{"id":5661,"date":"2016-11-15T10:15:02","date_gmt":"2016-11-15T10:15:02","guid":{"rendered":"http:\/\/localhost\/test_manager\/business-tips-doing-business-in-italy\/"},"modified":"2019-07-10T10:36:21","modified_gmt":"2019-07-10T10:36:21","slug":"business-tips-doing-business-in-italy","status":"publish","type":"post","link":"https:\/\/managersoffice.net\/el\/business-tips-doing-business-in-italy\/","title":{"rendered":"Business Tips: Doing Business in Italy"},"content":{"rendered":"

THE ECONOMY<\/strong><\/span><\/span><\/p>\n

Italy\u2019s economy is based primarily on the transformation of raw materials (usually\u00a0<\/span><\/span>imported) into finished products to satisfy domestic and foreign demand.<\/span><\/span><\/p>\n

Investment opportunities are encouraged and the government, regions and provinces offer\u00a0<\/span><\/span>investment incentives, many of which encourage industrialisation in the southern part of\u00a0<\/span><\/span>the country.<\/span><\/span><\/p>\n

Italy\u2019s economic development varies greatly from region to region. The north is highly\u00a0<\/span><\/span>industrialised with good infrastructure and a highly trained workforce. The south ranks low\u00a0<\/span><\/span>in these characteristic indicators and significant incentives are offered to investors to\u00a0<\/span><\/span>develop in the area.<\/span><\/span><\/p>\n

The Italian economy consists of three major sectors: large private companies, the public\u00a0<\/span><\/span>sector and the small business sector.<\/span><\/span><\/p>\n

ESSENTIAL INDUSTRIES<\/strong><\/span><\/span><\/p>\n

Italy ranks among the seven most industrialised countries in the world. Italian industry\u00a0<\/span><\/span>consists of a few large companies and many small and medium-sized enterprises\u00a0<\/span><\/span>specialised in a variety of activities. Industry is presently declining due to high labour costs\u00a0<\/span><\/span>compared to those of less industrialised countries, while service activities are expanding.<\/span><\/span><\/p>\n

Service activities represent about 74 % of gross domestic product (GDP) and include\u00a0<\/span><\/span>commerce, transportation, communications, property rental, banking and insurance.<\/span><\/span><\/p>\n

The manufacturing industry represents about 24 % of GDP and includes construction,\u00a0<\/span><\/span>textiles and apparel, machinery, chemicals, pharmaceuticals, non-metal minerals and\u00a0<\/span><\/span>transportation vehicles.<\/span><\/span><\/p>\n

The agricultural industry represents about 2 % of GDP; its principal products are wheat, rice\u00a0<\/span><\/span>and other cereals, vegetables, fruits, wine, olive oil and dairy produce.<\/span><\/span><\/p>\n

FINANCIAL SYSTEM<\/strong><\/span><\/span><\/p>\n

The central bank, the Bank of Italy, stabilises money supply and supervises banking and\u00a0<\/span><\/span>credit institutions.<\/span><\/span><\/p>\n

Historically, the Bank of Italy\u2019s primary concern was to ensure the stability of the credit<\/span><\/span>system. It currently encourages the merger of the smallest banking institutions with larger\u00a0\u00a0<\/span><\/span>institutions and promotes the technological evolution of banks, assisting them in the\u00a0<\/span><\/span>modernisation of the payment system.<\/span><\/span><\/p>\n

The banking system, supervised by the Bank of Italy, consists primarily of:<\/span><\/span><\/p>\n

Ordinary banks, which include private companies and the subsidiaries and branches of\u00a0<\/span><\/span>foreign banks, and\u00a0<\/span><\/span>Co-operative people\u2019s banks (banche popolari<\/em>), which are generally active within\u00a0<\/span><\/span>provinces or regions.<\/span><\/span><\/p>\n

A Bank Deposit Insurance Fund (Fondo Interbancario di Garanzia dei Depositi<\/em>) was created\u00a0<\/span><\/span>in 1987 to cover deposits in measures appropriate to different balances. Banks which\u00a0<\/span><\/span>participate in the fund hold 99% of Italy\u2019s customer deposits. They must meet standards of\u00a0<\/span><\/span>capital adequacy, asset quality and bad debt ratios set by the fund.<\/span><\/span><\/p>\n

Banks are competing by engaging in new activities and acquiring interests in other financial\u00a0<\/span><\/span>activities, such as merchant banking, leasing, factoring, management of investment\u00a0<\/span><\/span>portfolios, payment services and information technology.<\/span><\/span><\/p>\n

SOURCES OF FINANCE FOR FOREIGN INVESTORS<\/strong><\/span><\/span><\/p>\n

The sources of finance used by Italian entities are also available to foreign investors. The\u00a0<\/span><\/span>primary sources of finance for new enterprises are subsidised loans and medium-term\u00a0<\/span><\/span>loans at fixed or variable market rates.<\/span><\/span><\/p>\n

IMPORTING AND EXPORTING<\/strong><\/span><\/span><\/p>\n

Because Italy follows the principles of the General Agreemen on Tariffs and Trade (GATT),\u00a0<\/span><\/span>and the regulations of the EU customs union and other international agreements, most\u00a0<\/span><\/span>goods may be freely imported. Existing restrictions are intended to protect the EU\u00a0<\/span><\/span>economy, so that the importation of certain items requires advance authorisation.<\/span><\/span><\/p>\n

Exports are generally unrestricted. Exporters must comply with the requirements to submit\u00a0<\/span><\/span>a customs office declaration.<\/span><\/span><\/p>\n

Special export insurance is available from the Agency for Export Credit Insurance (SACE) for\u00a0<\/span><\/span>exports of durable goods \u2013 machinery, equipment and transport vehicles \u2013 as well as for\u00a0<\/span><\/span>services, studies and design projects, and for civil engineering works carried out abroad.<\/span><\/span><\/p>\n

To encourage such exports, funding is available from special credit bank departments and\u00a0<\/span><\/span>state agencies in the form of medium-term loans at low interest rates.<\/span><\/span><\/p>\n

TYPES OF BUSINESS<\/strong><\/span><\/span><\/p>\n

PERSONAL COMPANIES WITHOUT LIMITED LIABILITY STATUS<\/strong><\/span><\/span><\/p>\n

These companies are as follows:<\/span><\/span><\/p>\n