What is Industrial Entrepreneur Memorandum?
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.