Foreign Liabilities and Assets (FLA) is an annual return that shall be filed by every company that has either received foreign direct investments or has made any overseas investments. This return is required to be filed with the Reserve Bank of India (RBI).
The FLA return is a key tool for the RBI to monitor the foreign exchange exposure of Indian companies. The data collected through the FLA return helps the RBI to assess the risks associated with foreign exchange exposure and to take appropriate measures to mitigate these risks.
Who is required to file the FLA return?
The following entities are required to file the FLA return:
- Companies
- Limited Liability Partnerships (LLPs)
- Any other body [like partnerships, SEBI registered AIFs, Public-Private Partnerships (PPP) etc.]
What information is required to be filed in the FLA return?
The FLA return requires the following information to be filed:
- Name and registration number of the entity
- Nature of business
- Foreign direct investment received or made, if any
- Overseas investments made, if any
- Foreign assets and liabilities, if any
When is the FLA return due?
The FLA return is due on 15th July of every year. However, if a company has not undertaken any foreign exchange transactions during the current year but has outstanding ODIs or FDIs of the previous years, it still needs to file its FLA return disclosing the balance of assets and liabilities.
How to file the FLA return?
The FLA return can be filed online through the RBI’s Foreign Exchange Management (FEMA) 2000 Portal. The portal can be accessed through the RBI’s website.
What are the penalties for non-filing of the FLA return?
The penalties for non-filing of the FLA return are as follows:
- For the first time, a penalty of ₹50,000 may be imposed.
- For the second time, a penalty of ₹100,000 may be imposed.
- For the third time, a penalty of ₹200,000 may be imposed.
The FLA return is an important compliance requirement for companies that are involved in foreign exchange transactions. The data collected through the FLA return helps the RBI to monitor the foreign exchange exposure of Indian companies and to take appropriate measures to mitigate these risks.
The RBI has issued a circular on the FLA return, which can be accessed through the RBI’s website. The circular provides more details on the FLA return, including the information that is required to be filed, the due date for filing the return, and the penalties for non-filing of the return.
Foreign Liabilities and Assets (FLA) is an annual return that shall be filed by every company that has either received foreign direct investments or has made any overseas investments. This return is required to be filed with the Reserve Bank of India (RBI).
The FLA return is a key tool for the RBI to monitor the foreign exchange exposure of Indian companies. The data collected through the FLA return helps the RBI to assess the risks associated with foreign exchange exposure and to take appropriate measures to mitigate these risks.
Who is required to file the FLA return?
The following entities are required to file the FLA return:
- Companies
- Limited Liability Partnerships (LLPs)
- Any other body [like partnerships, SEBI registered AIFs, Public-Private Partnerships (PPP) etc.]
What information is required to be filed in the FLA return?
The FLA return requires the following information to be filed:
- Name and registration number of the entity
- Nature of business
- Foreign direct investment received or made, if any
- Overseas investments made, if any
- Foreign assets and liabilities, if any
When is the FLA return due?
The FLA return is due on 15th July of every year. However, if a company has not undertaken any foreign exchange transactions during the current year but has outstanding ODIs or FDIs of the previous years, it still needs to file its FLA return disclosing the balance of assets and liabilities.
How to file the FLA return?
The FLA return can be filed online through the RBI’s Foreign Exchange Management (FEMA) 2000 Portal. The portal can be accessed through the RBI’s website.
What are the penalties for non-filing of the FLA return?
The penalties for non-filing of the FLA return are as follows:
- For the first time, a penalty of ₹50,000 may be imposed.
- For the second time, a penalty of ₹100,000 may be imposed.
- For the third time, a penalty of ₹200,000 may be imposed.
The FLA return is an important compliance requirement for companies that are involved in foreign exchange transactions. The data collected through the FLA return helps the RBI to monitor the foreign exchange exposure of Indian companies and to take appropriate measures to mitigate these risks.
The RBI has issued a circular on the FLA return, which can be accessed through the RBI’s website. The circular provides more details on the FLA return, including the information that is required to be filed, the due date for filing the return, and the penalties for non-filing of the return.
