Italy approves innovation bill to boost economic growth with focus on start-up companies

Italy's Prime Minister Mario Monti's Cabinet approved, on Thursday, an innovation bill that aims at boosting economic growth particularly in the high tech sector and start-ups companies.

Clear-cut measures that according to Prime Minister "have the potential to transform Italy into a country where innovation becomes a factor for sustainable growth and enterprises productivity."

National electronic registry office.

"One single document" will include both electronic ID card and electronic National Health Service card. In order to accelerate the computerization administrative process, a National Registry Office of Resident Population will be set up, where all data will be sent automatically from the several existing registry offices spread all over the national territory.

Certified e-Mail public directory

According to the bill, citizens can avail themselves of a certified e-mail address for administrative communication, this will facilitate and speed up communication with public administration offices.

Enterprises and Certified e-mail address

A certified e-mail box will be compulsory for all enterprises, including those individual. According to the government, this initiative should bring advantages, such as reducing bureaucracy, accelerating communication and reducing expenses with regard to information and communication, on both sides, enterprises and public administration.

Certified e-mail address directory for professionals and enterprises

A public certified e-mail address directory of enterprises and professionals will be set up, in order to facilitate submission of data, applications and statements.

Payments traceability

Traceability of payments is a measure considered essential by the Government, and that will oblige by law traders and professionals to be paid with credit cards only, starting from 2014.

Start-ups

Requirements

The Government bill specifies what requirements a company must have to be recognized as a start-up.

Therefore by start-up is meant a company whose majority of shares belongs to natural people (not companies or holdings,) that has no more than 48 months of activity, with a yearly production not higher than 5 billion euros and no profit sharing.

Namely,a start up is a company that is not the result of merger, splitting or assignment (transfer.) A start up is also supposed to invest in research or to guarantee that at least one third of its personnel is composed by PhD graduates. Lastly, start-ups must have the patent for at least an industrial or biotechnological invention.

 Tax reliefs and Facilitations

Start- ups will be entitled to benefit of tax deductions, in particular with regard to stamp duty. Other facilitations concern the possibility to postpone schedules for the reintegration of capital, should losses amount to one third of capital stock.

Financing system

Start- ups will be allowed to avail themselves of the so- called crowd-funding in order to get initial capital more easily. Furthermore, those citizens that, over the next three years invest in an innovative start-up will benefit of tax deductions. They will be entitled to deduct the 19% of the amount of money invested from Irpef tax (the Italian Income tax.)

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