Ease of Doing Business in


Italy Download Profile (1729KB, pdf)
Region OECD high income
Income Category High income
Population 60,802,085
GNI Per Capita (US$) 32,790
City covered Rome



DB 2017 Rank



DB 2017 DTF (% points)

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Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 50 44 down
72.25 71.97 down
Starting a Business 63 57 down
89.40 89.39 up
Dealing with Construction Permits 86 82 down
69.41 69.31 up
Getting Electricity 51 45 down
80.70 80.69 up
Registering Property 24 24
81.69 81.67 up
Getting Credit 101 97 down
45.00 45.00
Protecting Minority Investors 42 40 down
63.33 63.33
Paying Taxes 126 134 up
61.65 59.33 up
Trading across Borders 1 1
100.00 100.00
Enforcing Contracts 108 106 down
54.79 54.79
Resolving Insolvency 25 23 down
76.59 76.14 up

Positive= Doing Business reform making it easier to do business.Negative= Change making it more difficult to do business.

DB 2017 Rank:


DB 2016 Rank:


Change in Rank:


DB 2017 DTF (% points):


DB 2016 DTF (% points):


Change in DTF (% points):


Indicator Italy OECD high income
Recovery rate (cents on the dollar) info_outline 63.9 73.0
Time (years) info_outline 1.8 1.7
Cost (% of estate) info_outline 22 9.1
Outcome (0 as piecemeal sale and 1 as going concern) info_outline 1 ..
Strength of insolvency framework index (0-16) info_outline 13.5 12.1
  • Indicator Explanation Answer
    Recovery rate (cents on the dollar) 63.9
    Proceeding Mirage will file for reorganization (concordato preventivo) and benefit from the automatic stay. Reorganization is the procedure that appears more suitable, as it helps preserve the business' continuity and therefore the value of the business and assets. In light of the severe financial distress of Mirage and the negative expected cash flow for 2016 and 2017, there is the risk that the reorganization is not successfully completed and, consequently, it is converted into liquidation. In addition, currently the number of liquidation procedures in Italy continue to increase whereas the number of reorganizations decreases. liquidation (after an attempt at reorganization)
    Outcome Selling the business as a going concern is the only way to maximize the value of the assets, so the creditors will be interested in a going concern sale. This principle is still valid in case of bankruptcy. going concern
    Time (in years) Under article 160 and followings of the Italian Bankruptcy Code, a solvent company in financial difficulty may enter into a composition with creditors (“concordato preventivo”). To enter into such procedure the debtor is required to file restructuring plan with the competent bankruptcy court. After the filing, the bankruptcy court assesses the documents and the feasibility of the plan as proposed in the course of the hearing. The court issues a decree which admits the company into a composition with creditors’ procedure. A delegated judge and a commissioner are appointed to handle the procedure. Under the case assumptions stated in the survey, the creditors are not likely to approve the plan and the procedure will be converted into the “fallimento” - a liquidation procedure. The aim of the fallimento is to satisfy the creditors’ rights and to remove the insolvent enterprise from the market. The fallimento starts when the company is deemed to be insolvent. A receiver is appointed by the competent court to manage the liquidation proceedings. The receiver must collect and sell the debtor’s assets under the judge’s direction and the creditors' surveillance. The competent bankruptcy court also appoints a judge who will be entitled to direct the proceeding and to resolve upon creditor’s claims. Insolvency proceedings will not take less than 1.8 years because of the large number of procedural steps required. Additionally, due to the financial crisis, the number of insolvency cases filed in Italy has increased, which put an additional burden on the courts. 1.8
    Cost (% of estate) Majority of expenses are made up of attorney's fees (around 10% of the value of the estate) and fees of insolvency representatives (up to 10% of the value of the estate). The remaining 2% is divided between court fees, cost of notification and fees of other professionals involved in the insolvency proceedings (accountants, assessors, etc.). 22.0
    Answer Score
    Strength of insolvency framework index (0-16) 13.5
    Commencement of proceedings index (0-3) 3.0
    What procedures are available to a DEBTOR when commencing insolvency proceedings? (a) Debtor may file for both liquidation and reorganization 1.0
    Does the insolvency framework allow a CREDITOR to file for insolvency of the debtor? (a) Yes, a creditor may file for both liquidation and reorganization 1.0
    What basis for commencement of the insolvency proceedings is allowed under the insolvency framework? (a) Debtor is generally unable to pay its debts as they mature 1.0
    Management of debtor's assets index (0-6) 5.5
    Does the insolvency framework allow the continuation of contracts supplying essential goods and services to the debtor? Yes 1.0
    Does the insolvency framework allow the rejection by the debtor of overly burdensome contracts? Yes 1.0
    Does the insolvency framework allow avoidance of preferential transactions? Yes 1.0
    Does the insolvency framework allow avoidance of undervalued transactions? Yes 1.0
    Does the insolvency framework provide for the possibility of the debtor obtaining credit after commencement of insolvency proceedings? Yes 1.0
    Does the insolvency framework assign priority to post-commencement credit? (a) Yes over all pre-commencement creditors, secured or unsecured 0.5
    Reorganization proceedings index (0-3) 3.0
    Which creditors vote on the proposed reorganization plan? (b) Only creditors whose rights are affected by the proposed plan 1.0
    Does the insolvency framework require that dissenting creditors in reorganization receive at least as much as what they would obtain in a liquidation? Yes 1.0
    Are the creditors devided into classes for the purposes of voting on the reorganization plan, does each class vote separately and are creditors in the same class treated equally? Yes 1.0
    Creditor participation index (0-4) 2.0
    Does the insolvency framework require approval by the creditors for selection or appointment of the insolvency representative? Yes 1.0
    Does the insolvency framework require approval by the creditors for sale of substantial assets of the debtor? No 0.0
    Does the insolvency framework provide that a creditor has the right to request information from the insolvency representative? No 0.0
    Does the insolvency framework provide that a creditor has the right to object to decisions accepting or rejecting creditors' claims? Yes 1.0

Note: Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice”.