# Banking, Tax Registration and Accounting Setup for an Italian Entity: A Practical List

> A practical checklist for foreign companies setting up an Italian entity: tax codes, VAT, bank account, payroll registrations and accounting.

Opening an Italian entity is more than filing incorporation papers. The company must be able to pay people, invoice customers and report to the authorities. This list covers the practical setup, in the order it usually works best.

It is a general guide. Your accountant and your bank will confirm the details for your case.

## Before you start

- Decide who will sign. Italian banks and authorities want a named legal representative with a valid ID and a tax code.
- Choose the legal form with your advisers. It affects capital, governance and accounting duties.
- Appoint an Italian accountant (commercialista) early. Do not wait until after incorporation. They will often prepare the registrations for you.

## Tax registration

**Personal tax code for each director and shareholder.** Every individual involved needs an Italian tax code (codice fiscale). Foreign nationals can usually get one through the tax office or a consulate. A company shareholder abroad needs one too.

**Company tax code.** The company receives its own tax code when it is incorporated through the notary and the company register.

**VAT number.** The company opens its VAT position with the tax authority. In practice this is done with a declaration of start of activity, filed by the accountant. You must state the business activity code that matches what you will really do.

**Digital tools.** Get these as soon as the company exists:

- Certified email (PEC). It is mandatory for companies, and official notices arrive there.
- Digital signature for the legal representative.
- Access to the tax authority's online portal for the company.

Check the PEC inbox every day. Missed notices cause avoidable penalties.

## Company register and chamber of commerce

The company is entered in the business register. The chamber of commerce record is what banks and clients check first. Keep the registered office address, the legal representative and the activity description accurate and up to date.

## Banking

The bank account is often the slowest step. Plan for it.

- Open a business current account with an Italian bank. Some banks can start the process with the notary deed and the company documents, even before every registration is complete.
- Expect full identification checks on the legal representative and on the ultimate owners of the group. Prepare a clear ownership chart.
- Bring a short description of the business, the expected flows and the main counterparties. Banks ask for this to meet anti-money-laundering rules.
- If the parent company is funding the capital, make sure the transfer is traceable and labelled correctly.
- Ask for online banking, payment cards and the ability to pay payroll and taxes by electronic transfer.
- Ask whether the bank supports direct debits and the tax payment form used for monthly payments.

A foreign group with an existing bank relationship can ask its home bank for an introduction. It often helps.

## Payroll and social security registrations

If you will employ people in Italy, the company also registers as an employer.

- Social security registration with the national institute, to report and pay contributions.
- Workplace accident insurance registration with the national insurance body.
- Appointment of a payroll provider or labour consultant. Many companies outsource this to a labour consultant (consulente del lavoro).
- Choice of the collective agreement that applies to your sector. It sets minimum pay, leave and notice terms.
- Mandatory employment notifications before each new hire starts.
- Health and safety basics, including a responsible person and the required checks.

Payroll must be accurate from the first payslip. Fixing mistakes later is slow.

## Accounting setup

- Choose an accounting method and software your accountant can access directly.
- Set up electronic invoicing. Italy requires invoices to pass through a national exchange system. You need a channel code or a PEC registered for receiving invoices.
- Keep a chart of accounts that maps to your group reporting. Agree this with the parent finance team.
- Agree how and when the Italian books are closed, so group consolidation does not wait on Italy.
- Keep supplier and customer documents in a shared folder, organised by month.
- Agree who approves payments and who signs tax returns.
- Check whether an auditor or board of auditors is required for your legal form and size.

## Common mistakes

- Choosing a bank before checking it will onboard foreign-owned companies.
- Forgetting to register the PEC and missing official notices.
- Hiring before the employer registrations are complete.
- Using a generic activity code that does not match the real business.
- Leaving the accountant out of the first pay run.

## A faster route

An entity takes time and ongoing admin. If you only need to employ a few people, or want to test the market first, you can use an Employer of Record (EOR). The EOR is the legal employer in Italy. It runs payroll, social security, contracts and compliance, so you do not need your own bank account, tax registrations or local accounting team to start. You can open your own entity later, when headcount justifies it.

Find the country site for your market or request a quote.

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Source: https://employitaly.com/articles/italian-entity-banking-tax-registration-accounting-setup.html · 2026-10-27