ABOUT ITALY

Amongst all the countries in Europe, Italy, officially the Italian Republic, is a country located in Southern Europe, famous for its distinctive boot-shaped peninsula extending into the Mediterranean Sea. It is globally celebrated for its immense cultural heritage, iconic art, fashion, exquisite cuisine, and historical significance as the heart of the Roman Empire and the birthplace of the Renaissance. The capital of Italy is Rome, which is its largest and most populated city, serving as the country’s primary economic, cultural, and political hub, as well as a major international tourist destination. According to the report of the World Bank, Italy has been classified as a High-Income Nation. The currency of Italy is the Euro (EUR), which it adopted in 1999 (cash in 2002). As of today’s exchange rates (June 2025), 1 Euro is approximately 89.85 Indian Rupees. The population of Italy is approximately 58.7 million in 2024. Its neighbouring countries are France to the northwest, Switzerland and Austria to the north, and Slovenia to the northeast. It also completely encompasses the microstates of San Marino and Vatican City. Italy has extensive maritime borders across the Mediterranean with numerous countries. The official language of the country is Italian. English is widely spoken and understood, especially in major cities, business centers, and tourist areas. The vast majority of the population practices Roman Catholicism, reflecting the strong historical and cultural influence of the Vatican. Currently, Italy has numerous international airports, with Rome Fiumicino (FCO) and Milan Malpensa (MXP) being the primary international gateways, offering extensive air connectivity globally. As a peninsula with a long coastline, Italy boasts many crucial commercial seaports, including Genoa, Livorno, Trieste, Venice, Naples, and Gioia Tauro (a major transhipment hub), which are vital for international trade and maritime transport.

The standard corporate income tax rate in Italy is 24% (known as IRES – Imposta sul Reddito delle Società). Italy offers a range of tax incentives and state aid to attract foreign direct investment and promote specific strategic sectors, particularly focusing on digitalization, innovation, and environmental transition. Key incentives include significant tax credits under the “Transition 4.0” plan for investments in R&D, digital transformation (e.g., software, IoT, cybersecurity), and green technologies. Special tax regimes are also available for new residents, highly qualified returning professionals, and digital nomads, offering reduced taxation on foreign-sourced income for several years. Opesh Group of companies will be helping you in the completing Due Diligence process which includes financial planning, registration process, business options, and if required, even helping you find a Rental property for your office.

Establishing a business in Italy has become more streamlined due to ongoing reforms aimed at reducing bureaucracy and enhancing digitalization of administrative procedures. The Invitalia agency is the primary government body promoting and assisting foreign direct investment and supporting national development. A foreign investor who is planning to start his business in Italy can form various company types, with the most common and flexible structures being a Limited Liability Company (S.r.l. – Società a responsabilità limitata) or a Joint Stock Company (S.p.A. – Società per azioni). The Limited Liability Company (S.r.l.) is generally the most popular choice for foreign investors due to its flexibility, allowing 100% foreign ownership and requiring a minimum share capital of just €1 (though professional advice recommends higher for credibility and operations). Italy’s legal framework is aligned with EU directives, providing a secure and predictable environment for businesses.

In Case an investor is planning to establish an S.r.l. in Italy or a corporate business setup, Opesh Group will be helping you in taking the right decision for setting up your business in Italy and we will also guide you about how to follow the procedure while formulating your company in Italy.

Types of Business which can be started in Italy-

• Advanced Manufacturing & Machinery: Italy is world-renowned for its high-quality manufacturing, especially in specialized machinery, robotics, automation, and industrial components. Opportunities are strong in Industry 4.0 solutions, high-precision engineering, and smart manufacturing.
• Fashion, Luxury Goods & Design: Italy’s iconic ‘Made in Italy’ brand is global. Opportunities exist in luxury apparel, footwear, leather goods, jewelry, interior design, and supporting services, often leveraging artisanal craftsmanship and innovative design.
• Agri-food & Wine: Italy is a global leader in high-quality food and wine. Opportunities are vast in sustainable agriculture, organic food production, specialty food processing, wine production and export, and food technology.
• Tourism & Hospitality: As one of the world’s top tourist destinations, opportunities are immense in developing hotels, resorts, specialized tourism (e.g., cultural tours, gastronomic experiences, wellness tourism), and related digital services.
• Renewable Energy & Green Technologies: Italy is committed to energy transition. Opportunities are significant in solar, wind, and geothermal energy projects, energy efficiency solutions, and sustainable building materials.
• Digital Technologies & Innovation: Italy’s tech sector is growing, with increasing focus on AI, FinTech, cybersecurity, and e-commerce. Opportunities in software development, digital services for traditional industries, and tech startups.
• Infrastructure & Logistics: Ongoing investments in modernizing transport networks (ports, railways, roads) and logistics hubs create opportunities for construction, engineering, and logistics service providers.

