As an alternative to setting up any of the types of companies described above, a foreign company may purchase a business that already exists.
Purchasing a business means acquiring a set of assets (consisting of tangible property and rights) that are functionally related and can serve as a vehicle for doing business.
Typically, a business is acquired as a result of a single public or private transaction, which must be certified by a notary public. The subject of the transaction may be the entire organization, various enterprises in its composition, owned by one seller, or its only division.
In the absence of other agreements, the alienation of business entails the following consequences:
• if it is a commercial enterprise, then for five years after the sale, the seller is prohibited from starting a new business whose purpose, geography or other characteristics could compete with the sold business in terms of attracting customers;
• the buyer receives amounts receivable and debts associated with the acquired company, reflected in its official financial statements;
• the buyer becomes the successor to contracts for commercial activities, except for transactions of a personal nature.
For a free consultation on the acquisition of a business, legal support and obtaining a residence permit in Italy, you can contact us.
Purchasing a business means acquiring a set of assets (consisting of tangible property and rights) that are functionally related and can serve as a vehicle for doing business.
Typically, a business is acquired as a result of a single public or private transaction, which must be certified by a notary public. The subject of the transaction may be the entire organization, various enterprises in its composition, owned by one seller, or its only division.
In the absence of other agreements, the alienation of business entails the following consequences:
• if it is a commercial enterprise, then for five years after the sale, the seller is prohibited from starting a new business whose purpose, geography or other characteristics could compete with the sold business in terms of attracting customers;
• the buyer receives amounts receivable and debts associated with the acquired company, reflected in its official financial statements;
• the buyer becomes the successor to contracts for commercial activities, except for transactions of a personal nature.
For a free consultation on the acquisition of a business, legal support and obtaining a residence permit in Italy, you can contact us.
