Business & Compliance
What Is an LEI Code and Who Needs One?
An LEI is a globally recognised identifier for legal entities involved in financial transactions. Learn how it works, when it may be required and how to obtain one.
A Legal Entity Identifier, usually shortened to LEI, is a unique 20-character alphanumeric code used to identify a legal entity consistently across countries and financial systems.
Companies, funds, trusts, charities, government bodies and other organisations may need an LEI when participating in certain financial transactions. However, registering a company does not automatically mean that it needs an LEI. The requirement depends on the entity, transaction, jurisdiction and financial institution involved.
LEI code explained
The LEI acts as a globally standardised identifier for an organisation. It is based on the ISO 17442 standard and is designed to make it easier to determine which legal entity is participating in a financial transaction.
Each LEI:
- Is assigned to one legal entity
- Contains 20 letters and numbers
- Remains associated with that entity throughout its existence
- Connects to a public record containing verified reference information
- Can be searched through the Global LEI Index
- Can be used across national borders and financial systems
The code itself does not contain meaningful company details that a person can read directly. Instead, it connects to an LEI record containing information about the entity.
According to the Global Legal Entity Identifier Foundation, every LEI is unique and can represent only one entity.
| LEI characteristic | Explanation |
|---|---|
| Format | 20-character alphanumeric code |
| Standard | ISO 17442 |
| Scope | Legal entities and eligible organisational structures |
| Database | Global LEI Index |
| Data access | Publicly searchable |
| Maintenance | Reference information is periodically revalidated |
| Issuance | Through an accredited LEI issuer or an associated registration agent |
What information is connected to an LEI?
An LEI record normally contains key identification information about the entity. This is commonly divided into two levels.
Level 1: Who is who?
Level 1 data identifies the legal entity itself. Depending on the entity and available registry information, this may include:
- Official legal name
- Registered address
- Headquarters address
- Country and jurisdiction of formation
- Legal form
- Business-register identifier
- Registration status
- LEI issuance and renewal dates
This information helps distinguish businesses with similar names and reduces confusion when records from different countries or systems are combined.
Level 2: Who owns whom?
Where applicable, LEI records can also contain information about the entity's direct and ultimate accounting-consolidating parents.
GLEIF describes this as information that helps answer the question of "who owns whom."
Parent information is not available in every record. An entity may have no reportable accounting-consolidating parent, or an accepted reporting exception may apply.
Who needs an LEI code?
There is no single rule requiring every company in every country to obtain an LEI.
An organisation generally needs one when a law, regulator, trading venue, bank, broker or other financial institution requires the entity to be identified through an LEI.
Common situations include:
- A company trading reportable financial instruments through an EU or UK investment firm
- A legal entity participating in certain derivatives transactions
- A regulated financial institution with reporting obligations
- An investment fund or other financial-market entity
- An issuer of particular financial instruments
- A business opening a corporate investment account with a broker that requires an LEI
- An organisation involved in another regulated transaction where an LEI is a mandatory identifier
Under the EU Markets in Financial Instruments Regulation, investment firms use an LEI to identify clients that are legal persons in transaction reports. This has led to the commonly used principle "no LEI, no trade" for affected transactions.
The exact requirement depends on the transaction. A company that needs an LEI for securities trading may not need one simply to conduct its ordinary commercial operations.
| Situation | Is an LEI normally needed? |
|---|---|
| An individual investing personally | Generally no; individuals are usually identified using a national personal identifier |
| A company conducting ordinary business activities | Not automatically |
| A company trading reportable instruments through an EU or UK investment firm | Often yes |
| A company opening a corporate brokerage account | Depends on the broker, jurisdiction and intended transactions |
| A legal entity entering reportable derivatives transactions | Frequently required |
| A company opening a standard business bank account | Not universally required |
| A charity, trust or public body participating in affected financial transactions | May be required |
| A company obtaining an LEI voluntarily for identification purposes | May be possible if the entity is eligible |
If there is uncertainty, ask the broker, bank or financial service provider whether an LEI is required for the specific account and planned transactions.
Do individuals need an LEI?
Private individuals generally do not obtain an LEI when investing on their own behalf. Financial institutions normally identify individuals using the appropriate national identifier required by the relevant reporting rules.
A limited company is legally separate from its owner. Therefore, a person investing through a company may encounter LEI requirements even though the same person would not need one for a personal investment account.
Sole traders and other structures that are not legally separate from their owners can be more complicated. Eligibility and requirements may depend on the jurisdiction, regulatory purpose and the LEI issuer's validation rules.
Is an LEI the same as a company registration number?
