Annual Return on Foreign Liabilities and Assets (RBI FLA)

Background

An Indian company receiving foreign investment requires to allot shares for the investment received. The said foreign investment/allotment is required to be reported to the Ministry of Corporate Affairs (MCA) and the Reserve Bank of India (RBI). Form FC-GPR is an online form by the RBI, and it has to be filed by an Indian company receiving any form of foreign investment or foreign direct investment (FDI). 

The responsibility of reporting does not end with filing FC-GPR. Indian companies are required to file an annual return on Foreign Liabilities and Assets (FLA). FLA is required to be filed by Indian companies that have received FDI or made any form of Overseas Direct Investment (ODI) in the previous year. 

Applicability of filing of FLA return 

Filing FLA will be applicable to any entity that holds foreign assets and liabilities on its balance sheet. This filing is applicable for private limited companies and limited liability partnerships (LLPs).

Mode of filing of FLA 

The annual return on FLA can be filed through the online system of the RBI known as the Foreign Liabilities and Assets Information Reporting (FLAIR) portal available at www.flair.rbi.org.in. 

What information is filed in the FLA? 

Following are the type of transactions which have to be filed under the FLA: 

• Any foreign liabilities and assets present on the balance sheet, including any disinvestment in the last financial year. 

FLA Procedure 

It is crucial for entities to register in the FLAIR portal for filing FLA. A verification letter and authority letter is required for filing the information online.

Once registered, the authorized user (i.e., the person authorized to file the return on behalf of the company) will receive the login credentials on registered email ID. 

Information required for Filing FLA

• Identification particulars of the entity.
• Financial details of the entity.
• Information on foreign liabilities.
• Information on foreign assets.
• Outward foreign affiliates trade statistics.
• Other assets and liabilities with foreign unrelated parties. 

Due date for filing FLA 

Companies are required to file FLA return on 15 July every year based on audited or unaudited financial accounts. Following the accounts being audited, a revised FLA is to be filed on or before 30 September of the same year.