LEI In India: How To Register For Legal Entity Identifier In India?

Legal Entity Identifier

It’s a rule of thumb that a business entity needs to have a legal entity identifier. The legal entity identifier number is significant in the business world to show any business authority, like a trademark office or register of commerce. In this post, you will learn about legal entity identifier numbers and how to go ahead with LEI applicability in India.

Understanding The LEI Number:

The Legal entity identifier number is a unique identifier for companies and other legal entities. It is also known as the Legal Entity Identifier (LEI) or Business Identifier Code.

In India, the Legal Entity Identifier (LEI) is a unique identification code that identifies a legal entity. It is used by regulators, financial institutions and other market participants to facilitate the trade of financial instruments across national borders.

LEI was developed by the International Organization for Standardization (ISO) and is managed by Global Legal Entity Identifier Foundation (GLEIF). The LEI system has been approved by the Securities and Exchange Board of India (SEBI) under the Substantial Acquisition of Shares and Takeovers Regulations, 2015.

Reasons For Any Business To Register for Legal Entity Identifier:

The LEI Code provides a unique identity for companies and other entities worldwide. This helps in sharing information across different countries and enhances their business credibility. Here are a few more reasons to register for LEI:

  • A legal entity identifier acts as a firm’s identification number, which helps reduce errors.
  • It helps financial institutions identify clients and prevent fraudulent activities like money laundering, terrorism financing etc.
  • The LEI acts as an address for all legal entities in the world and helps regulators to know about them.

How To Register For Legal Entity Identifiers In India?

LEI applicability is a must for all entities engaged in financial transactions. An LEI acts as an address for your business and helps to identify your company from others. It is also used by regulators, banks and other financial institutions to identify you and prevent fraud.

The Legal Entity Identifier (LEI) System is a global system of unique identification numbers for all legal entities, including corporations, partnerships, trusts, and other entities (such as bankruptcy proceedings). Here is the step you can take to apply for a Legal Entity Identifier number:

  • Complete all the sections on the registration form for a legal entity identifier after selecting your preferred LEI provider.
  • Submit your LEI application form and make payment through Razorpay, Netbanking, a credit card, or a bank transfer.
  • Your information will be processed, and you’ll receive an email with the legal entity identifier.
  • Your Legal Entity Identifier request will be sent for factual validation as soon as you have paid the money. 90% of the time, you will get your legal entity identity within one to twenty-four hours.

Final Thoughts:

The legal entity identifier might seem like just a tiny piece of a much larger puzzle, but it is crucial. This is the first step to expanding into the global market. But LEIs are also used to verify companies’ identities when they file business registration paperwork with government entities. They also work as International Standard Auditing Organization identifiers, and they’re even helpful in checking whether databases are duplicating documents. In other words, LEIs have numerous uses both in business and with government regulation.

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