Accountancy and Management of a Limited Liability Company (SRL) in Italy

A Limited Liability Company or >SRL (Società a Responsabilità Limitata) is one of the most common types of companies established in Italy due to the flexibility it provides – this type of company is not tied to its founder, its shares can be transferred and divided, it requires a lower minimum capital and there is a central management present (independent from the partner owners).
ILF staff (composed by Italian Attorneys and Accountants) has been assisted many no-resident individuals/companies in incorporating their SRL in Italy over tha past ten years.

However, after some changes in the Italian legislation, the management of a SRL now requires more. That is specifically true with regards to the Budget Act coming into force in Italy from January 2019 and introducing the widespread obligation of electronic invoicin in Italy, both in commercial relations between private VAT payers (companies and professionals with VAT number) and to final consumers. Starting from January 1st, 2019, electronic invoices using the Interchange System shall always be issued for the sale of goods or the provision of services on Italian territory. In order to comply with the given legislation, though, a deep understanding of the legislative framework, as well as a thorough bookkeeping practice, are required.

That is why, our team of experts decided to offer a new bookkeeping service for all international clients, willing to establish a company in Italy, and manage it from abroad. In that way, you will be able to have a precise evaluation of the financial status of your company at any point and to ensure all the applicable legal requirements have been followed.

What is Italian electronic invoicing and how does it work?

Electronic invoicing is a digital system for issuing, transmitting and storing invoices that allows you to permanently abandon paper support and all related shipping and storage costs, thus radically changing the way invoices are completed, sent, received and stored. Its application is obligatory for all Italian residents and companies, established and identified on the territory of Italy. The required format, called FatturaPA, is a flow of structured data in digital format containing the same information as a paper bill, but written in XML language.

The aim is to create a harmonized system of invoicing, instead of the variety of distinct methods (manual writing, typewriters, text editors, spreadsheets) used by VAT payers up until now. On the other hand, this reforms provides a sustainable, eco-friendly solution to the previous obligation of the customer to keep every invoice for a period of at least 10 years in paper format.

An electronic invoice shall contain information on:

• the personal data of the customer’s supplier;
• the electronic address for the delivery of the invoice;
• the number and date of the invoice;
• the nature, quality and quantity of the goods sold or the services provided;
• the costs of the taxation and the corresponding VAT rate.

The electronic invoicing is implemented through the usage of a special software, Interchange System (SdL) of the Italian Revenue Agency (Agenzia delle Entrate). Each invoice is digitally signed (by a qualified electronic signature) and sent to the recipient through the Interchange System. The system then conducts automatic technical checks and delivers the document to the Public Administration or to the private subject to whom it is addressed. Thus, the Interchange System acts to connect the parties concerned and to verify that the format of the document received is correct and that the data entered are complete.

For the completion of an electronic invoice, however, a special Italian Accounting Software is required. This software shall:

• Apply a digital signature (qualified electronic signature) with time reference on each invoice;
• Send the invoice created to the Interchange System, tracing the entire validation and acceptance (or rejection) path of the document, and promptly reporting any errors;
• Securely store the electronic document for a period of 10 years.

What do we offer?

Connecting the legal requirements, set by the aforementioned Budget Act, with the specific needs of our international clients, we decided to offer bookkeeping and management support services for your company in Italy. This includes:

• keeping track of all the incomes and expenses of the company, creating and regularly updating a unified database with all the related information
• creating, sending, receiving and storing of electronic invoices through the Interchange system of the Revenue Agency
• staff training on the topics of bookkeeping regulations and the obligation to electronic invoicing
• ensuring compliance with the laws applicable

What are the benefits?

The wide range of expertise of ILF staff members (Italian Lawyers and Accountants English speaking) gives us the ability to provide a full-circle service that guarantees the successful financial management of a company with an easy and efficient use of resources. Some of the benefits of choosing our services include:

• secure remote management: receiving complete, up-to-date information on the financial status of a company makes it easier and safer to be managed from any point in the world
• spending less for accounting: the creation of a detailed database on your company’s incomes and expenses makes the accounting process easier and more economic
• spending less on legal consultations: our continued supervision on the accounting of the company assures compliance with the applicable Italian and European legislation
• saving time: a well-organized accounting system guarantees less time spent in dealing with the present administrative and legislative corporate burdens.

The contents of this page should not be taken as an authoritative statement of the Italian law and practice. Neither the author, nor the publisher are responsible for the results of actions taken on the basis of information contained in this summary, nor for any errors or omissions. This text is not intended to render legal, accounting or tax advice. Readers are encouraged to seek professional advice concerning specific matters before making any decision.