A Brazilian founder builds an R&D team in Bologna: the path and the decisions

A founder in São Paulo wants an R&D team in Bologna. The product is software with a hardware edge. The talent they need is in Emilia-Romagna: embedded engineers, mechatronics people, data scientists from the local university. They have no Italian company and no wish to spend a long time building one.

This is a scenario, not a case study. It shows the path and the decisions in the order they usually come.

Decision 1: Own entity or Employer of Record  

The founder can open an Italian subsidiary. That means a legal entity, a registered office, a bank account, accounting, payroll, and local advisers. It makes sense when the team will be large and stay for years.

The alternative is an Employer of Record (EOR). The EOR is the legal employer in Italy. The founder directs the daily work. The EOR handles the contract, payroll, social contributions, and compliance.

For a first team of a few engineers, with a product that is still changing, the EOR is usually the faster and lighter route. The founder can move to their own entity later, once the team and the plan are stable.

Decision 2: Who to hire first  

Most founders start with a technical lead. This person knows the local market, can interview candidates, and will shape the team’s habits. Hire for judgment, not only for skills.

The founder should write down what the team will own. A vague brief attracts vague candidates. A clear one, such as “own the firmware for our sensor line”, attracts people who want that job.

Decision 3: Where the people come from  

There are two pools. The first is people already living in Italy. They can start quickly and need no relocation. The second is people from abroad, including Brazilians who want to move to Italy and who may have Italian family ties.

Hiring locally is simpler. Hiring from abroad adds immigration and relocation steps, and these take time. A founder who wants speed should start with the local pool and add international hires later.

Decision 4: The employment contract  

Italian employment is governed by national collective agreements. The sector decides which one applies. For an engineering team, the right agreement sets minimum pay, notice periods, leave, and other terms.

The founder does not need to master this. They do need to know that the contract is not a blank page. The EOR applies the correct agreement and tells the founder what it means for the offer. Ask for this before you make any offer.

Decision 5: Pay and the real cost  

The salary in the offer is not the cost to the company. Employer contributions and other mandatory items sit on top. A founder who budgets only for the salary will be surprised.

Ask the EOR for the full cost of each role, in writing, before the offer goes out. Compare it with the budget in your own currency. Currency moves can matter for a Brazilian company paying in euros, so leave some margin.

Decision 6: How the team works with Brazil  

Bologna and São Paulo share part of the working day, but not all of it. Pick a fixed overlap for meetings and keep the rest of the day free for deep work. Write down decisions, because not everyone is online at the same time.

Plan at least one visit in each direction. A team that has met in person works better remotely afterward.

Decision 7: Intellectual property  

R&D work produces things the company wants to own. The founder should make sure the contract and the company’s internal rules deal with inventions, code, and designs. This is a conversation to have with the EOR and a local lawyer, before the first day and not after.

The path in order  

1. Define the team’s purpose and the first role.
2. Choose EOR or own entity.
3. Get the full cost and the applicable collective agreement for the role.
4. Recruit, starting with the technical lead.
5. Sign the contract through the EOR and set up payroll.
6. Onboard the person with a clear first goal.
7. Add roles as the work proves itself.
8. Review at a set point whether to keep the EOR or move to an own entity.

What goes wrong  

The common mistakes are simple. Founders hire before they know the full cost. They treat the contract as a formality. They give the local lead no authority. They expect the team to behave like the one at home.

Avoid these, and Bologna is a good place to build.

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