An LEI enables clear and unique identification of legal entities (natural persons excluded) who participate in financial transactions issued under the Global LEI System. All unique parties that are legally or financially responsible for the performance of financial transactions or that have the legal right in their jurisdiction to enter independently into legal contracts are required to obtain LEIs, regardless of whether they are incorporated or constituted in some other way (e.g. trust, partnership, contractual). Therefore, even if an offshore company does not, for example, engage in any operations at all, if they are entering into a financial transaction and are legally bound by it, they should apply for an LEI.