India-Italy Cross-Border Legal Advisory

Italy is one of India's most important trading partners in Europe, with bilateral trade exceeding USD 13 billion annually. The two economies share deep connections across fashion and textiles, automotive manufacturing, precision machinery, food processing, pharmaceuticals, and defence cooperation. Italian luxury brands source extensively from Indian suppliers, while Indian IT companies, automotive component manufacturers, and pharmaceutical firms continue to expand their footprint across the Italian peninsula. As both nations strengthen ties under the India-EU strategic partnership, the demand for sophisticated cross-border legal counsel has never been higher.

ESB Global Law Advisory, based in Mumbai, provides end-to-end legal services for Indian businesses entering or expanding in the Italian market. Our team brings together expertise in Indian corporate law, Italian commercial regulations, and EU-wide compliance frameworks to deliver practical, commercially focused advice.

Corporate & Commercial Law

Establishing a corporate entity in Italy requires careful navigation of the Italian Civil Code (Codice Civile) and the country's company registration framework. We advise Indian businesses on forming a Societa a Responsabilita Limitata (SRL), the most popular structure for small-to-medium enterprises, as well as the Societa per Azioni (SpA) for larger-scale operations requiring access to capital markets. Our services cover drafting the deed of incorporation (atto costitutivo) and company bylaws (statuto), registration with the Registro delle Imprese, appointment of directors and statutory auditors, corporate governance structuring in compliance with the Italian Civil Code, and shareholder agreements tailored for cross-border joint ventures. We also advise on establishing representative offices and branch offices for Indian companies that wish to maintain a lighter footprint before committing to full incorporation.

Real Estate & Investment

Italy offers compelling real estate investment opportunities across commercial, residential, and hospitality sectors. Indian investors are increasingly attracted to properties in Milan, Rome, Florence, and the Italian Riviera. We provide comprehensive legal support for property acquisitions, including title verification, urban planning (piano regolatore) compliance, notarial deed preparation, and tax structuring. For high-net-worth Indian investors, the Italian Investor Visa, commonly known as the Golden Visa, provides a pathway to Italian and Schengen Area residency through qualifying investments. Eligible investment categories include EUR 2 million in Italian government bonds, EUR 500,000 in an Italian limited company, EUR 250,000 in an innovative start-up, or EUR 1 million in philanthropic donations. Our team manages the entire process from investment structuring to residency application and renewal.

Fashion, Design & Intellectual Property

As the global capital of fashion and design, Italy provides one of the most robust intellectual property regimes in Europe. Indian fashion houses, textile exporters, and design firms operating in Italy must protect their creative assets rigorously. We assist with trademark and design registration at the Ufficio Italiano Brevetti e Marchi (UIBM), EU-wide trademark filings through EUIPO, anti-counterfeiting strategies and border seizure applications, licensing and franchising agreements for Italian and Indian markets, and compliance with the Made in Italy certification, which carries significant commercial premium. Our IP practice also covers patent registration for Indian technology and pharmaceutical companies entering Italy, as well as enforcement actions before Italian IP courts.

Trade & Manufacturing

India-Italy trade in manufactured goods is substantial, particularly in automotive components, machinery, chemicals, and leather products. We guide Indian manufacturers and exporters on Italian and EU regulatory compliance, including CE marking requirements, product safety directives, REACH compliance for chemical substances, and Italian customs procedures. Our trade law practice covers drafting and negotiating distribution agreements, agency contracts under Italian law (which affords strong protections to commercial agents), supply chain contracting, joint ventures with Italian industrial partners, and anti-trust compliance under both Italian competition law and EU regulations.

Employment Law

Italian employment law is among the most employee-protective in Europe. Indian companies hiring in Italy must comply with the Workers' Statute (Statuto dei Lavoratori), sector-specific Collective Bargaining Agreements (Contratti Collettivi Nazionali di Lavoro or CCNLs), and social security obligations under INPS. We advise on drafting compliant employment contracts, managing fixed-term and indefinite-term employment relationships, statutory severance pay (Trattamento di Fine Rapporto or TFR), working time regulations and overtime limits, dismissal procedures and unfair dismissal protections, and workplace health and safety compliance under Legislative Decree 81/2008. Our team also assists Indian companies with workforce restructuring, collective redundancy procedures, and negotiations with Italian trade unions.