No. An LEI does not replace the identifiers issued when a business is registered or becomes liable for tax.
| Identifier | Main purpose |
|---|---|
| LEI | Identifies a legal entity across financial transactions and reporting systems |
| Company registration number | Identifies a company within its official national business register |
| Tax identification number | Identifies the entity for taxation |
| VAT number | Identifies a business for applicable VAT purposes |
| ISIN | Identifies a particular financial instrument rather than the legal entity itself |
An LEI record may include the entity's business-register identifier, helping connect the global LEI record with the relevant national registry.
An LEI also does not prove that a company is trustworthy, regulated, solvent or authorised to offer financial services. It is an identifier, not a licence or endorsement.
How can you check whether a company already has an LEI?
Before applying, search for the entity in the free GLEIF LEI Search.
Search using:
- The complete legal name
- Previous legal names
- Company registration number
- Country or jurisdiction
- Existing LEI, if known
Check that the record belongs to the correct legal entity. Similar company names and group structures can otherwise cause confusion.
Also review the registration status. For example:
- Issued generally indicates that the record is active and its data is within the expected validation cycle.
- Lapsed means that the LEI reference data has not been renewed by its scheduled date.
- Retired generally indicates that the entity has ceased operating.
- Merged indicates that the entity has been merged into another legal entity.
A lapsed LEI is not reassigned to another business. However, a broker or other institution may require the record to be renewed before accepting it.
How do you obtain an LEI?
An LEI is issued through an organisation accredited to operate within the Global LEI System. These organisations are known as LEI issuers or Local Operating Units. Businesses may also apply through a registration agent working with an accredited issuer.
The general process is:
- Check for an existing LEI. An entity should not receive multiple LEIs.
- Select an LEI provider. Confirm which accredited issuer ultimately provides the LEI.
- Enter the entity's legal information. Use information matching the official business register.
- Provide any required ownership or authorisation information.
- Pay the applicable registration fee.
- Wait for the information to be validated and the LEI to be issued.
The price and processing time vary by provider, country, registry accessibility and whether additional documentation is required.
Apply for an LEI through StandardsDesk. StandardsDesk may receive a commission if you apply through this link — see our affiliate disclosure.
Does an LEI expire?
The identifier itself remains associated with the same legal entity, but the information connected to it must be kept current.
GLEIF's renewal process requires the entity information to be reviewed and revalidated periodically, normally at least once each year. If renewal is not completed by the scheduled date, the record can receive a lapsed status.
Renewal is important because company information can change, including:
- Legal name
- Registered address
- Headquarters address
- Business-register details
- Legal form
- Ownership relationships
- Entity status
Some providers offer multi-year packages. This usually means that the provider manages the required validations during the purchased period; it does not convert the LEI into a permanently verified record.
Why are LEIs used?
Financial institutions and regulators often need to combine information reported by organisations in different countries and systems. Company names alone are unreliable identifiers because:
- Multiple businesses can have similar names
- Names can be written differently across systems
- Companies can change their names
- Different alphabets and transliterations may be used
- A corporate group can contain many separate legal entities
A common global identifier makes it easier to match records to the correct entity, improve transaction reporting and examine relationships between organisations.
Frequently asked questions
How many characters are in an LEI?
An LEI contains 20 alphanumeric characters and follows the ISO 17442 standard.
Can one company have two LEIs?
A legal entity should have only one LEI. Search the Global LEI Index before applying to avoid creating a duplicate request.
Can two companies share an LEI?
No. Each LEI identifies one legal entity. Separate legal entities within the same corporate group generally require separate LEIs when they are subject to an LEI requirement.
Does an LEI prove that a company is legitimate?
An LEI connects to verified reference information, but it is not a regulatory licence, credit rating or guarantee that the entity is trustworthy. Additional due diligence may still be necessary.
Must an LEI be renewed every year?
The connected reference data is generally expected to be revalidated at least annually. If the scheduled renewal is missed, the record can become lapsed.
Can a lapsed LEI be renewed?
Yes. The responsible LEI provider can normally validate the entity information and return an eligible lapsed record to issued status.
Is an LEI required to open a corporate brokerage account?
It depends on the broker, jurisdiction and instruments the company plans to trade. Ask the broker before applying, but many European and UK corporate investment accounts require an LEI for affected transactions.
The key point
An LEI is a global identification code for legal entities. It is not automatically required simply because an organisation has been registered, but it can be mandatory when that organisation participates in particular regulated financial transactions.
Before applying:
- Confirm that the financial institution requires an LEI.
- Search the Global LEI Index for an existing record.
- Check that the organisation is eligible.
- Apply using information that matches the official business register.
- Keep the record renewed when an active status is required.
