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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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 ActIndian LLP as defined under the LLP ActOther Entities include Alternative Investment Funds (AIF)Partnership FirmsPublic-Private Partnerships (PPP)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 basisCompanies that have Nil outstanding assets and liabilities at the end of the relevant financial yearCompanies that have received only share application money and no actual FDICompanies that have no outstanding foreign assets or liabilities during the reporting periodFLA 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 :
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.
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.
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.
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.
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:
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.
?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.
Account Creation on FLAIR portalAccurate and timely filing of FLA returnsDetailed verification of documentsPersonalized service tailored to your needsContinuous updates and transparent trackingCompetitive pricingDedicated customer support
