start ups new italian legislation

“Innovative start-ups” main content of new italian legislation

March 2014

www.incubatoreimpresa.it

Executive summary

• On 4th October 2012, the Italian Government approved the “Further urgent measures for Italy’s economic growth” (Law Decree n.179, 18 october 2012)

• This legislation recognizes that ‘innovative start-ups’ are important for sustainable growth, technological development and employment, in all sectors, as well as attracting to Italy investments and talented people from abroad.

• The Law Decree has defined specific support measures for ‘innovative start-ups’

• ‘innovative start-ups’ is linked to innovation and technology

Monica Forconi, Chief Operative Officer, www.incubatoreimpresa.it; [email protected]; +39 050 754702

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http://www.incubatoreimpresa.it/

…..definition of a ‘innovative start-up’

• The core business consists of innovative goods or services of high technological value

• It must have been established for no longer than 48 months

• It must reside or be subject to taxation in italy • It has no turnover or has a turnover that does not exceed 5 million € • It does not distribute profits in the first 4 years of its life • It does not generate from a merger, demerger or divestment process

MAIN REQUIREMENTS (art.25 DL. 179)

3 Monica Forconi, Chief Operative Officer, www.incubatoreimpresa.it; [email protected]; +39 050 754702


…..definition of a ‘innovative start-up’

• START UP CAN BE QUALIFIED ‘INNOVATIVE’ IF HAS 1 OF THE

FOLLOWING REQUIREMENTS

OTHER REQUIREMENTS (art.25 DL. 179)

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a) 15% of its costs are related to R&D

b) At least 1/3 of the team is made up of people who either hold a PhD or are PhD candidates at an Italian or foreign university or have conducted researches for at least three yars, or at least 2/3 of the team is made up of people holding a Master’s degree

c) It is owner or the licensee of a patent or a registered software



Main support measures (1)

• ‘innovative start-ups’ do not pay anything for their own creation and registration at the Chambers of Commerce

No registration fees (art.26 DL. 179)

• ‘innovative start-ups’ can hire personnel through contracts wich last at least 6 months and no longer than 36 months. After 36 months, start-ups can renew the contract for no longer than 12 months. Within this time frame, the contract can be renewed more than once.

Labour law for ‘innovative start-ups’ (art.28 DL. 179)




•priority access is granted to facilitations for the employment of highly qualified personnel in innovative start-ups

•The credit is the 35% of labour cost (maximum credit amount: 200.000 €)

Credit deriving from tax return (art.27 bis DL. 179)

•‘innovative start-ups’ can remunerate their team members with stock options

Stock options for the team (art.27\art.27 bis DL. 179)




• ‘innovative start-ups’ can remunerate the providers of external services (eg: lawyers, accountants, etc..) with work for equity

Work for equity (art.27 DL. 179)

• For direct and indirect investments in ‘innovative start-ups’

• Tax incentive for years 2013, 2014, 2015, 2016

Tax incentives for corporate and private investments in ‘innovative start-ups’ (art.29 DL. 179)




• CONSOB, the equivalent of American SEC, has publish a specific Regulation of equity-based crowdfunding. ‘StarsUp’ (www.starsup.it) is the #1 Italian portal authorized by Consob for the on-line collection of risk capital by innovative start-ups

Crowdfunding (art.30 DL. 179)

• Procedures semplified and free-of-charge access for ‘innovative start-ups’ to the Government Fund that supports access to credit through guarantees on bank loan

Access to Fondo Centrale di Garanzia (art. 30 DL. 179)


http://www.starsup.it/







•By ‘ICE’, the Italian Trade Promotion Agency.

•Support measures include free-of-charge participation to international fairs and event, and assistance in the legal, corporate and fiscal activities, etc.

Support to the internationalisation process (art.30 DL. 179)



law reference

• http://www.sviluppoeconomico.gov.it

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start ups new italian legislation

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