1. 1
LOCATION OF THE COMPANY-LTD-TUSCANY (ITALY)
1.Tax
a) FOR SELLING PRODUCTS
There are no taxes for selling products in Travel Agencies.
b) FOR FOUNDING THE COMPANY
In order to found a Travel Agency direct and indirect taxes must be paid . These taxes must be paid
every year.
Direct Taxes
Direct taxes relate to the company's profitability, and are therefore calculated on the basis of the
company's income. The main ones are:
personal income tax (IRPEF): applied to revenues of sole proprietorships(43%);
corporate income tax (IRES): applied to revenues of business corporations(27%);
Italian regional tax on productive activities (IRAP): applied to sole proprietorships, partnerships and
business corporations (3.9% ).
Indirect Taxes
These are taxes which are levied on capital when it is transferred or is spent .
Value added tax (VAT): is levied on the added value of each stage of production and exchange of
goods and services in Italy, at a standard rate of 21%.
Registration tax: applied at the time of registration of documents for specific transactions (e.g.
contracts, registered documents, etc.) at a fixed rate or one that is proportional to the specific
case(11%).
Legal transcription fee: these are levied on transcriptions, inscriptions and updates in public property
registers which follow transactions, at a fixed rate or one that is proportional to the case (1%).
Cadastral tax: these are levied on cadastral transactions following transaction, at a fixed rate or one
that is proportional to the specific case(4%).
Municipal tax on property: is levied on the value of the property according to a rate set by the
municipality(4‰).

2. 2
Administrative Procedures
Income tax return
The owner of a Travel Agency submits an income tax return (single form), for each tax year, in which
it indicates its taxable income and the amount of tax (for IRPEF, IRES, IRAP and VAT) based on the
income and the costs recorded for the business year.
Procedure Associated Costs
Deposit at least 25% of the
amounts contributed in cash
with a bank
nominal (bank commission)
Execute a public deed of
incorporation and company
bylaws before a public notary;
pay registration tax
3,638 € notary fees; registration tax is
included in procedure 5.
Buy corporate books and
accounting books
14.62 € stamp fee for each 100 pages (3
books), 25.00 € registration fee per book (3
books)
Pay government grant tax to
the post office current account
310 €
Register online with the
Register of Enterprises at the
local Chamber of Commerce.
168 € for registration tax and 155 € for
registration with the Chamber of Commerce
(65€ for stamp fee and 90 € for electronic
registration) and 200 € (membership fees)
Notify the competent Labour
Office (DPLMO) the
employment of workers
no charge

3. 3
2.PERMITS
A) WHICH PERMITS ARE NECESSARY
In order to set up a Travel Agency in our area, a person has to submit the D.I.A. to the “Province of
Pisa”, our District Authority. The D.I.A. is a document stating that the person has all the professional
and personal qualifications and requirements to set it up and the premises chosen have all necessary
requirements, as well. It is also necessary to submit a certificate stating that the premises can be
used as a Travel Agency and documents regarding the corporate details ( address of the Travel
Agency, identity of the Technical Director, etc.) as well as the characteristics of the shop to be
opened ( the plan of the premises and documentation attesting the right to use it for the intended
purpose, its Land Registry certificate and safety and health certificate, etc.).As soon as the D.I.A. is
submitted, the Travel Agency can start its activity. The District Authority checks the D.I.A. and the
documents submitted and gives its approval within 60 days. Before sending the D.I.A., a list of trading
names chosen for the Travel Agency must be sent to the District Department and the District
Department chooses the most suitable trading name (different from the trading name of any other
Travel Agency operating in Italy) within 7/10 days.
B) WHAT KIND OF QUALIFICATION IS NECESSARY TO GET IT.
It is compulsory for a Travel Agency to have a Technical Director .In order to become a Technical
Director, you have to take an exam in various subjects such as Languages, Law, Economics, Airline
Tickets, Accountancy and Geography. After passing successfully the exam, the District Department
issues a certificate stating the person can exercise the profession of Technical Director of a Travel
Agency and a personal Identification Card useful to exercise the profession of Tour Guide and Tour
Operator.
C) TIME FOR GETTING THE PERMITS
It takes about 6 months in order to get all permits necessary to open a Travel Agency.
D) COSTS FOR THE PERMITS
In order to set up a Travel Agency the applicant has to incorporate and register it online with the
Register of Enterprises at the Local Chamber of Commerce .He has to file a single notice with the
Register of Enterprises electronically. This includes issuance of the tax identification number, VAT
number, and registration with Social Security Administration (INPS) and Accident Insurance Office
(INAIL).
Total: 168 € for registration tax with Revenue Agency and 155 € or 185 € for registration with the
Chamber of Commerce (65 € for stamp fee and 90 € or 120 € for electronic registration with floppy
disk) and 200 € (membership fees).A public deed of incorporation including the company’s bylaws
must be drafted and executed before a public notary by the quota holders or their authorized
representatives. The notary drafts company bylaws on standard forms, which the notary provides. The
cost of the forms and stamp duties are included in the notary fees (3,638 € notary fees;
registration).Registration tax, due within 20 days of incorporation, is paid to the notary public, who
will also provide the registered public deed of incorporation. A Government Grant Tax is due to the
Office of Revenue every year. The amount is 310 € or 520 € depending on the capital of the Travel
Agency . The hiring of employees has to be notified to the Provincial Labour Office one day before
the beginning of the labour relationship ( no charge).

