Summary: The Foreign Liabilities and Assets (FLA) Return is an annual submission to the Reserve Bank of India (RBI) under the Foreign Exchange Management Act, 1999 (FEMA). This return is mandatory for Indian entities that have received Foreign Direct Investment (FDI) or made Overseas Direct Investment (ODI) in any financial year, provided they hold foreign assets or liabilities on their balance sheets. This includes Companies, LLPs, SEBI-registered AIFs, Partnership Firms, and PPPs. Even if no new FDI or ODI occurred in the latest fiscal year, the return is still required if outstanding investments from prior years exist. The due date for filing is July 15th annually, covering the previous financial year ending March 31st. Required documents include the latest balance sheet, FDI and ODI details, and entity identification. Filing is done online via the RBI’s FLAIR Portal, involving user registration, downloading, filling, and uploading an Excel form. Non-compliance can lead to penalties under FEMA Section 13, including monetary fines up to three times the sum involved, or up to Rs. 2 lakhs if unquantifiable, plus an additional Rs. 5,000 per day for continuing default. The RBI’s Regional Offices can compound these
What is FLA Return?
The Foreign Liabilities and Assets (FLA) Return is an annual return filed with the Reserve Bank of India (RBI) under certain provisions of the Foreign Exchange Management Act, 1999 (FEMA).
Applicability of the FLA Return
Entities that have:
- Received Foreign Direct Investment (FDI), and/or
- Made Overseas Direct Investment (ODI) in the current or any previous year
are required to file the FLA return if they hold foreign assets or liabilities in their balance sheets.
Eligible Entities
A Company as defined under Section 1(4) of the Companies Act, 2013
A Limited Liability Partnership (LLP) registered under the LLP Act, 2008
Other entities including:
- SEBI-registered Alternative Investment Funds (AIFs)
- Partnership Firms
- Public-Private Partnerships (PPPs), etc.
Note:
Even if the entity has not received new FDI or made new ODI during the latest financial year, it must still file the return if there is any outstanding FDI/ODI from previous years.
Due Date for Filing
The annual FLA Return must be filed on or before July 15th every year for the previous financial year ending on March 31st.
Documents Required
- Latest audited or provisional balance sheet
- FDI details (valuation, ownership, percentage, etc.)
- ODI details (equity investments abroad)
- Entity’s PAN, CIN, and contact information
How to File the FLA Return?
FLA returns are filed online through the FLAIR Portal of RBI.
Step 1: Register on FLAIR Portal
- Visit: https://flair.rbi.org.in
- Click on “Entity User Registration”
- Fill in entity details (CIN, PAN, email, contact info)
- Submit and wait for approval of User ID and Password
If you forget your password or are unable to log in, use the ‘Forgot Password’ option or contact RBI support.
Step 2: Login and Upload Return
- Log in using the credentials
- Download the editable FLA Return Form (Excel)
- Fill in the details:
- Identification Information (CIN, PAN, etc.)
- FDI received and ODI made
- Balance sheet data
- Foreign assets and liabilities as on 31st March
- Upload the filled Excel sheet on the portal
- An Acknowledgment will be generated upon successful submission
Consequences of Non-Compliance
Non-filing of the FLA Return may attract penalties under Section 13 of FEMA, 1999, which include:
- Monetary penalties up to 3 times the sum involved
- If the amount is not quantifiable: up to ₹2 lakhs
- Additional fine of ₹5,000 per day for continuing default
Compounding of Delay
RBI has delegated powers to Regional Offices (except Kochi and Panaji) to compound contraventions without any monetary limit.
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DISCLAIMER :- The contents of this article are intended solely for general informational purposes and do not constitute legal advice or a professional opinion in any manner. While every effort has been made to ensure the accuracy and reliability of the information provided, the author does not accept any liability for errors, omissions, or any consequences arising from the use of such information. Readers are strongly advised to seek appropriate professional advice before acting upon any of the contents herein.
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