FLA Return Compliance

FLA Return Compliance

If your company has any foreign investment or overseas assets/liabilities, the RBI expects one thing every year: an accurate FLA Return. It’s not a tax form or a funding document — it’s a disclosure of foreign-owned equity, loans, guarantees, reserves, and outstanding payables/receivables as of March 31. Missing it can raise red flags with banks, investors, or during due diligence.

What is the FLA Return?

An annual FEMA reporting requirement filed with RBI by July 15. It applies to companies, LLPs, AIFs, and startups with:

• Foreign shareholding

• External loans from or to non-residents

• Overseas subsidiaries, JVs, or investments

Why it matters

• Mandatory under FEMA

• Required for future foreign investment filings

• Ensures accuracy in India’s external sector statistics

• Avoids compounding or regulator follow-ups

• Often requested during audits, funding rounds, and bank compliance checks

Who must file

• Indian companies with FDI, even if inactive

• LLPs with foreign capital

• Companies that issued or transferred shares to non-residents

• Entities with ODI, ECB, or outstanding foreign receivables/payables

How we help

• Eligibility check and compliance advisory

• Data collection, review, and financial reconciliation

• Preparation and filing of the FLA Return on RBI portal

• Corrections, revised returns, and clarification support

• Annual compliance reminders and documentation management

Information usually required

• Audited or provisional financial statements

• Shareholding pattern and foreign investment details

• Outstanding loans, guarantees, ECBs, or ODs

• Details of overseas subsidiaries or JVs

• Previous FLA acknowledgments (if applicable)

Our filing process

1. Understand foreign investment/loan structure

2. Collect financial and shareholding data

3. Validate figures and resolve mismatches

4. Prepare and file FLA Return

5. Share confirmation and compliance record