📢 Annual Return on Foreign Liabilities and Assets (FLA Return) – Compliance Reminder for FY 2024–25

⚠️ Disclaimer: This blog is intended for informational purposes only. The content is based on publicly available data and government regulations as on the date of writing. Please refer to official FEMA guidelines and consult your professional advisor for specific legal or compliance matters.

🔍 What is the FLA Return?

The Annual Return on Foreign Liabilities and Assets (FLA Return) is a regulatory requirement under the Foreign Exchange Management Act (FEMA), 1999, mandated by the Reserve Bank of India (RBI).

It aims to capture detailed information on foreign investments made by Indian entities and their overseas assets and liabilities.

✅ Who Needs to File?

The FLA Return is mandatory for the following Indian entities:

• Companies

• LLPs (Limited Liability Partnerships)

• AIFs (Alternative Investment Funds)

• Others who have either:

1. Received Foreign Direct Investment (FDI) or made Overseas Direct Investment (ODI) in the previous financial year(s), including the current one;

   
   

   OR

2. Have any outstanding foreign liabilities or assets as of 31st March 2025.

   
   

📌 Filing Required Even If:

• There were no changes in foreign assets or liabilities during FY 2024–25.

• The entity did not receive any fresh FDI or ODI in the current year, but had balances from previous years.

  
  

This means once you fall under the ambit of the FLA filing, it continues to be applicable annually unless your foreign asset/liability position becomes nil and is reported as such.

📅 Due Date for FY 2024–25

15th July 2025

The return must be submitted online via the FLAIR (Foreign Liabilities and Assets Information Reporting) System.

Late or non-filing may attract penal provisions under FEMA.

📝 What Information is Required?

To ensure timely and accurate submission, you should be ready with:

• 📄 Audited Financials as of 31st March 2025 (or provisional, if audit is not yet completed)

• 🌐 Details of Foreign Investments:

  
  

  • Inward (FDI received)

  • Outward (ODI made)

• 
  

• 👥 Shareholding Pattern, specifically highlighting foreign shareholders (if any)

🛠 Reference & Regulatory Framework

• FEMA 20(R): Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2017

• RBI Master Direction on Reporting under FEMA (Updated from time to time)

• FLAIR Portal: https://flair.rbi.org.in

📣 Final Note

If your entity is covered under the FLA Return requirement, ensure compliance by 15th July 2025 to avoid regulatory consequences.

For assistance or clarification, it is strongly recommended to consult a FEMA/Compliance expert or your Chartered Accountant.

Stay compliant, stay informed.