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Introduction The Foreign Liabilities and Assets (FLA) Return is an annual disclosure mandated by the Reserve Bank of India (RBI) in accordance with the Foreign Exchange Management Act (FEMA), 1999. It is applicable to Indian entities that have either received foreign direct investment (FDI) or made
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The FLA Return is an annual disclosure mandated by the RBI under FEMA, 1999, for Indian entities that have received foreign direct investment (FDI) or made overseas direct investment (ODI). It provides data for India's Balance of Payments and International Investment Position.
Indian companies, Limited Liability Partnerships (LLPs), and entities like SEBI-registered Alternative Investment Funds (AIFs), Public-Private Partnerships (PPPs), registered partnership firms, and start-ups are required to file if they held foreign assets or liabilities due to FDI and/or ODI.
The information in the FLA Return must reflect the entity's position as of March 31st each year, and the submission deadline is July 15th annually.
The FLA Return must be filed exclusively through the FLAIR portal (Foreign Liabilities and Assets Information Reporting). Registration on this portal is mandatory.
Failure to file the FLA Return is a breach of FEMA, which can result in a fine of up to three times the amount involved or up to ₹2,00,000, plus an additional penalty of ₹5,000 per day for ongoing contraventions.
Yes, if audited financials are unavailable by the due date, entities can submit the return using provisional or unaudited data. However, they must later seek RBI approval to revise the return with final audited figures.
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