A S BANKA ADVISORS

March 31 is four days away. If your startup has foreign investors on its cap table, or if you have set up a subsidiary overseas, there are two RBI filings you cannot afford to miss: the FLA Return and the Annual Performance Report (APR).

Both are mandatory under FEMA, and both carry penalties that go far beyond a simple late fee. Here is what you need to know, and what you should be doing this week.

The Two Filings Every Cross-Border Startup Must Know

The FLA Return (Foreign Liabilities and Assets Return) is an annual census conducted by the RBI. Every Indian entity that has ever received FDI, whether from a foreign VC, an angel investor, or a PE fund, must file it every year. The deadline for FY 2025-26 is July 15, 2026, filed on the RBI FLAIR portal.

The APR (Annual Performance Report) applies to every Indian company, LLP, or resident individual that holds Overseas Direct Investment (ODI) of 10% or more equity in a foreign entity. If you have a wholly-owned subsidiary, a JV, or step-down subsidiaries abroad, you file one APR per entity. The deadline is December 31, 2026, filed on the RBI FIRMS portal.

Why This Matters More Than You Think

The penalties for non-compliance are severe. FLA Return violations can attract penalties of up to 300% of the amount involved. If the amount is not quantifiable, RBI can impose a flat penalty of Rs 2,00,000, plus Rs 5,000 per day for continuing defaults. APR non-filing triggers a Late Submission Fee of Rs 7,500 per filing, but the real cost is operational: AD Category-I banks can refuse to process any new ODI transactions until pending APRs are cleared.

For startups planning their next funding round, this is a critical point. Due diligence teams routinely check FEMA compliance. Pending APR or FLA filings create red flags that can delay or derail your fundraise by weeks or months.

Your March 31 Preparation Checklist

The filing deadlines may be months away, but the data collection window closes with the financial year. Here is what you should be doing before March 31:

• Identify all foreign investment positions: List every ODI entity and every foreign shareholder holding equity in your company
• Request audited financials from overseas entities: Send deadline communication to overseas auditors now. These take weeks to obtain.
• Reconcile FDI records: Match your share register with RBI filings (Form FC-GPR, Form FC-TRS)
• Update portal credentials: Ensure your CS, CFO, or Director has active login access to both RBI FIRMS and FLAIR portals
• Clear pending prior-year filings: Outstanding APR or FLA filings from previous years will block new ODI approvals
• Review loan and borrowing positions: Capture all ECBs, trade credits, and inter-company loans for the FLA Return

Download the Full Carousel Guide

We have put together a detailed visual guide covering deadlines, penalty tables, stakeholder impact, and a step-by-step preparation checklist. Download the full carousel PDF here.

Get Expert Guidance

FEMA regulations are complex and the penalties are severe. If you have cross-border structures and need help with APR, FLA, or broader FEMA year-end compliance, schedule a strategy session with A S Banka Advisors Private Limited: Book a quick call.