As more and more Indian entities are bringing in foreign investors in the lure of cheaper, easily available and sufficient funds, Foreign Direct Investment (FDI) has become a routine affair in the Indian economy.
Similarly, Overseas Direct Investment (ODI) which means Indian Entities investing outside India have also increased in number manifold (though still small in number as compared to FDI).
To monitor these transactions RBI have come up with a few compliances, one such being FLA.
FLA is an annual return prescribed under FEMA regulations and is applicable to all companies/Firms who have received FDI during the year or who has made ODI during the year and these transactions are outstanding at the end of the year. This means that the FDI/ODI has to be still in the books of the entity and not squared off during the year.
The due date is 15th July. In case the entities books are still unaudited then provisional figures have to be uploaded by the due date. In case there are any changes after the filing of provisional figures then the company shall file revise FLA return based on audited accounts by end – September(30th Sept).
Earlier the return had to be mailed to the prescribed email id of the RBI by the CS/CFO/Directors of the company from the registered email id. Since last two-year RBI has provided a web-based interface https://flair.rbi.org.in for filling form FLA which has been greatly helpful in proper and efficient filing of the return.
First time filers have to register themselves in the portal to complete the filings.
If you have filed any return earlier in the portal then that can be viewed or downloaded also.
Some of the common details to be filed in the portal are:
- LLPIN/ CIN
- Name of LLP/ Company
- Registered Address
- Business Activity
- Name of Contact
- Email Id and Mobile no
- Provisional figures/ Audited figures of the FY
- Foreign liabilities details (FDI Opening balance + Received during the year)
- Foreign Assets details (ODI Opening balance + made during the year)
Penalty for non -filing is thrice the amount of sum of FDI/ODI or Rs 2 lakhs if amount is not quantifiable with additional Rs 5000 per day if delay is continuing.
For any query please feel free to contact at neeraj@aanassociates.in/9748532440
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