Annual Return on FLA - Registration guidelines - General Instructions and Definitions - As on July 21, 2021

Chapters / List

1. What will be the consequences in case we do not file the said FLA Return by 15th July, as our accounts are not audited as yet, and we do not wish to file it with unaudited figures. Will there be any imposition of penalty or prosecution initiated against the company by RBI or FEMA?

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2. What information should be reported in FLA return, if balance sheet of the company is not audited before the due date of submission?

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3. In case where account closing period of the company is different from reference period (end-March), can we report the information as per account closing period?

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4. If the old/new company fails to file the FLA form before the due date; can the company submit the FLA form?

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5. If an old/new company wants to file the previous year FLA form; can the company file the previous year FLA form?

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6. If an old/new company wants to delete the previous version of FLA form or modify; can the company delete/modify the FLA return?

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7. What is meant by “Residence of Enterprises”?

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8. What is Direct investment?

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9. What is meant by “Equity Capital under Direct Investment”?

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10. What is “Other Capital under Direct Investment”?

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11. What are definitions of “Foreign Subsidiary”, “Foreign Associate” and “Special Purpose Vehicle”

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12. Which entities are required to submit the FLA Return?

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13. If a company / LLP / Others did not receive FDI or made overseas investment in any of the previous year(s) including the current year, do we need to submit the FLA return?

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14. Whether a company needs to submit the FLA Return, if it has received only share application money?

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15. If the company has not received any inward FDI / made overseas investment in the latest year, do they need to submit the FLA Return?

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16. Is it required to submit any financial statements like balance sheet or P&L accounts (audited/ unaudited) along with the FLA return?

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17. Whether FLA return is required to be submitted by registered partnership firms (registered under Partnership Registration Act) or branches or trustees, who have made overseas direct investment, or it is mandatory only for companies (registered under Companies Act, 1956)?

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18. If non-resident shareholders of a company have transferred their shares to the residents during the reporting period, then whether that company is required to submit the FLA Return?

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19. If company had issued the shares to non-resident on non-repatriable basis, whether that company is required to submit the FLA Return?

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20. How does the company report data and submit the FLA return to the RBI?

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21. What is the system requirement at company’s side for filling the FLA Return through web-based online portal?

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22. Where can company / LLP / Others get the format of Annual Return on Foreign Liabilities and Assets (FLA Return)?

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23. How would an acknowledgement be provided to us on submission of the form?

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24. What are participating and non-participating preference shares?

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25. How the Net Worth of the company is calculated?

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26. Whether equity participation includes equity shares as well as compulsorily convertible debentures (CCD)?

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27. What is Foreign Direct Investment (FDI) in India?

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28. What valuation guidelines are used while reporting foreign equity investment for unlisted companies?

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29. What valuation guidelines are used while reporting foreign equity investment for listed companies?

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30. What constitute the ‘Other Capital’ component of FDI?

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31. What is the definition of related party?

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32. In the FLA Return, whether FDI should be reported based on the country of immediate investor or country of ultimate holding company? Where should we report the receivable/ payables with non-resident ultimate holding company?

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33. Whether, any assets or liabilities for Indian party (i.e. domestic assets and liabilities) are to be included in the FLA Return?

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34. What is Direct Investment abroad by Indian companies?

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35. If the overseas subsidiaries/ joint venture company’s accounting period is different from the reference/reporting period (i.e. April-March) in the Return, then what information should we furnished in Section IV?

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36. What constitute the ‘Other Capital’ component of ODI?

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