Foreign Liabilities and Assets (FLA) Returns
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Table Of Content
Foreign Liabilities and Assets (FLA) Returns
The Foreign Liabilities and Assets (FLA) Return is an annual filing procedure mandated by the Reserve Bank of India (RBI) under the Foreign Exchange Management Act (FEMA) 1999. Indian entities, including companies, limited liability partnerships (LLPs), and other entities involved in foreign exchange transactions, are required to file this return, particularly when they have received Foreign Direct Investment (FDI).
The FLA Return provides a detailed report of Indian entities’ foreign liabilities (such as investments or loans from non-residents) and foreign assets (such as foreign subsidiaries or joint ventures). The information is essential for the RBI to monitor the country’s international financial obligations and foreign investment, providing critical insights into India’s external sector.
Benefits of Filing FLA Returns
Eligibility for Filing FLA Returns
Process of Filing FLA Returns
Step 1
Gather detailed information on foreign liabilities and foreign assets, including FDI, loans, and equity participation from non-residents.
Step 2
Download the FLA Return Form from the RBI’s official website under the Foreign Exchange Department section.
Step 3
Fill out the form with all the required details. Ensure accuracy to avoid penalties or legal issues.
Step 4
Once completed, the form is submitted via email to the designated RBI email address. No physical submission is required.
Documents Required for FLA Returns Filing
FAQs
Who is required to file FLA Returns?
All Indian entities engaged in foreign exchange or overseas investments must file their FLA Returns.
What happens if the FLA Returns are not filed on time?
Non-filing or late filing can lead to penalties and, in severe cases, legal consequences as per RBI guidelines.
What are foreign liabilities?
Foreign liabilities include equity, loans, investments, and debentures held by foreign investors.
Are unaudited financial statements accepted for filing FLA Returns?
Yes, but unaudited statements must be updated with a revised return once they are audited.
Can an individual file FLA Returns?
No, only entities such as companies, LLPs, and partnerships are required to file FLA Returns.
How are FLA Returns submitted?
FLA Returns are submitted via email to the designated RBI email address.
Where can I access the FLA Return Form?
The form can be accessed on the RBI’s official website under the Foreign Exchange Department section.
What transactions are excluded from FLA Returns?
Domestic transactions are excluded; only foreign liabilities and assets are reported.
What are foreign assets?
Foreign assets include investments or assets held overseas, such as subsidiaries or joint ventures.
Is it compulsory to file FLA Returns if there are no foreign transactions?
Yes, even if there have been no recent foreign transactions, entities must still file returns if they have prior foreign investments.