How to Register a Sole Proprietorship (Ditta Individuale) in Italy

In Italy, many freelancers, consultants, and small business owners choose to operate as a ditta individuale (sole proprietorship). It’s one of the most accessible ways to start a business, with minimal costs and relatively simple paperwork compared to other structures.

Registration takes place through the Registro delle Imprese (Business Register) managed by the Chambers of Commerce (Camera di Commercio), and in most cases, the process can be completed quickly online. No minimum start-up capital is required, which lowers the barrier to entry.

The main limitation is that sole proprietors have unlimited personal liability, meaning business debts can affect personal assets. They are also responsible for managing their own taxes and contributions to the national social security system (INPS). Despite these risks, the flexibility and independence of a ditta individuale continue to make it the most popular route into self-employment in Italy.

Disclaimer: This article is for informational purposes only and is not a substitute for legal advice. Please always check official sources or seek professional guidance before taking action.

What is a sole proprietorship in Italy?

In Italy, the sole proprietorship structure is known as “ditta individuale”, or “impresa individuale”. Similar to a sole trader or freelancer, it represents a business run entirely by one person, without the protections or requirements of a separate corporate entity.

How does a sole proprietorship (ditta individuale) work in Italy?

In Italy, the main alternative to a sole proprietorship is a limited liability company (SRL). Here is an at-a-glance comparison between the two:

Step-by-step guide: how to register a sole proprietorship in Italy

Step 1: Check your eligibility

You must be a resident of Italy and hold an official address. Non-EU citizens need a valid work permit allowing self-employment (“Permesso di soggiorno per lavoro autonomo/indipendente”).

Step 2: Choose your business name

Your business name must include your surname (plus optional descriptive terms). There's no central "name search" tool; ensure uniqueness via the local Chamber of Commerce.

Step 3: Gather required documents

You’ll need:

• Valid identity document (e.g., passport or ID card)
• Codice Fiscale (Tax Code)
• Modello AA9/12 for those registering for VAT
• Posta Elettronica Certificata (PEC), mandatory for submitting the Comunicazione Unica (single electronic filing for opening a business in Italy)
• Digital signature for signing official digital filings
• An address for your business

Step 4: Register with the Chamber of Commerce

Submit the Comunicazione Unica online—a single form that handles:

• Registro Imprese registration
• VAT opening with the Agenzia delle Entrate
• Istituto Nazionale della Previdenza Sociale (INPS) enrolment for social security
• Istituto Nazionale per l’Assicurazione contro gli Infortuni sul Lavoro (INAIL) enrolment for workplace injury insurance
• Segnalazione Certificata di Inizio Attività (SCIA) to the local Sportello Unico per le Attività Produttive (SUAP), if your business activity requires it

This is done electronically, using software like STARWEB or ComUnica, and requires your PEC and digital signature.

Step 5: Pay registration fees and contributions

Typical costs, including Chamber of Commerce fees and stamp duties, are around €100–150 total. You must also consider PEC activation (€5–25 excluding VAT) and digital signature (€25–80).

Step 6: Complete post-registration obligations

Once your ditta individuale is registered, you’ll need to handle a few ongoing obligations. Invoices must be issued electronically in most cases, though those under the simplified forfettario regime are exempt. Record-keeping requirements also depend on your tax regime—simpler for forfettario taxpayers, more detailed for standard accounting.

You’re also responsible for filing tax returns and VAT declarations if applicable, while regularly paying social security contributions to INPS and workplace insurance to INAIL. Finally, any updates to your business information or eventual closure must be communicated through the Comunicazione Unica system to keep your registration current.

Financial and tax obligations for sole proprietors in Italy

• Income taxes (IRPEF): Sole proprietors are taxed under the progressive personal income tax system, with rates ranging from 23% to 43% depending on annual income brackets. Many freelancers and small operators can instead opt for the simplified regime forfettario, which applies a flat rate of 15%, reduced to 5% for the first five years if certain conditions are met. This regime also eliminates the need for detailed bookkeeping.
• Social security contributions: Contributions are mandatory and paid to INPS (Istituto Nazionale della Previdenza Sociale) through the Gestione Commercianti or Gestione Artigiani schemes. Rates vary by activity but typically amount to around 24%–25% of taxable income, with a fixed minimum due each year regardless of earnings.
• VAT obligations: Most sole proprietors must open a Partita IVA (VAT number) via the Comunicazione Unica system. Standard VAT is 22%, with reduced rates of 10% or 4% for specific goods and services. Businesses under the forfettario regime are exempt from charging VAT and filing VAT returns.
• Record-keeping: All sole proprietors must maintain accounting records, but the level of detail depends on the regime. Under forfettario, record-keeping is minimal and primarily involves retaining issued and received invoices. Outside this regime, you must keep full accounts, VAT registers, and submit periodic reports.

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What is the minimum capital required to start a ditta individuale in Italy?
None—no minimum capital is required.

Do ditta individuale need to register for VAT/GST?
Yes, unless exempt. VAT registration happens through the Comunicazione Unica.

How much are the standard monthly or annual contributions?
As a rough example: annual Chamber registration and administrative costs may total €100–150; social contributions vary based on income and regime.

Can a ditta individuale hire employees?
Yes. The proprietor must register with INPS and INAIL for employee contributions.

How long does it take to register as a ditta individuale in Italy?
Comunicazione Unica is processed in about 15 days; completion of all formalities can be within a few weeks.

Can foreign nationals register as a ditta individuale in Italy?
EU/EEA citizens need to register with the local comune if staying over 3 months. Non-EU citizens need a valid self-employment visa and permit before registering.

Do ditta individuale need a separate business bank account?
Not legally mandatory, but strongly recommended for clear accounting and audit trails.

What happens if I stop working as a ditta individuale?
You must de-register via Comunicazione Unica, notifying Chamber of Commerce, Agenzia delle Entrate, INPS, and INAIL; and file final tax returns.

Are there any government incentives or reduced rates for new ditta individuale?
Yes. The forfettario regime offers reduced tax rates and simplified contributions; INPS can provide a 35% reduction if requested via the appropriate form.

Can I use Deel as a ditta individuale to get paid by international clients?
Yes. Deel allows ditta individuali and freelancers to receive payments globally in multiple currencies with low fees and transparent exchange rates.

Does Deel generate compliant invoices for ditta individuale?
Absolutely. Deel automatically produces invoices that meet legal and fiscal requirements, helping you stay compliant in Italy and beyond.

Can Deel help me with taxes as a sole proprietor in Italy?
Yes. Deel provides downloadable tax reports and payment records to facilitate filing returns. While not a substitute for an accountant, Deel greatly simplifies record-keeping and compliance.

Does Deel offer contracts for freelancers and ditta individuali?
Yes. Deel includes local-law-compliant contract templates to help you work safely and professionally.

Can I access benefits through Deel as a ditta individuale?
Yes. Deel offers optional perks like health insurance, retirement plans, and other benefits typically reserved for employees—giving freelancers more security.