Applicability of FLA Return
All Indian companies, LLPs and Others including Partnership Firms, Investment Vehicle, etc. which have received Foreign Direct Investment and/or have made Overseas Investment (Foreign Direct Investment (FDI) abroad) in the previous year(s) including the current year, should file the annual return on Foreign Liabilities and Assets (FLA) to the Reserve Bank of India.
The RBI has now Introduced a new Web-based submission system for Online reporting of the FLA- Foreign Liabilities and Assets Information Reporting (FLAIR).
Introduced Changes
- The Current email-based submission of FLA forms will be discontinued.
- Reporting entities have to create a log-in ID with name and password and register themselves on the following web portal: https://flair.rbi.org.in
- RBI allows for revision in the current year. It also allows for the submission of FLA returns of the previous year(s). For this, the reporting company needs to make a request to RBI to enable the same in the portal. The portal has a provision to make such a request. Or else, the reporting company can also write to RBI (surveyfla@rbi.org.in) for seeking approval for accessing submitted return for revision in the submitted information.
- The RBI has issued a user manual containing step-by-step instructions for registration and data entry, and FAQs, both of which can be downloaded from the FLAIR portal (https://flair.rbi.org.in)
- The User Registration requires two uploads (a) SCANNED (as PDF/JPG) and SIGNED authority letter and (b) verification letter (SAVED AS XXXX.PDF(NOT SCANNED), NOT SIGNED)
- UPLOAD Authority Letter: The authority letter is obtained from the reporting company on its letter-head, in the format as indicated. It should be signed by the appropriate authority. The scan copy (as PDF/JPG) of the same needs to be uploaded.a. UPLOAD Authority Letter :
- UPLOAD Verification Letter: (Simple typed letter (without any signature) in the prescribed format and SAVED as XXXX.pdf on the desktop, needs to be uploaded (Please do not scan). Please note that the Verification letter will have only the name and designation of the signatory that authorized the user in the authority letter and NOT his signature).
Due Date:
In view of the recent change in reporting platform for submission of FLA return, the last date for filing the FLA return for 2018-19 has been extended to July 31, 2019, for the convenience of reporting this year.
RBI Circular on FLA
RBI/2018-19/226
A.P. (DIR Series) Circular No. 37
June 28, 2019
To
All Category – I Authorised Dealer Banks
Madam/Sir,
Annual Return on Foreign Liabilities and Assets
Reporting by Indian Companies
Attention of Authorised Dealer Category – I banks is invited to A.P. (DIR Series) Circular No.133 dated June 20, 2012 which stipulated that all Indian companies which have received FDI and/or made FDI abroad (i.e. overseas investment) in the previous year(s) including the current year, should file the annual return on Foreign Liabilities and Assets (FLA) in the soft form which can be duly filled-in, validated and sent by e-mail to the Reserve Bank by July 15 of every year. The coverage was enhanced to reporting of inward and outward foreign affiliate trade statistics (FATS) and reporting by the limited liability partnerships (LLPs) through the subsequent circulars {A .P. (DIR Series) Circular No. 145 dated June 18, 2014, A.P. (DIR Series) Circular No.22, dated October 21, 2015, and A.P. (DIR Series) Circular No. 29, dated February 02, 2017}.
With the objective to enhance the security-level in data submission and further improve the data quality, the present email-based reporting system for submission of the FLA return will be replaced by the web-based system online reporting portal. It would facilitate data submission by eligible entities {including the alternative investment funds (AIF) registered with the Securities and Exchange Board of India (SEBI) as also the reporting of foreign investment in the form of capital/profit share contribution received/transferred in case of LLPs and investment by persons resident outside India in an investment vehicle and as defined in Foreign Exchange Management (Transfer or issue of security by a person resident outside India) Regulations 2017, dated November 7, 2017}.
Following are the main features of the revised Foreign Liabilities and Assets Information Reporting (FLAIR) system:
- Reserve Bank would provide a web-portal interface https://flair.rbi.org.in to the reporting entities for submitting “User Registration Form” (containing entity identification and business user details, where LLPs and AIFs will no longer required to use dummy CIN). The successful registration on web-portal will enable users to generate RBI-provided login-name and password for using FLA submission gateway and would include system-driven validation checks on submitted data.
- The form will seek investor-wise direct investment and other financial details on fiscal year basis as hitherto, where all reporting entities are required to provide information on FATS related variables (it was mandatory only for subsidiary companies earlier). In addition, the revised form seeks information on first year of receipt of FDI/ODI and disinvestment.
- Reporting entities will get system-generated acknowledgment receipt upon successful submission of the form.
- They can revise the data if required, and view/download the information submitted.
- Entities can submit FLA information for earlier year/s after receiving RBI confirmation on their request email.
- The existing mechanism of email-based submission of FLA forms will be discontinued.
Indian entities not complying with above, will be treated as non-compliant with Foreign Exchange Management Act, 1999 and regulations made thereunder.
These directions will come into force with immediate effect and would be applicable for reporting of information for the year 2018-19. AD Category-I banks may bring the contents of this circular to the notice of their constituents and customers concerned.
The directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law.
Yours faithfully,
(R K Moolchandani)
Chief General Manager
Download Word Formats
- Download Word Format of Verification Letter
- Also, Download Word Format of Authority Letter.
- Download the User Manual
- FAQ I on General Instructions.
- FAQ II on the filing of FLA
- Format of FLA