What is an IEM Registration? And Procedure for Industrial Entrepreneur Memorandum Application

Introduction

The Department for Promotion of Industry and Internal Trade (DPITT) has unveiled an upgraded DPITT G2B Portal as part of its efforts to improve transparency and simplicity of doing business. In the article “What is an IEM Registration?” And other information on Industrial Entrepreneur Memorandum (IEM).

What is an IEM Registration?

Industrial undertakings exempted from Industrial Licensing requirements under the Industries Development and Regulation Act, are needed to file information relevant to the establishment of industries, which is known as IEM (Industrial Entrepreneur Memorandum).

The DPITT has announced that through its upgraded portal, entrepreneurs can now apply for Industrial Entrepreneur Memorandum– Part A (for the establishment of a business) and Part B (for the initiation of commercial production) online. The Industrial Entrepreneurs Memorandum (IEM) is a request for recognition of an industrial unit.

Objective behind IEM (Industrial Entrepreneur Memorandum) License

Industrial Entrepreneur Memorandums can be filed in the following categories by the promoter:

• To establish a new industrial venture.

• After graduating into the large-scale industry, to continue the business of existing SSI units.

• To produce a new product.

• To achieve a significant expansion of the industrial enterprise.

2 Parts of Industrial Entrepreneur Memorandum

• Part 1: For Business

Exempted industrial undertakings, such as existing units expanding significantly, must file an Industrial Entrepreneur Memorandum (IEM) in Part ‘A’ (as per approved format) with the Department of Industrial Policy and Promotion, Government of India, and receive an acceptance.

• Part 2: For Commercial Production

All industrial undertakings that filed IEM Part A are obliged to report the start of commercial production, which is likewise done online through the G2B portal by uploading information in the prescribed format of IEM Part B. Part B is required to be filed when the institution begins commercial production.

While filing this information on the G2B portal, a copy of the IEM Part-A Acknowledgement must also be posted. The Department, like IEM’s ‘Part A’ Acknowledgement, also issues ‘Part B’ Acknowledgement through the portal, with a physical copy sent through the mail.

Documents required for IEM License Application

To get the Industrial Entrepreneur Memorandum, the entrepreneur must upload the following documents online:

• Document for Part 1

• • Certificate of Incorporation

  • MOA (Memorandum of Association)

  • Articles of Association

• Document for Part 2

• • IEM Acknowledgement Certificate of Part 1

Eligibility Criteria for Industrial Entrepreneur Memorandum 

Large-scale industries with investments of more than INR 10 crore in the manufacturing sector and more than INR 5 crore in the service sector are primarily exempt from licensing requirements and must file an application for an Industrial Entrepreneurs Memorandum (IEM) for items not exclusively reserved for manufacture by the SSI (Small Scale Industries) sector.

Procedure for IEM Application

• Access the DPITT (Department for Promotion of Industry and Internal Trade) G2B portal and click the Registration button on the home page to apply for the IEM (Industrial Entrepreneur Memorandum) application.

• In the user registration form, fill in the relevant information and click on the Continue button.

• Once the application page is open, the user needs to fill in all the information related to the user name and password.

• An OTP will be given to the registered mobile number and email address when you accept the terms and conditions.

• The user ID will be produced after the OTP is entered. The entrepreneur can connect into the program using User Name and Password after successfully registering.

• Click on “Industrial Entrepreneur Memorandum (IEM)” to apply for the IEM process. There will be two parts: Part A and Part B.

• Once the information is correct, click the next button to enter information on the Proposed Item of Manufacture as well as the existing and proposed investment in rupees.

• The entrepreneur must pay the application fee after the successful submission of documentation.

• Following the submission of the form, the “Payment” option will appear, and the entrepreneur must select “Pay Now.” To complete the transaction, enter your credit card information.

• All applications submitted through the DPITT’s G2B portal will be reviewed under the ‘IEM Section’ for Incorporation Certificate, Memorandum of Article, Article of Association, and Codes connected to NIC and Administrative Ministry/Department, among other things.

• The Department issues IEM acknowledgment through the G2B portal and a hard copy IEM acknowledgment will be provided in the mail once the verification is completed and deemed to be correct.

• Once the application is approved the entrepreneurs need to apply for Part B of IEM.

• Login to the portal, click on Part B of the IEM Application and fill in all the information that is required in Part B.

• To submit the form, upload the IEM Acknowledgement of Part A and click the Final Submit button once the information has been completely filled out.

• The IEM Part-B Commencement of Production Return Summary will appear when you submit the form.

• The application submitted through the DPITT’s G2B portal will be reviewed and verified under the ‘IEM Section.’

• The Department issues IEM Part-B acknowledgment through the G2B portal after verification is completed and found correct, and a hard copy IEM acknowledgment is provided through the mail.

Conclusion

The Government of India has liberalized the licensing requirements, and as a result, industrial licenses are now only necessary for a few industries (such as industrial explosives or certain hazardous chemicals), with the bulk of companies being de-licensed.

All industrial undertakings that are exempt from industrial licensing requirements must register information with the SIA (Secretariat of Industrial Approvals) in the prescribed form for Industrial Entrepreneurs Memorandum and receive an acknowledgment.