Foreign Liability and Assets Returns (FLA Return) under FEMA 1999

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Foreign Liability and Assets Returns (FLA Return) under FEMA 1999

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 which have received FDI and/ or made overseas investment in any of the previous years, 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.

Eligibility of Company to file Annual Return on Foreign Liability and Assets

The annual return on Foreign Liabilities and Assets (FLA) is required to be submitted directly by all the Indian companies which have received Foreign direct investment (FDI )and/or made FDI abroad (i.e. overseas investment) in the previous year’s including the current year.

In simple language Indian entity that holds foreign Assets or Liability in their balance sheet is required to file Annual return on Foreign Liability and assets.

If the Indian company does not have any outstanding investment in respect of inward and outward FDI as on end-March of reporting year, the company need not submit the FLA Return and;
If a company has received only share application money and does not have any foreign direct investment or overseas direct investment outstanding as on end-March of the reporting year, then that company is not required to fill up FLA return and;

If the company has not ‘received any fresh FDI and/or ODI (overseas direct investment)’ in the latest year but the company has outstanding FDI and/or ODI, then that company is required to submit the FLA Return every year by July 15.

Whether FLA Return is required to be submitted by registered partnership or branches or trustee

If the Partnership firms, Branches or Trustees have any outward FDI outstanding as on 31st March of the reporting year, then they are required to send a request mail to get a dummy CIN number which will enable them to file the Excel based FLA Return. If any entity has already got the dummy CIN number from the previous survey, they should use the same CIN number in the current survey also.

If all non-resident shareholders of a company has transferred their shares to the residents during the reporting period and the company does not have any outstanding investment in respect of inward and outward FDI as on end-March of reporting year, then the company need not submit the FLA Return.

If a Company issued shares to non-resident on Non-Repatriable basis then it should not be considered as foreign investment; therefore, companies which have issued the shares to non-resident only on Non-Repatriable basis, is not required to submit the FLA Return.

Due date for Filing of FLA Return

“Companies are required to submit the Annual Return on Foreign Assets and Liability Return by July 15 every year".

Whether accounts of company should be Audited or Unaudited before filing of FLA Return

If the company’s accounts are not audited before the due date of submission, means. July 15, then the FLA Return should be submitted based on unaudited (provisional) account.

 Once the accounts gets audited and there are revisions from the provisional information submitted by the company, they are supposed to submit the revised FLA return based on audited accounts by 30th September.

Whose email id used for filing of the FLA Return

The filled-in Excel based FLA return should be forwarded through the official email id of any authorized person like CFO, Director, Company Secretary etc. Acknowledgement will be forwarded to the both email ids (sender and mentioned in Contact Details).

Where should we submit the FLA Return.

Filled-in the Excel based FLA return should be sent by email by 15 July. Any other attachment should not be forwarded along with the FLA return.

Email id – fla@rbi.org.in

Any query regarding filling of FLA return should be sent to email. Contact RBI person handling FLA return at

(022) 26578662/ 26578217/ 26578348/ 26578214/ 26578340/ 26578241

Sanoj Kumar
(CS Management Trainee)


Cssanoj.icsi@gmail.com

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