Its economy was based on cereal agriculture and cattle raising, plus flourishing small industries, notably the production of silk.

A treaty of friendship and commerce with the Republic of San Marino was signed on 10 June 1802, and a Concordat with the Holy See on 16 September 1803.

In 1805, following Bonaparte's assumption of the title of Emperor of the French, the Italian Republic was transformed into the Kingdom of Italy (Regno d'Italia), with Napoleon as king and his stepson Eugène de Beauharnais as viceroy.

All the colleges elected a commission of control and supreme rule, called the Censorship (la Censura), composed of twenty-one members and based in Cremona.

The head of state was the president of the republic (il Presidente della repubblica), Napoleon Bonaparte, elected for 10 years.

The president had full executive powers, appointed the vice-president (il Vicepresidente) and the secretary of state, took legislative and diplomatic initiative, chose the ministers, public agents, ambassadors, and chiefs of the army, summoned the executive councils, and prepared the budget.

The commissioners were appointed by the Censorship upon nomination by the three colleges: many former members of the Directory of the Cisalpine Republic entered into office.

The Consulta ratified treaties, approved any special decrees concerning state security, and in the event of the death or resignation of the president, appointed the successor.

The Legislative Council (il Consiglio legislativo) was a commission of at least ten members appointed by the president for three years.

The prefect was the state's representative in each province (dipartimento), and had two main functions: the first was to implement the administrative decisions of the central government and to control the local authorities, the second was leadership of the police.