4. 4
E) IT IS NECESSARY TO HAVE A BUSINESS PLAN
It is not compulsory to have a business plan but it is advisable to have it.
A Business Plan includes:
Executive Summary
1. Objectives
2. Mission
3. Keys to Success
 Company Summary
1. Company Ownership
2. Start-up Summary
3. Company Locations and Facilities
 Services
1. Service Description
2. Sales Literature
3. Fullfillment
4. Technology
5. Future Services
 Market Analysis Summary
1. Market Segmentation
2. Target Market Segment Strategy
3. Market Needs
4. Market Trends
5. Market Growth
6. Service Business Analysis
7. Business Participants
8. Distribution Patterns
9. Competition and Buying Patterns
10. Main Competitors

5. 5
 Strategy and Implementation Summary
1. Value Proposition
2. Competitive Edge
3. Marketing Strategy
4. Positioning Statement
5. Pricing Strategy
6. Promotion Strategy
7. Distribution Strategy
8. Marketing Programs
9. Sales Strategy
10. Strategic Alliaces
11. Milestones
 Management Summary
1. Organisational Structure
2. Personnel Plan
 Financial Plan
1. Important Assumptions
2. Key Financial Indicator
3. Break-even Analysis
4. Projected Profit and Loss
5. Project Cash Flow
6. Project Balance Sheet
7. Business Ratios

6. 6
3. Finance
a. Interests on business loans
Interest rates on business loans depend on the bank, the sum of money and the period. Now interest
rates are very high because of the economic crisis. Banks do not lend money willingly and they ask for
high securities for loans. The average interest rate is high and it is about 7% or 8%.
b. Subsides (funding from governments)
The Regional or District Authority usually offers training courses for the employees and for the
Technical Director of the Travel Agency. They never offer money. They can also offer grants to be
used to update its technological equipment.
c. Rules to get subsidies
The rules to get subsidies differ from region to region and from province to province. In order to get
funds from the government the people who want to set up a Travel Agency have to apply to the
Regional or the District Authority.
d. Capital necessary for founding
The capital necessary to set up a Travel Agency is generally from 8.000 € to 10.000 €, but it depends
on the type, the size and the location of the agency.

