A directorial decree marks an important breakthrough in the field of creation of innovative start-ups, reversing the typical Italian tendency towards the excessive bureaucracy and formalism. As of July 20, it is possible to set up a LTD qualified as "innovative start-up" directly online, for free, and above all without resorting to a notary or Chamber of Commerce.

It is a major achievement, as well as the result of a long process that has its roots in March 2015, when it was converted into law Decree-Law 3/2015 - better known as "investment compact" -, Article. 4, paragraph 10bis, provided the possibility of setting up a start-up company by filling out a standard form signed digitally.

From that point on, the Ministry of Economic Development has undertaken the development of the model for the establishment and modification of incorporation of innovative start-ups in the form of a limited liability company, a project reached by the Ministerial Decree February 17, 2016, and then made operational by the decree of July 1, 2016 together with the Circular 3691 / C application for clarification.

For operational needs of the house software it was decided that the provisions would become effective only as of July 20, 2016.

The great innovation brought by the reform is the simplification, in addition to purely digital ITER, the possibility of avoiding the use of a notary, resulting in cost savings; opportunities that make creating new businesses easier and faster, and abbreviate the distances between Italy and the rest of the world, where this has been possible for many years (for example, in the UK it is possible to set up a LTD from 15 £ with the online process).

First and foremost, it should be clear what is meant by "innovative start-up"; the decree fixing minimum requirements for access to that class:
• Corporate purpose focused on development;
• Production and marketing of services or high-tech products;
• Head office of their own affairs and interests in Italy;

In addition, the start-up must meet at least one of the following additional criteria:
• Support in research and development expenses in an amount equal or greater than 15% percent of the greater amount between the cost and the value of production;
• Employ at least one third of its work force a highly qualified personnel, possessing PhD qualifications, or achieving a PhD at Italian or foreign university, or have a degree, and has done, at least three years of research certified by public or private research institutes, in Italy or abroad;
• Be the owner or custodian or a licensee of at least one industrial property relative to an industrial, biotechnological invention, to a topography of semiconductor product or a plant variety that is the holder of the rights relating to a computer program, registered in the Special Public Register for computer programs, provided that such deprivation are directly related to the corporate purpose and activity of enterprise.

The company’s statute in the form of LTD may be drawn up electronically through the governmental platform startup.registroimprese.it: just log in, fill in the standard form and sign it digitally with a smart card or a remote signature service.

Within 20 days of signing the electronic document to be submitted for registration to the Registrar of Companies that has territorial jurisdiction, which, after carrying out the controls required by the law, provisionally enrolls the company in the ordinary section. Therefore, begins the application process of the company in the special section provided for innovative start-ups and incubators certified pursuant to art. 3, paragraph 2 of the Decree of 17 February 2016.

In addition, an online service will be active in the initial period that will guide beginners in registration act, compilation and submission to the Trade Register.

The last quarterly report data developed by InfoCamere for the Ministry of Economic Development are very promising, stating that in 30 June 2016 there were 5,943 innovative start-ups, with a registered turnover of 325.28 million euro (calculated on business in the financial statements) and about 30,000 employees involved.

In this context, the legislation, which promises flexibility and savings by exploiting the possibilities offered by technology and digital signature, can only be considered progressive, especially if we consider that the start uppers are often young and without capital.

However, every coin has a flip side, which does not escape the inevitability of this directive.

Notaries are to highlight the limits, creating a threat to the entire security system of Italian society, so much so that the National Council of Notaries has resorted to the TAR of Lazio (the hearing is scheduled for August 30).

Notaries pointed out that the loss of their ex-ante control, and the use of only non-authenticated digital signature (with a consequent lack of controls and guarantees of the identity of the person subscriber) would constitute a prerequisite for the creation of potentially anonyms companies, and would favor the use of false identities and money laundering, tax evasion and corruption.