{"id":25682,"date":"2026-02-03T14:23:00","date_gmt":"2026-02-03T08:53:00","guid":{"rendered":"https:\/\/blog.razorpay.in\/blog\/?p=25682"},"modified":"2026-03-30T22:43:21","modified_gmt":"2026-03-30T17:13:21","slug":"annual-performance-report-apr-filing-guide","status":"publish","type":"post","link":"https:\/\/razorpay.com\/blog\/annual-performance-report-apr-filing-guide\/","title":{"rendered":"Annual Performance Report (APR) Filing: The Complete RBI Compliance Guide"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Every year, Indian businesses and resident individuals with overseas direct investments must meet a crucial Reserve Bank of India (RBI) compliance requirement: filing the Annual Performance Report (APR). The deadline is 31 December, and missing it can lead to penalties, blocked outward remittances, and FEMA contraventions.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The APR is a mandatory annual disclosure filed in Form ODI Part II. It enables the RBI to monitor the financial and operational performance of overseas Joint Ventures (JVs) and Wholly Owned Subsidiaries (WOS) held by Indian investors. Timely and accurate filing is essential to maintain uninterrupted international investment activity.<\/span><\/p>\n<div style=\"border-left: 4px solid #0073aa; background: #f0f8ff; padding: 15px; margin: 20px 0; border-radius: 5px;\">\n<h2 style=\"color: #0073aa; font-size: 18px; margin: 0 0 8px 0; display: inline-block;\">Key Takeaways<\/h2>\n<ul style=\"display: inline-block; margin: 0 0 0 10px; padding-left: 18px; vertical-align: top;\">\n<li><strong>What is APR?<\/strong> A mandatory annual compliance filing (Form ODI Part II) for Indian entities and resident individuals holding Overseas Direct Investment (ODI) in Joint Ventures or Wholly Owned Subsidiaries.<\/li>\n<li><strong>Critical deadline:<\/strong> The APR must be filed by 31 December every year, covering the foreign entity&#8217;s accounting period that ended on or before the preceding 31 March.<\/li>\n<li><strong>Non-compliance risks:<\/strong> Missing the deadline attracts a Late Submission Fee (LSF) of \u20b97,500 per return and may lead to AD Banks blocking future outward remittances or financial commitments.<\/li>\n<li><strong>Audit requirement:<\/strong> Audited financial statements are mandatory if the Indian investor has \u2018control\u2019 in the foreign entity, regardless of the host country\u2019s audit laws.<\/li>\n<\/ul>\n<\/div>\n<h2><b>What is the Annual Performance Report (APR)?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The Annual Performance Report is a recurring compliance requirement under the <a href=\"https:\/\/razorpay.com\/blog\/foreign-exchange-management-act-fema\/\">Foreign Exchange Management Act<\/a> (FEMA), 1999, enabling the Reserve Bank of India to monitor overseas investments made by Indian residents.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The <\/span><b>annual performance report RBI<\/b><span style=\"font-weight: 400;\"> serves the following purposes:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Enables RBI to track the financial health and asset status of Joint Ventures (JVs) and Wholly Owned Subsidiaries (WOS) established outside India<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Records operational details, including net profit\/loss, dividends, and net worth of foreign entities for the Indian reporting year<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Filed as &#8216;Form ODI Part II&#8217;, distinct from the initial investment application (Form ODI Part I)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Ensures foreign exchange earnings and repatriations align with FEMA regulations<\/span><\/li>\n<\/ul>\n<div style=\"border-left: 4px solid #0073aa; background: #f0f8ff; padding: 15px; margin: 20px 0; border-radius: 5px;\">\n<h2 style=\"color: #0073aa; font-size: 18px; margin: 0;\">Did You Know?<\/h2>\n<p style=\"margin-top: 10px;\"><i><span style=\"font-weight: 400;\">APR filing was previously called Form ODI Part III in older regulatory texts before the 2022 consolidation of ODI regulations.<\/span><\/i><\/p>\n<\/div>\n<h2><b>Who Must File the APR? (Eligibility &amp; Exemptions)<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Understanding your filing obligations starts with recognising whether your overseas investment structure triggers APR requirements.<\/span><\/p>\n<h3><b>Mandatory Filing for Indian Parties and Resident Individuals<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">The <\/span><b>APR filing<\/b><span style=\"font-weight: 400;\"> requirement applies broadly across entity types:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Indian Companies:<\/b><span style=\"font-weight: 400;\"> All private and public companies with JVs or WOS abroad must file separate APRs for each foreign entity<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>LLPs and Partnerships:<\/b><span style=\"font-weight: 400;\"> Limited Liability Partnerships and traditional partnerships holding overseas investments fall under mandatory filing<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Resident Individuals:<\/b><span style=\"font-weight: 400;\"> Those who invested under the ODI route (not merely LRS portfolio investments) must file APRs, with self-certification allowed where statutory auditor certification isn&#8217;t applicable<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Operational Status Irrelevant:<\/b><span style=\"font-weight: 400;\"> Filing remains mandatory even if the foreign entity has no operations, revenue, or business activity<\/span><\/li>\n<\/ul>\n<p style=\"text-align: center;\"><a style=\"background-color: #1a73e8; color: #ffffff; font-weight: 800; padding: 7px 15px; border-radius: 7px; font-size: 16px; text-decoration: none; display: inline-block; white-space: nowrap;\" href=\"https:\/\/razorpay.com\/international-payment-gateway-india\/?utm_source=blog&amp;utm_medium=referral&amp;utm_campaign=internationalpayments\">Explore Razorpay&#8217;s Global Payment Solutions<\/a><\/p>\n<h3><b>What if Multiple Indian Investors Hold Stakes?