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The FLA Return is a mandatory annual filing for Indian companies, LLPs, and other entities engaged in receiving or making foreign direct investments. This includes entities involved in Foreign Direct Investment (FDI) within India or Overseas Direct Investment (ODI). Under the regulations of the Reserve Bank of India (RBI) and the Foreign Exchange Management Act, 1999 (FEMA), the FLA Return is designed to gather information on foreign liabilities and assets that are reflected in the financial statements of these entities.
Solocorp provides expert services to help Indian Companies and LLPs efficiently handle their FLA Return filings.
Our team ensures your compliance with RBI and FEMA regulations, making the process seamless and efficient.
The Foreign Liabilities and Asset (FLA) Return is a mandatory annual report for Indian organisations that have received foreign direct investment (FDI) or have invested in FDI overseas.
This report, submitted to the Reserve Bank of India (RBI), collects detailed information on the foreign liabilities and assets listed on these entities' balance sheets.
Governed by the Foreign Exchange Management Act, 1999 (FEMA), the FLA Return thoroughly regulates India's foreign exchange and international financial transactions.
The FLA Return must be filed by a range of entities, including:
Companies established under the Companies Act, 2013.
Limited Liability Partnerships (LLPs) formed under the Limited Liability Partnership Act 2008.
Various other organisations, such as SEBI-registered Alternative Investment Funds (AIFs), Partnership Firms, and Public-Private Partnerships (PPPs), engaged in foreign direct investment activities within India or abroad.
The requirement to submit the FLA Return does not apply to entities in the following situations:
If the entity has neither received Foreign Direct Investment (FDI) nor made any overseas investments in the current or previous years.
If the entity’s foreign investment is limited to sharing application money without any outstanding FDI or overseas direct investment by the end of March of the reporting year.
If non-resident shareholders have sold their shares to residents within the reporting period, and the entity has only issued shares to non-residents, the invested capital cannot be converted back into foreign currency and taken out of the country.
Since June 2019, the procedure for filing the Foreign Liabilities and Assets (FLA) return has been digitized through the FLAIR portal. Entities must follow these steps to file the FLA return successfully.
Visit the official FLAIR portal and click on the 'Registration Form for New Entity User' to begin the registration process.
Fill in the entity details, including CIN/Registration Number, company name, PAN, registered address with PIN, and contact details. Confirm any changes to the CIN or company name for the last financial year.
Enter the details of the authorized person, including name, PAN number, and contact information.
Attach the necessary documents such as the verification letter, authority letter, and copies of the PAN cards for the entity and the authorized person.
After successful registration, the RBI will send the login details (password and OTP) to the registered email address.
Log in using the credentials and prepare the FLA return. The return is divided into five sections for comprehensive reporting. Fill out all necessary sections accurately.
Before submitting, download and review the FLA return to ensure all information is accurate. After verification, submit the return online via the FLAIR portal.
Upon successful submission, the FLAIR portal will generate an acknowledgement confirming that the FLA return has been processed successfully for the year.
Ensure that the registered email ID is correct as it will receive the password and OTP for login attempts. If there are changes to the email ID or name during the reporting period, deactivate the current account and create a new one. Review the draft before submission to ensure accuracy.
Begin your FLA Return filing process with Solocorp and benefit from our expert guidance at every step. Our experienced professionals ensure that your submission is accurate and timely, helping you navigate the complexities of regulatory compliance with ease.
Get started with Solocorp today and file your FLA Return easily!
Our experts will guide you through the FLA filing process and ensure that you comply with all regulatory requirements.
We assist in gathering all the necessary documents for your FLA filing, ensuring a smooth and timely process.
We handle the filing and submission of your FLA return, ensuring full compliance with the regulations.
Our team will follow up with the authorities to ensure the timely processing of your FLA filing and address any queries.
With our expert services, we help you avoid costly penalties by ensuring timely and accurate filing of your FLA Return.