Advantages of Starting Business in Italy-

• EU & Eurozone Membership: Provides full access to the vast European Union single market and the stability of the Euro currency, facilitating trade and investment.
• Large Domestic Market: A significant internal market of nearly 60 million consumers.
• Strong Manufacturing Tradition: Renowned for high-quality, high-value manufacturing and the prestigious ‘Made in Italy’ brand.
• Highly Skilled Workforce: Particularly strong in engineering, design, and specialized craftsmanship, offering a talented labor pool.
• Excellent Infrastructure: Well-developed transport networks (ports, high-speed rail, highways) and improving digital infrastructure.
• Strategic Mediterranean Location: Offers a geographical advantage for trade with Europe, North Africa, and the Middle East.
• Cultural & Creative Hub: A global leader in fashion, design, food, and arts, providing a vibrant backdrop for creative industries.

Business Opportunities for Indians in Italy-

There are excellent business opportunities in Italy for new investors who are planning to start their business abroad. Italy’s strong manufacturing base, luxury industry, and commitment to digitalization and sustainability present compelling avenues for Indian companies. Indian investors with strengths in IT services (especially digital transformation, automation, AI for manufacturing and fashion), automotive components, pharmaceuticals (generic drugs, R&D partnerships), textiles & apparel (design, manufacturing partnerships), food processing (specialty foods, organic products), renewable energy projects, and tourism & hospitality technology, can find significant potential for investment, partnerships, and market entry into Europe.

Imports & Exports-

Many goods are imported and exported from Italy. Imports and exports business is an ever-growing business in any country; however, you need to do proper R&D before investing in that product which you can import or export. You need to check whether that product is suitable for your target market and how much revenue you will be able to generate from that market.

Major items which are exported from Italy:

• Machinery and equipment
• Vehicles and transport equipment
• Pharmaceutical products
• Fashion and luxury goods (apparel, leather, footwear)
• Food and beverages (wine, olive oil, pasta)
• Chemicals

Major items which are imported in Italy:

• Mineral fuels and oils (crude and refined)
• Machinery and equipment
• Chemicals
• Vehicles
• Electrical machinery
• Metals and metal products
• Foodstuffs

Major items traded between Italy and India (as of 2023-2025 data):

• Exports from Italy to India: Machinery, Pharmaceuticals, Parts of vehicles, Chemical products, Iron and steel, Medical and optical instruments.
• Imports in Italy from India: Organic chemicals, Iron and steel products, Apparel and clothing accessories, Footwear, Pharmaceutical products, Cotton, Vehicles and parts, Precious stones (diamonds).

Manufacturing-

Manufacturing in Italy is highly diversified and a cornerstone of its economy, renowned for high-quality production and innovation. Opportunities are strong in various sectors, including specialized machinery and automation equipment, automotive components, fashion and luxury goods (textiles, apparel, leather, footwear, jewelry), furniture and design, food and beverage processing, and pharmaceuticals. Italian manufacturing excels in ‘Made in Italy’ brands, leveraging advanced technology and skilled craftsmanship.

Mining-

The mining business in Italy is relatively limited in terms of conventional metallic minerals. While historically significant for certain resources like sulfur and marble, current large-scale metallic mining operations are scarce. The primary mining activities involve the extraction of industrial minerals such as marble, granite, limestone, sand, gravel, and clay, largely supporting the construction and ceramics industries. Italy is also a notable producer of natural gas in some regions, though not on a scale comparable to major global producers. Therefore, opportunities for large-scale metallic mineral extraction are not prominent.

Major Indian companies which are currently working in Italy-

Several Indian companies have established a presence or significant business operations in Italy, particularly in sectors that align with Italy’s industrial strengths or its role as an EU gateway.

• Tata Consultancy Services (TCS): A major IT services and consulting firm with a significant presence.

• Wipro: Another leading Indian IT company with operations in Italy.

• Infosys: Also present in the Italian IT services market.

• Tech Mahindra: Provides IT and network technology solutions.

• Mahindra & Mahindra (Automotive & Farm Equipment): Has automotive design and manufacturing interests (e.g., Pininfarina, acquired by Mahindra Group).

• Lupin Pharmaceuticals: Has a presence in the pharmaceutical sector.

• Cipla: A prominent Indian pharmaceutical company.

• Bharat Forge: Has investments in the manufacturing sector (e.g., through its European subsidiaries).

• Raymond Group: Has a presence in the textile and apparel sector.

• Indian Public Sector Banks: Several Indian public sector banks (e.g., State Bank of India, Bank of Baroda, Union Bank of India) have branches or representative offices to facilitate bilateral trade and investment.

• GDP = $2.30 trillion (nominal, 2024 est.)

• GDP Growth = 0.7% (2024 est.), 1.1% (2025 forecast by IMF)

• Ease of doing business rank = The World Bank’s ‘Doing Business’ report has been discontinued. However, Italy has been implementing reforms to improve its business environment and regulatory efficiency.

• GDP per Capita = $39,268 (nominal, 2024 est.)

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