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">When multiple Indian residents invest in the same foreign entity, the regulations prevent duplicate reporting through a clear hierarchy:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Single Filer Rule:<\/b><span style=\"font-weight: 400;\"> The Indian investor with the highest percentage stake takes responsibility for filing the APR<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Equal Stakes Provision:<\/b><span style=\"font-weight: 400;\"> Where stakes are equal, investors must mutually designate one entity to file on behalf of all<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Documentation Trail:<\/b><span style=\"font-weight: 400;\"> Non-filing investors should maintain written records of the designated filer arrangement for compliance verification<\/span><\/li>\n<\/ul>\n<h3><b>Exemptions: When is APR Not Required?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Limited exemptions exist under specific circumstances:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Investors holding less than 10% equity with NO control and NO other financial commitment<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Foreign entities under liquidation shift to discontinuation filing requirements instead of regular APR<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Complete exit during the year typically requires a final report in Form FC rather than a full APR (verify current AD bank guidance)<\/span><\/li>\n<\/ul>\n<h2><b>The Critical Timeline: APR Filing Due Date<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The APR must be filed by 31 December each year, irrespective of the foreign entity\u2019s local accounting year or operational structure. The filing covers the foreign entity\u2019s financial year that ended on or before 31 March of the preceding year, creating a uniform reporting window. Accordingly, entities with March, calendar, or non-standard year-ends must align their financials and coordinate early with auditors to meet RBI requirements.<\/span><\/p>\n<div style=\"border-left: 4px solid #0073aa; background: #f0f8ff; padding: 15px; margin: 20px 0; border-radius: 5px;\">\n<p style=\"color: #0073aa; font-size: 18px; margin: 0;\"><strong><span style=\"color: #0073aa;\"><span style=\"font-size: 18px;\">Pro Tip: <\/span><\/span><\/strong><span style=\"color: rgba(0,0,0,0.74); font-size: 19px; font-weight: 400;\">Mark your calendar for 1 October each year to begin gathering the financials of your foreign subsidiaries. This 90-day buffer prevents last-minute scrambles and ensures quality auditor certification.<\/span><\/p>\n<\/div>\n<h2><b>Audit Requirements: When are Audited Financials Mandatory?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The APR filing due date is fixed, but audit requirements vary based on the investment structure under the Foreign Exchange Management (Overseas Investment) Regulations, 2022. Whether audited financials are required depends on the investor\u2019s level of control in the foreign entity and the host country\u2019s audit requirements.<\/span><\/p>\n<h3><b>Scenario A: Investor Has Control or Host Law Requires Audit<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Strict audit requirements apply in these situations[2]:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">If the Indian investor has &#8216;control&#8217; (typically &gt;10% stake or board rights), audited financials are MANDATORY.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Universal application applies even if the host country&#8217;s local laws do not require an audit for entities of that size.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">If the host country mandates an audit regardless of your control level, you must submit audited financials.<\/span><\/li>\n<\/ul>\n<p><b>Note<\/b><span style=\"font-weight: 400;\">: These requirements cannot be waived through board resolutions or mutual agreements<\/span><\/p>\n<h3><b>Scenario B: No Control and No Host Law Requirement<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Limited flexibility exists for smaller investors:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Both conditions must be met: NO control AND the host country doesn&#8217;t require an audit.