Joint stock or limited liability company

When choosing what type of company to establish, there are two main alternatives, each with their own ability to adapt to different demands.

A joint stock company is the usual choice for large concerns. It normally seeks to open its capital to public investors through a listing on the stock market. Italian joint stock companies have greater means at their disposal than before to raise market capital, and can offer innovative financial instruments to Italian and foreign investors, with specific, individual rights of ownership and participation.

Limited liability companies are more appropriate for small- and medium-size companies with a restricted ownership base in which the shareholders are usually also managers and employees of the company. Until recently, limited liability companies were unattractive to large international investors. However, following the reforms, they have become an important commercial option for the small- and medium-size foreign entrepreneurs. By giving a central role to the shareholder´s personal interests, the new limited liability company has been transformed from a legal entity distinct from the shareholders into their own effective operating tool.