The Legal Entity Identifier (LEI) system was initiated as a response to the financial crisis and is aimed at improving transparency in financial data systems. However, the Global LEI System (GLEIS), was introduced to ensure that there is just one standard system. There are numerous regulations among jurisdictions that require the use of LEI’s. However, the main idea of Global Legal Entity Identifier is to simplify, standardise and provide the ease of identification of any legal entity worldwide.
For the detailed understanding on LEI, its applicability and timelines, you may visit the following link:
Let us go through the steps to be followed for registration under LEIL:
# Step 1:
Since the LEIL has prescribed the format for the documents to be submitted for registration, you will have to visit the page- https://www.ccilindia-lei.co.in and download the formats of the documents available for downloading and to be submitted while registration. Download all the documents applicable for your registration.
# Step 2:
Create an Account:
In order to register, the entity needs to first create an account with LEIL. It is mandatory to create an account with the officials who has been duly authorised to do so and the email id used should be exclusively of the authorised officials. The application with the details of the unauthorised officials will not be accepted.
# the officials who has been duly authorised-
· For the Companies, is the one authorised by the Board Resolution;
· For Trusts, is the one authorised Board of Trustees Resolution;
· For Societies, is the one authorized by the Resolution of the Committee of Members;
· For sole proprietorship concerns, is the proprietor himself or a duly authorized person appointed through a power of attorney;
· For partnership firms and limited liability partnerships, is the partners themselves or an authorized person appointed through a power of attorney;
· For mutual fund/mutual fund sub-schemes/AIF/AIF Sub-Scheme/pension fund/pension fund, sub-scheme, is the official authorized to submit a Letter of Authority in terms of the Board Resolution of the AMC/Trust/Fund.
Email Activation:
Once the account is created, a link would be sent on the registered email id. The entity has to click on it to activate the account. Upon activation, the entity will be directed to the portal for login and complete the process.
# Step 3:
The entity needs to ensure that it has not yet received/ applied for LEI code earlier and the same can be checked on www.gleif.org/lei/search . Upon confirmation, the entity shall proceed to input their details on the LEI Registration Page. The LEI registration page involves four pages of information as follows:
a. Company Information Page
b. Direct Parent Page (Holding Company Information)
c. Ultimate Parent Page
d. Payment Page
# Step 4:
The payment structure for registration shall be Rs. 4,500 + 18% GST which can be paid either by Net Banking/ Credit Card/ Debit Card or through Demand Draft. Once the payment is done, the documents needs to be uploaded on the upload page.
The entity will have to upload the scanned copy of the documents which include but not limited to:
a. Certificate of Incorporation of the Company/ Registration Certificate of the entity;
b. Pan Card of the entity;
c. Undertaking- cum- Indemnity as per the format specified by LEIL. (The amount of stamp duty to be paid will be mentioned on the downloaded document;
d. Audited Financial Statements of the entity;
e. Board Resolution as per the format provided by the LEI. In case, the entity is not able to hold a meeting immediately then a certified true copy of the general board resolution/ POA may be accepted only if the entity commits to submit the fresh board resolution in the format as prescribed by the LEIL as and when the next Board Meeting is held subsequently;
f. In case of any delegation by officials mentioned in Board Resolution, POA on the format prescribed by the LEIL;
g. Audited financial of the holding and ultimate parent or auditors’ certificate as per the format prescribed by the LEIL in case of holding and ultimate parent.
Important Notes:
1. If the entities are not able to upload the documents on online form which registration, they can click on skip/ upload later tab and proceed. Later, the same can be uploaded by visiting the home page of LEIL. In case, the entities are not able to upload the documents, it can be couriered to LEIL directly.
2. Due to COVID-19, if the entities are not able to procure franked POA/ Undertaking, then they can execute these documents along with a clarification letter mentioning the reason of not franking the documents and that the entity will submit the revised POA/ undertaking duly stamped as and when the services are available.
3. LEIL may ask for submission of additional documents if necessary for the verification process. If there are any observations while verifying the form, LEIL may also suggest correction to be made in the online submitted form.
# Step 5:
LEI Issuance
Once all the steps from # step 1 to # step 4 is completed, the documents are verified and LEI number is issued. The 20 digit LEI number issued to the legal entity will be sent to the email id registered with the LEIL. The legal entity will then have to share the same with all their banks. Further, an invoice which is digitally signed will be sent to the registered email id upon the issuance of the LEI number.
If you have any queries, you can write to me at anjalibansalcs@gmail.com