FLA Return Filing

Table of Contents

FLA Return Filing – RBI Compliance with Legal Accuracy by Nd Salva

ndian companies and LLPs involved in inbound or outbound foreign investments are required to file an annual FLA Return under the Foreign Exchange Management Act (FEMA), 1999, as mandated by the Reserve Bank of India (RBI).

Whether your entity has received Foreign Direct Investment (FDI) in India or made Overseas Direct Investments (ODI) abroad, this return ensures disclosure of foreign assets and liabilities as they appear in your financial statements.

At Nd Salva Advocates & Legal Consultants, our dedicated team of legal professionals and compliance experts provides end-to-end assistance in preparing, validating, and filing the FLA Return to ensure your full compliance with FEMA and RBI norms.

What is the FLA Return?

The Foreign Liabilities and Assets (FLA) Return is a mandatory annual filing required by the RBI for:

  • Indian companies receiving FDI

  • Indian entities making ODI (equity participation of 10% or more)

  • LLPs and other investment vehicles with foreign transactions

The purpose is to capture the external sector position of India by monitoring the foreign assets and liabilities held by Indian entities at the end of each financial year.

Who Must File the FLA Return?

Required to File:

  • Companies incorporated under the Companies Act, 2013

  • LLPs registered under the LLP Act, 2008

  • SEBI-registered AIFs

  • Partnership firms and Joint Ventures involved in FDI/ODI

  • Entities having foreign equity holding of 10% or more

  • Entities with ODI in overseas companies, regardless of stake size

Exempted from Filing:

  • Entities with no FDI/ODI transactions in the current or past financial year

  • Companies with only share application money pending but no outstanding investment as of 31st March

  • Companies where non-resident shareholders exited fully within the financial year and no foreign ownership remains

Due Date for Filing

The FLA Return must be filed by July 15th each year.

  • If audited financials are not available by the due date, entities must file based on unaudited or provisional figures.

  • A revised return must be submitted by September 30th if audited figures become available later.

Consequences of Non-Compliance

1. Late Submission Fee (LSF):

  • ₹7,500 for filings made after July 15, provided before any enforcement action is initiated.

2. Penalties under FEMA:

  • Up to 300% of the amount involved in the contravention (if quantifiable)

  • Minimum ₹2,00,000 if the amount is not quantifiable

  • Daily fine of ₹5,000 for continued non-compliance

Information Required in the FLA Return

The return comprises five structured sections on the FLAIR Portal, which collect detailed foreign investment and financial data.

Section I – Identification Details

  • Entity info: CIN, PAN, name, and registered office

  • Contact person’s details

  • Industrial classification code (NIC 2008)

  • Business activity, FDI status, and shareholding info

Section II – Financials

  • Paid-up capital (equity and preference)

  • P&L figures (before and after tax)

  • Reserves & Surplus

  • Sales and purchases (domestic & export)

  • Number of employees

Section III – Foreign Liabilities

  • FDI (≥10% equity)

  • FDI (<10% equity)

  • Portfolio investments in equity or debt

  • Other foreign liabilities (excluding domestic)

Section IV – Foreign Assets

  • ODI by Indian entity (≥10% equity)

  • Overseas holdings <10%

  • Portfolio investment abroad

  • Other external financial assets

Section V – Variation Report

  • Auto-generated comparison with previous year’s return

  • Not editable

Step-by-Step FLA Return Filing Process

1. Register on FLAIR Portal

2. Furnish Authorised Details

  • Provide CIN, PAN, entity name, address

  • Upload:

    • Authorisation letter

    • PAN (Company + Authorised Person)

    • Verification letter

3. Receive Login Credentials

  • RBI sends password to registered email

  • Login credentials valid for OTP-based logins

4. Prepare the FLA Return

  • Fill in five sections as per company records

  • Use provisional or audited figures as applicable

5. Review and Submit

  • Download the draft return

  • Verify for accuracy

  • Submit return through the FLAIR portal before the due date

6. Acknowledgment

  • Receive confirmation of submission

  • Download and retain the acknowledgment for records

Key Compliance Tips

  • Ensure email accuracy – all credentials and OTPs are routed via email

  • If there’s a change in CIN or name, register again

  • Old data auto-populates when CIN is retained – reducing data entry burden

  • Revise your FLA Return if audited data becomes available post July 15

Why Choose Nd Salva for FLA Return Filing?

At Nd Salva, we bring deep domain knowledge and legal rigour to FLA Return compliance:

FEMA & RBI Regulatory Expertise

Our team of lawyers and compliance experts are well-versed in FEMA, RBI Master Directions, and the FLA filing framework.

Complete Filing Support

From portal registration to data entry, document drafting, and submission — we manage the entire process for you.

Penalty Avoidance

We ensure strict adherence to RBI timelines and disclosure accuracy, helping you avoid penalties and enforcement action.

 Confidentiality & Legal Precision

Your financial and corporate data is handled with utmost confidentiality, backed by legal scrutiny and professional diligence.

Stay Compliant with Confidence

Partner with Nd Salva Advocates & Legal Consultants to file your FLA Return accurately and on time. Let our experienced team guide you through RBI’s regulatory maze — so you can focus on growing your global footprint.