If you want to set up a retail business in Italy, some of the first questions that arise are about business licenses: Are they necessary? When are they mandatory? How much does it cost to obtain one? Italian legislation sets out specific rules for those wishing to establish a business, whether brick-and-mortar or ecommerce. Knowing these rules is important to avoid mistakes that could slow down the start of your business project.

In this article, we explain when a business license is required, relevant Italian legislation, main types of business licenses, and the application process through the relevant authorities. We also detail how much a business license costs and the documents you need to have ready in case of audits.

What’s in this article?

• What does “business license” mean?
  
• Italian legislation for business licenses
  
• When is a business license required?
  
• Brick-and-mortar vs. ecommerce businesses
  
• How to obtain a business license
  
• How much does a business license cost?
  
• Documentation required for audits
  
• How Stripe Payments can help
  

What does “business license” mean?

A business license is an authorization issued by the municipality. Until the Bersani Law (Legislative Decree 114/1998), business licenses were required to open stores or carry out retail activities in Italy. Currently, for most retail businesses, it is sufficient to submit a Certified Notice of Business Start (SCIA) to the municipality instead. Below, we will explain the Italian legislation for business licenses and how business licenses work in Italy.

Italian legislation for business licenses

The regulation of business licenses in Italy is based primarily on the Bersani Law, which introduced the deregulation of business licenses. Before this law, licenses were subject to quotas, and the purchase or sale of business licenses could be considered a market commodity.

After the Bersani Law, Italian legislation abandoned the “license” concept as a prior authorization to be obtained from the municipality. They moved to a concept of self-certification and reporting, which can help simplify and expedite business establishment.

Subsequently, with Article 19 of Italian Law 241/1990, the SCIA was introduced. With the SCIA, entrepreneurs no longer need to apply for a license. Instead, they can simply declare to the municipality that their business complies with all laws and regulations and begin operating immediately. The municipality has the authority to verify the accuracy of the information provided at a later date.

However, there are still certain cases where a specific business license is required, such as for the sale of alcohol and medicines. This is also true for international trade, where an import-export business license can be required, in some cases.

Furthermore, in the past, business licenses were divided into strict categories (e.g., “type A business license” for street trading, “type C business license” for serving food and beverages, etc.). However, the Bersani Law modified this classification, simplifying the rules for market access.

When is a business license required?

Currently, whether you need an SCIA or an additional business license depends mainly on the type and size of the business. Here are some examples:

Neighborhood businesses

Article 4 of Italian Legislative Decree 114/1998 defines the size thresholds for retail outlets to determine if a business requires a license. For so-called “neighborhood businesses,” it is sufficient to submit an SCIA to the municipality. These include businesses with retail spaces that do not exceed an area of 150 m2 in municipalities with up to 10,000 inhabitants and 250 m2 in municipalities with more than 10,000 inhabitants.

Medium-sized retail outlets

These include businesses with a retail surface area between 250 m2–1,500 m2 for municipalities with a population of up to 10,000 inhabitants or up to 2,500 m2 in municipalities with a population of more than 10,000 inhabitants. Businesses this size require municipal authorization, which is issued after an assessment of urban planning, environmental impacts, and traffic factors.

Large retail outlets

As defined in Article 9 of the Bersani Law on business licenses, large retail outlets are businesses with a retail surface area exceeding the limits for medium-sized retail outlets. They require authorization by the relevant municipality, which examines the application with representatives of the province and region.

Other sectors

The principle behind business licenses also applies to sectors that are not strictly regulated by the Bersani Law but require specific authorization to operate legally. These include, for example, the sale of food, alcoholic beverages, or pharmaceuticals.

Ecommerce businesses

The rule for ecommerce is simpler. The size of the businesses does not matter. All ecommerce businesses must submit an SCIA for ecommerce to their local municipality. Therefore, there is no need to apply for an additional business license, unless the business sells goods subject to special authorizations (e.g., the online sale of food or medicine). It is not a requirement to have premises open to the public, but it is necessary to be registered in the Business Register and comply with all fiscal and consumer protection regulations (e.g., value-added tax [VAT], mandatory e-invoicing, Consumer Code guidelines, General Data Protection Regulation [GDPR]).

In any case, it is important to consult with a trusted accountant for guidance through the procedures to ensure compliance with current legislation.

Surface area thresholds for businesses and related authorization systems

Brick-and-mortar vs. ecommerce businesses

One of the most frequently asked questions about business licenses is: Is a business license required for ecommerce? Here are the details:

• Brick-and-mortar business: A business license or SCIA is always required, with additional obligations relating to the safety and suitability of the premises and compliance with health regulations.

• Ecommerce business: A separate business license for online stores is not required. However, it is still mandatory to submit an SCIA to the municipality to establish the remote retail sales business.

