How to register for a legal entity identifier (lei)

The Bottom Line

To obtain a Legal Entity Identifier (LEI), you must apply through a GLEIF-accredited Local Operating Unit (LOU). This 20-character alphanumeric code is mandatory for most UK businesses involved in financial market transactions, such as trading shares, bonds, or derivatives, and is a key requirement for complying with reporting regulations like MiFID II.

What is a Legal Entity Identifier?

Think of an LEI as a universal business ID card. Introduced following the 2008 financial crisis, it was designed to create transparency in global financial markets. It allows regulators and financial institutions to see exactly who is involved in a transaction, reducing risk and preventing fraud. In the UK, if your business is regulated or interacts with financial markets, you likely cannot trade without one.

How to apply for your LEI

The process is straightforward and typically completed online. Follow these steps to get your business registered:

1. Choose an accredited LOU: You must use an organisation authorised by the Global Legal Entity Identifier Foundation (GLEIF). In the UK, the London Stock Exchange is a common choice, but you can use any accredited provider globally.
2. Gather your company information: You will need your official business name, registered address, and your Companies House registration number. You may also need to provide details about your 'parent' company if your business is part of a larger group.
3. Submit the application: Fill out the online form on your chosen LOU’s website. You will be asked to provide evidence of your legal status (such as your Certificate of Incorporation).
4. Pay the registration fee: Prices vary by provider but usually range between £50 and £150 for the initial registration.
5. Verification: The LOU will verify your details against official records (like Companies House). This usually takes between 24 hours and a few business days.

Key facts about LEI management

Pro Tip: Many providers offer multi-year packages. Since you are legally required to renew your LEI every year to keep it active, signing up for a 3nd or 5-year plan can often save you money and reduce the administrative burden of annual renewals.

Maintaining your LEI

An LEI is not a 'set and forget' task. If your LEI status lapses and becomes 'Lapsed' in the global database, your bank or broker may legally be required to block you from making financial transactions until it is renewed. Always ensure your contact details with the LOU are up to date so you receive renewal reminders.