Establishing a company abroad entirely owned by the Italian company, and so acquiring legal autonomy as foreign entity offers several advantages in terms of management, operation and therefore also economic. The need to acquire a direct and independent presence on the target market, thus confronting with local companies, produce and assemble products directly in the State, are just some of the reasons behind this choice.
Of course, of all business models, this is the most challenging from the financial and organizational point of view: not only it does make necessary the appointment of local consultants, but it presupposes additional obligations for the newly-formed company in order to ensure compliance with local legislation, which will, for example, be applied where employment relationships or supply contracts are drawn up with local entities.
The financial and organizational commitments will be substantial and will depend in their peculiarities on the specific State in question. The current regulations will lead to the birth of the foreign subsidiary in its constitution, administration and management. Such provisions could be quite different from those present in the State of the controlling society, it is therefore essential to have collaborators that are competent and aware of the regulatory landscape that is in force in the new state of operation.
It is necessary to take into account that the facts concerning the foreign subsidiary will be regulated and possibly judged by the law of the State in which the company was established.
The main questions to be answered in view of the establishment of a "subsidiary" abroad are:
- Which legal status of the company should I choose consistently with the needs of the company and the regulatory landscape of the State?
- Which are the capital requirements for the various forms of companies in the new State?
- Which are the requirements for the constitution of the new legal status pertaining to the residence of managers?
- Where should society be established within a foreign state (this is especially important when it comes to federal states, in which the individual states that compose them are mostly regulated differently)?
- What and how many are the costs for the constitution? Will the presence of the notary be necessary?
Warning: it is generally useful and appropriate to draw up agreements for the regulation of relations between the Italian company and the newly-formed foreign investee company.