The FEMA Annual Performance Report (APR) must be filed by 31 December every year by all Indian companies that have received Foreign Direct Investment (FDI) or made overseas investments. It is mandatory under the Foreign Exchange Management Act (FEMA), 2000, and is submitted to the Reserve Bank of India (RBI) through the RBI's FIRMS portal. Missing the deadline attracts a penalty of up to ₹2 lakh plus ₹5,000 per day of continuing default.

• Who must file: Indian entities with foreign investment (FDI received) or overseas direct investment (ODI made)
• Annual deadline: 31 December (for the financial year ending 31 March)
• Penalty for default: Up to ₹2 lakh + ₹5,000/day under FEMA, 2000

What is the FEMA Annual Performance Report?

The Annual Performance Report (APR) is a compliance report filed with the Reserve Bank of India by Indian entities under the Foreign Exchange Management (Overseas Investment) Regulations. It reports the financial and operational performance of foreign entities in which an Indian party has made an Overseas Direct Investment (ODI). It also covers entities that have received FDI from abroad. The APR ensures that the RBI can monitor cross-border capital flows and confirm that overseas investments are performing as declared.

In simple terms: if your Indian company invested abroad or received investment from a foreign source, you are required to report on what happened with that money every year through the APR.

Who Must File the APR?

Two broad categories of entities are required to file the APR under FEMA:

• Indian parties with Overseas Direct Investment (ODI): Any Indian company, LLP, or resident individual who has made a direct investment outside India in a Joint Venture (JV) or Wholly Owned Subsidiary (WOS) abroad.
• Indian entities that have received FDI: Companies and LLPs that have foreign investors on their cap table and need to report annual compliance under FEMA to the RBI.

Entities exempted from filing APR include those whose overseas investee company has been struck off, wound up, or where the entire investment has been repatriated back to India and the relevant forms (ODI closure forms) have been submitted.

FEMA APR Due Date for 2026

As of July 2026, the APR for the financial year ending 31 March 2026 must be filed by 31 December 2026. This annual deadline remains fixed each year. The APR covers the audited accounts of the foreign entity for the financial year that ended in the preceding calendar year.

Financial Year Covered	APR Filing Deadline	Applicable Regulation
FY 2024-25 (ended 31 March 2025)	31 December 2025	FEMA (Overseas Investment) Rules, 2022
FY 2025-26 (ended 31 March 2026)	31 December 2026	FEMA (Overseas Investment) Rules, 2022

Important: If the foreign entity follows a different financial year (e.g., a calendar year ending 31 December), the APR deadline remains 31 December of the same year, but the audited financials submitted should pertain to the accounts available for that investee entity's latest completed financial year.

Documents Required to File APR

Before initiating the APR filing on the RBI FIRMS portal, keep the following documents ready:

• Audited annual accounts (balance sheet and profit & loss statement) of the foreign JV or WOS for the relevant year
• Certificate from the statutory auditor of the Indian party confirming the investment details
• Details of remittances made during the year (amount, date, purpose)
• Details of dividend or royalty received from the foreign entity
• Updated UIN (Unique Identification Number) allotted by RBI for the overseas investment
• Details of any step-down subsidiaries of the foreign entity
• Board resolution authorising the authorised dealer bank or the company representative to submit the APR

If the foreign entity's accounts are not yet audited by the filing deadline, the APR may be filed with unaudited financials, subject to submission of audited accounts as soon as they are available. This provision should be used cautiously and must be clearly indicated in the filing.

How to File FEMA APR: Step-by-Step

The APR is filed online through the RBI's FIRMS (Foreign Investment Reporting and Management System) portal. Here is the step-by-step process:

1. Log in to FIRMS: Access the RBI FIRMS portal using your entity's registered credentials. New entities must register and obtain login access through their Authorised Dealer (AD) bank.
2. Navigate to APR Module: Under the "Overseas Investment" section, select "Annual Performance Report."
3. Enter Investment Details: Provide details of the overseas entity including UIN, country of investment, nature of business, and percentage of shareholding.
4. Upload Financial Data: Enter or upload the audited financial statements of the foreign entity, including total assets, net worth, turnover, and profit/loss figures.
5. Report Remittances and Receipts: Declare all remittances made to the foreign entity and any amounts received back (dividends, royalties, disinvestment proceeds) during the year.
6. Auditor Certification: Attach the certificate from the statutory auditor of the Indian party confirming the correctness of the data.
7. Submit via AD Bank: The final APR submission is routed through the Authorised Dealer bank, which verifies and submits it to the RBI on your behalf.
8. Obtain Acknowledgement: Save the submission acknowledgement number for your records and future compliance reference.

What is the Penalty for Not Filing APR?

