Entering a foreign market is one of the most difficult decisions that an Italian company can make during its business existence and requires a careful assessment of the legal, tax and accounting aspects.
The questions to be answered are many, among which:
- What legal form to adopt?
- How would the foreign entity be treated from a tax and corporate point of view and where would it be subject to taxation?
- How will the investment abroad be financed: capital injection, loan, or a combination of the two?
- For transparency reasons, will its income be taxed only in the foreign country? Wouldn’t it apply to the Italian parent as well?
- Are foreign directors necessary or appropriate?
- If one accepts to be appointed as director of an Italian entity, to which legal, tax and asset-related risks is one exposed?
- Would the transactions between the Italian Newco and the other group companies be subject to Transfer Pricing rules? In both countries, or only in Italy? Are there any special requirements?
The professionals of RSM Studio Tributario e Societario have many years of experience in the internationalization of Italian companies and may guide and advise you on how to set up solid businesses abroad, identifying for you the best solutions (tax solutions included), with due consideration for the conditions your country of origin.