Starting a business in Italy? Here are four essential things to remember to avoid your business going under:
1. Plan your budget:
Budgeting is very important when starting up any business. It sets the markers for how much you can spend on each operation at each given time. Of course, these figures do not have to exact. Give yourself some leeway when it comes to your future expenses. In the first year of your business odds are you’re going to be in the negative. Prepare for emergency spending.
2. Get your VAT number:
If you wish to operate in Italy as a startup or sole proprietor or to practice as an independent freelancer (such as an independent artist, consultant, etc.) you will have to invoice your clients for the service you provide and pay tax on such services – for that you will need a ‘VAT number’ or a Partita IVA.
3. Hire a good accountant:
A commercialista is a chartered accountant in Italy, who has passed the LM-56 class (Economics) or the LM-77 class (Business Economics) issued by a university in Italy and registered in the
“Order of Chartered Accountants and Accounting Experts “. The commercialista will advice you on your financial decisions and tax obligations and set up other legal documents you require to start and run your business.
4. Have a unique business plan
A business plan is a written document describing your business’ core activities, and how you plan to achieve your business goals. Startups should focus on delivering products/services that are missing from the current market. Focus on niches. Getting a small market share is better than trying to invest in a market that you can’t compete in.