The full form of FLA return is the Foreign Liabilities Assets Return. The annual return on foreign liabilities and assets is regulated and governed under the provisions and rules notified under FEMA. It is a type of return that is required to be submitted by all the Indian organisations and companies that receive FDI (Foreign Direct Investment) or make overseas investments abroad.
Foreign Liability Assets Filing is mandatory for all the companies who do business abroad and receive Foreign Direct Investment. Non-filing of FLA returns can invoke penalties under FEMA.
The filing of the FLA return is done on the 15th of July every year. If a company or LLP is not audited then they can submit an FLA return for an unaudited balance sheet as well. After the audit of these companies, a revised FLA return can be submitted within the 30th of September.
The prescribed method of FLA return is to submit an excel sheet containing all the returns. It is to be submitted by an authorised person on behalf of the company to the official email id of the RBI i.e Reserve Bank of India. The authorised person can be the company secretary or the director of the company which regulates the management of the company.
All the necessary details including the company’s audited and financial details should be included in the FDI return. The format of filing the FLA return can be found on the RBI website.
After the successful submission, an acknowledgement mail will be sent from the RBI’s side to the authorised person’s mail.
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