The state of the SRL in 2026
The SRL is the backbone of Italian business — over 1.4 million active SRLs in Italy as of 2025. It offers limited liability, flexible governance, and a well-understood regulatory framework. But it also comes with significant friction: minimum €10,000 share capital, mandatory notary involvement, and a compliance burden that can cost a small business €3,000–€8,000 per year in accountant and legal fees.
A simpler variant — the SRL Semplificata (SRLS) — exists with €1 minimum capital, but it comes with restrictions: founders must be natural persons under 35 (a rule that has been relaxed but remains an image issue), and the articles of association must follow a fixed template with no customisation.
| Factor | SRL | SRLS | EU Inc (proposed) |
|---|---|---|---|
| Min. share capital | €10,000 | €1–€9,999 | €1 |
| Notary required | Yes | Yes | No (proposed) |
| Incorporation time | 2–6 weeks | 1–3 weeks | 48 hours (target) |
| Articles of association | Customisable | Fixed template | Template + customisation |
| Cross-border EU recognition | Foreign entity outside IT | Foreign entity outside IT | Recognised in all 27 states |
| Annual compliance cost (est.) | €3,000–€8,000 | €2,500–€6,000 | TBD — likely lower for multi-country |
| Available now? | Yes | Yes | No — earliest 2029 |
The notary problem
Both the SRL and SRLS require a notary for incorporation. This is not just a formality — it's a genuine bottleneck. A typical Italian notary charges €1,500–€3,000 for an SRL incorporation. The process involves scheduling (often 2–3 week wait), physically attending the notary's office, and signing documents that then need to be submitted to the Camera di Commercio for registration.
EU Inc would eliminate the notary requirement entirely. The entire incorporation process is proposed to be digital, completable in 48 hours without any physical presence. For Italian founders especially — who have been dealing with the notary requirement for decades — this is probably the single most impactful change.
I've gone through the SRL incorporation process twice. The first time, it took 6 weeks, cost €2,800 in notary fees, and required me to be physically present in Milan on a specific Tuesday. The second time I knew what I was doing and it still took 3 weeks. The 48-hour digital promise of EU Inc isn't just convenient — it represents a fundamentally different philosophy about what it means to start a business. Italy needs this.
Taxation: the SRL vs EU Inc reality
This is where the comparison gets more complicated. Both SRL and EU Inc are subject to national corporate tax in the country where economic activity takes place. EU Inc does not change tax treatment — it only harmonises company law.
| Tax aspect | SRL in Italy | EU Inc (if registered in Italy) |
|---|---|---|
| Corporate income tax (IRES) | 24% | 24% (same) |
| Regional production tax (IRAP) | 3.9% (varies) | 3.9% (same) |
| Dividends to individuals | 26% withholding | 26% (same) |
| VAT regime | Standard Italian VAT rules | Standard Italian VAT rules |
| Multi-country setup | Subsidiary/branch per country | Single entity, EU-wide |
The tax advantage of EU Inc over an SRL emerges when you operate across multiple EU countries. With an SRL, you need a subsidiary or branch in each country — each with its own tax registration, local accountant, and compliance calendar. With EU Inc, you have one entity, though you still pay tax where you have economic presence.
For Italian founders: the honest verdict
Choose SRL today if:
- Your market is primarily Italy
- You need to start now — EU Inc won't be available until 2029 at earliest
- You want the credibility of a well-known Italian structure with Italian banks and investors
- Your customer base, team, and investors are all Italian
Plan for EU Inc if:
- You're building a cross-border business with customers in multiple EU countries
- You want to hire team members in Germany, Spain, or France without setting up subsidiaries
- You're targeting international (non-Italian) investors
- You're a non-Italian founder looking to use Italy as your EU base
Consider converting later if:
- You incorporate an SRL today and EU Inc launches in 2029–2030
- Your business has grown cross-border and the fragmentation costs are real
- The legal framework for voluntary conversion is clear and affordable
Frequently asked questions
Can an EU Inc replace an Italian SRL entirely?
In theory, yes — an EU Inc registered in Italy with its administrative centre in Italy would be subject to Italian corporate law (for tax, employment, etc.) but governed by the EU Inc framework for company law. In practice, the legal community will take years to build the same familiarity with EU Inc that currently exists for the SRL.
What is the SRLS and is it comparable to EU Inc?
The SRLS (SRL Semplificata) was created in 2012 as Italy's simplified alternative to the standard SRL. It allows €1 minimum capital but requires following a fixed articles template, originally restricted to under-35 founders (rules now relaxed). It still requires a notary, still takes weeks, and is perceived as less credible than a standard SRL. EU Inc would be more flexible and faster than SRLS while still being legally recognised across the EU.
Will Italian banks recognise an EU Inc?
This is genuinely unknown. Italian banks are conservative and prefer known structures. An EU Inc at €1 minimum capital may face skepticism from Italian banks in the first years of the framework — similar to how SRLS faced discrimination from some lenders. This is a real practical consideration for Italian founders.
Does EU Inc change anything about Italian VAT or invoicing?
No. VAT is governed by EU directives applied nationally. An EU Inc operating in Italy would issue invoices and pay VAT exactly as an Italian SRL does. The EU Inc framework only affects company law, not tax.
Seguire lo sviluppo di EU Inc
Join the waiting list to receive updates as the EU Inc proposal progresses through Parliament and Council.
Join the Waiting ListSources
- Italian Civil Code — SRL provisions (art. 2462–2483 c.c.)
- D.L. 1/2012 — SRLS introduction
- European Commission proposal COM/2026, IP/26/614
- Agenzia delle Entrate — corporate tax rates 2026
- Unioncamere — Italian company register statistics 2025