FLA Return Filing
FileMyFirm offers expert support for mandatory FLA return filing and FEMA compliance. We ensure your company’s Foreign Liabilities and Assets are reported accurately to the RBI by the July 15 deadline, helping you avoid penalties for your FDI in India.
Mandatory Annual RBI Compliance.
Accurate reporting assets/liabilities.
Expert filing via the FIRMS portal.
Timely reporting to avoid penalties.
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FLA Return Filing
The FLA Return is an annual report that Indian entities, including companies and LLPs, must file with the Reserve Bank of India (RBI) to report their outstanding foreign liabilities and assets. This mandatory compliance, governed by the Foreign Exchange Management Act (FEMA), ensures the RBI can monitor foreign investment inflows and outflows and compile India’s international investment position.
Who Must File FLA Return?
All Indian entities that have received Foreign Direct Investment (FDI) or made Overseas Direct Investment (ODI) in any previous year, including the current year, must file the FLA Return. This is required even if no new investment was received or made in the current financial year.
Exemptions
- Entities that have no outstanding foreign assets or liabilities as of March 31 of the reporting year.
- Entities that have only received share application money from non-residents without any share allotment by March 31.
- Entities that have only issued shares on a non-repatriable basis.
Key Deadlines and Penalties
The FLA Return must be filed annually by July 15. If the company’s financial statements are not audited by this date, it must file a provisional return. A revised, audited return must then be submitted by September 30.
Failing to file on time or submitting incorrect information can lead to severe penalties under FEMA:
- Late Submission Fee (LSF): A flat fee of ₹7,500 may be imposed for delayed filing.
- Monetary Penalty: The penalty can be up to 300% of the amount involved in the violation. If the amount cannot be quantified, a fixed penalty of ₹2,00,000 may apply.
- Daily Penalty: For a continuing violation, a daily penalty of ₹5,000 may be imposed.
How to File FLA Return
The FLA Return filing is done online via the FLAIR portal. The process involves these steps:
- User Registration: The company must first register on the FLAIR portal and create an “Entity User” account.
- Information Gathering: The company must collect all necessary financial information, including details on paid-up capital, profit and loss, reserves, sales, and employee numbers, along with all foreign liabilities and assets.
- Form Submission: The authorized person logs in to the FLAIR portal, fills out the FLA Return form with the collected data, and submits it.
- Acknowledgement: Upon successful submission, the system generates an acknowledgement, which serves as proof of compliance.
Streamline Your FLA Compliance with FileMyFirm
Navigating the complexities of the FLAIR portal and the stringent FEMA compliance can be challenging. FileMyFirm offers expert assistance to ensure your FLA Return filing is accurate and on time, helping you avoid penalties and regulatory issues.
Frequestly asked questions ( FAQ )
Form ADT-1 is a mandatory official e-form used by all types of companies in India to notify the Registrar of Companies (RoC) about the appointment or reappointment of an auditor. This ensures that the Ministry of Corporate Affairs (MCA) records are updated with the auditor’s official details and term of office, as required under the Companies Act, 2013.
The responsibility for filing ADT-1 lies with the company, not the auditor. It is required in the following scenarios:
First Auditor: When a newly incorporated company appoints its first auditor at the initial Board Meeting.
Subsequent Appointments: When an existing company appoints or reappoints an auditor for their term at the Annual General Meeting (AGM).
Casual Vacancy: When an auditor is appointed to fill a casual vacancy on the Board.
The appointment of auditors and the subsequent intimation to the RoC through Form ADT-1 is governed by Section 139 of the Companies Act, 2013.
The form must be filed within 15 days from the date of the auditor’s appointment (i.e., the date of the Board Resolution or the AGM Resolution).
Failure to file Form ADT-1 within the 15-day deadline results in statutory late fees (penalties). The penalty fees escalate significantly based on the duration of the delay, ranging from 2 times the normal government fee for shorter delays up to 12 times the normal fee for delays exceeding 180 days.
The company must attach the following documents to complete the electronic filing:
A certified copy of the Board Resolution or the AGM/EGM Resolution authorizing the appointment.
The written consent from the auditor stating their acceptance of the appointment.
A certificate from the auditor confirming that they meet all the eligibility criteria prescribed under Section 141 of the Companies Act, 2013.