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Separate corporate structure from where you base yourself. For example to start a limited company in Ireland with accountant fee's etc is about €300. Capital Requirement is €1. And that company can base itself anywhere in Europe. One of the advantages of the Single Market.

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I've heard varying things about this from people in Italy. I'm not sure it's entirely ok to live and work in country A for a company that is located elsewhere, but I'm neither a lawyer nor an accountant.

It very much ok to have a company registered in one country and work for it in another . This is the whole idea of the Treaty of Rome, which is the treaty that forms the EU. Some famous examples are like Air Berlin which is a UK PLC. Where things can get a bit complex is the tax situation. You need to pay tax where the business is, which can be different from where it is registered.

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