How to Register a Sole Proprietorship (Lavoro Autonomo Individuale / Impresa Individuale) in San Marino

Working independently in San Marino is appealing for many people because the process tends to be simpler and more flexible than forming a company. As a sole proprietor (or self-employed person), you have fewer formalities, more control, and can start quickly. At the same time, you bear full responsibility for your business’s risks, and there are specific licensing, tax, and administrative requirements you must meet. The main challenges in San Marino are navigating licensing (especially for certain regulated activities), paying the required fees, and keeping up with tax and social security obligations.

On the other hand, the benefits are significant: you enjoy flexibility in how you operate, reduced bureaucracy compared to running a company, and even tax breaks. New sole proprietors can qualify for a 50% cut on income taxes for the first five years, which lowers the standard 17% rate to about 8.5%. Some of the license fees may also be waived for the first three years if you meet hiring thresholds, such as employing one worker within six months and a second within 24 months.

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 San Marino?

In San Marino, the equivalent of a “sole proprietorship” is often referred to as “lavoro autonomo” or “impresa individuale,” depending on the nature of the business. Other terms in use are:

• Self-employed worker
• Independent contractor

All these refer to a business model in which one individual personally runs the economic activity without forming a separate company.

How does a sole proprietorship (lavoro autonomo / impresa individuale) work in San Marino?

Lavoro autonomo / impresa individuale vs. other business structures in San Marino

While setting up as a sole proprietor is the most straightforward option, it is not the only way to run a business in San Marino. Many entrepreneurs consider other structures—especially limited liability companies—depending on their goals, scale, and need for protection. Here is a comparison to help you understand the differences.

Step-by-step guide: How to register a sole proprietorship in San Marino

Step 1: Check your eligibility

Citizens of San Marino are automatically eligible to register as sole proprietors. Foreign nationals and cross-border workers can also set up a business, but they must prove they are legally resident or otherwise authorized to carry out economic activity in the country. For certain regulated activities, there may be rules requiring majority ownership by residents. No matter your status, it’s important to check the specific licensing requirements for your field before applying.

Step 2: Choose your business name

You can use your own name or choose a trade name. If choosing a different name, check the name availability on the Chamber of Commerce / San Marino Economic Development Agency website.

Step 3: Gather required documents

While specific requirements can vary depending on the sector, commonly needed documents include:

• Proof of identity (passport or national ID)
• Proof of residence or legal capacity to work in San Marino
• Description of business activity (business plan or equivalent)
• Registered office space/lease agreement or documentation of premises, if required by licensing regulation
• Any technical certificates or permits if your activity is regulated (for example, health, safety, environmental, or professional qualification)

Step 4: Register with the relevant authorities

To legally operate, you must apply for a business license, which you can do using the government's online services. Once your license is approved, you also need to register online with the San Marino Chamber of Commerce. Finally, you will obtain a tax registration code (Codice Operatore Economico, COE), which identifies your business for tax and compliance purposes. Each of these steps is mandatory before you can issue invoices or begin trading.

Step 5: Pay registration fees and contributions

San Marino requires entrepreneurs to pay business license fees both when opening and to keep the license active each year. For sole proprietors, single-member businesses, and general partnerships, the typical costs are:

• €1,700 to issue the license
• €650 per year to renew it
• €170 annual registration fee in some cases, depending on the sector or type of activity

These fees are relatively high compared to those in many other countries. However, San Marino offers relief for new enterprises: if you meet certain hiring thresholds—bringing on one employee within six months and a second within 24 months—you may qualify for an exemption from license issuance and renewal fees for the first three years.

Step 6: Complete post-registration obligations

After your registration is complete, you are responsible for ongoing compliance. You must keep accurate records of income and expenses, file annual income tax returns, and make social security contributions to the Istituto per la Sicurezza Sociale (ISS). Depending on your activity, you may also need to meet sector-specific licensing or permit obligations. Invoicing must follow San Marino’s rules, and some businesses may be required to adopt electronic invoicing systems. These obligations continue throughout the life of your business, and failure to comply can result in fines or suspension of your license.

