When and Why to Renew Your LEI Code: The Risks of an Expired LEI
The Legal Entity Identifier (LEI) is an international identification code that proves a company’s legal existence and ensures greater transparency in the global financial system. It works like a digital passport for your business — and, like any passport, it must be renewed regularly. Yet many companies overlook this step, not realizing the potential consequences.
In this article, we explain why renewing your LEI matters, what happens when it expires, and how to avoid common mistakes.
LEIs are valid for 12 months — and that year passes faster than you think
Each issued LEI is valid for exactly 12 months from the date of its registration or last renewal. For example, if your company’s LEI was issued on October 10, 2025, it will expire on October 09, 2026, unless renewed.
The Global Legal Entity Identifier Foundation (GLEIF) requires that all LEI data — such as company name, registration number, address, and ownership structure — must be reviewed and reconfirmed annually. If this validation is not completed, the LEI’s status in the global database becomes “Lapsed.”
An expired LEI does not disappear from the system, but it means the data is no longer up to date and can no longer be relied upon in financial transactions.
You can easily check your LEI status using the LEI System search tool to see if it’s active or about to expire.
What happens when your LEI expires
Many companies are unaware that an expired LEI can immediately block their ability to trade.
If your LEI is no longer active, your company cannot execute transactions governed by MiFID II, EMIR, or SFTR regulations — which apply to all financial markets in the European Union. Banks, brokers, and trading platforms automatically check the LEI status before processing a transaction. If it shows as “Lapsed,” the system simply refuses to proceed.
Outside the EU, the LEI is also becoming a widely accepted identifier.
In the United States and India, for example, several supervisory authorities require LEIs for regulatory reporting and risk assessment. An expired LEI can result in rejected reports or delayed compliance processing.
There is also a reputational aspect.
The GLEIF database is public and transparent. When your LEI appears as “Lapsed,” it shows that no one has updated your record for some time. That can signal carelessness and lower trust.
Investors, partners, and banks can instantly see that your company’s data is outdated. This can create doubts about your reliability and may delay cooperation or transactions.
Real-world examples: what companies risk losing
LEI System’s partners have seen several cases where companies forgot to renew their LEI and lost access to trading platforms.
Some trades stopped for several days because renewal was missed. Others failed completely when the reports did not meet EMIR or MiFID requirements.
It works much like car insurance — if it expires, you lose protection. The same rule applies to LEIs: when your code expires, you lose access to regulated financial systems and transparency networks.
To understand when an LEI is legally required, read the article Who Needs an LEI Number?.
How to avoid LEI expiry
Renewing an LEI is simple and usually takes just a few minutes.
The best approach is to renew your LEI at least 30 days before it expires. LEI System sends automatic reminders before the renewal deadline, but it’s wise to set your own calendar notification as well — especially if your company manages multiple LEIs or handles renewals through an external accountant.
Three practical tips:
• Renew early — avoid last-minute verification delays.
• Check your company details — use the renewal to ensure your name, address, and registry data are accurate.
• Choose a reliable provider — LEI System updates all information directly with GLEIF using official registry sources, ensuring your LEI remains active and compliant.
You can start your renewal anytime through the LEI System renewal page.
3- and 5-year packages: convenient and cost-effective
For businesses that want to secure their LEI for a longer period without worrying about yearly renewals, LEI System offers 3- and 5-year packages at a reduced annual rate.
When you buy one of these packages, you pay for the full period in advance. LEI System renews and validates your data every year directly with GLEIF, so you don’t need to do anything yourself.
Our team takes care of the annual validation, ensuring your company’s information always stays accurate and compliant. You don’t have to track renewal dates or fill in any forms.
The longer-term packages offer a lower average yearly cost and ensure peace of mind that your LEI remains active, verified, and compliant throughout the full period.
You can compare all prices and options on the LEI Number Price page.
What to do if your LEI has already expired
If your LEI shows as “Lapsed,” don’t worry — you can reactivate it quickly.
To renew, go to the LEI renewal page, enter your company’s basic details, and confirm your order. LEI System will update and revalidate your data automatically. Your LEI will usually become active again within 24 hours.
If your company information has changed, such as a new address or name, you’ll just need to confirm it so that the GLEIF database reflects the updates correctly.
To learn how to apply for a new LEI or transfer an existing one, visit How to Obtain an LEI or Transfer LEI.
Summary: a small action with a big impact
Renewing your LEI may seem like a small administrative task, but it plays a key role in maintaining your company’s credibility and regulatory compliance.
An expired LEI can halt transactions, delay reporting, and damage reputation — while an active, regularly renewed, or long-term package ensures that your company data remains accurate and trustworthy across all financial systems.
Renew your LEI early, or choose a 3- or 5-year plan so that LEI System can manage it automatically on your behalf — keeping your company “active” both in the GLEIF database and in business.