The social security representative acts for the company in fulfilling Italian obligations, including preparing the Unified Employment Register (LUL), employment documents and contribution payments.
Every employee physically working in Italy is subject to the local social security system regardless of the employer’s nationality. A non-resident company must appoint an Italian individual or legal entity to deal directly with INPS.
Company without a permanent establishment in Italy
A foreign company operating without a permanent establishment and employing staff in Italy, including remote workers, is not necessarily subject to Italian corporate tax but must register for social security.
It must obtain an alphanumeric tax code solely for INPS and INAIL purposes and delegate payroll and contribution management to its representative. EU employers may benefit from specific coordination rules such as Regulation (EC) 883/2004.
Activation steps
Obtain a tax code from the Italian Revenue Agency for social security purposes. The code identifies the foreign employer in Italy and allows it to meet obligations for employees working there. It does not by itself create Italian VAT or corporate income tax obligations.
Mandate with representation, power of attorney and apostille. A company without a permanent establishment appoints an Italian resident representative to act before INPS, INAIL, labour inspectors and public authorities under article 1704 of the Civil Code.
The special power of attorney must be signed by the foreign legal representative, notarised, legalised or apostilled as applicable and translated into Italian with the required certification. The Hague Apostille certifies signatures and seals and replaces further diplomatic legalisation for member countries.
Social security representative without an Italian permanent establishment
This representative is used when a foreign company has employees physically working in Italy but no permanent establishment. In this case:
- No Italian VAT number is required.
- Only the foreign company’s Italian tax code is needed.
- The representative is not a withholding agent; the employee pays IRPEF through the annual return.
- The representative manages INPS and INAIL for the company.
- The representative accepts joint liability for contributions.
INPS penalties for failure to appoint or late registration
Failure or delay in registering personnel exposes the foreign company to significant liability. INPS investigates contribution omissions and evasion and may impose immediate administrative fines for absent or late registration.
Serious cases, such as systematic non-payment, can lead to criminal penalties and suspension of the company’s activities in Italy. Inspections may arise from cross-checks of bank flows or anonymous reports.
