How much does an LEI code cost in India?
A Legal Entity Identifier (LEI) is a mandatory 20-character unique code required for businesses engaged in financial transactions, regulatory reporting, and cross-border trade. The Reserve Bank of India (RBI), the Securities and Exchange Board of India (SEBI), and the Insurance Regulatory and Development Authority of India (IRDAI) require companies to obtain an LEI code to ensure transparency in financial transactions.
This article provides a detailed breakdown of LEI registration costs, renewal fees, hidden charges, and ways to save on LEI registration in India.
Factors affecting the cost of an LEI code
The cost of an LEI code depends on several factors, including:
- Registration fees: A one-time charge for first-time LEI issuance.
- Renewal fees: The annual cost to maintain an active LEI.
- Service provider pricing: Different providers offer different price points based on service and support.
- Multiyear plans: Opting for three-year or five-year renewal plans lowers the overall cost.
- Transfer costs: Switching providers is usually free but can result in cost savings on renewals.
Opting for a Multiyear renewal plan can reduce long-term renewal costs and ensure uninterrupted LEI validity.
LEI registration costs in India
LEI pricing varies among service providers in India. Below is a comparison of costs for new LEI registrations:
| LEI provider | 1-year cost (INR) | 3-year cost (INR) | 5-year cost (INR) |
|---|---|---|---|
| LEIKart | 3990 | 10950 | 16900 |
| Local Operating Units (LOUs) | 5000 – 7000 | 14000 – 18000 | 22000 – 30000 |
| Global LEI providers | 6000 – 10000 | 15000 – 25000 | 25000 – 40000 |
Choosing a provider with a competitive pricing structure ensures businesses do not overpay for registration and renewal.
LEI renewal costs in India
An LEI code is valid for 12 months and must be renewed annually. If an LEI is not renewed, it becomes lapsed, restricting a business’s ability to conduct financial transactions.
| Renewal period | LEIKart cost (INR) | Other providers (INR) |
|---|---|---|
| 1-year renewal | 4350 | 5000 – 7500 |
| 3-year renewal | 11970 | 14000 – 18000 |
| 5-year renewal | 16900 | 22000 – 30000 |
Renewing for multiple years in advance reduces long-term costs and eliminates the risk of a lapsed LEI.
Hidden costs to watch out for
Some LEI providers advertise lower prices but may include hidden charges. Businesses should be aware of:
- Processing fees: Some providers charge additional service fees.
- GST and taxes: Ensure that the quoted price includes applicable taxes.
- LEI transfer fees: Most providers allow free transfers, but some may charge an administrative fee.
- Premium processing charges: Some services charge extra for expedited processing.
Selecting a provider with transparent pricing ensures businesses do not face unexpected costs.
How to get the best price for an LEI code in India
Businesses can save on LEI registration and renewal by following these strategies:
- Choose a cost-effective provider: Opt for an LEI provider with transparent pricing and no hidden fees.
- Select Multiyear plans: Registering for three or five years in advance reduces overall costs.
- Monitor discounts and offers: Some providers offer seasonal discounts on LEI registration and renewal.
- Transferring to a lower-cost provider: If renewal costs are high, transferring to a better-priced provider can save money.
How to Register for an LEI code in India
Registering for an LEI is a straightforward process that can be completed online.
- Visit the LEI provider’s website and select the registration option.
- Enter company details, including the registered name, address, and business identification number (CIN/GST).
- Select the preferred plan (one-year, three-year, or five-year registration).
- Complete payment using UPI, net banking, credit/debit card, or NEFT.
- Receive the LEI code via email once the application is processed.
LEI registrations are typically processed within 24 hours, ensuring businesses can meet compliance requirements without delays.
Frequently Asked Questions (FAQs)
1. How much does an LEI cost in India?
The cost of an LEI in India ranges from 3990 to 7000 INR per year, with discounts for Multiyear renewals depending on the service provider.
2. Is there a renewal fee for an LEI?
Yes, LEIs must be renewed annually. Renewal costs vary from 4350 to 7500 INR per year, with discounts for Multiyear renewals.
3. Can an LEI be transferred to another provider?
Yes, businesses can transfer their LEI to another provider. Most providers offer free transfers, allowing companies to reduce renewal costs.
4. Does RBI require businesses to obtain an LEI?
Yes, the RBI mandates an LEI for corporate borrowers with loans exceeding ₹5 crore. The final compliance deadline is 30 April 2025.
5. How long does it take to get an LEI?
LEI applications are typically processed within 24 hours, depending on the provider.
Conclusion
An LEI code is mandatory for businesses engaged in financial transactions and regulatory reporting. While costs vary by provider, businesses can reduce expenses by choosing a transparent provider, opting for Multiyear renewals, and transferring to a cost-effective service.
Businesses should compare pricing and service quality before selecting a hassle-free LEI registration or renewal provider.
