial act (notaio).

SRL is subject to IRES (Imposta sul Reddito delle Società, French IS equivalent) at a flat 24% rate. Regional IRAP (3.9% average) adds, calculated on net production value — IRAP base being different from IRES base, the total effective fiscal on profit reaches 27.9 to 28.8% by region. Dividends paid to individual partners are subject to IRPEF in the capital-income category: 26% flat rate since 2018. Total corporate + dividend tax thus reaches approximately 47 to 48% of pre-tax profit.

SRL semplificata (SRLs) was instituted in 2012 to offer young entrepreneurs (initially < 35, condition removed in 2013) an SRL with token capital. Capital from €1 to €9,999, non-modifiable standard statutes, lightened formalities via ComUnica portal (Registro Imprese + INPS + INAIL + Agenzia delle Entrate centralization). SRLs creation cost is €300 to €600 (instead of €1,500 to €3,000 for a classical SRL with notary and personalized statutes). SRLs suits young startups, structured freelancers, and test activities without initial capital.

A SRL director (Amministratore Unico or Consiglio di Amministrazione member) can be partner or third party. If partner working in the company, they contribute to INPS gestione commercianti or artigiani (€4,200-4,800/year minimum + 24% beyond €17,504 income). If only exercising management functions, they contribute to Gestione Separata INPS (26.07% of compensation). Director compensation (compenso amministratore) is deductible from IRES base.

SPA (Società per Azioni, joint-stock company) requires a minimum capital of €50,000, of which 25% paid up at creation. It suits larger businesses or those preparing an IPO (FTSE MIB, FTSE Italia STAR). Accounting and transparency obligations are heavier: mandatory supervisory or management board, annual audit (révisore legale) if exceeding certain thresholds (€4,400,000 total balance, €8,800,000 turnover, 50 employees), annual account publication at Registro Imprese. For unlisted SMEs, SRL remains largely preferred to SPA due to administrative simplicity.

Cooperative companies (Società Cooperative) are frequent in Italy in agricultural (Conad, Coop Alleanza), banking (Banche di Credito Cooperativo), and social sectors. Governance is participative (each partner one vote). Fiscally, they benefit from partial IRES exemption on the share allocated to mandatory reserves (30 to 70% by cooperative nature). Social cooperatives (Cooperative Sociali) benefit from additional reductions.

S.r.l. innovativa is an SRL variant reserved for innovative startups (law 221/2012). Conditions: created less than 5 years ago, based in Italy, turnover < €5M, and respect of at least two of three criteria (15% of turnover in R&D, 1/3 of employees with PhD/master/research, patents or industrial software). Advantages: stamp duty exemption at registration, access to simplified fundraising forms (regulated equity crowdfunding), contribution exemption on shares distributed to employees (work for equity), facilitated access to Fondo di Garanzia (up to 80% bank loan guarantee).

For freelancers and consultants, two alternative structures exist. Società tra Professionisti (STP, created in 2013) allows regulated liberal professions (lawyers, doctors, engineers, architects) to form a company grouping multiple professionals with deduction of professional expenses. Società tra Avvocati (SLA), older, is specific to lawyers. STP taxation is that of the adopted legal form (SRL, SPA, SAS) — no specific regime beyond professional order rule compliance obligation.

The BoostPro IA « Choose my legal status » module covers the five main Italian forms and orients by profile (solo vs team, available capital, sector, transfer or fundraising ambition). The personalized report (€29, 10 minutes) compares projected taxation over 3 years under several turnover scenarios, integrates the chosen region (IRAP impact), and identifies forfettario → ordinario → SRL switching thresholds.