Trusted by Indian companies for RBI-compliant FLA submissions. On-time, accurate & fully managed.
Introduction and Its Compliance
The FLA (Foreign Liabilities and Assets) Return is required to be filed by all the companies who have received FDI or made ODI in an Indian entity in the latest financial year(s) such reporting is required to be submitted directly by all the Indian companies which have received FDI or made ODI in the IETP (Indian Entity Type) in that year. This is filed under FEMA 1999 and is a requirement of the RBI. the FLA should be submitted on or before July 15th annually on FLAIR (FLA Online Reporting) Portal. The return provides crucial information about foreign assets, liabilities and performance. Professionals Law is also engaged in assisting with drafting, validation and filling of Return Filling (FLA) for complete compliance with law and in order not to invite FEMA Penalties
Why It Is Needed
FLA return is required to ensure transparency in India’s foreign exchange transactions. It enables RBI to access the information on cross-border investments and external financial exposure of Indian companies. A failure to file or the inclusion of inaccurate information can trigger regulatory inspection and sanctions. FLA filing is also required for fund raising, due diligence and overseas transactions. Professionals Law helps you file your FLA return correctly by checking your financial data, following RBI instructions to fit the format, and uploading the information onto the RBI FLAIR Portal before the deadline.
Benefits and Advantages
Ensures FEMA Compliance
Filing the FLA return ensures compliance with the Foreign Exchange Management Act (FEMA) and prevents legal or financial penalties from the Reserve Bank of India.
Boosts Business Credibility
Accurate reporting of foreign investments helps improve transparency, which enhances credibility with foreign investors, lenders and regulatory bodies.
Essential for Fundraising
Timely FLA compliance is often required during funding rounds, investor audits or mergers and acquisitions involving international stakeholders.
Avoids Regulatory Penalties
Professionals Law ensures that your filings are completed well before the deadline, eliminating the risk of non-compliance or financial penalties.
Professional Representation
Professionals Law manages FLA submissions professionally, keeping your data secure while representing your interests before regulatory authorities.
Eligibility Criteria
Entities required to file FLA Return include:
- Indian companies that have received FDI during the previous financial year or current year (even if shareholding was transferred later).
- LLPs and other entities that have received FDI or made ODI.
- Companies with outbound investments in foreign subsidiaries, associates or joint ventures.
- Entities that reported FDI/ODI in previous years must file even if there is no change during the current year.
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Documents Required
Steps for Applying
Gather Financial Data
Collect detailed information on inbound FDI and outbound ODI for the reporting year.
Register on FLAIR Portal
Entities must register with RBI’s FLAIR portal (https://flair.rbi.org.in).
Prepare the Return
Professionals Law prepares the return using the company’s financial and investment data, ensuring adherence to RBI’s prescribed format.
Validate and Submit
The completed FLA return is uploaded and submitted online through the FLAIR portal.
Acknowledgement and Tracking
Professionals Law tracks submission status and provides confirmation of successful filing.
Frequently Asked Questions
Who must file FLA Return?
What if no change occurred in FDI or ODI during the year?
Is audited financial data mandatory?
What happens if I miss the filing deadline?
Can Professionals Law assist with registration on the FLAIR portal?
Can LLPs file the FLA Return?
Is the FLA Return a one-time requirement?
Can I revise the return once submitted?
Does FLA filing apply to transfer of shares?
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