Avoid Penalties And Regulatory Issues By Fulfilling Your Fla Reporting Obligation Promptly

Non-Compliance Can Cost

Avoid penalties and regulatory issues by fulfilling your FLA reporting obligation promptly.

We’re Here to Help

If you need assistance or guidance on FLA filing, reach out to us. We’re committed to supporting you through the process.
Let’s uphold financial integrity and transparency together!

FLA, or Foreign Liabilities and Assets, is a system introduced by the Reserve Bank of India (RBI) to collect data on foreign liabilities and assets of Indian companies and individuals. The FLA return is a mandatory requirement for Indian companies which have received Foreign Direct Investment (FDI) or made foreign investment in any of the previous years, including the current year.

FLA (Foreign Liabilities and Asset) return is a return filed with RBI on annual basis depending on the applicability of certain provisions of Foreign Exchange Management Act, 1999 (FEMA) on below entities:

• • Any entity which has received Foreign Direct Investment (FDI) whether in terms of shares and/or External Commercial Borrowing (ECB); and/ or
  • Any entity which has invested in any foreign company either through a Joint Venture (JV) or Wholly Owned Subsidiary (WOS) i.e. known as Overseas Direct Investment (ODI).

The FLA return provides valuable information to the RBI about the financial health and exposure of Indian entities to foreign liabilities and assets. This data helps the RBI in formulating policies related to capital flows, exchange rates, and economic stability. FLA returns typically include details such as foreign equity, external commercial borrowings, trade credits, and other financial assets and liabilities held by Indian entities. Companies falling under the purview of FLA need to submit their annual return on or before July 15th every year. The reporting format and guidelines for filing FLA returns are provided by the RBI, and non-compliance can attract penalties.
The format and email-based reporting system has been replaced by the web-based formats for submission of annual FLA return from June 2019. In this web-based reporting system of FLA, companies first need to create business-user through “Entity-User Registration form”. The format is available on https://flair.rbi.org.in.

Steps includes

1. Creation of Business user
2. Prepare Online Return, Verify and Submit
3. Acknowledgment: