Requirements for An Innovative Startup

Requirements for An Innovative Startup

In order to enroll in the special section of innovative companies in the Register of startup company Italy, in order to become startups, requirements are required. Let’s look at some of them together.


Society must first: 

  • have their business and interests in Italy or in one of the member states of the European Union or in States adhering to the Agreement on the European Economic Area, provided they have a production site or a branch in Italy; 
  • not having distributed profits and, in the case of a new constitution, cannot distribute them for 4 years;
  • starting from the second year, not to have an annual production value of over 5 million euro; – not be formed starting from an extraordinary demerger or merger operation, nor deriving from a sale of a company or business unit; 
  • have the exclusive or prevailing corporate purpose of the development, production and marketing of innovative products or services with high technological value (our guide on How to draw up the corporate purpose of an innovative startup may help you). 


 The additional requirements for obtaining innovative startup status must also be considered. In practice, in addition to having the aforementioned in an essential way, the innovative startup must have at least one of the following additional requirements. 

First of all, for research and development expenses, they must be equal to or greater than 15% of the greater value between cost and total production value (recommended choice: it is necessary to produce a forecast budget document which is confirmed when filing the balance sheet at the end of the economic year). 

Secondly, you must have employees or collaborators in any capacity, in a percentage equal to or greater than one third of the total workforce. At the same time, it is also necessary to have staff with a PhD or who is carrying out a PhD at an Italian or foreign university, or having a degree and who have carried out certified research activities at public or private research institutes, in Italy or abroad or, in a percentage equal to or greater than two thirds of the total workforce, staff with a master’s degree.

Ultimately, there should be at least one industrial property right concerning an industrial, biotechnological idea (or even a topography of a semiconductor product or a new plant variety or rights). It is these that entitle the member to the special public register for computer programs. Property rights must obviously refer to the corporate purpose and business activity.