Financial and tax obligations for sole proprietors in San Marino

You are responsible for:

• Income taxes (IGR): For self-employed / business income, the standard rate is about 17%, but new businesses that did not carry out similar economic activity in the previous 12 months may benefit from a 50% reduction of ordinary taxation for the first 5 years, effectively reducing the rate to 8.5% during that period.
• Social security/pension contributions: Sole proprietors must register with the Istituto per la Sicurezza Sociale (ISS), San Marino’s national social security institute. It manages healthcare, pensions, and welfare insurance. Contribution levels vary by income, sector, and whether you employ staff.
• Monofase (single-stage tax): San Marino does not apply a traditional VAT system. Instead, it levies a single-stage tax of 17%, charged at import or on the first sale of goods and certain services.
• Record-keeping requirements: You must keep proper records of incomes, deductions, and invoices; retain documents for tax audits; and report net profits (revenues minus allowable costs).

Launch your contracting career and stay compliant with Deel

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• Automate invoicing and expense tracking with essential Bookkeeping tools
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FAQs

What is the minimum capital required to start a lavoro autonomo / impresa individuale in San Marino?
There is generally no minimum capital requirement for a sole proprietorship / self-employed individual. Capital minimums are relevant to companies (SRL, SPA, etc.), not to individual business owners.

Do lavoro autonomo / impresa individuale need to register for VAT / GST? No. San Marino does not use a standard VAT system. There is a “single-stage tax” (monofase) mainly applied to imports and goods/services under special rules.

How much are the standard annual or issuing-renewal fees?
Typical fees: issuing a licence ≈ €1,700, renewal ≈ €650 for individual/self-employed / single-member businesses. The registration fee may be €170 for some types. However, San Marino law provides important exemptions: if you are a new enterprise and hire one employee within six months and a second within 24 months, the issuance and renewal fees can be waived for the first three years.

Can a lavoro autonomo hire employees?
Yes. A sole proprietor can hire employees. Doing so may also enable you to access certain incentives (for example, to reduce license-issuance fees for new businesses).

How long does it take to register as a lavoro autonomo in San Marino?
There’s no single official figure in the sources, but because of the many steps (licensing registration with local authorities, obtaining necessary permits, etc.), it could take several days to a few weeks, depending on how quickly you gather documents and whether your activity is regulated.

Can foreign nationals register as lavoro autonomo in San Marino?
Yes, though some regulated/licensed activities require majority ownership by residents or other restrictions. Non-residents may need to satisfy particular licence requirements, and legal/economic residence may affect tax liability.

Do lavoro autonomo / impresa individuale need a separate business bank account?
It is not absolutely mandatory in every case, but strongly recommended for clarity, accounting, and tax compliance. Keeping personal and business finances separate reduces risk, simplifies record keeping, especially in case of audits or scaling.

What happens if I stop working as a lavoro autonomo?
You should deregister/cancel your licence with the Industry, Crafts and Trade Office, inform tax authorities (State Tax Collector’s Office), and settle any final tax/social security obligations. Maintain records for required retention periods.

Are there any government incentives or reduced rates for new lavoro autonomo?
Yes. New business activities whose owners have not operated a similar activity in San Marino during the past 12 months may qualify for a tax exemption equal to 50% of the ordinary income tax for the first 5 years. License issuing fees may also be reduced or waived for the first 3 years under certain conditions, especially if you hire employees within certain timeframes.

Can I use Deel as a lavoro autonomo to get paid by international clients?
Yes. Deel supports independent contractors/self-employed individuals in San Marino to receive payments globally. Deel offers multiple currencies, transparent fees, and tools that help you issue compliant invoices that align with San Marino rules.

Does Deel generate compliant invoices for lavoro autonomo?
Absolutely. Deel’s invoicing system takes into account local requirements (Tax Registration Number, details required by licensing), so invoices are in line with legal expectations in San Marino.

Can Deel help me with taxes as a sole proprietor in San Marino?
Yes. Deel provides downloadable transaction history, revenue / expense records, and reports you can use to file your income tax return and social security obligations. Deel simplifies the data gathering; you will still need to file and pay with the local authorities.

Does Deel offer contracts for freelancers and lavoro autonomo / impresa individuale? Yes. Deel provides contract templates compliant with local law, so you can engage clients safely, clearly defining deliverables, payment, intellectual property, etc.

Can I access benefits through Deel as a lavoro autonomo?
Yes. Deel offers optional perks like health or retirement savings plans where available, helping self-employed individuals access benefits often reserved for employees.