FLA Returns Under FEMA
File before 15th July Every Year
The companies or the LLP receiving FDI in the current or previous financial year must file the details of foreign assets and liabilities in FLA Return to the RBI before 15th July. We assist in filing the FLA Returns or revising thereof.
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- Compliance
- RBI Annual Filing (FLA)
FLA Returns Under FEMA - A Brief Overview
- What is FLA Return?
FLA Return is an annual report of foreign assets and liabilities done by Indian companies or entities that either receive foreign investment or invest in wholly owned subsidiaries or joint ventures owned by a foreign entity.
- Who Should File?
The FLA annual return to RBI applies to the following entities:
- That receives FDI in the current FY
- Make ODI investments in the current FY
- Have outstanding foreign assets or liabilities from previous years
- What’s the Process?
- Go to the RBI FLAIR Portal
- Create a New User Account and Get Login Credentials
- Login to the FLAIR account
- Prepare and Submit the FLA Return Form
- Receive Acknowledgement of Submission
- List of Documents
Documents Required to Register Company in India
- CIN
- Company’s PAN
- Authorised Person’s PAN
- Authority Letter
- Verification Letter
- Financial Statements (Audited / Unaudited)
- List of Employees on Company’s Payroll
- FDI/ ODI details
- Shareholding Pattern
- Due Date
- 15th July Every Year.
- Revised Return can be Filed by the End of September
- Penalties & Late Fees
3 times the amount involved in FEMA violation of R. 2 lakhs if the violation is non-quantifiable. For continued offence, Rs.5,000 per day. Late fees of Rs.7,500 per return.
FLA Return Applicability
FLA returns are filed annually to the RBI to report current or outstanding foreign assets and liabilities. All Indian entities engaged in FDI and ODI transactions must file these returns to ensure FEMA compliance. FDI or foreign direct investment is the investment that foreign entities and NRIs (on a repatriation basis) make in Indian companies or LLPs. Contrary to this, ODI or overseas direct investment is made by the Indian resident individuals, companies, LLPs, or other permitted entities into wholly or partly owned subsidiaries and joint ventures with foreign entities. In either case, the liability of filing the FLA returns rests upon the Indian entity only. Here’s a list of Indian entities to which the filing of FLA Return to the RBI is applicable.
Indian Company as defined under the Companies Act
Indian LLP as defined under the LLP Act
Other Entities include Alternative Investment Funds (AIF),
Partnership Firms, and
Public-Private Partnerships (PPP).
Entities Exempted from Filing RBI FLA Returns
The purpose of filing the FLA return is to provide the Reserve Bank of India (RBI) with comprehensive and accurate information on the foreign assets and liabilities held by Indian entities; therefore, the entities that do not have FDI or ODI or foreign assets or liabilities are exempt from the filing of FLA. Here is an indicative list of the entities that are exempt from filing the FLA Return.
Companies that have issued shares to NRIs on a non-repatriable basis
Companies that have Nil outstanding assets and liabilities at the end of the relevant financial year
Companies that have received only share application money and no actual FDI
Companies that have no outstanding foreign assets or liabilities during the reporting period
FLA Return Filing Procedure
FLA return filing is a FEMA obligation to report the foreign assets or liabilities by the applicable entities, and it is filed online on the RBI’s FLAIR portal. Before beginning, the company or entity must appoint an authorised person to file the return. The appointment can be made through a Letter of Authority drafted on the company’s letterhead and signed by an appropriate officer. Here are the steps to be followed:
STEP
01
Create a New Business User Account
The first step is to create a new business user account on the RBI FLAIR portal ( https://flair.rbi.org.in ). Once you reach the sign-up page, fill in the details of the entity and the authorised person. Also, upload the verification and authority letters in the prescribed formats. Upon successful submission, the login credentials will be sent to the provided email address.
STEP
02
Login using Credentials
Sign in using the credentials from Step 1, including the user ID and password. On the Home Page, navigate to and access the online FLA return form.
STEP
03
Prepare & Submit FLA Return Online
The FLA return form is divided into 5 sections, which include identification of the entity, financial details, foreign liabilities, foreign assets, and verification report. Fill in the first 4 sections carefully. The 5th section contains an auto-generated verification report in the read-only format.
STEP
04
Receive Acknowledgement
Once all the details are filled in, the return is finally submitted to the portal. An acknowledgement of successful submission is displayed on the screen to confirm.
