As per FEMA Regulations, 1999 requires any company who has either made Overseas Direct Investment (‘ODI’) or received Foreign Direct Investment (‘FDI’), to file the Foreign Assets and Liabilities Annual Return (‘FALAR’). The companies have to report the current financial year’s FLA as well as the previous year(s) assets and liabilities. In the case where a company does not have any foreign assets or liabilities for the current year but has outstanding FDI or ODI from the previous years, it must file the FLA annual return indicating their outstanding assets or liabilities.
Changes in Filing Process with effect from 28th June, 2019 as notified by RBI vide their Circular No. RBI/2018-19/226 A.P. (DIR Series) Circular No. 37 Dated June 28, 2019
|Points||Filing Process till 28th June, 2019||Filing Process W.E.F. 28th June, 2019|
|Procedure of filing||Offline i.e. Every company was required to submit FLA return (Excel Sheet) through E-mail to the official e-mail of RBI email@example.com||Online|
|Acknowledgement||No such acknowledgement||System generated acknowledgement|
|Provisional Accounts||FLA Return can be submitted based on unaudited (provisional) account||FLA Return can be submitted based on unaudited (provisional) account|
|Due Date||15th July of the following financial year||15th July of the following financial year|
Salient Features of Revised Foreign Liabilities and Assets Information Reporting (FLAIR) System:
Indian entities which do not comply with the said requirement will be treated as non-compliant with FEMA
Schematic representation of Entity User Registration
At the time of User registration, entity needs to attach Authority letter and verification letter.