Annual compliance for companies in Italy: what you need to know

08/03/2025   Category:  Businesses and Taxation

Every year, companies in Italy are required to comply with a number of tax and administrative obligations, whether they have actually operated or not. These obligations are crucial to maintaining compliance with Italian regulations and avoiding penalties. Even companies that have had no activity but are still active with the Chamber of Commerce cannot ignore these obligations.

The Annual Requirements for Companies

1. Preparation of the Annual Financial Statements

   Every year, companies must prepare annual financial statements, which include an income statement, balance sheet and notes to the financial statements. This document is essential for assessing the company's economic and financial situation. The preparation of the financial statements must comply with national or international accounting standards, depending on the type of company.

2. Approval of the financial statements

   Once the financial statements have been prepared, they must be approved by the shareholders' meeting. Approval must take place within the statutory deadline, which is usually 120 days after the end of the company's fiscal year. It is important that this deadline be met, as failure to do so can result in penalties.

3. Filing of the Financial Statements with the Chamber of Commerce

   After approval, the financial statements must be filed with the Business Registry of the Chamber of Commerce within 30 days of their approval. Filing is mandatory, even for companies that had no operations or activities in the reporting year. Failure to file financial statements may result in fines and possible ex officio removal of the company from the register.

4. Income Tax Return

   Companies must file an income tax return (Form Redditi SC), which includes a fiscal management overview and disclosure of company revenues and expenses. This requirement is also mandatory for companies that have not been doing business, as long as they are still active with the Chamber of Commerce.

5. Tax Payments

   In addition to tax returns, companies must make tax payments, which include direct taxes (such as IRES) and indirect taxes (such as VAT, if applicable). Even if the company has not operated, tax payments are mandatory.

6. Accounting and Transaction Register

   Even for companies that have had no operations, it is necessary to keep accounts in order and keep up-to-date tax records. The director must ensure that there are no accounting irregularities, even in the absence of business operations.

7. Social Security and Insurance Compliance

   Even companies that do not operate must keep social security and insurance obligations for their members and employees (if any) in order. These include making INPS contributions and updating insurance positions.

Penalties for Noncompliance

Failure to comply with annual statutory obligations can result in heavy penalties. For example:

• Failure to file financial statements: Failure to file financial statements by the deadline can result in penalties ranging from 103 euros to 1,032 euros, and in serious cases can lead to the cancellation of the company from the Companies Register.
• Penalties for tax returns: Failure to file tax returns by the deadline can result in penalties that vary depending on the type of violation, with fines that can exceed 200 euros.
• Penalties for failure to record transactions: Failure to keep accounting and tax records can lead to extensive tax audits, with associated penalties.

Even inactive companies are not exempt from penalties if they do not fulfill their obligations, so it is crucial for all types of companies, active or not, to keep their records regular.

Why Rely on a Professional

The preparation, submission and filing of mandatory returns are complex and delicate operations. One mistake or oversight can have significant consequences for the company, including the payment of penalties or removal from the commercial register. For this reason, it is essential to rely on experienced legal counsel or accountants to handle these obligations.

Professionals are able to:

• Ensure that all deadlines are met.
• Draft tax and accounting documents correctly.
• Handle any issues related to penalties or errors in returns.

In addition, relying on experts ensures that your business remains compliant with current regulations and reduces the risk of future legal or tax issues.

Conclusion

Even if your company has not operated during the year, annual compliance cannot be ignored. It is critical to maintain compliance with tax and administrative regulations to avoid penalties and other legal issues. For proper and timely handling of obligations, relying on an experienced professional is the best way to protect your company and ensure its regularity.

Contact us today for a personalized consultation to ensure that all of your company's annual obligations are completed correctly and on time.