Italia Startup Hub

The policy of the Italian Government to favour theretention of innovative talents from all over the world

Guidelines

Ministry of Economic Development
Ministry of Interior
Ministry of Labour and Social Policies

1Italia Startup Hub: origins and objectives
In the last years, the Italian Government has put forward an intense policy action

aimed at facilitating the build-up of the country’s innovative entrepreneurshipecosystem. The most significant steps on this path have been “Growth Decree 2.0”
(Decree-law 18 October 2012, n. 179, converted with amendments into Law 24 March2015, n. 33), which has introduced a wide array of support measures to ease thecreation and the development of new innovative enterprises (innovative startups), and“Investment Compact” (Decree-law 24 January 2015, n. 3, converted with amendments
into Law 24 March 2015, n. 33), which has extended most of such measures to all small

and medium enterprises (SMEs) evidencing innovative characters; hence, not juststartups, but also those having reached a later maturity stage.

Acknowledging that immigration constitutes a crucial factor for the developmentof a competitive and innovative entrepreneurial fabric, the Ministry of Economic

Development, with the cooperation of the Ministry of Foreign Affairs, the Ministry ofInterior and the Ministry of Labour and Social Policies, has launched in June 2014 theItalia Startup Visa programme. The programme has the underlying objective offavouring openness, renewal and reinforcement of the national ecosystem of innovative
entrepreneurship, facilitating the attraction of human and financial capital from all over
the world.

Pursuing the aforementioned goals, the Italia Startup Visa programme has

revolutionised the ordinary procedure to grant entry visas for self-employment, byintroducing a significant simplification for non-EU citizens which either intend tolaunch an innovative startup in Italy, or to invest in a pre-existing one, joining it asworking shareholders. The application process is based on clear rules (described in

English on the website italiastartupvisa.mise.gov.it), takes place exclusively online, has
the Ministry of Economic Development as the only referral – the Ministry also takes careof the coordination with the Police authorities for security purposes – and leads to a
final evaluation in no more than 30 days.

2Being recognised that the retention of innovative talents of foreign origin is as

important as their attraction, the will for internationalising the Italian ecosystem ofinnovative startups has then found realisation in a new government policy initiative.

Jointly launched in December 2014 by the Ministries of Economic Development,Interior, and Labour and Social Policies, and largely based on Italia Startup Visa, theItalia Startup Hub programme (italiastartuphub.mise.gov.it) has extended theprocedural simplification above mentioned to the conversion of residence permits:

non-EU citizens, already residing in Italy, who decide to extend their residency period tocreate an innovative startup, or to join as working shareholders a pre-existing
innovative startup, can convert their expiring permit – obtained, for instance, for study
reasons – in a “permit for startup self-employment” without leaving Italy, and enjoying
the simplified track normally granted to startup visas.

3Legal references
With the ambitious goal to transform Italy in a full-fledged innovation hub, theDecree of the President of the Council of Ministers, enacted on 11 December 2014

(known as “Flows Decree 2015”) set the legal ground required to facilitate thecontinued residency in the country of foreign talents who intend to create a new
innovative enterprise with high technological value. The orientation has been confirmed
in Flows Decree 2016, which at article 3, section 2, sets a quota of 1,500 residence

permits for study, internship and training purposes and 350 permits for EC long-term
residents which can be converted into self-employment permits.

Indeed, as specified in the circular attached to the decree (see paragraph“Management of the procedures”, letter c) non-EU citizens who already hold a regularresidence permit will be able to convert it in a “residence permit for startup self-employment” in the event they want to begin an innovative startup or to join, asworking shareholders, a pre-existing one; they will benefit from the same fast-track,largely online procedure granted by the Italia Startup Visa programme, with no need toreturn to their country of origin to request a new startup visa.

The definition of “innovative startup” relevant for the ISV and ISH programmes isthat laid out in Growth Decree 2.0. The executive summary of the policy on

innovative startups offers an encompassing description of the requirements
demanded by the law, in addition to the benefits that the law itself grants to thisparticular kind of enterprises.

It is important to underline that, if the non-EU citizen demonstrates to haveobtained from a certified incubator an “availability to guest” his or her future innovative

startup, the process is even faster: a formal evaluation of the business plan, otherwise
carried out by the ISV&H Committee – coordinated by the Ministry of Economic

Development – does not take place, since it is assumed that the approval from a certified

incubator is a sufficient guarantee of the suitability of the proposal. Giving to certified
incubators a key role in the selection procedure, there is an attempt to coalesce arounda well-defined number of safe havens – or, indeed, hubs – the function of attractors of4

foreign talents. The special section of the Company Registry dedicated to certified
incubators, updated on a weekly basis, can be downloaded for free at this address:
http://startup.registroimprese.it/report/incubatori.zip.

