Opening new branches across different destinations makes a lot of sense for many business owners. If you have business activities in different locations across the globe, your presence there could be vital, and provide a number of advantages for your company.
Not only could opening a branch in the likes of Italy allow you to open up new avenues of sales, acquire better quality or cheaper resources, and expand into new, up-and-coming markets, but it could also enable you to work more closely with business partners and clients, and allow you to gain an insight into local industry knowledge.
While the Italian market is receptive to international brands and businesses, when you open a branch there, you may face challenges including legal and tax issues, permission, hiring and Italian bureaucracy. So, how should you go about opening an international branch to benefit your business? And what might you need to know about the process?
How should you go about opening an international branch of your business?
Before opening your new branch, you will need to ask yourself the questions: What are the formalities regarding Italian branches? How do I go about registering it? What documents will I need? Will I need to have a registered address? What accounting requirements are a necessity?
When it comes to registering your branch, you will need to provide documents that contain important information about the company, as well as its representatives.
These documents include:
- A certificate of incorporation
- A parent company’s registration certificate
- Contact details of the company’s employees, such as the directors and secretaries
- Memorandum and articles of association
When you hand them over, you will also need to make sure that they are translated into Italian.
It’s also important to remember that the foreign parent company will be responsible for all liabilities of the Italian branch. You will need to ensure that you have a registered office for the branch, and that it must also have a legal representative. After the branch has been registered, you must also be able to show the likes of the legal classification of the company and the place of registration of the branch, along with its registration number.
Working with experts along the way can help to determine the best opening for your branch in Italy. The likes of RSM help to provide companies with the best economic strategies based on geographical analysis and market activities in Italy. Plus, they will stay informed of international trends and developments, and keep you up to date on how these will impact your business. Make sure that when you’re faced with complex issues, you get help from experts.
How could opening up a branch internationally be a benefit for your business?
Expanding your business abroad to the likes of Italy will also expand your business’ visibility. This exposure could help to positively influence your company’s profits. With access to a new and sophisticated market, you will have the ability to target new consumers, and generate greater revenue.
The new branch office will have the right to conduct business activities independently, helping you gain more credibility worldwide. If, in the event that you need to close it down again, it will be a lot more simple to wind this branch down.
What are the major economic and business cities to target in Italy?
From Milan to Rome to Naples, Italy boasts a number of cities that would be ideal to set up a branch in. In Milan, for example, 81% of its population believe that the city should be seen as an economic role model to emulate. With an economy that is centred on design, tech, and finance, it’s become an extremely popular place to both live and work.
Before you go about setting up your new branch, it’s essential that you take the above into consideration.