What is FLA Return?
The Foreign Liabilities and Assets (FLA) Return is a mandatory annual report filed with the Reserve Bank of India (RBI) by Indian entities that have received Foreign Direct Investment (FDI) or made overseas investments. It captures comprehensive information about foreign assets and liabilities appearing on the entity's balance sheet, as required under FEMA (Foreign Exchange Management Act), 1999.
The FLA return must be filed by July 15 every year through the RBI's FLAIR (Foreign Liabilities and Assets Information Reporting) portal. If accounts are not audited by July 15, the return may be filed with provisional figures and revised by September 30 after audit completion.
Who Must File FLA Return?
| Must File | Not Required to File |
|---|
| Companies that have received FDI (Foreign Direct Investment) | Entities with no FDI received and no overseas investment made |
| LLPs with foreign investment | Companies where foreign investment consists only of share application money (no outstanding FDI) |
| SEBI-registered Alternative Investment Funds with FDI/ODI | — |
| Partnership Firms and PPPs involved in FDI/ODI | — |
| Companies that have made Overseas Direct Investment (ODI) | — |
Due Date & Penalties
| Scenario | Due Date |
|---|
| Accounts audited before July 15 | July 15 (with audited figures) |
| Accounts not audited before July 15 | File with provisional figures by July 15; revise by Sept 30 |
Penalties for Non-Compliance (FEMA)
| Violation | Penalty |
|---|
| Late submission (before enforcement action) | ₹7,500 late fee |
| Non-filing / False information | Up to 300% of amount involved or minimum ₹2 Lakh |
| Continued violation | ₹5,000 per day for each day of continuing violation |
Five Sections of FLA Return
| Section | Content |
|---|
| Section I | Entity identification, NIC codes, nature of FDI |
| Section II | Capital, P&L, reserves, employee count, sales/purchases |
| Section III | FDI details — equity (≥10% and <10%), portfolio investments, other liabilities |
| Section IV | ODI information — overseas investments, debt securities, portfolio investments abroad |
| Section V | Variation report — auto-generated year-to-year change analysis |
