FLA Return also known as Foreign Liabilities and Assets Return. It is filed by an Indian Entity if they have received Foreign Direct Investment (FDI) or invested in Overseas Direct Investment (ODI) in any of the previous years including the current year.
Start Filing FLA Return here.
Introduction
- Foreign Liabilities and Assets is an Annual Return. The last date for filing FLA is 15th of July every year.
- The onus of reporting is upon the Indian Company- both- in the case of ODI & FDI.
- The reporting company has to authorize a person to file the return on their behalf with RBI.
- The earlier system of sending FLA in the (excel-format) specified sheet through e-mail has been replaced with online filing on the RBI website.
- RBI introduced Foreign Liabilities and Assets Information Reporting (FLAIR) System for filing the FLA return from FY 2018-19 onwards.
- File the FLA using the link- https://flair.rbi.org.in/fla/faces/pages/login.xhtml
- FLA return must cover all the Investments made by the Company and/or to the Company.
Who Should File FLA Return
- Annual return on Foreign Liabilities and Assets has been notified under FEMA 1999.
- It is required to be submitted by all the following entities which have received FDI and/ or made an overseas investment in any of the previous year(s), including the current year, i.e. who holds foreign assets or/and liabilities in their balance sheets-
1. A Company within the meaning of section 1(4) of the Companies Act, 2013.
2. A Limited Liability Partnership (LLP) registered under the Limited Liability Partnership Act, 2008.
3. Others [include SEBI registered Alternative Investment Funds (AIFs), Partnership Firms, Public-Private Partnerships (PPP), etc.]
- If the company’s accounts are not audited before the due date of submission, i.e. July 15, then the FLA should be submitted based on unaudited (provisional) account. Once the accounts get audited and there are revisions from the provisional information submitted by the company, they are supposed to submit the revised FLA return based on audited accounts by 30th September.
- Non-filing of the return before the due date will be treated as a violation of FEMA and the penalty clause may be invoked for violation of FEMA.
- The Company can still file FLA after the due date by taking approval from RBI.
Who are Exempted from filing the FLA?
- Companies are exempt from filing the FLA if they have never received any FDI or made ODI.
- If the Indian Company has issued shares only on Non-repatriable basis, they are exempt from filing FLA.
- Companies that do not have any outstanding investment in respect of FDI/ ODI at the end of Financial Year are exempt from filing the FLA return.
- If the company has not received any fresh FDI and/or ODI (overseas direct investment) in the latest year but the company has outstanding FDI and/or ODI, then that company is required to submit the FLA Return.
Tips for Filing the FLA Return
- Company’s Authorised Person should file FLA directly on RBI Portal.
- Complete information of all existing Assets and Liabilities has to be filed in the return.
- If the Account Closing Period of the company is different from the reference period (April- March), then the information should be given for the reference period on internal assessment.
- If the company’s accounts are not audited before the due date of submission, i.e. July 15, then the FLA Return should be submitted based on unaudited (provisional) account. Once the accounts get audited and there are revisions from the provisional information submitted by the company, they are supposed to submit the revised FLA return based on audited accounts by 30th September.
Facing Problems in Submission of the FLA Return?
- Refer RBI issued User Manual for registration here.
- Still got query??? Refer FAQ I and FAQ II by RBI.
Also, Feel free to write us in case of query
You may also get further information on the extension of Due date for filing the FLA return for FY 2018-19 and word formats of required letters here.
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