Non-filing or late filing of the APR is treated as a contravention under FEMA, 2000. The penalty framework applies as follows:

Nature of Default	Penalty
Non-filing / Late filing of APR	Up to ₹2,00,000 (₹2 lakh)
Continuing default (per day)	₹5,000 per day until default is rectified
Compounding of contraventions	Available under FEMA Compounding Rules, 2000

Beyond monetary penalties, continued non-compliance can result in freezing of the overseas investment, restrictions on further remittances abroad, and reputational risk during due diligence for fundraising rounds or international transactions. Compounding of the offence (voluntary disclosure to RBI) is an available remedy but attracts its own compounding fees.

APR vs. Other FEMA Filings: Key Differences

Indian entities with foreign connections must manage multiple FEMA filings. Here is how the APR fits alongside other key reports:

Filing	Purpose	Due Date	Who Files
APR (Annual Performance Report)	Yearly performance of overseas JV/WOS	31 December	Indian party with ODI
FC-GPR	Reporting FDI received (equity issuance)	Within 30 days of allotment	Indian company receiving FDI
FC-TRS	Transfer of shares between resident and non-resident	Within 60 days of remittance	Buyer/seller in share transfer
ODI Form / Part I	Initial reporting of overseas investment	Before making the investment	Indian party making ODI
FCTRS / FLA Return	Foreign Liabilities and Assets annual survey	15 July	Indian companies with FDI / ODI

Note that the FLA Return (Foreign Liabilities and Assets annual return filed with RBI) and the APR serve different purposes and must both be filed independently if your entity has foreign investment exposure on both sides.

Common Mistakes to Avoid When Filing APR

• Filing with incorrect UIN: Ensure the Unique Identification Number matches the one allotted by RBI for that specific overseas investment. Mismatches cause rejection.
• Using unaudited accounts without disclosure: If filing with unaudited figures, clearly mark them as provisional; failure to follow up with audited accounts is a separate violation.
• Omitting step-down subsidiaries: All subsidiaries of your foreign entity must be declared; omitting them can trigger scrutiny during audits.
• Missing remittances or receipts: Incomplete reporting of outward remittances or incoming dividends undermines the purpose of the APR and is treated as misreporting.
• Routing through the wrong AD bank: The APR must be submitted through the same Authorised Dealer bank that was used for the original overseas investment.

Why Choose Taxocity for APR Filing?

Taxocity has been assisting Indian businesses with FEMA compliance for over three decades. With a 4.8/5 rating from 5,000+ clients, the team offers end-to-end support: from identifying whether your entity is required to file an APR, to compiling the auditor certificate, uploading data on the FIRMS portal, and liaising with your AD bank for submission.

• 100% Compliance Guarantee: Every filing is reviewed by qualified professionals before submission to the RBI.
• Real Human Experts: No chatbots. A dedicated FEMA compliance specialist handles your case from start to finish.
• End-to-End Support: From your first overseas investment (ODI reporting) to annual APR filings to compounding applications if needed, Taxocity covers the full compliance lifecycle.
• Cross-border Expertise: Taxocity also handles related filings such as FLA returns, FC-GPR, and FC-TRS, giving you a single compliance partner for all FEMA obligations.

If you also have obligations related to cross-border payments, royalties, or FTS, our team is well-versed in DTAA compliance for Indian companies as well.

Frequently Asked Questions

What if the foreign entity is dormant or has nil operations?

Even if the foreign JV or WOS had no transactions during the year, the APR must still be filed. Nil activity does not exempt an entity from filing. Submit the APR with nil figures and attach a declaration from the management confirming the dormant status.

Can the APR be revised after submission?

Yes, the APR can be revised if errors are discovered post-submission. A revised APR should be filed through the same AD bank with a clear note of the corrections made. Voluntary revision before any enforcement action is treated more favourably than corrections made in response to an RBI notice.

What is the FIRMS portal for APR filing?

FIRMS (Foreign Investment Reporting and Management System) is the RBI's centralised online platform for all FEMA-related reporting, including FDI receipts, overseas investments, and the Annual Performance Report. All APR submissions must be made digitally through the FIRMS portal at firms.rbi.org.in.

Is the statutory auditor's certificate mandatory for APR?

Yes, a certificate from the statutory auditor of the Indian party is mandatory for APR filing. The certificate must confirm the correctness of the financial data being submitted and verify that the overseas investment was made in accordance with FEMA provisions. Without this certificate, the AD bank will not process the submission.

Key Takeaways

1. The FEMA APR must be filed by 31 December every year for entities with overseas investments or foreign investment received.
2. Filing is done online through the RBI FIRMS portal, routed via the entity's Authorised Dealer bank.
3. Audited financials of the foreign entity and a statutory auditor's certificate from the Indian party are the two most critical documents.
4. Penalty for non-filing is up to ₹2 lakh + ₹5,000 per day of continuing default under FEMA, 2000.
5. The APR is separate from the FLA Return (due 15 July); both may apply to the same entity.
6. Dormant or nil-activity foreign entities are not exempt from APR filing obligations.

Disclaimer

This article is for general informational purposes only and does not constitute legal or tax advice. FEMA regulations are subject to change; always consult a qualified FEMA compliance professional or chartered accountant before making any filings or decisions related to overseas investments or foreign exchange transactions.