+39 0474 572900

Incorporation of a secondary office in Italy

Your auditor, tax and labor consultant in South Tyrol for Italy 

We will handle all the necessary procedures to incorporate a corporate or secondary office in Italy.

Please feel free to contact us for an initial meeting free of charge. . 
Tel.: +39 0474 572900

Definition of corporate/secondary Offices

When sales are carried out through a fixed sales office or an employee, a secondary office in Italy is said to exist. This implies a number of accounting and tax obligations in Italy.
A secondary office is intended as a fixed corporate office, where the business of the foreign company is carried out, in whole or in part. For example, branch offices, sales offices, offices, production facilities, factories and construction sites, are all intended as a fixed corporate office. In this context, this is also defined as a permanent Establishment.

For an establishment to be considered a secondary office, the same should be used for sales. Facilities used to exclusively to prepare and support the main business activities are not considered to be secondary offices. Deposits, showrooms and promotional activities are an example of these. If there is no fixed place of business, a secondary office is said to exist only if a person who is economically dependent on a foreign company (white collar worker, sales representative with a single principal), is authorized to enter into business contracts, against instructions, for such company. This organization according to the OECD Model is defined as a "secondary office with permanent representative".

Taxes and accounts

If a secondary office is opened in compliance with tax laws, the profits earned in Italy, must also be taxed in the territory of Italy. The rules of taxation are the same as those applicable to corporations (limited liability and joint stock companies).

If a secondary office exists, separate accounts should be kept for important business transactions in Italy, and should also be filed in Italy, regardless of the legal status with which business is carried out in Italy.

Given the fact that a secondary office is treated as a corporation, it makes more sense to do business through your own company. This avoids the problem of accounting definitions.

If you wish us to examine your situation, or are interested in an initial meeting free of charge and without obligation, please contact our offices.

Dr. Hermann A. Graber

T.: +39 0474 572900

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Rienzfeldstraße 30
I-39031 Bruneck - South Tyrol