[ESTABLISHING A BUSINESS ENTITY IN ITALY] 260
the decision-making processes. There is no legal distinction between the owner and the business, meaning the proprietor is personally responsible for all debts and liabilities incurred by the company. management and The main advantage of a sole proprietorship is its simplicity, as it requires minimal registration procedures and lower operating costs compared to other business entities. The owner's income from the business is treated as personal income and is subject to personal income tax, without any need for corporate
2. Artisanal craftsmanship : Craftsmen specializing in handmade products such as ceramics, leather goods, or custom- made jewelry. 3. Food and beverage businesses : Small cafes, restaurants, or catering services operated by individual owners. 4. Personal services : Providers of services such as hairdressing, beauty treatments, or personal training. 5. Freelance professionals : Photographers, graphic designers, web developers, or copywriters working independently for various clients. 6. Repair and maintenance services : Independent technicians offering services like computer repair, appliance maintenance, or home improvement. 7. Tour guides or travel consultants : Individuals offering personalized travel planning, guided tours, or local experiences for tourists. 8. Art and cultural activities : Independent artists, writers, musicians, or performers showcasing and selling their creative works. These examples represent just a few of the diverse economic activities that can be run under a sole proprietorship in Italy, illustrating the flexibility and adaptability of this business entity for individual entrepreneurs. 2. Partnerships a. General Partnership ( Società in nome collettivo ) A general partnership, or Società in nome collettivo (Snc), is a type of business entity governed by Articles 2291 to 2312 of the Italian Civil Code. An Snc is formed by two or more partners who enter into a partnership agreement to jointly conduct a business activity.
Italian Civil Code, Article 2082 - Entrepreneur.
taxation. However, one significant drawback of a sole proprietorship is the unlimited personal liability of the owner, as they risk losing personal assets if the business faces financial difficulties. This level of risk may not be suitable for all investors, particularly those seeking to limit their exposure to financial liabilities. A sole proprietorship can be an ideal choice for individuals who prefer simplicity and autonomy in their business operations, provided they are willing to assume personal responsibility for the company's debts and obligations. In Italy, a variety of economic activities can be conducted under a sole proprietorship, particularly in sectors where individual expertise, craftsmanship, or personal services are at the forefront. Some examples of such activities include: 1. Independent retail shops : Small boutique stores, grocery shops, or specialized retailers selling products directly to customers. The entrepreneur is a person who pursues, in a professional manner, an economic activity organized for the purpose of production or for the purpose of exchange of property or services.
ILN Corporate Group – Establishing a Business Entity Series
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