Representative offices -which are not legal entities of a foreign company in Italy– are characterized by two factors:

–  a local presence to promote the company and its products/services and to perform other non-business operations;

–  the local unit does not require a permanent representation (it does not represent the foreign company  vis-a-vis third parties).

Local offices must be registered with the Economic and Administrative Index (REA, Repertorio Economico Amministrativo) at the Chamber of Commerce, attaching the following documents:

– if the company is incorporated in an EU country: a certificate indicating the company details and the legal representatives of the company issued by the foreign equivalent of the Register of Companies in Italy, that must be translated into Italian by a sworn translator.

– if the company is incorporated in a non-EU country: a statement of the existence of the company issued by the Italian Embassy in the country where the company has its registered office.

Tax issues

If the representative office is used only for the following purposes:

– storage, display or delivery of goods belonging to the foreign company;

– purchasing goods or obtaining information for the foreign company; or

– conducting preliminary activities assisting the business activities of the foreign company;

it would not be considered a permanent establishment from a tax perspective.