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">APR can use unaudited financials, but they must be certified by the statutory auditor of the Indian party or a Chartered Accountant<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Indian entity&#8217;s Board must formally ratify these unaudited accounts<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Maintain clear records proving that both exemption conditions are satisfied<\/span><\/li>\n<\/ul>\n<h2><b>Prerequisites: What You Need Before Filing<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">A successful APR submission requires methodical document collection. Missing even one critical component can delay filing and trigger non-compliance penalties.<\/span><\/p>\n<p><b>Essential Documents Checklist:<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Ensure the 13-digit RBI UIN for the JV\/WOS is active and correctly mapped[3]<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Share Certificates:<\/b><span style=\"font-weight: 400;\"> Proof of investment must be on record with your AD Bank<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Financial Statements:<\/b><span style=\"font-weight: 400;\"> Audited or certified unaudited balance sheet and P&amp;L of the overseas entity<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Repatriation Proofs:<\/b><span style=\"font-weight: 400;\"> FIRC or bank advice documents for any dividends or royalties received<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Board Resolution:<\/b><span style=\"font-weight: 400;\"> Authorising APR submission and designating signatory<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Auditor Certificate:<\/b><span style=\"font-weight: 400;\"> Statutory auditor&#8217;s certification on the prescribed format<\/span><\/li>\n<\/ul>\n<h2><b>Decoding Form ODI Part II: Key Sections Explained<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">With prerequisites gathered, understanding Form ODI Part II becomes crucial. This standardised format requires accurate data mapping from foreign financials to Indian regulatory requirements.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The form captures comprehensive information about your overseas investment&#8217;s performance and compliance status. Each section serves specific regulatory purposes, and accuracy is non-negotiable as AD banks verify entries against supporting documents.<\/span><\/p>\n<h3><b>Capital Structure and Shareholding Pattern<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">This section establishes ownership clarity:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Record the complete equity capital of the foreign entity<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Detail percentage holdings between the Indian Party and foreign partners<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Ensure data reflects position as on reporting period end date<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Report in the foreign entity&#8217;s functional currency<\/span><\/p>\n<h3><b>Operational and Financial Performance Metrics<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Performance reporting requires two-year comparative data:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Net Profit\/Loss, Gross Turnover\/Revenue, and Net Worth<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Provide &#8216;Current Year&#8217; and &#8216;Since Commencement&#8217; figures.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Maintain actual foreign currency without INR conversion in the form.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Ensure figures tie back to audited financial statements.<\/span><\/li>\n<\/ul>\n<h3><b>Repatriation of Dues<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">This critical section tracks investment returns:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Report Dividends, Royalties, Technical Fees, and Consultancy Fees<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Show both &#8216;Entitled&#8217; amounts (receivable) and &#8216;Repatriated&#8217; amounts (received)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Repatriate dues within 60-90 days of falling due to avoid violations<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Attach FIRC for all repatriated amounts<\/span><\/li>\n<\/ul>\n<h2><b>How to File an Annual Performance Report: The Submission Process<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The submission process requires careful coordination with your Authorised Dealer bank.<\/span><\/p>\n<p><b>Step-by-Step Filing Process:<\/b><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Print and Prepare:<\/b><span style=\"font-weight: 400;\"> Generate Form ODI Part II with all sections completed accurately.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Obtain Signatures:<\/b><span style=\"font-weight: 400;\"> Secure signatures from the Authorised Signatory and the Statutory Auditor on every page<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Final Authentication:<\/b><span style=\"font-weight: 400;\"> Ensure the last page bears both auditor and authorised signatory signatures with stamp<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Physical Submission:<\/b><span style=\"font-weight: 400;\"> Submit a complete dossier to your AD Category-I bank&#8217;s designated branch<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Bank Verification:<\/b><span style=\"font-weight: 400;\"> AD bank verifies documents against their records and RBI requirements<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Acknowledgement Receipt:<\/b><span style=\"font-weight: 400;\"> Obtain stamped acknowledgement as proof of timely filing<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Emerging Digital Options:<\/b><span style=\"font-weight: 400;\"> Some AD banks now accept soft-copy submissions through their trade portals, though physical submission remains the standard practice.