The most common question asked by any entrepreneur would be “Angel Investors vs Venture Capital: Where Should I secure Funding?”
Angel Investor vs. Private Equity: Whom Should I consider for Funding?
When it comes to investing in your start-up you will have a number of questions. One such question which you would think about is “Angel Investor vs Private Equity?
Driving foreign businesses to overcome regulatory struggles in India
PwC enters into a JBR with ScaleX Business for providing business consultancy services in India.
A Guide to Seed Fundraising
What is it? When, How Much to Raise?
All you need to know about Singapore Branch Office Registration
A foreign company that wants to set up operations in Singapore has different types of business structures to choose from
When does a start-up need a Legal Entity Identifier?
Applicability of LEI
The RBI introduced LEI for specific transactions in a phased manner. Initially, this system was applicable to over-the-counter derivative markets. However, this system was extended to the following transactions:
Any entity engaged in trading in over the counter and international derivatives markets, trading in any foreign currency markets and credit derivative markets in India.
All payment transactions that exceed INR 50 Crore and above and such transaction is carried out through RTGS (Real Time Gross Settlement) and NEFT (National Electronic Funds Transfer). The RTGS/NEFT transaction can happen in a single tranche or aggregate during the year.
Entities that enjoy the exposure of INR 5 Crore or more from banks and financial institutions will be required to obtain an LEI code.
Which entities are required to register as an LEI?
LEI registration will depend on the transaction amount of a particular entity. For small transactions, this registration is not required. However, if the transaction exceeds the above criteria, then an entity would be required to register for an LEI.
The following entities will require registering as an LEI if they qualify for the minimum value:
Private limited companies;
One person companies (OPC);
Non-banking financial companies (NBFCs);
Limited liability partnerships (LLPs);
Alternative investment funds (AIF);
AIF Sub Fund;
Pension fund sub-schemes;
Co-operative societies;
Non-profit companies; and
Special purpose vehicles.
How to make an LEI application?
An application for LEI can be made through accredited agencies nominated by the RBI. The following are the accredited agencies for an LEI:
India LEI
LEI Register
Leikart India
Legal Entity Identifier India Limited
In case LEI is not taken by the applicant, future transactions and trading will not be allowed.
Validity of LEI
LEI code will be valid for a period of 1 year. There is an option to renew LEI every year.
Summary
The system of LEI code was brought out to increase transparency across financial transactions in the world. For now, the applicability of securing an LEI code is for entities which fulfil the above eligibility.
For any further queries on LEI, please get in touch with one of our experts.
Is Softex a mandatory filing for Technology and SaaS companies?
Softex is applicable for software exports that are carried out in an online form. Any company that deals with the export of information technology (IT) and information technology-enabled services (ITES) would be required to file Softex.
Annual Return on Foreign Liabilities and Assets (RBI FLA)
Indian companies that receive foreign investments require to file an annual return on foreign liabilities and assets (FLA). Read on to understand the requirements of filing an FLA.
Singapore Vs Dubai- Which is the best location to incorporate your company?
Singapore and Dubai are undoubtedly two of the preferred locations for incorporating a company. While Singapore offers some good avenues for foreign investment, Dubai has attracted foreign companies to incorporate due to tax and offshore benefits. To understand which is the preferred location for incorporating a business, a comparison is required. A quick comparison would provide us with a clear picture of where to incorporate.