The present invention discloses a light-emitting diode and a method for manufacturing such a light-emitting diode with a direct band-gap III-V compound semiconductor material on a GaAs substrate. It is implemented by forming a first conductive electrode on the top edge of the epitaxial LED layer and a second conductive electrode opposite the first conductive electrode on the edge of a transparent substrate. Further, after the first conductive electrode and second conductive electrode are connected by chip bonding skill, it is selectively to remove the GaAs substrate and plate a transparent electrode on the top portion of the epitaxial LED layer. Therefore, when casting from P-N junction of the light-emitting diode, the light will go through with directions of the top portion of epitaxial layer and transparent substrate.