As a final point, and as already mentioned several times, the programme does

not only apply to non-EU citizens who want to start a new innovative startup fromscratch, but also to those who wish to join, as working shareholders, a pre-existing
innovative startup. It is then an opportunity for Italian startups themselves, as a way

to acquire new expertise and new capital. It is possible, clicking on the following link, todownload a weekly-updated list of all innovative startups included in the Company
Registry: startup.registroimprese.it/report/startup.zip. The download is free-of-charge,
and the file has an open licence.

5Filing cabinet
Application documents for Italia Startup Hub (ISH):
1. Application form for ISH

2. Cover letter for proof of financial resources1
3. Undertaking by incubator to host startup

4. Facsimile certificate of no impediment for the purpose of conversion/update of

the previous residence permit into a self-employment residence permit to begin
an innovative startup – ISH (direct application)

5. Facsimile certificate of no impediment for the purpose of conversion/update of

the previous residence permit into a self-employment residence permit to begin
an innovative startup – ISH (startup backed by incubator)

Introduction to Italia Startup Hub and to the Italian Startup Act:
1. Guidelines to the ISH programme (English)
2. Guidelines to the ISH programme (Italian)
3. Summary of the Italian Startup Act

4. Annual Report to Parliament on progress made under the Italian Startup Act
5. Dedicated section of the Business Register for innovative startups

6. Dedicated section of the Business Register for certified incubators

The financial means amounting at 50,000 euros devoted to the innovative startup may include: funding
granted from venture capital firms or other investors; own resources; funding obtained through equity
crowdfunding portals, as defined in art. 50 quinquies and 100 ter of the Single Text of the provisions on
financial matters (Legislative Decree 24 February 1998, no. 588); other financing granted bygovernmental or non-governmental entities, Italian or foreign; any combination of the former.
The documentation proving the availability of the minimum means allowed shall consist of one or morecertification letters released by the banks where those funds are deposited and/or confirmation letters of
the financing issued by venture capital funds, other investors and/or equity crowdfunding portals. In caseof financing coming from certified incubators, it may also be included in the total amount the gross valueof services in-kind that the incubator intends to provide to the future innovative startup. The
documentation is completed through a declaration of the applicant, by means of which she commits touse the collected funds for the establishment and the operations of the innovative startup.
16The procedure
The Italia Startup Hub conversion procedure (website) closely recalls themodalities proper of the Italia Startup Visa programme (website, guidelines).

In a similar way, non-EU citizens whose residence permit is about to expire, or

who nonetheless intends to continue his residency in Italy with the goal of launch or
joinasshareholder

aninnovativestartup,

arerequired

tosendto

mailto:italiastartuphub@mise.gov.it an accurate description of their business plan, anddocumentation certifying sufficient financial means amounting at 50,000 euros at least,
to be invested in the creation of the new enterprise.

The Italia Startup Visa & Hub Committee, composed of representatives of fiveamong the prime association of the national innovation ecosystem,2 and coordinated by

the Directorate General for Industrial Policy, Competitiveness and SMEs of the Ministryof Economic Development, will evaluate the quality of the applications received, andwill release, in case of a positive judgement, a certificate of no impediment which will
enable the conversion/update of the residence permit.

Unlike what happens in the Italia Startup Visa context, the Committee is not

required to acquire any preliminary advice from the competent Police Authority(Questura) before issuing the certificate of no impediment; since the foreign citizen
already holds a residence permit, his or her position is already held as lawful andsecure. It follows that, following ISH procedures, the Committee will be able to release a
final judgement on an even faster timeframe than the 30-day limit of Italia Startup Visa.

Italia Startup Hub is targeted at the holders of any kind of residence permit.

These include, inter alia:

 residence permit for study, internship and/or training, EC long-term residence permit, released by another EU member state, residence permit for dependent employment,

2 AIFI, Italian Association for private equity and venture capital; APSTI, Association of Italian Scientificand Technological Parks; IBAN, Italian Business Angels Network; NetVal, Network for the promotion ofacademic research; PNICube, network of academic incubators and business plan competitions.

7 residence permit for self-employment
 residence permit for family reasons.

According to the type of residence permit held by the non-EU citizen, thecertificate of no impediment, if applicable, will be aimed at:

 its conversion, at the competent Single Desk for Immigration, in case ofresidence permit for education purposes, or EC long-term residence permit
released by another EU member state; its update, at the competent Central Police station (Questura), in case of aresidence permit for dependent employment, self-employment or family
reasons.