Tax & Double Taxation Avoidance

India and Italy are parties to a Double Taxation Avoidance Agreement (DTAA) that governs the taxation of cross-border income, dividends, royalties, and capital gains. We advise on Italian corporate tax (IRES) at 24% and regional production tax (IRAP) at 3.9%, permanent establishment risk assessment, withholding tax optimisation on dividends and royalty payments, transfer pricing compliance and documentation, VAT registration and compliance for Indian businesses trading in Italy, and structuring investments to maximise DTAA benefits. Our tax advisory ensures Indian businesses operating in Italy achieve full compliance while optimising their overall tax position across both jurisdictions.

Our Italy Services Include

  • SRL and SpA company formation and corporate structuring
  • Real estate acquisition, due diligence, and investment structuring
  • Golden Visa (Investor Visa) application and residency support
  • Fashion and design IP protection at UIBM and EUIPO
  • Commercial distribution and agency agreements
  • Italian employment law compliance and workforce management
  • Joint ventures with Italian industrial and manufacturing partners
  • DTAA tax advisory and cross-border tax structuring
  • CE marking, product compliance, and regulatory approvals
  • Dispute resolution, arbitration, and Italian court proceedings
  • Anti-counterfeiting enforcement and brand protection
  • Made in Italy certification compliance

Frequently Asked Questions

How can an Indian company set up a business in Italy?

Indian companies can establish a presence in Italy by forming a Societa a Responsabilita Limitata (SRL) for small-to-medium enterprises or a Societa per Azioni (SpA) for larger ventures. The process involves notarising the deed of incorporation, registering with the Registro delle Imprese (Companies Register), obtaining a fiscal code, and opening an Italian bank account. A representative office is also an option for non-trading activities. ESB Global guides Indian businesses through every step, ensuring full compliance with the Italian Civil Code and EU regulations.

What is the Italian Golden Visa programme and how can Indian investors qualify?

The Italian Investor Visa (Golden Visa) grants residency to non-EU nationals who make qualifying investments in Italy. Eligible investment thresholds include EUR 2 million in Italian government bonds, EUR 500,000 in an Italian limited company, EUR 250,000 in an innovative Italian start-up, or EUR 1 million in a philanthropic donation. The visa is initially valid for two years and is renewable. Indian investors benefit from the ability to live, work, and travel freely within the Schengen Area. Our team assists with investment structuring, due diligence, and the residency application process.

How can Indian businesses protect fashion and design IP in Italy?

Italy offers strong intellectual property protection through the Ufficio Italiano Brevetti e Marchi (UIBM). Indian fashion and design businesses can register trademarks, industrial designs, and patents. Italy also enforces the Made in Italy certification, which carries significant commercial value. Protection strategies include filing for EU-wide trademarks via EUIPO, registering designs under the Italian Industrial Property Code, implementing anti-counterfeiting measures, and pursuing enforcement actions in Italian IP courts. ESB Global helps Indian clients develop comprehensive IP portfolios and enforcement strategies.

What employment laws should Indian companies be aware of when hiring in Italy?

Italian employment law is governed by the Workers' Statute (Statuto dei Lavoratori) and sector-specific Collective Bargaining Agreements (CCNLs). Key requirements include mandatory written employment contracts, statutory severance pay (TFR), a maximum 40-hour working week with overtime limits, a minimum of four weeks paid annual leave, extensive protections against unfair dismissal, and employer social security contributions to INPS. Indian companies must also comply with health and safety regulations under Legislative Decree 81/2008. Our firm advises on structuring compliant employment relationships, drafting contracts, and managing workforce restructuring.

How are India-Italy cross-border commercial disputes resolved?

Cross-border disputes between Indian and Italian parties can be resolved through Italian court litigation, international commercial arbitration, or mediation. Italy is a signatory to the New York Convention, making arbitral awards enforceable in India and vice versa. The ICC International Court of Arbitration and the Milan Chamber of Arbitration are commonly used forums. Italian law also mandates mediation as a prerequisite for certain civil and commercial disputes. ESB Global represents clients in arbitration proceedings, assists with enforcement of foreign judgments, and advises on dispute resolution clauses in cross-border contracts.

Expert India-Italy
Legal Counsel

Explore Italian business opportunities with strategic cross-border legal support from our Mumbai office.