Foreign Liabilities & Assets Information Reporting (Flair) System (FLA Return)
Applicability:-Annual return on Foreign Liabilities and Assets has been notified under FEMA 1999 and it is required to be submitted by all the India resident companies (Reporting Entities)* which have received FDI and/ or made overseas investment in any of the previous year(s), including current year by July 15 every year. Non-filing of the return before due date will be treated as a violation of FEMA and penalty clause may be invoked for violation of FEMA.
*Now who is an Entity?
Due Date:- FLA return is mandatory under FEMA 1999 and companies are required to submit the same based on audited/ unaudited account by July 151 every year.
1. In view of the recent change in reporting platform for submission of FLA return, the last date for filing the FLA return for 2018-19 has been extended to July 31, 2019 for convenience of reporting this year.
REVISION IN THE MODE OF FILING OF FLA RETURN FROM OFFLINE TO ONLINE MODE:-
Reserve bank of India has issued revised the mode of filing of FLA return via circular RBI/2018-19/226, A.P. (DIR Series) Circular No. 37 on dated 28th June, 2019 , the mode of filing of FLA return revised from offline to online mode. Earlier the Indian resident companies were filing annual FLA return in the excel format on the basis of audited/unaudited financials with the RBI via e-mail fla@rbi.org.in till 15th of July every year.
With the objective to enhance the security-level in data submission and further improve the data quality, the present email-based reporting system for submission of the FLA return will be replaced by the web-based system online reporting portal. It would facilitate data submission by eligible entities {including the alternative investment funds (AIF) registered with the Securities and Exchange Board of India (SEBI) as also the reporting of foreign investment in the form of capital/profit share contribution received/transferred in case of LLPs and investment by persons resident outside India in an investment vehicle and as defined in Foreign Exchange Management (Transfer or issue of security by a person resident outside India) Regulations 2017, dated November 7, 2017}.
Key points:-
MANDATORY ATTACHMENTS:-
1. Authority Letter
2. Verification Letter
Reserve Bank of India has prescriber the format of authority letter and verification Letter which are as follows:-
1. Format of Authority Letter
Should be on Entity’s Letter-Head
______________________________________________________________________
AUTHORITY LETTER
The Director
Date: xx / xx / xxxx
International Investment Position Division (IIPD)
Department of Statistics and Information Management (DSIM)
Bandra Kurla Complex, Bandra (E), Mumbai
Reserve Bank of India
Dear Sir / Madam
Sub: Letter of Authorization for filing of annual return on FLA
We hereby authorize Shri. / Smt. / Ms.
Name and Designation: ________________
Permanent Account Number (PAN)____________ to register as Business user for submission of annual return on Foreign Liabilities and Assets (FLA)on behalf of our company/ LLP/ Others named _________
CIN/ LLPIN/ Others-UIN ____________
Registered office at _____________
and having PAN____________
We further confirm that we are liable for and bound by all acts of commission and omission by the authorized representative. All acts committed by the above authorized representative shall be treated as if these acts were committed by the company/ LLP/ Others.
Yours faithfully
(Signature of Managing Director / Director / Head of Institution / Designated Partner in case of LLP / Investment Manager or Sponsor for Investment vehicle)
Name:
Designation:
Date:
Seal of the signing authority:
(After furnishing all details, take print out of this word file of authority letter and get it signed from appropriate authority as mentioned above and then scan it. Convert it to PDF and then upload the same in FLA user registration form)
2. Format of Verification letter
“Name of Company”
Corporate Office / Central Office
__________________________________________________________________
VERIFICATION LETTER
The Director
Date xx / xx / xxxx
International Investment Position Division (IIPD)
Department of Statistics and Information Management (DSIM)
Bandra Kurla Complex, Bandra (E), Mumbai
Reserve Bank of India
Dear Sir / Madam
Sub: Verification Letter for CIN / LLPIN / Others UIN(in case of Alternative Investment Fund / Partnership Firm / Public Private Partnership) and PAN of authorised person filing annual FLA form
We hereby authorize Shri. / Smt. / Ms.
Name and Designation: _______________________________
Having Permanent Account Number (PAN)
to register as Business user for submission of annual return on Foreign Liabilities and Assets (FLA) on behalf of our company named ___________
Having CIN / LLPIN / Others UIN
We further confirm that the information provided herein in respect of Name and CIN / LLPIN / Others UINof entity and PAN of authorised person is correct and the same can be treated as verified by us as per the attached authority letter.
Name and Designationof Signatory on the Entity’s attached authority letter: (Signature not required)_________________________________________
Entity’s Corporate Office Address:
(After furnishing all details, convert this word file of Verification Letter into pdf file and then attach the same in FLA user registration form)
CONSEQUENCES OF NON FILING OF FLA RETURN:-