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FLA Return

Required Documents

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Incorporation Certificate of co./MOA/AOA

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Email id and Mobile no. of the entity

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Name, PAN, Email id and mobile no. of authorized person

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Audited/Provisional Financial Statements

What we will deliver

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Drafting of Authority Letter

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Drafting of Verification Letter

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Acknowledgement of filing Return

Features & Restrictions of FLA Return:

  • FLA Return is to be filed on or before 15th July every year.
  • In case FLA return is filed on the basis of provisional accounts, a revised FLA return is to be filed in case of variation in provisional and audited financials before 30th September;
  • Non filing of return leads to heavy penalty under FEMA:- Penalty prescribed is 3 times of the sum involved in contravention or Rs. 2 Lakhs if the offence is non-quantifiable and if the contravention continues, then Rs. 5,000 per day after the first day during which the contravention continues;
  • Exemptions: (a) If a company has received only share application money and does not have any FDI or overseas direct outstanding as on 31st March; (b) Companies which have issued shares to non residents only on Non-Repatriation basis are not required to file FLA return;

Required Documents

Incorporation Certificate of co./MOA/AOA

Email id and Mobile no. of the entity

Name, PAN, Email id and mobile no. of authorized person

Audited/Provisional Financial Statements

What we will deliver

Drafting of Authority Letter

Drafting of Verification Letter

Acknowledgement of filing Return

Frequently Asked Question

If a company did not receive any FDI or made overseas investment in any of the previous year including current year, do we need to submit the FLA return?

If the Indian company does not have any outstanding balance of FDI or overseas investment as on 31st March of reporting year, the company need not submit FLA Return.

Our accounts are not audited till 15th July so we want to file FLA return only after completion of audit. Is it allowed?

Any default in filing FLA return by 15th July will lead to imposition of penalty under FEMA that is 3 times of the amount involved in contravention and Rs. 5,000 per day for each day of default.

Therefore, it is suggested that FLA return is filed before 15th July on basis of provisional accounts and revise the same by 30th September on the basis of final audited accounts.

In case where a company closes its books of accounts on 31st December every year, can it report the information on the basis of its closing period?

No, information should be reported only as on 31st March. If the accounts of the company are closed on a different date, the information should be given as on 31st March based on internal assessment.

If a company has only share application money, then is that company supposed to submit the FLA Return?

If a company has received only share application money and does not have any foreign direct investment or overseas direct investment outstanding as on end-March of the reporting year, then that company is not required to fill up FLA return.

If the company has not received any inward FDI / made overseas investment in the latest year, do they need to submit 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 every year by July 15.

Whether FLA Return is required to be submitted by Registered Partnership Firms (Registered under Partnership Registration Act) or branches or trustees, who have made Overseas Direct Investment or it is mandatory only for Companies (Registered under Companies Act, 1956)?

If the Partnership firms, Branches or Trustees have any outward FDI outstanding as of end-March of the reporting year, then they are required to send a request mail to get a dummy CIN number which will enable them to file the Excel based FLA Return. If any entity has already got the dummy CIN number from the previous survey, they should use the same CIN number in the current survey also. It is also informed that these dummy CIN numbers are provided by RBI for filling the excel based FLA return only and not for any other purpose.

Is it required to submit Annual Performance Report for ODI, if we have submitted FLA Return?

FLA Return and Annual Performance Report (APR) for ODI are two different returns and monitored by two different departments of RBI. So you are required to submit both the returns if these are applicable for your company.

If non-resident shareholders of a company has transferred their shares to the residents during the reporting period, then whether that company is required to submit the FLA Return?

If all non-resident shareholders of a company has transferred their shares to the residents during the reporting period and the company does not have any outstanding investment in respect of inward and outward FDI as on end-March of reporting year, then the company need not submit the FLA Return.

If company issued the shares to non-resident on Non-Repatriable basis, whether that company is required to submit the FLA Return?

Ans.: Shares issued by reporting company to non-resident on Non-Repatriable basis should not be considered as foreign investment; therefore, companies which have issued the shares to non-resident only on Non-Repatriable basis, is not required to submit the FLA Return.

What is the procedure of filing FLA Return?

RBI has introduced a web based portal for filing of FLA Return known as Foreign Liabilities and Assets Information Reporting (FLAIR) system. Reporting entities are required to register on web portal before filing FLA Return and fill the details as sought in the form. Reporting entities can amend/alter data entered in FLAIR and view/download the information submitted.