All That You Need to Know About the Legal Entity Identifier

Before knowing all the details related to the legal entity identifier, you must also know that what a legal entity identifier is. The legal entity identifier, which is also known as LEI, is nothing but a unique combination of the twenty digits of alphanumeric strings. The main purpose of LEI is to represent a legal entity in a distinct way. Here the legal entity includes the organization, company, firm, and also government body. Apart from all this, once an LEI code is being issued to any firm, then they can use the same to represent the company in case of the financial transaction. Now you might be wondering that at the time of assigning the LEI codes are there any standards that are being followed or not. So let me tell you that the codes are completely based on the ISO 17442 standard and it is assigned on a global basis. You will be astonished to know that the Reserve bank of India has made LEI a compulsory for the entity whose fund and non-fund based exposure is more than five crores.

Who can register for the LEI code?

The LEI codes can be used by the mentioned below entity:

  • Any registered companies and the registered subsidiaries
  • If the company has the international branch offices
  • Trusts and Funds
  • Sole proprietors who have a distinct identity within a business register

You must also keep one point in your mind that a branch office, which has an alternative jurisdiction state but it, is within the same country like that of the head office then they are able to get LEI code separately. The reason behind it is that currently, only one LEI can be issuer per country for a company. Moreover, you must also know that an individual or an operating division cannot apply for the LEI.

If you are planning to get a legal entity identifier then without thinking much apply today. While talking about the time that it will take to complete the process is not more than a couple of days. You will hardly need two minutes to fill up the application form. After which your data will be validated within twenty-four hours. As soon as the data is being validated, then you will receive your legal entity identifier confirmation. In order to get this service, you need to pay a small subscription charge. You can select a plan based on your choice and requirement.