Query regarding FLA

[Paridhi Agarwal]

Hi,

 

This is regarding a query about a company that received a foreign remittance in two tranches, one in 2017 and the other in 2018. The allotment against the money received was made in 2019. 

The Company hasn't filed FCGPR yet, whether the Company is required to file FLA ? 

  

Thanks and Regards

Paridhi Agarwal

[CS Mohit Saluja]

Dear Concern,

          Greetings of the Day  !

But the company need to check whether provisions of Companies Act are followed or not..since, the share application money can not be kept with company for more than 2 months. 

Further FLA return is required to be filed on yearly basis on or before July15 every year after the Foreign Direct Investment has been received in the company. And in case the FLA return is not filed, the same can be done after taking approval from RBI wherein the Late Fees provisions shall also be invoked.

Since your case is that the amount received is not FDI but just an application money, then the company need to file FLA. You can have the access on Q. 10 at folloiwng RBI Link w.r.t. the FLA Return in case of application money only:

https://www.rbi.org.in/Scripts/FAQView.aspx?Id=95

But yes follow the provisions of Companies Act 213 read with Deposit Rules whereby there is a restriction of share application money for more than 2 months

CS Mohit Saluja 

CERTIFIED CSR PROFESSIONAL

and Registered Trade Mark Agent

Mohit Saluja & Associates

Company Secretaries

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338/7, Central Town

Near Swaran Institute

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Tel: +91 9914558709 (M) 
Email: csmohit...@gmail.com | csmohits...@gmail.com

On Tue, Nov 15, 2022 at 12:17 PM Saumil Thakkar <thakkars...@gmail.com> wrote:

Yes mandatory since receipt of foreign remittance. Disclose it in Application Money in FLA of 2017 and 2018. 

FCGPR also need to be filed with LSF.

Thanks,

Saumil Thakkar

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