<\/span><\/li>\n<\/ol>\n<h2><b>Consequences of Non-Compliance and Late Filing<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Missing the APR deadline triggers immediate and escalating consequences. Understanding these penalties underscores why timely filing matters beyond mere regulatory compliance.<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><b>Violation Type<\/b><\/td>\n<td><b>Consequence<\/b><\/td>\n<td><b>Impact Timeline<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Late Filing<\/span><\/td>\n<td><span style=\"font-weight: 400;\">LSF of \u20b97,500 per APR<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Immediate upon missing deadline<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Continued Non-Filing<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Compounding penalties up to 300% of investment<\/span><\/td>\n<td><span style=\"font-weight: 400;\">After repeated notices<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Operational Blocks<\/span><\/td>\n<td><span style=\"font-weight: 400;\">AD banks restrict new ODI remittances<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Until backlog cleared<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Regulatory Action<\/span><\/td>\n<td><span style=\"font-weight: 400;\">FEMA contravention proceedings<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Severe cases only<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><b>Additional Operational Impact:<\/b><\/p>\n<ul>\n<li><b>Banking Relationships:<\/b><span style=\"font-weight: 400;\"> AD banks flag non-compliant accounts internally<\/span><\/li>\n<li><b>Future Investments:<\/b><span style=\"font-weight: 400;\"> New ODI applications face enhanced scrutiny<\/span><\/li>\n<li><b>Repatriation Delays:<\/b><span style=\"font-weight: 400;\"> Dividend and royalty remittances may be questioned<\/span><\/li>\n<li><b>Audit Complications:<\/b><span style=\"font-weight: 400;\"> Statutory auditors note non-compliance in reports<\/span><\/li>\n<\/ul>\n<h2><b>Simplify ODI Repatriation with Razorpay MoneySaver Export Account<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Managing repatriations from overseas subsidiaries often involves hefty <a href=\"https:\/\/razorpay.com\/learn\/what-is-swift\/\">SWIFT<\/a> charges and complex documentation. Razorpay&#8217;s solution addresses these specific APR-related challenges.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Receive dividends, royalties, and technical fees from your overseas JV or WOS directly into local accounts (USD, GBP, EUR) via local payment networks. This approach eliminates high SWIFT wire fees, which typically range from $25 to $45 per transaction.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The platform provides automated digital <a href=\"https:\/\/razorpay.com\/blog\/firc-certificate\/?utm_source=google&amp;utm_medium=&amp;utm_campaign=RPHQL-RPPerf-Google-Pmax-Prospect-AllDevices-Competitor_keyeword-261225&amp;utm_adgroup=&amp;utm_content=&amp;utm_term=&amp;utm_gclid=&amp;utm_campaignID=&amp;utm_adgroupID=&amp;utm_adID=&amp;utm_network=&amp;utm_device=&amp;gad_source=1&amp;gad_campaignid=23400237524&amp;gbraid=0AAAAADdXWPrE_jlku8pjwKNJmGoBrFcZm&amp;gclid=CjwKCAiA1obMBhAbEiwAsUBbIuu65mttvH875JABbRmxTw2ATYyxK7VloROsVp5Hchx3aHJr5HYs3hoC8HgQAvD_BwE\">Foreign Inward Remittance Certificates<\/a> (FIRC) for every transaction. These serve as essential proof of &#8216;Repatriation of Dues&#8217; for your APR compliance and create a complete audit trail that satisfies both AD banks and statutory auditors.<\/span><\/p>\n<div style=\"background: #f5faff; border-radius: 14px; padding: 30px; text-align: center; margin: 42px 0; box-shadow: 0 8px 20px rgba(26,115,232,0.08);\">\n<h2 style=\"color: #1a73e8; font-size: 24px; font-weight: bold; margin-bottom: 12px;\"><strong>Simplify ODI Repatriation with Razorpay<\/strong><\/h2>\n<p style=\"color: #444; font-size: 16px; max-width: 720px; margin: 0 auto 18px; line-height: 1.6;\"><strong>Receive dividends, royalties, and fees from your JV\/WOS in USD, GBP,<br \/>\nEUR\u2014no SWIFT fees. Get auto-FIRC for APR filings.<\/strong><\/p>\n<p><a style=\"display: inline-block; background: #1a73e8; color: #ffffff; padding: 14px 26px; font-size: 16px; font-weight: bold; border-radius: 10px; text-decoration: none;\" href=\"https:\/\/razorpay.com\/accept-international-payments\/bank-transfers\/?utm_source=blog&amp;amp;utm_medium=referral&amp;amp;utm_campaign=internationalpayments%22%3E%3Cem%3E%3Cstrong%3ERazorpay%E2%80%99s&quot;\">Explore Razorpay\u2019s Global Payment Solutions<\/a><span style=\"font-size: 19px; background-color: #ffffff;\">\u00a0<\/span><\/p>\n<\/div>\n<h2><b>Conclusion<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Annual Performance Report (APR) filing requires careful planning, complete documentation, and adherence to the 31 December deadline. From meeting control-based audit requirements to accurately completing Form ODI Part II, each step has direct compliance implications.