|FLA Full Form: Form for Annual Return on Foreign Liabilities and Assets|
|Applicability: Every entity having Financial Assets and Liabilities as on 31st March in their financial statements. Following entities are covered in it:|
1. A Company within the meaning of section 1(4) of the Companies Act, 2013
2. A Limited Liability Partnership (LLP) registered under the Limited Liability Partnership Act, 2008
3. Others [include SEBI registered Alternative Investment Funds (AIFs), Partnership Firms, Public Private Partnerships (PPP) etc.]
|Due Date: Companies required submitting same based on audited/unaudited account by 15th July every year and it is mandatory under FEMA 1999.|
Further revised FLA based on audited figures can be submitted within 30th September
|· The Company need not submit the FLA Return ,if Indian company does not have any outstanding investment of FDI and/or ODI as on end of the reporting year|
· The company will mandatorily submit, if the Indian company has not ‘received any fresh FDI and/or ODI in the latest year but the company has outstanding FDI and/or ODI.
|If Closing Period of the company is different from reference period (end-March) then information is required to be given for the reference period only based on the internal assessment.|
If company having more then one business then selects that activity, from which, they have earned major revenue.
|Link of the Portal: https://flair.rbi.org.in/fla/faces/pages/login.xhtml|
|If company is registering First time:|
1. Registration Form to be submitted online.
2. Following documents to be uploaded :
· Scanned and signed authority letter
· Verification letter (in PDF )
3. Attach necessary documents along with form and submit.
4. Now generate User ID and password for using FLA submission gateway
If Company is filling FLA after creation Login:
1. Login with your User Id and Password
2. After entering password ,fill the captcha and OTP is received on your registered mail id
3. Now dashboard is visible, click on the left side and select FLA online Form.
4. Then select reporting year and start Filling the form
|Things to be kept in mind while filling the form:|
1. There are four sections in the form, which are required to be filled.
2. Every section needs to be validated by the portal then only you will be able to see the details on the next section.
3. In Section I , Identification details of the company to be filled and in below mentioned column details of class of shares and face value to be mentioned .
4. In Section II, Financial details to be mentioned of previous year and reporting year which includes information about paid up capital , Non Resident holding, profit and loss , Reserves and surplus ,sales and purchase , employee information etc
5. In Section III, Details of Foreign Liabilities to be given i.e all investments made in India.
- If you don’t have investments in 10% or more Equity Participation but has investment in Less than 10% Equity Holding.
- Then while filling the form firstly go to the column of Less than 10% Equity Holding and enter the number of countries in it.
- After entering no of countries , details are required to be entered 2.b.1 column.
- Details of 2.b.1 column in section III should be same as shown in 2.3 of Section II.
- If your details are same as last years and it is already shown in the portal, then you need click on the edit/view option and select the details.
- After selecting, click on the save/ Add DI option as shown below and directly press the save as draft without clicking any other details on the page.
- Lastly , in the column where number of countries is ZERO .There is no need to fill any details not even Zero (0)
|6. In Section IV, details of Foreign Assets to be given which includes Overseas Direct Investment (10 % or more equity holding), Direct Investment Abroad (Less than 10% equity holding), Portfolio Investments abroad and Other Investment (Outstanding Claims on Foreign Unrelated Parties)|
· If company does not have any details, then simply mention ZERO in the columns and move on.
|7. In Section V, Valuation report to be generated by the portal itself based on the information provided in all above sections.|
· You need to click on the YES/NO option provided on the right side of the page and if you select No, then provide the reason.
· Once you selected YES in every column, portal will ask you to submit the return.
· For this you need to click on the Tick mark.
· Lastly , an acknowledgement and a PDF of the filled form is generated which need to be downloaded from the portal as no separate acknowledgement is provided by RBI on registered mail.
|NOTE : while filling FLA form ,use TAB button to switch between the cells instead of using mouse otherwise it will show error.|
|Non-filing of the return before due date will be treated as a violation of FEMA and penalty clause may be invoked for violation of FEMA.|