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    Published Mon, 19 Jun 2023 FEMA

    1687180086-All About FLA Return of RBI (1).png

    Foreign Liabilities and Assets (FLA) Return is a crucial annual filing requirement for Indian companies, Limited Liability Partnerships (LLPs), and other entities that have received Foreign Direct Investment (FDI) or made FDI abroad. This comprehensive guide will provide you with all the essential information about the FLA Return, its applicability, provisions, and the process for submission.

    Introduction to FLA Return

    FLA Return is an annual report that must be submitted by Indian entities that have received FDI and/or made FDI abroad to the Reserve Bank of India (RBI). The purpose of the return is to capture data on the outstanding foreign liabilities and assets held by these entities in their balance sheets. The FLA Return is governed by the provisions of the Foreign Exchange Management Act, 1999 (FEMA).

    Applicability of FLA Return

    The FLA Return is applicable on:

    1. Companies registered under the Companies Act, 2013.
    2. Limited Liability Partnerships (LLPs) registered under the Limited Liability Partnership Act, 2008.
    3. Other entities, including SEBI-registered Alternative Investment Funds (AIFs), Partnership Firms, Public Private Partnerships (PPPs), etc.

    Non-Applicability of FLA Return

    An entity is not required to submit the FLA Return if:

    1. It did not receive FDI or have made an overseas investment in any of the previous years, including the current year.
    2. It has only share application money and does not have any FDI or overseas direct investment outstanding as on the end of March of the reporting year.
    3. Non-resident shareholders have transferred their shares to residents during the reporting period, and the company has issued shares to non-residents only on a non-repatriable basis.

    Due Date for Filing FLA Return

    The due date for filing the FLA Return is 15th July of every year. If the accounts are not audited before the due date of submission, the FLA Return must be submitted based on unaudited or provisional accounts. Once the accounts are audited, a revised FLA Return should be submitted by 30th September of the same year.

    Registration and Filing Process

    1. Registration on the RBI Portal: Entities required to file the FLA Return must register on the RBI Portal at First-time users need to create an account by submitting the "FLA User Registration Form." The registration process involves uploading a scanned and signed Authority Letter and a Verification Letter in PDF format.

    2. Filing the FLA Return: After successful registration, entities can log in to the portal using their username, password, and a One-Time Password (OTP) sent to the registered email address. They can then start filing the FLA Return by clicking on "FLA Online Form" and "Start Filing FLA Form."

    Sections of the FLA Return

    The FLA Return is divided into five sections:

    1. Section I: Identification Particulars This section includes the identification details of the entity, such as the name, PAN, CIN, contact person, email ID, mobile number, nature of business, and whether the company is listed or not.
    2. Section II: Financial Details This section requires details of the entity's financials, such as total paid-up capital, profit and loss, reserves and surplus, and sales and purchases made during the financial year.
    3. Section III: Foreign Liabilities This section requires details of the investment made in India (i.e., FDI) and other foreign liabilities, such as non-resident equity and participating preference share capital holding percentages.
    4. Section IV: Foreign Assets This section requires details of the overseas direct investment (i.e., ODI) and other foreign assets, such as equity securities and debt securities under portfolio investment.
    5. Section V: Variation Report This section is auto-filled based on the data entered in the previous four sections. Entities must review the information for accuracy before submitting the return.

    Penalties for Non-Compliance

    Non-filing of the FLA Return before the due date is considered a violation of FEMA, and penalties may be imposed. The penalties for violating the law or filing false information under FEMA can be up to 300% of the amount involved in the violation or Rs. 2 Lakh if the offense is non-quantifiable. If the violation continues, a penalty of Rs. 5,000 per day may be imposed for each day after the first day during which the violation continues.

    Tips for a Smooth Filing Process

    1. Ensure that all the required information is available before starting the filing process, such as audited or unaudited financial statements, PAN card, registration certificate, and previous year's FLA Return if applicable.
    2. Keep the login credentials and OTP handy while accessing the RBI Portal for filing the return.
    3. Follow the step-by-step instructions provided in the user manuals for registration and filing the return.
    4. Review the information entered in the return carefully before submitting to avoid errors and penalties.


    The FLA Return is an essential compliance requirement for Indian entities that have received FDI or have made FDI abroad. It is crucial to understand the applicability, provisions, and filing process to ensure timely and accurate submission of the return. By following the guidelines and tips provided in this comprehensive guide, entities can successfully file their FLA Returns and stay compliant with RBI regulations.