Vnzh branch of a foreign company
Registration of a representative office (rappresentanza) or branch office in Italy is a convenient tool for promoting products to the European market. Registration of a representative office is a good way to conduct commercial activities without the need for localization. S.r.l. or S.p.a., while retaining its uniqueness as a foreign company.
In particular, there are two main options for registering a representative office in Italy: a representative office and a branch of a foreign company.
1. Representation of a foreign company in Italy.
It is registered if the foreign company has a need to be present on the Italian market, but is not able to bear the burden of expenses for the creation and operation of the company.
This form of representation is the most flexible, as it is possible to promote the products / services of a foreign company and there is no need to bear the costs of maintaining a representative office.
Representation of a foreign company performs a purely representative, advertising, research role, without the right to engage in commercial activities. The representation does not bear any tax burden to the budget of Italy, and the parent company must pay the costs. In this case, it is possible to offset VAT from the amounts of expenses incurred.
Under Italian law, registration of the representation procedure is very simplistic. It is enough to inform about the establishment of a representative office in the Registro delle imprese, after the taxpayer identification number has been assigned.
2. Registration of a branch in Italy.
A branch or a permanent representative office of a foreign company, on the contrary, has the functions of a parent company and has the right to carry out commercial activities, and is subject to taxation on general grounds.
According to paragraph 1 of Art. 162 of the Civil Code (as amended by Decree No. 334 of 12/12/2003) defines a permanent establishment as “a permanent place of business through which an enterprise fully or partially carries out its activities”. Thus, the activities carried out by the branch of the organization are regulated in the same way as any other legal entity operating in Italy.
Registration of a representative office is one of the reasons for obtaining a residence permit in Italy. There are obvious pluses in choosing the registration of a representative office in Italy, for example, Russian, but also significant shortcomings of this method of obtaining a residence permit.
Let’s consider all aspects of this topic in order:
Representation of a foreign company is registered within – 30 days.
The charter capital is not required to be paid, since the representative office does not have the right to conduct commercial activity, but is created only for the presentation of the services / goods of the main company.
For the same reason, you do not need to pay income taxes.
It is not required to keep tax records, and therefore pay for commercialista services.
It is not required to wait for QUOTA, unlike IP.
Minus is basic, but very significant.
According to local legislation, a representative office of a foreign company is registered for a period of not more than 5 years. After that, you will need to go through the entire registration process again. The residence permit can not be prolonged when choosing this motive. After 5 years of living in Italy, you will need to return to Russia and go through the entire process of getting Nulla osta again.
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Vnzh branch of a foreign company