In both cases, the conversion and update process will result in thetransformation of the previous permit in a residence permit for self-employment toconstitute an innovative startup, which does not constitute a self-standing typology ofresidence permit; it thus falls into the previously mentioned quotas for self-employment
residence permits.

The following section is devoted to a detailed analysis of the procedures connected tothe two different cases.

Procedure aimed at students, trainees, and long term residents (so-called
conversion of residence permit):

1. The non-EU citizen holding a residence permit for study, internship and/ortraining reasons, or an EC long-term residence permit released by another EU
member state, writes to italiastartuphub@mise.gov.it attaching:a. application form, where she describes her academic and professional

background, and illustrates the kind of innovative business she intends tostart or to join as working shareholder; in case of an application through acertified incubator, she should present the “declaration of availability to8

guest” undersigned by the legal representative of the incubator (in thiscase the Committee will not undertake any business plan examination)b. copy of a valid passport or Italian ID;

c. copy of residence permit held at time of application;

d. documentation proving sufficient financial means, amounting at no lessthan 50,000 euros.

2. The Italia Startup Visa & Hub Committee evaluates the application in no morethan 20 days. If the evaluation is positive, it issues the certificate of no
impediment to the Italia Startup Hub conversion.

3. Obtained the Certificate of No Impediment, the non-EU citizen must reserve on
this website (registration required) a meeting with the competent Single Deskfor Immigration. After clicking on “sportello unico immigrazione”, and then on“richiesta moduli”, she must fill Form Z (“Domanda di verifica della sussistenza diuna quota per lavoro autonomo e di certificazione attestante il possesso dei
requisiti per lavoro autonomo”→”Soci, amministratori di società”).

After having sent the request, she will receive a confirmation email; she mustthen wait for the Single Desk for Immigration to set a date for a meeting. Moreinformation is available on the websites of the local Prefectures.
4. She must hand, in person, to the Single Desk for Immigration:a. copy of the ISH Certificate of No Impedimentb. residence permit presently heldc. documentation proving suitable accommodation (e.g. hotel booking)d. documentation proving an income above the minimum level set by law

for the exemption from the participation to National Health Service
expenses (8,500 euros)e. passport or Italian ID

f. A 16 euro fiscal stamp (marca da bollo)
95. Obtained from the Single Desk for Immigration the authorisation to conversion,in an authorised post office (“Sportello Amico”, list downloadable here) she will

receive the “conversion kit” (Model 209), which she must fill and then send tothe competent Central Police office (Questura). At the same post office, it will also
be set the date for the final meeting with the competent Central Police office,when the residence permit will be released.

6. On the set date, the competent Central Police office invites the non-EU citizen fora meeting, and the self-employment residence permit is ultimately released.

Procedure aimed at subordinate workers, self-employed workers, relativesof holders of a residence permit (so-called update of residence permit):

1. The non-EU citizen holding a residence permit for study, internship and/or

training reasons, or an EC long-term residence permit released by another EU
member state, writes to italiastartuphub@mise.gov.it attaching:a. application form, where she describes her academic and professional

background, and illustrates the kind of innovative business she intends tostart or to join as working shareholder; in case of an application through acertified incubator, she should present the “declaration of availability toguest” undersigned by the legal representative of the incubator (in thiscase the Committee will not undertake any business plan examination),b. copy of a valid passport or Italian ID;

c. copy of residence permit held at time of application;

d. documentation proving sufficient financial means, amounting at no lessthan 50,000 euros.

2. The Italia Startup Visa & Hub Committee evaluates the application in no morethan 20 days. If the evaluation is positive, it issues the certificate of no
impediment to the Italia Startup Hub conversion.

10

3. Obtained the Certificate of No Impediment, she fills the conversion kit (model209) available in any authorised post office (“Sportello Amico”, list downloadablehere). The post office then transfers it to the local Central Police office; at thesame time, it will also be set the date for the final meeting with the Police station,
when the residence permit will be released.

4. On the set date, the competent Central Police office invites the non-EU citizen fora meeting, and the self-employment residence permit is ultimately released.

11Italia Startup Visa and Italia Startup Hub: a comparison#ItaliaStartupVisa

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Italia Startup Visa&Hub Committee

Italia Startup Visa&Hub Committee

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12Evaluation
deadline

Output finale

No more than 30 days

Release of a “self-employment
startup visa”

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No more than 20 days
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