How to obtain a Legal Entity Identifier in Hong KongHow to obtain an LEI for a company in Hong KongIf you are transacting in the global financial system, you will more than likely be required to obtain a Legal Entity Identifier (LEI).
Whether your company is based in Hong Kong, or registered in an offshore destination like the Cayman Islands, you can obtain an LEI quite easily regardless of its location. Applying for an LEI number is simple, and can be completed in a matter of minutes regardless of the entity type. Having an LEI is recommended especially in the Hong Kong due to madate for reporting OTC Derivatives |
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Legal Entity Identifiers in Hong Kong
A Legal Entity Identifier (LEI) is a 20 digit code that is unique to a legal entity and provides basic information about the entity such as name, address and entity type e.g Limited Company. We explore this further in our recent post What is the Legal Entity Identifier?
Who needs an LEI in Hong Kong?
Since April 1st 2019 LEIs became mandatory for OTC Derivative reporting in Hong Kong. This was introduced by the HKMA (Hong Kong Monetary Authority). This rule was only implemented on October 1st 2019, due to a deadline extension to allow lagging entities avoid being non-compliant to this new rule.
According to the Hong Kong Monetary Authority (HKMA), and the Securities and Futures Commission (SFC), reporting entities will have to produce an LEI code in the recording of new transactions and daily valuations.
According to the Hong Kong Monetary Authority (HKMA), and the Securities and Futures Commission (SFC), reporting entities will have to produce an LEI code in the recording of new transactions and daily valuations.
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If you are a Limited Company or Sole Trader, you may not need an LEI number in Hong Kong by law. If you are engaged in cross border activity it is a good idea to have an LEI code in Hong Kong before you need one, as it is quickly being adopted as a global standard and over 8,600 entities with Legal Entity Identifiers in Hong Kong.
If you are in financial services you will be required to legally register your entity for an LEI in order to fulfil your OTC and regulatory reporting obligations. To find out if you fall into this category and require an LEI please see our post discussing Who Needs an LEI? Offshore companies owned by Hong Kong individuals will also have to obtain an LEI in a global effort to bring transparency to the offshore financial ecosystem. |
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However, more entities such as Limited Companies and Sole Traders are turning to the global LEI system even though it is not legally required. This is because there are many benefits associated with having a Legal Entity Identifier in Hong Kong. By obtaining a new LEI code, it provides you with an instant credibility boost, and an internationally recognised identity card. You can also benefit from the added layer of identity security and prevent any such identity or fraud related errors.
How to get a Legal Entity Identifier in Hong Kong
Obtaining a Legal Entity Identifier code for a Hong Kong company is a simple process. The LEI application form only takes a couple of minutes and any representative of the company may apply on behalf of the entity.
1. Click on the 'Register New LEI' button here or visit the homepage of this website. Fill out your contact details as the applicant. This information will be used to contact you in case any additional information is required.
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2. Provide details of the entity which requires an LEI. This will include information such as address, name of Director or person legally responsible for the entity such as CEO, or Owner.
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3. The next section 'Level 2 Data' gives you the opportunity to report parent company information.
For example, if your company is a branch or subsidiary of a larger organisation, and has a HQ parent you may have that information appear on the LEI record. If you wish to report a legal parent company, please note that you will be requested to provide evidence of this relationship by way of Consolidated Accounts (i.e an annual report).
You may only report parent information if the parent company consolidates the accounts and the subsidiary is listed there, and that parent company owns 50% or more of the child company.
For example, if your company is a branch or subsidiary of a larger organisation, and has a HQ parent you may have that information appear on the LEI record. If you wish to report a legal parent company, please note that you will be requested to provide evidence of this relationship by way of Consolidated Accounts (i.e an annual report).
You may only report parent information if the parent company consolidates the accounts and the subsidiary is listed there, and that parent company owns 50% or more of the child company.
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4. Upload documentation relevant to your application. When an LEI application is submitted, the data is cross matched with what is on the relevant local companies registry.
If however the company cannot be found, or the data does not match the registry, we may request that you provide supporting documentation. Some good examples include a Certificate of Incumbency, Register of Directors, or a registry extract.
If however the company cannot be found, or the data does not match the registry, we may request that you provide supporting documentation. Some good examples include a Certificate of Incumbency, Register of Directors, or a registry extract.
Once the application is submitted, simply choose your preferred payment method and complete the application. LEI Worldwide use our payments provider STRIPE and PayPal. We also offer the ability to complete a bank transfer or swift payment in any currency including Hong Kong Dollars.
A member of the LEI Worldwide team will review the submission upon completion and you will receive your LEI code within a few hours.
If you have any questions please contact [email protected]
A member of the LEI Worldwide team will review the submission upon completion and you will receive your LEI code within a few hours.
If you have any questions please contact [email protected]
To apply for your own LEI or on behalf of a legal entity, please select the option from the buttons below.
