This filing, required under the Foreign Exchange Management Act (FEMA), must be completed by July 15, 2025. The obligation applies to all companies, LLPs, Alternative Investment Funds (AIFs), and other entities that have either received Foreign Direct Investment (FDI) or made Overseas Direct Investment (ODI) in the previous financial years, including the current year, or have outstanding foreign assets or liabilities as of March 31, 2025.
Importantly, the return must be filed even if there have been no changes in the foreign assets or liabilities during the year, or if the entity has not received any FDI or made any ODI in the current financial year but had such balances in earlier years.
To facilitate timely and accurate filing, entities are required to provide the Audited or provisional financial statements as of March 31, 2025, Details of foreign investments, both inward and outward and Shareholding pattern, including details of foreign investors, if applicable
Non-compliance with this requirement can attract penalties under FEMA and may impact the entity’s ability to conduct foreign transactions or complete future regulatory filings. Entities are advised to coordinate with their compliance or finance teams and ensure that the FLA Return is filed within the prescribed timeline.
