Overseas Direct Investment Reg

This query is : Resolved

S.Jegadeesan (Querist)
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29 December 2022 Sir,
I would like to clarify the doubt regarding Annual Performance report & FLA Return .
1.Whether Individual should submit Annual Performance Report & FLA to RBI irrespective of the Investment Value or any certain limit applicable to submit the APR & FLA ?

2.Is UIN mandatory for Filing APR by Individual ?

3.How many copies and where should I file the APR ? In case not filed within Due date what is the Minimum & Maximum Penalty for Non Filing of APR & FLA?

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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09 July 2024 Here are the clarifications regarding the Annual Performance Report (APR) and FLA Return filing requirements with RBI:

1. **Submission Requirement**:
- **Annual Performance Report (APR)**: The APR needs to be submitted to RBI by all entities (including individuals) who have made foreign direct investments (FDI) in India or have received FDI. There is no specific minimum investment threshold mentioned for APR submission in RBI guidelines. Therefore, if an individual has engaged in FDI activities, they are required to file the APR irrespective of the investment value.
- **FLA Return**: The FLA (Foreign Liabilities and Assets) return is also mandatory for all Indian companies which have received FDI or made overseas investments in the previous financial year. Similar to APR, there is no minimum investment threshold specified.

2. **UIN Requirement**:
- Yes, Unique Identification Number (UIN) is mandatory for filing APR. The UIN is issued by the RBI to entities for tracking their foreign investment transactions. It serves as a unique identifier for reporting purposes.

3. **Filing Details**:
- **Number of Copies**: Typically, APR and FLA returns are filed online through the RBI’s designated portal. Physical copies are not required unless specifically requested by RBI.
- **Filing Location**: The APR and FLA returns are filed electronically on the RBI’s Foreign Exchange Management (FEMA) reporting portal (https://flair.rbi.org.in/). This portal is used for submitting various FEMA-related reports.
- **Penalties for Non-Filing**: If the APR or FLA return is not filed within the due date, penalties may be levied. The exact penalty amounts can vary and are generally at the discretion of RBI. It's crucial to file these returns within the stipulated timelines to avoid penalties. RBI may impose minimum and maximum penalties depending on the severity and duration of non-compliance.

It’s advisable to consult with a qualified financial advisor or seek guidance directly from RBI's designated authorities for specific queries regarding filing APR and FLA returns, including penalties for non-compliance.

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