Foreign Liabilities And Assets Return

Foreign Liabilities And Assets Return

    About Service
Annual return on Foreign Liabilities and Assets (FLA) is an annual return of all investments made in the company during a financial year. It was notified in FEMA. It is required to be submitted directly by the Company to the RBI. It has been introduced to capture the statistics relating to Foreign Direct Investment (FDI), both inward and outward in a more comprehensive manner as also to align it with international best practices. The annual return on Foreign Liabilities and Assets (FLA) is required to be submitted directly by all the Indian companies which have received FDI (foreign direct investment) and/or made FDI abroad (i.e. overseas investment) in the previous year(s) including the current year i.e. who holds foreign Assets or Liabilities in their Balance Sheets. However, if the company has not ‘received any fresh FDI and/or ODI (overseas direct investment)’ in the latest year but the company has outstanding FDI and/or ODI, then that company is also required to submit the FLA Return every year by July 15. Non-filing of the return before due date will be treated as a violation of FEMA and will attract huge penalties.
 Timeline: 3-5 Working days
 Package Inclusions
  • Financial Statements of the Company in accordance in with statutory compliances
  • Filinfg of FLA Return
 Documents Required
  • Financial Statements containing the inward and outward flow of FDI
  • ID proof- All Directors
  • Address Proof- All Directors
  • Address Proof of the Registered Office of Company
 Process Details
  • The annual return on Foreign Liabilities and Assets (FLA) is required to be submitted directly by all the Indian companies which have received FDI (foreign direct investment) and/or made FDI abroad (i.e. overseas investment) in the previous year(s) including the current year i.e. who holds foreign Assets or Liabilities in their Balance Sheets. However, if the company has not ‘received any fresh FDI and/or ODI (overseas direct investment)’ in the latest year but the company has outstanding FDI and/or ODI, then that company is also required to submit the FLA Return every year by July 15.
 Key Advantages
  • Capture Statistics: The reason behind the introduction of FLA Return is to capture the statistics relating to Foreign Direct Investment (FDI), both inward and outward in a more comprehensive manner as also to align it with international best practices.
 FAQs
  1. Which companies are eligible are eligible to file FLA Return?
    The Annual return of foreign liabilities and assets ( FLA) is required to be submitted by all the Indian Companies which have received FDI and /or made FDI abroad in the previous year (S) including the current year i.e. who holds foreign assets or liabilities in their Balance sheets.
  2. What are the due date of submission of the FLA Return?
    FLA return is mandatory under FEMA 1999 and companies are required to submit the same based on audited/ unaudited account by July 15 every year.
  3. what information should be reported In FLA Return, if balance sheet of the company is not audited before the due date Of submission?
    If the company’s accounts are not audited before the due date of submission i.e. July 15, then the FLA return should be submitted based on unaudited account. Once the accounts get audited and there are revisions from the provisional information submitted by the company, they are supposed to submit the revised FLA return based on audited accounts by end of September.
  4. If a company did not receive FDI or made overseas investment in any of the previous year (s) including the current year, do we need to submit the FLA return?
    If the Indian company does not have any out standing investment in respect of Inward or outward FDI as on end March of reporting year, the company need not submit the FLA return.
  5. If the company has not received any inward FDI / made overseas investment in the latest year, do they need to submit the FLA Return?
    If the company has not ‘received any fresh FDI and/or ODI (overseas direct investment)’ in the latest year but the company has outstanding FDI and/or ODI, then that company is required to submit the FLA Return every year by July 15.

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