Innovative Start Up Company
Innovation,R&D(research and development) anddigital growthhas become a main issue in every economic environment.
Aware of that crucial role played by the technological developmentItalian Government, has introduce since 2013, a specificset of rules(known as StartUp Act) in order to facilitate and support the birth and the growth ofnew “innovative” enterprises, stimulating the environment for such strategical kind of human and economic “assets”.
INNOVATIVE STARTUP
What is an Innovative StartUp?
The StartUp Act introduces a definition of “Innovative StartUp”, referring to it as anew enterprise(so not arose from M&A procedures) incorporated as a LLC (Limited Liability Company), who aims todeveloporproducetechnological products or services, wheretechnologicalrefers to the way theserviceisprovided, or inherentfeaturesof theproduct.
In addition to the abovementioned prerequisite, innovative StartUps needs to meet the following criteria:
- Less than 60 months from the incorporation;
- Italian headquarter or at least operational headquarter located in Italy;
- Revenues/year below euro 5 million;
- Inhibition from dividend distribution;
- Main activity is development and/or production of highly technological services or products;
- Has to meet at least one of the following:
- Higher within 15% of revenues or total cost has to be spent in R&D;
- Work force at least 1/3 Ph.D., or 2/3 master graduated;
- IPR ownership.
Innovative StartUp’s benefits
Innovative StartUp maybenefitof a series of benefits regardingbusinessandcorporate law, lean (but slow)incorporationprocedures,tax benefitsfor investors andspecific bankruptcy procedures.
Let’s see some of this features:
- Incorporation procedures: Notary certification is not required (is mandatory otherwise), with a significant saving in terms of money, but not in terms of time as it may require some weeks or months to fulfill an incorporation;
- Even if a LLC is required, it is possible toissue “shares”in order to reward employees or suppliers (Work for Equity), even allowing companies to issuenon-voting “shares”(forbidden otherwise);
- Tax clearingis easier and tax certifications are required for higher than ordinary limits (euro 50.000 instead of ordinary euro 5.000);
- Opportunity to benefit from somaflexible employment contractsfor longer than usual;
- Tax benefits for investors (30% tax credit for individuals, 30% increase on fiscal cost for enterprises)
- “Fail fast” procedures, in order to simplify bankruptcy for this kind of enterprises with a higher risk profile.
Studio Ferrari e Associatiwill be glad to support and give advice in your new Italian business venture. We may provide Tax, Business and Legal consultancy, in order to help you and your business from the rise to growth to turnarounds.