Legal risk prevention of Chinese-funded Enterprises investments in Italy

1. Legal risk prevention of Chinese-funded Enterprises investments in Italy
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Avv. Marco Mazzeschi

2. Frequently asked questions
• Can a Chinese company or indivisual open a subsidiary or branch in Italy?
YES
• It is necessary to have an Italian shareholder in the company?
NO
• It is necessary to appoint also an Italian citizen as Director??
NO
• The Chinese directors need to have a visa/permit of stay to be appointed?
NO
• Only if they want to live in Italy (Companies older than 3 years)

3. • The directors must have a tax code (codice fiscale) even if they do not live in
Italy? YES
• Can a Chinese appointed officer obtain a visa based upon his appointment?
NO
• Only if the company is older than 3 years
• The company must have a physical office upon incorporation
NO
• The registered office can be at the office of a lawyer or CPA

4. Opening a bank account: why can be so difficult?
Strict money laundering regulations in Europe and Italy
Banks, lawyers, accountants must:
- Know your customer (KYC): identify the beneficial owner. For
companies, trusts, etc. they must take risk-based and adequate
information and measures to understand the ownership and control
structure of the customer
- Assess possible risks: monitor any transactions undertaken
throughout the course of that relationship to ensure that they are
compliant with AML regulations
- Report suspicious transactions: they are obligated to report suspicious
transactions to the Authorities