EORI Registration in Czech Republic - 2021 Guide
EORI Registration in Czech RepublicUpdated on Sunday 04th April 2021
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EORI refers to a unique number of identification through which businesses established within the European Union’s borders can be recognized. EORI stands for Economic Operators Registration and Identification. The EORI number is given by the customs authorities established in the European Union (EU). Our team of Czech lawyers can assist local and foreign investors with information referring to the EORI number and its utility for businesses.
EORI number and its main purpose
The customs authorities are allowed to issue EORI numbers for legal entities and natural persons. The main advantage of receiving this identification number is the ease of access within the EU space, as the registration is valid in any member state of the EU. You might want to observe the following characteristics of this identification number and modifications for 2021:
- the EORI number is used by local authorities to verify the import-export activities carried out in each country;
- for businesses, the EORI number is useful when declaring the trade relationship with countries which are not members of the EU zone;
- the EORI number was introduced in 2009 and in Czech Republic it became applicable since 1st of July 2009, which obligated all economic operators to register for EORI;
- our team of Czech attorneys can offer further information related to the enforcement of the EORI directive.
Legal requirements of the Czech EORI in 2021
Foreigners who want to set up a company in Czech Republic will receive a Czech EORI number if the business is registered as a Czech company. Economic operators established in Czech Republic will receive an EORI number by filling an application. The Czech EORI number is established following the next pattern: the first two letters designating the country – in this case, Czech Republic is represented by “CZ”, followed by 11 numbers. An important aspect is that branches of foreign companies operating in Czech Republic or in any other state of the EU are not eligible to receive an EORI number, as the registration is available only once, for the legal entity under which the branch operates. The following documents need to be submitted to the European Commission when the EORI application is made:
- The VAT certificate of the company registered in the Czech Republic;
- A document issued by the Czech Trade Register showing that the company have the right to do business;
- A copy of the Articles of Association of the company;
- A power of attorney for the company’s representative (we can act on your behalf).
The EORI application in 2021 is not complex, but you might need legal advice and assistance, a matter where our Czech lawyers can help. Our team can help you with the formalities involved. Here is an infographic that explains the EORI registration:
Is EORI the same thing with the VAT?
No, the EORI number is different from the VAT. While the VAT is imposed on goods and services and it is a tax collected by the state, the EORI number is used for a better identification of companies in the Czech Republic, whether local or from EU. However, most of the European countries adopted an easier identification number which is based on the VAT number. It is good to know that the customs control requires both identification numbers, the VAT and the EORI. We mention that the VAT registration can be made with the help of our Czech lawyers.
Do I need more than just one EORI number?
No, there is no need for more than just an EORI number. As mentioned earlier, the EORI number is unique and it is issued for each business willing to operate within the European countries.
What happens if a company doesn’t have an EORI?
Companies outside EU interested in import and export activities will have to apply for an EORI number before they commence the operations. All economic operators from the non-EU country must align with the customs requirements, and the EORI application might prolong for approximately two months, depending on the European country chosen for business. All the legal aspects of the EORI application in Czech Republic can be explained by our Czech team of lawyers.
Does it take long to obtain the EORI number in 2021?
No, the EORI number can be issued in a couple of days, as soon as the documents are approved. The entire application process for EORI can be handled by one of our Czech lawyers, so feel free to address your inquiries to us.
Can natural persons apply for EORI?
Yes, natural persons who act as sole traders in the Czech Republic and deal with import and export activities can easily apply for the EORI number with a valid passport or an identification number. We remind that if you would like legal advice in this matter, you may talk to our Czech attorneys.
Can an EORI number be canceled?
Yes, EORI numbers can be canceled if your company closes it operations in the Czech Republic. More than that, an EORI number will no longer be valid of your business is liquidated or bankrupt. Still, the same EORI number can be allocated to your business if you get back on the market. If you need legal advice in this matter, feel free to talk to our advisors.
FAQ about EORI
1. What are the needed documents for EORI registration in the Czech Republic?
The VAT certificate and the company documents (Articles of Association, Memorandum of Association, Certificate of Registration) are needed for EORI applications.
2. What is the structure of EORI?
The EORI number is formed by the company’s VAT number, the prefix of the country (CZ), plus 11 digits.
3. How can I apply for EORI in the Czech Republic?
The European Commission is the main institution that issues the EORI numbers for companies in the Czech Republic. The local authorities oversee the entire process of EORI registration.
4. Is EORI the same thing with the VAT number?
No, EORI is not the same thing with the VAT number, however, the VAT number is comprised by the EORI. A company in Czech Republic needs to be registered for VAT before the EORI number is issued.
5. What happens if my company doesn’t have an EORI?
Without an EORI number for your company in the Czech Republic, you cannot develop trading activities. Feel free to talk to our Czech lawyers and find out more about how to apply for EORI.
6. Do I need more than just one EORI number?
No, companies will have only one EORI number for their trading activities within the European territory.
7. How long it takes to obtain the EORI number?
If all the company documents are approved, the EORI number can be issued in a couple of days.
8. How is the EORI number verified?
The EORI number is verified by the customs, alongside the documents and formalities for your cargo. The authorities have the right to stop the entrance of your products in the Czech Republic if you do not present all the documents.
9. Can an EORI be canceled?
Yes, the EORI number can be canceled if your company no longer has trading activities, or if the business is closed. The same thing is available for bankrupt Czech companies.
10. When was the EORI number introduced?
The EORI number was introduced in 2009 by the EU as another control measure of such activities.
EU countries and the EORI system
Austria, Bulgaria, Belgium, Croatia, Czech Republic, Cyprus, Denmark, France, Estonia, Finland, Greece, Germany, Hungary, Ireland, Latvia, Italy, Luxembourg, Lithuania, Malta, the Netherlands, Portugal, Poland, Romania, Slovenia, Slovakia, Sweden, Spain and UK are the countries part of the European Union which impose the EORI system for the import and export activities. Even though the requirements for EORI application are based on the general rules, each country is subject to particular rules, with respect to the EU directives in this matter. It is good to know that the EORI registration is made in only one country, meaning that companies with trading activities in Czech Republic will have to register for EORI only in this country. Instead of dealing with the legal requirements for obtaining this important business identification number, it is best to talk to our team of lawyers and find out all the conditions involved.
Making investments in the Czech Republic
The Czech Republic is open to foreign investments of any kind, as long as the applicable laws are respected. The legislation related to foreign investors in Czech Republic is extremely permissive and allows entrepreneurs from abroad to enjoy the same business rules as the local ones. The automotive sector, agriculture, tourism, the manufacturing, and the textile sectors are extremely prolific when it comes to foreign investments in 2021. Here are some facts and details that can tell more about the economy and business direction of this country:
- The Czech Republic ranked 41st out of 190 economies in the world, according to the 2020 Doing Business report;
- Around USD 170 billion was the total FDI stock for Czech Republic in 2019;
- Austria, Germany, the Netherlands, and Luxembourg are the main investors in the Czech Republic;
- The skilled and multilingual workforce can be hired by foreign investors in Czech Republic.
Persons interested in receiving further information on the EORI registration in Czech Republic can contact our Czech law firm for assistance.