Which
entities are required to submit the FLA Return?
Ans: The annual
return on Foreign Liabilities and Assets (FLA) is required to be submitted by
the following entities which have received FDI (foreign direct investment)
and/or made FDI abroad (i.e. overseas investment) in the previous year(s)
including the current year i.e. who holds foreign assets or/and liabilities in
their balance sheets;
·
A Company within the meaning of
section 1(4) of the Companies Act, 2013.
·
A Limited Liability Partnership
(LLP) registered under the Limited Liability Partnership Act, 2008
·
Others [include SEBI
registered Alternative Investment Funds (AIFs), Partnership Firms, Public
Private Partnerships (PPP)
etc.]
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?
Ans: If an Indian company / LLP / Others does not have any outstanding
investment in respect of inward and outward FDI as on end-March of reporting
year, the company need not submit the FLA Return.
Whether
a company needs to submit the FLA Return, if it has received only share
application money?
Ans: If a
company has received only share application money and does not have any outstanding
foreign direct investment or overseas direct investment as on end-March of the
reporting year, then
the company is not required to fill-up the FLA return.
If the
company has not received any inward FDI / made overseas investment in the
latest year, do they need to submit the FLA Return?
Ans: If the company has not received any fresh FDI and/or overseas direct investment
(ODI) in the latest year but has outstanding FDI or/and ODI, it is required to
submit the FLA return each year by July 15. It needs to submit FLA return till
it continues to have any outstanding FDI or/and ODI in its balance sheet.
Is it required to submit any
financial statements like balance sheet or P&L accounts (audited/
unaudited) along with the FLA return?
Ans: No balance sheet or profit loss accounts need to be submitted. Only
annual return on FLA through online web-based reporting portal needs to be
submitted before due date (July 15).
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)?
Ans: Yes, 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.
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?
Ans: If all non-resident shareholders of a company have transferred their
shares to the residents during the reporting period and the company does not
have any outstanding investment in respect of inward and/or outward FDI as on
end-March of reporting year, then the company need not submit the FLA return.
If
company had issued the shares to non-resident on non-repatriable basis, whether
that company is required to submit the FLA Return?
Ans: Shares issued by reporting company to non-resident on non-repatriable
basis is not considered as foreign investment; therefore, such companies are not
required to submit the FLA Return.
