Doing Business

It is difficult and dangerous to generalize too much about nationalities, after all, nationalities are composed of many different individuals. Saying that, there are some guidelines that can help when doing business in Italy. The more you understand how many Italians think (and there are of course many, many exceptions) the better your business negotiations will go.

In Italy, the majority of international businesses are located in the north and tend to be more attuned to the business culture in the UK and the USA. One simple example is in the response time to emails. In business you are used to instant replies, at most a day’s wait. This may well happen if you are dealing with an ‘internationally savvy’ Italian company. But many businesses may wait several days to reply, prefer to call you instead or even not reply at all. If you do receive an email it may be very formally worded, more like a business letter. Bizarrely, many companies have a tremendous love of faxes and you will often be asked if you can fax a document rather than email it!

The Italian tendency towards caution can result in lots of photocopies and faxes of various official documents. Stamping things with various marks and numbers is also popular. Everyone is terrified of making a mistake with documentation (which may result in a fine from the authorities), so the byword is ‘if in doubt ask for copies of everything’. The Italian reputation for burdensome bureaucracy is well deserved

Up Close and Personal

Italians generally prefer to do business with people they know directly, or who are acquaintances of people they know. It helps if you can use your networking skills to find some common ground. Get your contact to fix up the meeting and be present at least for the introductions. Always deal in person if at all possible.

Remember the old saying ‘You can’t judge a book by its cover?’ Well, in Italy the reverse is true. You are judged very much on how you look and how you are dressed. Make it conservative, low key, immaculate and expensive. An Italian can evaluate a designer label from fifty paces, it’s in the blood!

You may have heard of the expression ‘Una bella figura’ or ‘una brutta figura.’ This is fundamental to the Italian way of doing business. You can translate it as ‘a good (or bad) impression’, although there is more to it than that. An Italian will slit his wrists rather than cut a ‘brutta figura’ with a new acquaintance. However, their idea of a ‘brutta figura’ may not be the same as yours. Arriving late, for example, is quite normal and nothing to be embarrassed about. For your Italian host. You should, of course, be on time.

Wildly Formal

The Italian business world is based on politeness and formality. Expect to shake hands, use titles (and in Italy if you have been to university or have some kind of professional expertise, you have a title like ‘dottore’ or ‘ingegnere’) and not to be rushed. Whilst formality and good manners are core aspects an Italian business meeting, you may be surprised by all the wild gesturing, talking across each other and even raised voices. This is quite normal. Expressing yourself, even when talking across someone, is considered a sign of a strong personality, someone confident. As your business contact gets to know you better he will become more demonstrative and tactile. All quite normal too!

Softly, Softly

Don’t be surprised if it takes some time to get to the subject you came to discuss. It may not even come up until you have been treated to a good lunch and are on the post prandial espresso! Be prepared not to reach a conclusion or get a decision straight away. Patience and cultivating a good personal relationship is key to doing business in Italy.

Investing

A fair number of people move to Italy in order to retire or semi-retire. But about a quarter of British residents are well qualified professionals in their thirties and forties who want to enjoy la dolce vita, and want, or need, to work as well.

You may be after a hands-on project or an investment that needs less involvement but still brings in a good return. Both are possible and to inspire you, we plan to feature on these pages case studies of those who have already paved the way.

Buy or Start from Scratch?

You have two main choices when deciding to invest in Italy

• take over, become a partner or an investor in an existing business
• set up on your own or with a group of like-minded colleagues or friends

Clearly the first option has its advantages. The company has already been set up, has an established list of clients and a track record verifiable through its accounts.

When considering buying an existing business in Italy first get in touch with the Chamber of Commerce who will give you advice on the market value and the legal procedure. Put simply this involves:

• obtaining or taking over the relevant official licences. For example, if you are taking over a hypnotherapy business, you will need to ensure your qualifications are recognised in Italy and get any documents and certificates translated. Some businesses may require that you undergo some kind of training or have an Italian certificate of competence, so check it out first.
• The paperwork for both buying and selling, including official transfer of ownership and entry in the Italian Business Register, must be done via a notaio (notary).
• The business will be registered for iva – the Italian equivalent of VAT. You will need to check if this partita iva (VAT number) can simply be transferred to you or whether you need to get one of your own. This is necessary if you are taking over as sole trader.

If you want to start your own business, then the Chamber of Commerce will guide you through the process. They have a nationwide service dedicated to doing just that called Olimpo.

The old adage holds true – stick to what you know, or at the very least something that is connected to what you know and are skilled in. Opening a restaurant near the beach in Salento may sound idyllic, but unless you have experience of the restaurant trade you could come unstuck. Also consider the time and effort involved. It may be that you don’t get time to enjoy the life you moved to Italy for in the first place.

The basic procedure for setting up a new business depends a lot on what you plan to do. Opening a real estate agency is very different from starting a vineyard, with different paperwork and documentation required. (And by the way – you can’t set up in Italy as an estate agent without sitting a lot of exams and following an official course, in Italian, which takes about a year.)

The following is a brief outline of the stages:

• Make a business plan
• Using the business plan decide what type of business (in legal terms) you will set up. This may be an srl (Società a Responsabilità Limitata) the Italian equivalent of a limited company, an src (Società in nome collettivo) a general partnership and so on.
• Register your business on the Business Register and get a tax number.
• Obtain any required certificates, licenses and authorizations
• Get a Business Start Up Statement

These contents are provided by:

Business e via Italy (BEV) is an online business service designed to help anyone set up in Italy, enter the Italian market or find a business for sale. BEV also helps Italian companies reach international trading partners.
www.businesseviaitaly.com