Corporate Finance Manager
Chartered accountant and statutory auditor, takes care of corporate finance with a main focus on business valuation, valuation of tangible and intangible assets, business plan, business modelling, M&A and reorganization transactions.
LDP provides a comprehensive range of strategic financial consulting services designed for medium-to-large enterprises.
Our Corporate Finance department specialises in: Business Valuation Services, M&A Advisory, IPO Support & Capital Market.
Leveraging our global network of financial experts, we assist clients in managing complex financial operations on an international scale. With expertise in extraordinary finance transactions, we offer integrated support at every stage of implementation, ensuring seamless execution and strategic success.
Share Capital
A Private Limited Company (S.R.L.) does not have a minimum capital requirement, though it is advisable to begin with sufficient funds to ensure a stable cash flow. In contrast, a Public Limited Company (S.P.A.) must have a minimum capital of €50,000.
Quotas vs. Shares
S.R.L. capital is divided into quotas, whereas S.P.A. capital consists of different types of shares. Foreign shareholders are permitted to invest in Italian companies. Both S.R.L. and S.P.A. can have a sole shareholder and a Sole Director instead of a board of directors. Directors may also be foreign nationals.
To ensure compliance with the arm’s length principle in intercompany transactions within an MNE, the OECD Guidelines allow for the use of a transactional method based on an analytical approach.
The benchmark analysis aims to identify companies engaged in comparable transactions to those of the tested party (i.e., the MNE or its subsidiaries). This process helps establish an arm’s length range of profit margins for the activities under review.
To secure penalty protection, taxpayers must declare possession of the required documentation in their annual tax return by selecting the designated option (“check the box”).
The necessary files depend on the group’s structure, either both a Master File and a Local File or only the Local File must be prepared.
A summary table will be created to outline the required documentation for each level of the ownership structure.
The Transfer Pricing Documentation (TPD) must be prepared in Italian.
The deadline for filing a tax return allows taxpayers to submit an integrative declaration within the filing deadline of the following year. For example, the FY 2023 tax return can be amended in favour of the taxpayer until the FY 2024 filing deadline.
Yes, taxpayers may submit an integrative declaration within the filing deadline of the following year’s tax return. For example, the FY 2019 tax return can be amended in favour of the taxpayer until the FY 2020 deadline.
Founders are required to execute an incorporation deed, which includes the memorandum and articles of association (drafted by LDP), before an Italian Public Notary. The incorporation process can also be completed remotely through the power of attorney granted to one of our professionals. If the country where the power of attorney is executed is a member of the Apostille Convention, the POA must be notarised and apostilled. Otherwise, it must be notarised and legalised through the local Italian Embassy or Consulate.
Directors
A Sole Director or a Board of Directors may be appointed, with no general restrictions on their number, nationality, or place of residence.
Remuneration
Directors’ compensation is determined by the Stockholders’ Meeting, while the Board of Directors has the authority to grant special remuneration based on individual responsibilities.
Article 110 of the Presidential Decree no. 917 of 22 December 1986:
”Components of the income statement of an enterprise derived from operations with non-resident entities that directly or indirectly control the enterprise are controlled by the enterprise or are controlled by the same corporation that itself controls the enterprise, should be valued with reference to that conditions that would be agreed between independent parties operating in conditions of free competition and comparable circumstances (…) ”
Article 26 of Law Decree no. 78 of 31 May 2010:
Article 1, § 6 of Law Decree no. 471 of 18 December 1997:
If the requested information is not provided, the taxpayer will not benefit from the penalty protection regime.
The implication is that the level of penalty would be set higher in the range (90% to 180% with reductions for early settlement) than would otherwise apply.
LDP provides Tax, Law and payroll scalable and customised services and solutions. LDP Professional have also matured a significant expertise in M&A, Corporate Finance, Transfer Price, Global Mobility Consultancy and Process Automation.
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