A relevant and informative update about international business law.

Recent Simplifications for the Italian Limited Liability Companies

In order to encourage economic growth as well as the initiative of young entrepreneurs, Mr. Monti’s government has created a simplified version of the limited liability company (“Srls”) for quotaholders under the age of 35 years. The simplified Srl has a reduced corporate capital requirement (the minimum corporate capital has been set at Euro 1.00 against the minimum corporate capital of an ordinary Srl, which is Euro 10,000.00) and has reduced incorporation costs (Notary’s fees, stamp duty and administrative fees are not due).

The price for simplification is standardization: the simplified Srls must have a standard bylaws set forth in the Ministerial Decree no. 138/2012. No amendments and/or integrations to the legal standard are allowed. Another recent simplification concerns the ordinary limited liability company (“Srl”), whose audit body is now constituted - by default - of a sole statutory auditor, instead of a board of statutory auditors (composed of 3 effective members plus 2 deputy ones), which will carry out the management control of the Srl.

The bylaws of a Srl may nevertheless opt for (a) the appointment of a board of statutory auditors; (b) the assignment to the (monocratic or collegial) audit body of both the management and the audit control; or (c) the appointment only of an external auditor, carrying out the audit control.

For more information please contact: Giulia Comparini on gcomparini@cocuzzaeassociati.it