Choosing the right type of company for your business is an important decision for any entrepreneur. In Italy, two of the most popular forms of companies are the Società a Responsabilità Limitata (SRL) and the Società a Responsabilità Limitata Semplificata (SRLS). At first glance, the two types may seem similar, but in reality, there are some significant differences between them.
The SRL is a limited liability company. This means that the shareholders are not personally liable for the company’s obligations beyond their share of participation. Typically, the company is established by two or more shareholders. However, it is possible to establish an SRL even with a single shareholder (SRL unipersonale), and it can be formed with a minimum capital of 10,000 euros.
On the other hand, the SRLS was introduced in 2012 to simplify the creation of new businesses. The SRLS is similar to the SRL in that both companies are limited liability and are subject to supervision by the Revenue Agency and the Chamber of Commerce.
Advantages of SRLS:
- No notary fees or stamp duties are payable;
- Can be established with a minimum capital of only 1 euro.
Disadvantages:
- Shareholders can only be natural persons and not legal entities (e.g. companies);
- The articles of association and bylaws are standard and cannot be modified;
- The capital must be fully paid in cash at the time of incorporation. Unlike ordinary SRLs, assets or services cannot be contributed.
Finally, whichever company you decide to establish, whether it’s an SRL or an SRLS, you may also want to consider using our registered office service for your new company. This service allows you to use a mailing address as the legal domicile of your startup, which can be useful if you do not have a physical location available or prefer to maintain the privacy of your personal residence. In addition, by using our registered office service, you have the assurance that your correspondence will always be collected and stored in your personal file after being notified by email or phone. For more information, visit https://belfiore10.com/servizi/ufficio-virtuale/
