Italy belongs to the Group-of-Eight (G8) industrial nations, the European Union (EU), and the Organisation for Economic Cooperation and Development (OECD).
One salient feature of the Italian economy is its propensity toward entrepreneurship - seen in the very high number of small and medium-sized businesses: 98% of the over 4 million companies employ fewer than 19 persons (the average is 4 employees per company).
The geographical position of Italy (at the centre of the Mediterranean and the infrastructural links with the countries of Europe) allows it to form a crossroads for international trade, and a natural bridge between Europe and Africa.
Foreign investors must be aware of the applicable EU Laws.
Foreign investors are free to adopt any form of business investment, and may acquire a stake in or take control of a company which has already been set up.
Selling business to Italy is best done by delegating an agent or distributor. However, caution must be taken in planning a written contract, probably best overcome with the assistance of a professional advisor. Verbal agreements can also be held good at law. Furthermore, it is not advised that you enter into contracts from a distance or on the foundation of meeting on neutral territory. Make sure you are familiar with your representative, his capabilities, assets (offices, staff, etc), customer base and industrial relations.
Setting up business in Italy should be approached similarly to any other developed and competitive market. Exporters need to be aware of cultural differences. Generally speaking, you need to develop an effective and reliable business relationship at a personal level. Vital personnel should be involved from the start and must be of a quality sufficient enough to converse with their Italian counterparts.
Businesspeople should find a way to communicate in English, whether written or spoken. Major businesses will have staff on all levels that are fluent in English, and English is more common in the business sphere than in the public.
Inaugural correspondence, as well as product literature and tender documents, should be translated into Italian by a professional, and ideally followed with an e-mail or telephone call. There are many business schools that can offer placements to aid you with this. Additionally, using the Italian language in documents, such as invoices, will help to clarify your intentions and eliminate confusion or misunderstanding.
Essential for companies is getting a product or service to the market on time. The main options for this are: Road, Rail and air-freight, Post, air parcel post or express/courier services.
All these methods, of course, are dependent on the product requirements for time, expense and safety.
Italy generally has a sound transport infrastructure; although heavy traffic occasionally causes bottlenecks in and around the main northern and city centres. This can often lead to severe traffic limitations, making local delivery arduous. Heavy goods transport on motorways in is usually limited or sanctioned on Sundays and some public holidays. Infringement of this rule can at times lead to heavy fines, confiscation of driving licences and impounding of the vehicle. Freight transportation companies should also be alert of becoming the innocent targets of smugglers (i.e. drugs and tobacco).
Italian State Railways offer an inexpensive and reliable means of passenger transportation. Commercial freight is foremost carried by road, but the railways are also taking increasingly more long distance goods. Although, beware that some international rail freight services from have been the subject of infiltration by illegal immigrants travelling via to .
Warehouse and storage space is available in most major cities. However, it is recommended that you consult legal advisors before entering into any agreement.