7. 7
4. Running Costs
There are various types of running costs per year:
a. Costs for employee (1 high-trained person)
The costs for a high- trained person is 1,560 € according to the Collective Labour Agreement for the
Tourism Sector.
i. Average Income
The average income of a Tourism Sector employee is about 1,200 €.
ii. Tax
The taxes an employer has to pay for each employee are very high, the rate that the employer has to
pay is about 33%.
The employee pays a rate of 9% taken from his salary and paid by the employer to the INPS (the
National Institute of Social Security).
iii. Insurance
Adequate means for life needs are guaranteed to every resident in case of accidents, diseases,
invalidity, old age, and involuntary unemployment.
INPS (the National Institute for Social Security) and INAIL (Workers’ Compensation Authority)
carry out such functions. The two Bodies provide services such as pension, indemnity and allowance for
accidents, diseases, termination of work contract in case of reaching age limit or invalidity.
Employee and employer contributions jointly finance social security costs, calculated on gross earnings.
Employers pay two-thirds of contributions while employees pay the remaining third.
INAIL manages mandatory insurance to protect employees against work accidents and occupational
diseases.
Compulsory insurance includes coverage in the event of damages incurred while commuting between the
employee’s home and workplace, or between different workplaces.
The Italian compulsory state pension system is financed with social contributions paid by the employer
during workers’ working life.
b. Cost to rent an office per m²
Renting premises in San Miniato is about 18 € a month (per m²).
If the premises are 20/ 25 m², the rent is 500 € a month.
c. Advertising Costs
•The Internet:
There are two options:
Option 1: a standard web page includes colourful graphics (photos, diagrams, maps, logos etc..)
together with the text in Italian, English, German and French on separate pages. It may include an
additional photo-gallery. A standard web page has an internet address (URL). Every year the design
and creation of a standard web page is 450 €. Every year a few photographs can be changed and the
text can be updated without any additional costs. The hosting fee is 168 € a year, starting from the
date on which the page is online.
Option 2: Google Adwords*. Credits are given to the Agency. It may cost about 100 € a month.
* Google Adwords You create ads and choose keywords, which are words or phrases related to your business. When people
search on Google using one of your keywords, your ad may appear next to the search results. People can simply click on your ad to
make a purchase or learn more about you. There is no minimum spending requirement – the amount that you pay for Adwords is
up to you. You can, for instance, set a daily budget of 100 euros and a maximum cost of ten cents for each click on your ad. You
are charged only if someone clicks your ad, not when your ad is displayed.
• Magazines:
The price for an advertisement in a magazine ranges from 30 to 100 €.

8. 8
5.Rights for employees ( Hire and Fire )
Labour is regulated by Italy’s Constitution, Civil Code, the Workers’ Bill of Rights and other relevant
laws and decrees. Employment terms and conditions are also periodically fixed by collective Labour
Agreements within the various professional categories.
HIRE
Individual employment contracts must specify:
1) the parties to the employment agreement;
2) the starting date of the employment and the duration of the trial period ;
3)the expiration date, if the employment is for a fixed term ;
4) the salary, method for calculation of the salary, frequency of payment, and any particular
term or condition related to the salary and fringe benefits;
5) the working hours;
6) the annual entitlement to paid holiday leave; and
7) the employee’s duties and the related work “category”.
Fixed/Unlimited Contracts
Employment contracts can be executed for a fixed-term or for an indefinite period of time.
Specific rules are provided by the law for fixed-time contracts.
In addition, a fixed-term contract of employment may be renewed provided that a statutorily fixed
period based on the initial term passes between the two contracts.
Trial Period
Employment contracts can provide a trial period. During this period each party is free to terminate the
contract without notice and without the payment of any indemnity.
The duration of the trial period is set by the applicable collective agreement (maximum duration being
6 months).
Pay and Benefits
The average wage for an employee of a Travel Agency is 1,200 € a month.
Collective Labour Agreements regularly define minimum levels of wages and indemnity benefits.
Working Time
Averagely, 8 working hours per day are established.
Holidays & Vacation
In Italy there are 11 religious and national holiday days. The Constitution guarantees everyone
the right to one rest day per week (usually Sundays).
Employees are entitled to an annual vacation period of 4 weeks.
Absence from Work
Employees are entitled to a leave for several reasons: sick leave , personal leave and maternity/
parental leave.
FIRE
Dismissal
Under the Italian Law an employee is dismissible for:
1) Just Cause :
a serious breach by the employee of his/her duties or other behaviour that makes continuation of the
working relationship unfeasible;
2) Justified Grounds:
failure to follow important instructions given by the management,
low performance
3)An objective reason,
whereby the employer needs to re-organise production or labour force.