Navigating through the intricacies of global business transparency can be a daunting task for many organisations. An essential tool that simplifies this process and fosters the now expected levels of transparency is the Legal Entity Identifier (LEI). The LEI is a unique 20-digit alphanumeric code that distinguishes different entities participating in financial and B2B transactions globally. The process of acquiring your Legal Entity Identifier might seem complex, but the good news is, that thanks to innovators like Ubisecure, that is no longer the case. This comprehensive guide aims to provide a clear pathway to registering your LEI, optimising your business transactions and reinforcing your financial transparency.
Understanding the Legal Entity Identifier (LEI)
Before delving into the LEI registration process, understanding what a Legal Entity Identifier is can be beneficial. Developed in response to the financial crisis of 2008 to increase transparency and mitigate risk in the financial market, an LEI is a globally recognized identifier originally intended for companies involved in financial transactions, but now offers a much broader applicability to any organisation involved in global trade. It provides unique identification, reduces ambiguity, and facilitates quicker, more efficient transactions, KYC and onboarding.
Step-by-Step Guide to Registering a Legal Entity Identifier
Select an LEI Issuer
The first step in obtaining a Legal Entity Identifier is to select an LEI Issuer accredited by the Global Legal Entity Identifier Foundation (GLEIF). There are numerous LEI issuing organizations globally, and it’s essential to choose one that best aligns with your company’s needs and objectives.
Ubisecure, through our RapidLEI service, is one such accredited LEI Issuer. RapidLEI is the world’s largest issuer of LEIs, a position achieved by making the LEI registration process faster, easier and lower cost.
Submit the LEI Registration Application
Once you’ve selected an LEI issuing organization, the next step is to complete and submit an application for a Legal Entity Identifier. The application requires basic information about your company such as its legal name, address, and structure.
Upon receiving your application, the LEI issuing organization will carry out a verification process. This process ensures that the data provided matches public official data. The integrity and reliability of the Legal Entity Identifier system depend on this rigorous verification process.
RapidLEI connects directly to the various business registries around the world to auto-retrieve organisation identity reference data, making applications faster and more accurate.
After your application is verified, payment is required. The cost of acquiring a Legal Entity Identifier varies depending on the issuing organization and the jurisdiction your company falls under.
RapidLEI utilises automation to keep LEI issuance costs low. These savings are passed on to customers through low LEI registration fees. Our pricing is transparent – you see LEI Costs here.
Receipt and publication of LEI
After the payment has been processed, your company’s Legal Entity Identifier will be issued. The LEI will be registered in the GLEIF database, making it accessible to the public for entities needing to search an LEI.
Renewing Your Legal Entity Identifier
It’s important to note that a Legal Entity Identifier is not a one-and-done process. To maintain its validity, the LEI must be renewed annually. The renewal process involves verifying the company’s information for any changes. This process of continuous data validation helps maintain the accuracy and reliability of the Legal Entity Identifier system.
RapidLEI offers multi-year LEIs to make renewal easier. Clients can register LEIs for up to five years in validity, and our systems automatically check for organisation reference data changes at renewal. This approach reduces the risk of lapsed LEIs.
Registering a Legal Entity Identifier for your company is an investment towards financial transparency and streamlined global transactions. It’s a crucial step in being a responsible participant in the global financial marketplace. By following this guide, you can navigate the process of obtaining an LEI with ease, enhancing your company’s financial visibility and credibility.
Should you need help registering your LEI, do get in touch. Our five star Client Service team will be happy to help.