Checklist & Documents Required for Filing of FLA Return
The FLA RBI return is filed with comprehensive details of the entity, the authorised signatory, investment, foreign assets, and foreign liabilities. Although no specific documents are attached or uploaded with the return form, we require certain documents for verifying the details mentioned in it. Here’s an inclusive list of what we need:
Documents Required
- CIN of the Company / LLP. Dummy CIN in case of Partnership firms, Trustees, and Foreign Branch Offices.
- Company’s PAN
- Authorised Person’s PAN
- Authority Letter on Company's Letterhead
- Verification Letter
- Financial Statements (Audited / Unaudited)
- List of Employees on Company’s Payroll
- FDI/ ODI details
- Shareholding Pattern
Checklist
- Official Mobile Number & Email ID
- Authorised Person’s Mobile Number & Email
- Business Activity classified as per NIC Code
- A Business User Account on the FLAIR Portal
FLA Return Due Date (Last Date)
The FLA return filing last date extends to 15th July every year. By this date, the liable entities must file their returns based on their audited financial statements. If the statements remain unaudited by this date, FLA return can be filed by this due date to avoid penalties, and later be revised with the RBI’s approval after the statements have been audited. The due date to file the revised FLA return extends to the end of September.
Not filing FLA returns within the due date is considered a violation of the FEMA, and hence result in severe penalties. The amount of penalty imposed is thrice the amount involved in violation or Rs.2 Lakhs if the same cannot be quantified. Further, if the delay is continued, a fixed penalty of Rs. 5,000 per day will be charged. Additionally, during submission a late fee (LSF) will be charged at Rs,7,500 per return.
Due Date
- 15th July Every Year
Penalty
- 3 times the amount involved in violation or Rs.2 lakhs if it is non-quantifiable. For continued delay, Rs.5,000 per day of delay
Late Submission Fee (LSF)
- Rs,7,500 per return
Why Choose
?
Choosing us for your FLA return filing needs ensures a seamless, efficient, and compliant process. Our team of highly qualified professionals with extensive experience in FEMA regulations provides end-to-end support, personalized service, timely filing, accurate documentation, and transparent processes. We offer competitive pricing and dedicated customer support to ensure you face no hassles.
Our Services:
Account Creation on FLAIR portal
Accurate and timely filing of FLA returns
Detailed verification of documents
Personalized service tailored to your needs
Continuous updates and transparent tracking
Competitive pricing
Dedicated customer support
Frequently Asked Questions
1. Who needs to file an FLA Return?
Any Indian company, LLP, or other entity receiving FDI or making ODI investments in the current financial year must file an FLA return. Entities with outstanding foreign assets or liabilities from previous years also need to file.
2. What is the FLA Return Filing Last Date?
The FLA return must be filed by July 15th every year. A revised return can be filed by the end of September if required.
3. What happens if we miss the FLA return last date?
Missing FLA return last date can result in penalties up to three times the amount involved in the violation or Rs. 2 lakhs if non-quantifiable. Continued delays attract a penalty of Rs. 5,000 per day and a late submission fee of Rs. 7,500 per return.
4. Can FLA returns be filed online?
Yes, FLA returns are filed online through the RBI’s FLAIR portal. The process involves creating a business user account, logging in, filling out the return form, and submitting it online.
5. What documents are needed to file an FLA RBI return?
Essential documents to file an FLA RBI return include the company’s CIN, PAN, authorized person’s PAN, authority letter, verification letter, financial statements, employee list, FDI/ODI details, and shareholding pattern.
6. Which entities are exempted from filing FLA returns?
Entities with nil outstanding foreign assets/liabilities at the end of the financial year, those that received only share application money without actual FDI, and companies issuing shares to NRIs on a non-repatriable basis are exempt from filing FLA return to RBI.
7. What if our financial statements are unaudited by the FLA return due date?
You can file the FLA return based on unaudited financial statements by the due date to avoid penalties and revise it later with audited statements, subject to RBI approval.
8. How to file FLA return online?
Visit the RBI FLAIR portal, fill in the entity and authorized person’s details, upload the required letters in the prescribed format, and submit. Login credentials will be sent to the provided email address.
9. How to create a user account on the FLAIR portal?
Login using the provided credentials, navigate to the FLA return form, fill in the required details across five sections, and submit the form to receive an acknowledgment.
10. Can we seek professional help for filing FLA returns?
Absolutely. Seeking professional assistance ensures accuracy, compliance, and timely submission, helping you avoid penalties and late fees.