How to obtain a business license

Obtaining a business license in Italy means setting up a retail business correctly—whether brick-and-mortar or ecommerce—in compliance with national and municipal legislation. Because of the Bersani Law, it is not necessary to go through lengthy authorization procedures in most cases. Instead, it is sufficient to submit an SCIA to the One-Stop Business Advisory Center (SUAP) of the relevant municipality. Below, we explain how to submit an SCIA and how to proceed in cases where authorization is required:

Submitting the SCIA

• Submit online: You can submit the SCIA exclusively online via the municipality’s SUAP portal.

• Fill out the form: Download or fill out the online form directly, providing the company details (e.g., company name, registered office, VAT number, type of business).

• Attach documents: These can include the Chamber of Commerce company registration, floor plan of the premises (if available), declarations of compliance with urban planning, health and safety regulations, and a copy of the owner’s or legal representative’s ID document.

• Understand timelines: The business can start operating immediately after submission, but the municipality can carry out subsequent checks and contest any irregularities within 60 days.

Applying for authorization

In the following cases, the SCIA alone is not sufficient:

• Medium-sized and large-sized retail outlets (i.e., those above the limits set by the Bersani Law)

• Regulated activities, such as the sale or serving of tobacco, medicine, alcohol, fuel, or gambling

Here’s how to apply for authorization:

• Fill out the application: The form is available on the SUAP portal. It must be filled out with the company’s details, including type of business and retail surface area.

• Attach documents: In addition to the documents required for the SCIA (e.g., Chamber of Commerce company registration, floor plans, self-certifications), it is also important to include any technical certificates, urban planning reports, health and hygiene clearances, and fire safety certifications (if applicable).

• Submit online: The application can be submitted online via the SUAP portal, which issues a reference number.

• Complete investigation: The municipality can request opinions from other competent authorities (e.g., local health authority, fire department, police headquarters, customs agency).

• Wait for acceptance: Authorization is granted by express provision of the municipality. If the administration does not respond within 60–90 days, authorization is considered to have been granted by tacit consent. This means the application is automatically accepted. This is a mechanism designed to expedite procedures and provide certainty regarding the time required to set up a business.

Obtaining a business license

In brief, to obtain a business license in Italy, you must submit an online SCIA via the SUAP portal of the municipality and attach the required documents (e.g., Chamber of Commerce company registration, floor plans, self-certifications). The business can start operating immediately after submission with subsequent checks by the municipality.

On the other hand, if you are setting up a medium or large retail outlet or a regulated business (e.g., selling tobacco, pharmaceuticals, alcohol), municipal authorization is required. Submit the application to the SUAP portal, and it will be assessed during the investigation with any opinions from other bodies. Authorization is granted by express decision or by tacit consent after 60–90 days.

How much does a business license cost?

The cost of a business license varies depending on the type of business and the legal form selected. In general, expenses fall into three main categories:

• Administrative charges

• Business incorporation expenses

• Certifications or technical adjustments

Below, we provide an estimate of these costs and those for an ecommerce license:

Administrative charges

Administrative charges include SUAP administration fees (i.e., approximately €30–€200, depending on the municipality), stamp duty (i.e., €16 per form), and investigation fees for specific authorizations (e.g., sale of alcohol).

Company incorporation and registration in the Business Register

The annual fee for registering with the Chamber of Commerce’s Business Register varies. It is approximately €90–€150 for sole proprietorships and higher amounts for corporations.

If you decide to start a company in Italy (e.g., a Limited liability business [S.r.l.] or Simplified limited liability business [S.r.l.s.]), you must also consider notary fees (i.e., €600–€1,500) and the assistance of an accountant for SCIA, tax practices, and accounting (i.e., €500–€1,000 on average).

Certifications or technical adjustments

In some cases, there are extra costs for special permits or certifications. These can include Food and Beverage Administration (SAB) courses and Hazard Analysis and Critical Control Points (HACCP) procedures for bars and restaurants or adapting the premises to meet health and hygiene requirements. In these cases, the total cost can be several thousand euros.

Ecommerce businesses

The procedure for ecommerce is more straightforward. The direct costs of a business license are limited to the SCIA and Chamber of Commerce company registration, which can amount to a few hundred euros. The greatest expenditure, on the other hand, usually relates to digital infrastructure (e.g., platform, hosting, legal advice).

Documentation required for audits

Following the issuance of business licenses, the municipal administration or other agencies (e.g., local health authority, finance police, revenue agency) can conduct audits. The documentation that can be requested includes the following:

• Copy of the business license or SCIA

• Registration with the Chamber of Commerce

• Health certifications (e.g., for the sale of food and beverages)

• Safety documentation for the premises

• Tax records and VAT returns

For ecommerce, audits typically focus on the following:

• Tax compliance (e.g., invoices, VAT, tax returns)

• Compliance with the Consumer Code and privacy regulations (e.g., GDPR)

• Transparency of the conditions of sale

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