The Annual Performance Report (APR) is a mandatory yearly filing under the Foreign Exchange Management Act, 1999, through which a person resident in India reports the financial and operational performance of each overseas joint venture (JV) or wholly owned subsidiary (WOS) held as Overseas Direct Investment (ODI). Filed in Form APR through the investor’s authorised dealer (AD) bank under the Foreign Exchange Management (Overseas Investment) Rules, 2022, it falls due on 31 December every year.
Definition
In FEMA terms, the APR is the post-investment reporting tool that keeps the Reserve Bank of India informed about the performance of Indian capital deployed abroad. The obligation flows from Rule 23 of the Foreign Exchange Management (Overseas Investment) Rules, 2022, read with Regulation 10(3) of the corresponding Regulations. In plain language, once you make an ODI, you must report on that foreign entity each year until you fully exit it, profit or no profit.
Governing Provision
The APR sits within the Overseas Investment framework notified on 22 August 2022, which superseded the older FEMA Notification No. 120 regime. The parent statute is FEMA, 1999; the operative provisions are Rule 23 of the OI Rules, 2022 (the filing duty), Regulation 10(3) of the OI Regulations, 2022 (the reporting mechanism) and Regulation 11 (the late submission fee). The Reserve Bank tracks APR compliance through AD banks — a different department from the one that collects the FLA Return.
Key Features
A few defining features set the APR apart from other FEMA filings and fix its scope. The points below capture who reports, on what basis, and the costs of non-compliance.
| No | Key Features | Particulars |
|---|---|---|
| 1 | Single Return for Each Overseas | One report for each overseas entity, filed annually until the ODI is fully divested or the entity is liquidated — regardless of profit, loss, or dormancy. |
| 2 | Due Date | Due by 31 December each year, based on the foreign entity’s annual accounts for the year ended on or before the preceding 31 March. |
| 3 | Audited Financial Statement | Audited accounts of the foreign entity are mandatory when the Indian investor has control or when the host-country law requires an audit. |
| 4 | Multiple Resident Investor | Where several residents have invested in the same entity, the largest stakeholder files; equal holders mutually designate a filer. |
| 5 | Late Filing Penalty | Late filing incurs a Late Submission Fee of ₹7,500 per report under Regulation 11, along with possible curbs on future remittances. |
Related Terms
- Overseas Direct Investment (ODI)
- FLA Return (Foreign Liabilities and Assets)
- Overseas Portfolio Investment (OPI)
- Form FC (Overseas Investment reporting)
- Authorised Dealer (AD) Bank
Frequently Asked Questions
Is the APR the same as the FLA Return?
Who must file an Annual Performance Report?
When is the APR due and under which law?
References
- Foreign Exchange Management Act, 1999
- FEM (Overseas Investment) Rules, 2022, Rule 23
- FEM (Overseas Investment) Regulations, 2022, Regulation 10(3) & 11
- FEM (Overseas Investment) Directions, 2022 (RBI)
In This Article
Author Bio
Meet Sanjeev Kumar, a distinguished advocate before the Supreme Court of India, High Courts, and National Tribunals. Founding Partner of Juriskps Law Offices, a premier law firm, he specializes in commercial, corporate, tax, arbitration, and IPR matters. His incisive legal insights enrich Setindiabiz’s blog with expert commentary.
