“Navigate the complexities of Foreign Liability Assets Return (FLA) under FEMA 1999. Learn about the entities required to submit FLA, exemptions, filing deadlines, and the step-by-step process. Stay compliant and understand the penalties associated with non-compliance.”
Foreign Liabilities and Assets (FLA)
Annual Return on FLA has been notified under FEMA 1999.
This is required to be submitted by following entities which have received and/or made foreign direct investment (FDI) in the previous year(s) including the current year who holds foreign assets or/and liabilities in their balance sheet,
1. A company within the meaning of Section 1(4) of the Companies Act,2013
2. A LLP
3. Others including Alternate Investment Funds, Partnership Firm, Public Private Partnership etc.
In the case of partnership firms, the RBI will issue a dummy CIN upon its request which will be used only for the filing of FLA annual return. In case a dummy CIN has already been issued, the partnership firm will use the same for the filing of the FLA return.
Companies exempted from filing FLA return
1. Companies that have only issued shares on a non-repatriable basis to the non-residents of India are exempt from filing FLA return.
2. Companies who do not have any outstanding balance of FDI or ODI by the end of the financial year are exempt from filing FLA return.
3. Companies that have only received share application money and have not received any FDI or not made any ODI, are exempt from filing FLA return.
The Due date of filing FLA: 15th July every year
Filing of FLA return
The filing of the FLA annual return has to be done before the 15 of July of the respective year and must include data of FDI or ODI received or made by the company respectively for any previous year(s) and the current year.
The form is to be mailed by any authorized member of the company from their email ID to the official email ID of the RBI i.e. fla@rbi.org.in.
Authorized Person to file the FLA return are:
Company Secretary,
Chief Financial Officer, and
Directors.
The details filed must comprise of the financial details as well as other required details in accordance with the companies audited accounts.
In case the company does not have their accounts audited before 15 July, the company is to file the FLA return according to the unaudited accounts and have their accounts audited thereafter.
After the audit, if there are any changes regarding the details filed, the company has to file another form with the updated details before the last day of September of the same year.
After the filing of the FLA return, an acknowledgement mail will be sent by the RBI to the email ID of the authorised person.
Penal Provision
In case the company does not file the FLA return within the given time, the company will be liable to pay a penalty of thrice the sum involved in the contravention.
In case it is not quantifiable, then a penalty of INR 2,00,000 will have to be paid by the company.
If the contravention is continuing, a penalty of INR 5,000 per day will have to be paid by the company.
Companies exempted from filing FLA return
Companies that have only issued shares on a non-repatriable basis to the non-residents of India are exempt from filing FLA return.
Companies who do not have any outstanding balance of FDI or ODI by the end of the financial year are exempt from filing FLA return.
Companies that have only received share application money and have not received any FDI or not made any ODI, are exempt from filing FLA return.
STEP TO FILE FLA RETURN
- New Entity User
For filing FLA Return creation of new entity user is mandatory for proceed further.
Following documents to be attached:
1. Authority letter As per RBI Format
2. Verification Letter
3. Company PAN card
4. Authorized Person’s PAN card
Under FLA user registration form fill all mandatory fields such as
1. Choose Entity Type: Company/ LLP/ Others/ Partnership Firm
2. CIN/LLPIN/UIN
3. Entity Name
4. Entity PAN
5. Registered Address
6. Email
7. Mobile Number
8. State
9. District
10. Pin code
11. Whether the CIN/LLPIN/UIN of entity has changed during the latest financial year? (Y/N)
12. Whether the name of entity has changed during the latest financial year? (Y/N)
13. Authorised person’s Details: Name, PAN, Email, Mobile Number (Password and OTP goes on this number)
14. User name (To be kept in record)
15. Upload Verification Letter
16. Upload Authority Letter
17. SUBMIT
- PASSWORD comes on registered email which shall be reset.
- Login to: https://flair.rbi.org.in/fla/faces/pages/login.xhtml
- Section I – Identification Details
1. Name of the Indian Company
2. PAN Number
3. CIN Number
4. Contact Details
5. Account closing date Nature of Business (As per National Industrial Classification (NIC) 2008 Code)
6. Whether your company is merged/amalgamated during year
7. Whether the Company is listed?
8. Furnish the face value of Ordinary / Equity Share on closing date of reference period in actual INR
9. Identification of the reporting Company (in terms of inward FDI)
10. Whether the Company is Asset Management Company?
11. Whether the Company has Technical Foreign collaboration?
12. Whether the company has any business activity during latest financial year?
- Section II- Financial Details (Amount in INR lakh)
1. Total Paid-Up Capital of Indian Company
2. Non-Resident Holdings
3. Participating Preference share capital
4. Non Participating Preference Share
5. Non Resident Equity and Participating Preference Share Capital % (Auto Calculates)
6. Profit and Loss Account (from P/L Account)
7. Reserves & Surplus (from Balance Sheet)
8. Sales and Purchase made during the financial year
9. Employee Information of reporting Indian company (in actual)
10. No. of employees on payroll (in actual)
- Section III- FOREIGN LIABILITIES (Investments made in India)
1. Investment in India under Foreign Direct Investment (FDI) scheme (10% or more Equity Participation)
2. Investment in India under Foreign Direct Investment (FDI) scheme (Less than 10% Equity Holding)
3. Portfolio Investment in India
4. Other Investment (Outstanding Liabilities with Foreign Unrelated Parties)
- Section IV– FOREIGN ASSETS
1. Equity Capital (PUC), Reserves & Surplus of Direct Investment Enterprise (DIE) Abroad (10% or more equity holding by Indian reporting company)
2. ODI – Overseas Direct Investment (10 % or more equity holding)
3. DI – Direct Investment Abroad (Less than 10% equity holding)
4. Portfolio Investments abroad
5. Other Investment (Outstanding Claims on Foreign Unrelated Parties)
- Section V- VARIATION REPORT
- Preview PDF/Submit to RBI
- Download acknowledgment
NOTE:
- Each section needs to be validated, without validation next section will not operative.
- After filing mandatory fields, SAVE AS DRAFT
- Amounts should be in lakhs.
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