What is FLA Return?
Foreign Liabilities and Assets (FLA) Return is an annual return that captures the foreign investment position of Indian companies. It provides comprehensive data on foreign assets and liabilities to the Reserve Bank of India for balance of payments statistics and policy formulation.
Key Aspects of FLA Return
- Annual Return: Filed once every financial year by July 15
- Comprehensive Coverage: Captures all foreign investment, loans, and overseas assets
- FIRMS Portal: Filed online through RBI's Foreign Investment Reporting and Management System
- Mandatory Filing: Required even if no foreign transactions occurred during the year
- Data Usage: Used for India's balance of payments and international investment position statistics
What FLA Return Captures
Foreign Direct Investment (FDI)
Equity capital, reinvested earnings, and other capital in Indian companies by foreign investors.
External Commercial Borrowings
Foreign currency loans, buyer's credit, supplier's credit, and foreign currency bonds.
Portfolio Investment
FII/FPI investments in Indian equities and debt securities.
Foreign Assets
Overseas investments, loans given to foreign entities, and foreign currency holdings.
Who Should File FLA Return?
FLA Return filing is mandatory for all Indian companies that meet certain criteria related to foreign investment or assets.
Mandatory Filing Required For:
- ✓ Companies that have received FDI (Foreign Direct Investment) at any time
- ✓ Companies that have made overseas investment (financial or non-financial)
- ✓ Companies with outstanding ECB (External Commercial Borrowings)
- ✓ Companies with foreign portfolio investment (FII/FPI holdings)
- ✓ Companies with foreign currency convertible bonds (FCCB)
- ✓ Companies with foreign preference shares or other foreign capital
Nil Return Filing:
Even companies that had foreign investment in the past but have no foreign liabilities or assets as of March 31 must file a NIL return.
Due Date and Penalties
| Aspect | Details |
|---|---|
| Due Date | July 15 (every year for previous FY ending March 31) |
| Late Filing | Allowed with penalty through FIRMS portal |
| Revised Return | Can be filed to correct errors in original return |
| Exchange Rate | Use RBI reference rate as of March 31 |
Penalties for Non-Filing
- Late Filing Fee: ₹1,000 to ₹10,000+ depending on delay period
- Regulatory Action: RBI may restrict future foreign investment approvals
- Compliance Status: Company marked as non-compliant in RBI records
- Future Consequences: May affect ability to receive fresh FDI or ECB
Information Required
FLA Return requires comprehensive data about foreign investment and assets. Companies should prepare this information before logging into FIRMS portal.
Data Points Required
Direct Investment Data
- • Opening and closing foreign equity
- • Reinvested earnings
- • Equity capital issued during year
- • Equity capital redeemed during year
- • Country-wise investor details
- • Industry classification (NIC code)
External Borrowing Data
- • Outstanding ECB amount
- • Currency-wise breakup
- • Purpose of borrowing
- • Maturity profile
- • Interest rate details
Portfolio Investment
- • FII/FPI equity holdings
- • FII/FPI debt holdings
- • ADR/GDR holdings
Foreign Assets
- • Overseas direct investment
- • Trade credits given
- • Loans to foreign entities• Foreign currency cash holdings
Filing Process on FIRMS
FLA Return is filed through RBI's FIRMS (Foreign Investment Reporting and Management System) portal. Here's the step-by-step process:
Access FIRMS Portal
Visit https://firms.rbi.org.in and login using your entity credentials (PAN-based login).
Select FLA Return
Navigate to 'FLA Return' section and select the relevant financial year.
Fill Entity Details
Verify and update entity information including address, contact details, and sector.
Enter Investment Data
Input all foreign investment, borrowing, and asset data with opening/closing positions and flows.
Validate and Submit
Validate data, generate PDF preview, and submit with digital signature of authorized person.
Acknowledgment
Download and save the acknowledgment receipt with reference number.
Frequently Asked Questions
What is the difference between FLA and FC-GPR?
FC-GPR is event-based (filed within 30 days of share allotment), while FLA is an annual return capturing overall position as of March 31.
Can I revise my FLA Return after filing?
Yes, revised returns can be filed on FIRMS portal to correct errors in the original filing.
Do LLPs and partnerships also file FLA?
Currently, FLA Return is mandatory only for companies. LLPs and other entities have different reporting requirements.