What are the costs of an SRL? The average costs of setting up an SRL are € 2,500 in total, considering the notary and taxes. After the constitution, there are also costs for the initial formalities, the accountant and the taxes to be paid every year. Let’s see in detail.
The costs and expenses of setting up an ordinary SRL
The costs to set up an SRL are those related to the stipulation of corporate documents and the mandatory taxes to be paid. Specifically, it is necessary to consider:
- Notary’s fee: on average it is € 1,500 + VAT and depends on the city of incorporation and the professional
- Registration tax: € 200, for the registration of the company’s constituent documents
- Stamp duty: € 156, is a flat rate that is applied to registered documents
- Administrative fees: € 90 to register the company in the business register
- Annual CCIAA fee for the first year: € 120, it is a fee to be paid for the registration with the chamber of commerce
- TOTAL: € 1,500 + VAT + approximately € 600 of taxes
These costs apply to all ordinary limited liability companies while the costs for Simplified Limited Liability Companies (SRLS) and for innovative Start-up.
Our SRL incorporation service allows you to open your company in 7 days with 1 year of 100% online legal support. The service costs € 999 + VAT + approximately € 600 in taxes and includes everything you need to set up your company with the full assistance of experienced professionals. After the establishment, you can create tailor-made contracts and request consultations with professionals for any need of the new company (e.g. contracts for suppliers and customers, commercial agreements, trademark registration, privacy, and website terms and conditions).
The payment of the share capital
Before incorporating each shareholder is required to pay their share of the share capital. The capital constitutes the initial assets that will be used for the conduct of the company’s business. Starting from 2013 it is possible to establish an SRL with a capital of 1 euro. If you want to know everything about the capital of a limited liability company, how it works and when it must be paid, you can consult our content on how the payment of share capital works.
The other costs and expenses to open the company
After the capital has been paid in, other costs for the company must also be incurred. These concerns, more specifically, all the requirements to establish the SRL and for the actual carrying out of the business activity. The main steps are as follows:
- it will be necessary to open the VAT number for the company, by contacting an accountant. The cost varies from professional to professional and is generally around € 100
- Communication of start of the activity: these are the notices to be presented to start the activity, such as the SCIA. The amount varies according to the type of activity, the documents to be attached and the municipality of reference. Typically, the cost is around € 300 and includes the business of the accountant and applicable taxes
- Opening of the PEC box: the certified e-mail address must be communicated to the chamber of commerce. It generally costs between € 5 and € 10, depending on the supplier chosen
- Government concession fee: to be paid for the endorsement of company books, amounts to € 309.87 plus the cost for revenue stamps (on average between € 32 and € 64)
If you choose to set up your SRL with our service, we will put you in contact with an online partner accountant who will assist you with all the necessary formalities after the establishment of the company. For more details, see the next point.
The annual costs of the SRL and tax regime
In addition to the normal costs for opening the company, the other management costs must also be considered.
First of all is undoubtedly the remuneration that must be paid to the accountant who takes care of the company’s accounting and all tax obligations. The cost of an accountant for an SRL is approximately € 2,500 per year but this amount may vary based on the turnover of the company and the reference professional.
Our customers can request the accounting service of our online partner accountant at the price of € 299 + VAT for the first 4 months. This price includes all the necessary formalities after the establishment of the company.
Taxes and duties
From the point of view of taxation, the company is required to pay IRES (corporate income tax with a single rate of 24%) and IRAP (regional tax on productive activities with a variable rate, generally around 5%). The annual contribution fee must then be paid to INPS as a registered company, which amounts to a minimum of € 3,800.
Every year it will be necessary to repeat the payment of:
- Annual government concession fee and stamp duty for company books, approximately € 370
- Fee for filing the company’s financial statements of approximately € 130
- Annual Chamber of Commerce fees, around € 200
Finally, all other possible costs must be taken into consideration typical of a company. For example, workers’ wages, their contributions, the premium paid to INAIL for work insurance, the rent for a property, the costs for the purchase and maintenance of machinery and goods. For the correct management of all these activities it is also advisable to foresee the expense for the necessary legal support.
How much does it cost to open particular types of SRL
There are some types of SRL that have slightly different costs.
The single-member SRL
The unipersonal SRL is a limited liability company with a single shareholder. This feature hardly implies any changes to the company incorporation process. Therefore, the constitution costs for the sole shareholder are very similar to those seen previously: the only difference is the secretarial fees for registration with the Chamber of Commerce which go up to € 180 (instead of € 90). A particularity concerns the share capital which in this case must be paid in full and in cash at the time of incorporation.
The simplified SRL
A simplified SRL (SRLS) is a particular form of limited liability company that can be established with reduced costs but which has some limitations compared to an ordinary company. In fact, there is no remuneration for the notary, however the statute is standard and cannot be modified and there are various limitations on the share capital and on who can be a shareholder. For a full comparison between these companies you can see our article on the difference between SRL and SRLS.
Furthermore, it must be considered that the savings are only initial. The running costs of an SRLS are identical to an ordinary SRL. Furthermore, if you intend to convert the SRLS into an SRL at a later time, the cost will be higher than having immediately set up an SRL. You can read our in-depth analysis to find out all the costs of an SRLS.
The Innovative SRL Startup
The innovative start-up is a type of SRL that carries out an innovative and technological activity and possesses the necessary requirements. With a start-up you will have access to all the benefits for start-ups provided for by law, starting with the advantages on the constitution. The start-up also has fewer management costs to bear: for example, you will not have to pay the stamp duty and the annual CCIAA and secretarial fees.