How Indian business operators can obtain the LEI
If your business operates or is located in India, you must necessarily have a Legal Entity Identifier (LEI) to be able to carry out the corresponding financial transactions in and out of India. To obtain it, you only need to complete a few simple procedures, which now you can easily do at the local operating units that operate on the internet. Find out how to do it.
Every company operating internationally must always be up to date with the regulations in force, to avoid problems and to facilitate all relevant business procedures.
For example, if your company is Indian or has business operations in India, it must have all its documentation in order, especially the LEI (Legal Entity Identifier) which is a unique code, used worldwide to identify companies that execute financial transactions and comply with the requirements of the financial markets.
This code has 20 symbols, which identify the company that carries it within the global financial system. It is unique and it is issued only once, then it can be renewed every year.
In many parts of the world, its use is mandatory for companies dealing in security fields, especially in India, where no company can engage in any financial transaction unless it is registered with its LEI code.
In India, the Reserve Bank of India has mandated, on 1 June 2017, the use of LEIs for all legal entities trading in OTC markets for rupee interest rate derivatives, foreign currency derivatives and credit derivatives in India. Its use was imposed gradually between 1 August 2017 and 31 March 2018.
How to obtain it?
To register and obtain the LEI in India, a Local Operating Unit (LOU), which is duly accredited by the Global Legal Entity Identifier Foundation (GLEIF), must be contacted to issue the corresponding code.
The next step is to fill in the corresponding online application form with the company’s details, such as the legal registration, addresses of the entity and contact details of the entity, the contact person and the legal representative.
Then you need to select the validity period of the code with any of the LEI packages offered by the LOU, which can be up to 5 years. Payment is also made immediately and can be formalised through convenient methods, securely and immediately, with proper receipt and legal support.
The LOU verifies the applicant company’s details with those registered in the Ministry of Corporate Affairs and immediately issues the identification code and registers it in the GLEIF database, so that it is valid from that moment onwards.
The whole registration and processing process takes only about two minutes for the first time; and if it is a renewal, which must be done annually, it is even quicker. It really is very easy, quick and simple.
LEI code issuing prices
The cost for the initial issuance of the LEI code in India depends on the length of the renewal extension you wish to apply for. For example, for one year it is 4,900 rupees, for 3 years it is 4,300 rupees per year and for 5 years it is 3,290 rupees per year.
The maximum period for renewing the code is 15 working days after its expiry date, and it is valid for one year from the date of issue or the last renewal.
So, if you have a business in India or operate commercially in India, registering it with its LEI is part of the mandatory process you will have to deal with if you want to avoid problems with the law. But, do not panic, it is very easy to obtain your business’ LEI code with the support of the appropriate local operating unit, so that in just a few minutes you will have it ready to start using it during all your India’s business transitions. Following the law compliances has never been easier.