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Begin preparations by 1 October, coordinate early with the auditors of your foreign subsidiary, and stay in regular contact with your AD bank. For businesses with multiple overseas investments, digital payment solutions that automate FIRC generation and streamline repatriation documentation can help reduce compliance efforts.<\/span><\/p>\n<h2><b>FAQs<\/b><\/h2>\n<h3><b>1. Who is required to file the Annual Performance Report (APR)?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Any Indian Party or Resident Individual who has made an Overseas Direct Investment (ODI) in a Joint Venture or Wholly Owned Subsidiary is required to file the APR annually.<\/span><\/p>\n<h3><b>2. What is the due date for filing the APR under FEMA regulations?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">The APR must be filed by 31 December each year for the relevant foreign entity\u2019s accounting period ending on or before the preceding 31 March.<\/span><\/p>\n<h3><b>3. Are audited financial statements mandatory for filing APR?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Audited financials are mandatory if the Indian investor has control in the foreign entity or if the host country mandates an audit. Otherwise, certified unaudited financials may be accepted, subject to conditions.<\/span><\/p>\n<h3><b>4. What is the penalty for filing the APR after the deadline?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">A Late Submission Fee of \u20b97,500 per APR applies. Continued non-compliance may lead to restrictions on future overseas remittances and regulatory action under FEMA.<\/span><\/p>\n<h3><b>5. Who files the APR when there are multiple Indian investors in one foreign entity?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">The investor with the highest stake files the APR. If the stakes are equal, one investor must be mutually designated to file on behalf of all.<\/span><\/p>\n<h3><b>6. Is an APR filing required if the foreign subsidiary is not operational?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Yes. APR filing is mandatory as long as the overseas investment exists, even if there is no revenue or business activity during the year.<\/span><\/p>\n<h3><b>7. Which form is used to file the Annual Performance Report?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">The APR is filed using Form ODI Part II, which is submitted to the designated Authorised Dealer (AD) Bank.<\/span><br \/>\n<script type=\"application\/ld+json\">\n{\n  \"@context\": \"https:\/\/schema.org\",\n  \"@type\": \"FAQPage\",\n  \"mainEntity\": [\n    {\n      \"@type\": \"Question\",\n      \"name\": \"Who is required to file the Annual Performance Report (APR)?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"Any Indian Party or Resident Individual who has made an Overseas Direct Investment (ODI) in a Joint Venture or Wholly Owned Subsidiary is required to file the APR annually.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"What is the due date for filing the APR under FEMA regulations?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"The APR must be filed by 31 December each year for the relevant foreign entity\u2019s accounting period ending on or before the preceding 31 March.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"Are audited financial statements mandatory for filing APR?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"Audited financials are mandatory if the Indian investor has control in the foreign entity or if the host country mandates an audit. Otherwise, certified unaudited financials may be accepted, subject to conditions.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"What is the penalty for filing the APR after the deadline?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"A Late Submission Fee of \u20b97,500 per APR applies. Continued non-compliance may lead to restrictions on future overseas remittances and regulatory action under FEMA.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"Who files the APR when there are multiple Indian investors in one foreign entity?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"The investor with the highest stake files the APR. 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The APR is a mandatory annual disclosure filed in<\/p>\n","protected":false},"author":103,"featured_media":26528,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[1067],"tags":[],"class_list":{"0":"post-25682","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-cross-border"},"_links":{"self":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts\/25682","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/users\/103"}],"replies":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/comments?post=25682"}],"version-history":[{"count":3,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts\/25682\/revisions"}],"predecessor-version":[{"id":25685,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts\/25682\/revisions\/25685"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/media\/26528"}],"wp:attachment":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/media?parent=25682"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/categories?post=25682"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/tags?post=25682"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}