Entities with Foreign Investment Must File FLA Return with RBI by July 15, 2025
The Reserve Bank of India (RBI) has issued a reminder to all eligible entities regarding the mandatory filing of the Annual Return on Foreign Liabilities and Assets (FLA Return) for the financial year ending March 31, 2025.
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.
Mariya is the Senior Editor at JurisHour. She has 5+ years of experience on covering tax litigation stories from the Supreme Court, High Courts and various tribunals including CESTAT, ITAT, NCLAT, NCLT, etc. Mariya graduated from MLSU Law College, Udaipur (Raj.) with B.A.LL.B. and also holds an LL.M. She started as a freelance tax reporter in the leading online legal news companies like LiveLaw & Taxscan.
