| SI No | Registrations / Licenses | Compliance |
|---|---|---|
| 1 | Product Title | IEM – (Industrial Entrepreneur Memorandum) |
| 2 | Legal framework | DIPP – Press Note 9 (1991 Series) – Dated 02nd August 1991 DIPP – Press Note 22 (1991 Series) – Dated 24th December 1991 DIPP – Press Note 17 (1997 Series) – Dated 28th November 1997 |
| 3 | Regulatory Body | DPIIT (Department for Promotion of Industry and Internal Trade) Ministry of Commerce and Industry |
| 4 | Insight / Objective | Insight – IEM is an acknowledgment issued by Department for Promotion of Industry and Internal Trade (DPIIT)- IEM has to be applied setting up of large scale Industry / Upgradation of existing MSME industry to large scale industry.– IEM application to be filled with following details: 1. Production Capacity Details 2. Manpower Details 3. Investment details 4. Factory location and 5. Basic company Details. Objective – For Statistical Purpose – Recognition as large Industry |
| 5 | Categories | IEM (Part-A): For Establishment of Business Before establishing Business / Upgradation of existing MSME industry to large scale, Industry has to apply for IEM Part-A with existing / Proposed Details.IEM (Part-B): For Commencement of commercial production Part-B has to be applied before commencement of Commercial Production and after 30 Days of receipt of Part-A acknowledgement with actual production, Investment, Manpower Details. |
| 6 | Benefits | IEM used as a proof for the following: 1. Proof for Production capacity 2. Proof as Large Industry 3. Proof as an existing industry for applying various other licenses such (EPCG, Advance Authorization, AEO – Authorized Economic Operator etc.) |
| 7 | Applicability | I) Applicable to all industries having: 1. An investment in plant and machinery of Rs 50 Crore and above and 2. Turnover of Rs. 250 crore and above II) Existing MSME Industries graduating to Large Scale Industries. |
| 8 | Validity | One Time Registration – Life Time Validity |
| 9 | Forms & Due Dates | IEM (Part-A) – Before establishment of Business IEM (Part-B) – Before commencement of Commercial Production and after 30 Days of receipt of Part-A acknowledgement. |
| 10 | Amendments / Renewal / Surrender | Amendments IEM can be amended for Production Details / Investment Details / Manpower details / Registered office Details / Factory Details / Contact Details.Renewal There is no requirement of renewal of IEM. Once applied valid for lifetime without any renewal.Surrender IEM can be surrendered in case of discontinuance of Business. |
| 11 | Government Fee | Rs. 1,000 |
| 12 | Other Provisions | IEM is only an acknowledgement issued by DPIIT, It is neither an certificate nor a license. |
| 13 | Guidelines | IEM (Part-A) – Before establishment of Business and IEM (Part-B) – Before commencement of Commercial Production and after 30 Days of receipt of Part-A acknowledgement. |
| 14 | Checklist | Following Documents are required 1. Certificate of Incorporation (Companies) / any govt registration Proof (Other than Companies) 2. MOA & AOA (Companies) / Partnership Deed (Partnership Firms) 3. PAN Card of the company |
| 15 | Venn Timelines | Part-A – Within 7 Working Days Part-B : Within 10 Working Days *The above timelines will be calculated from the date of providing complete information / documents |
FAQ
What is an IEM (Industrial Entrepreneur Memorandum)?
Industrial undertakings exempted from the requirements of Industrial Licensing under THE INDUSTRIES (DEVELOPMENT AND REGULATION) ACT I (D&R),1951 are required to file information relating to setting up of industries is known as IEM (Industrial Entrepreneur Memorandum). Confirmation for receipt of such information by this Department is known as ‘IEM Acknowledgement’. The Acknowledgement (Ack.) of the IEM which is issued online on prima facie evidence of not attracting the provisions of licensing, cannot, therefore, be construed as a clearance or approval to carry on an industrial activity contemplated in the IEM unless the provisions of statutes/regulations/notifications etc. issued by the Central or State Governments from time to time or any specific directions or Stay Orders issued by the Court/competent authority relevant to such an activity, are also fully complied with, or in no way contravened, as the case may be. This is filed online by filing details as per ‘Part A’ of IEM.
Whether receipt will be generated after successful submission of ‘Part A’ of IEM?
All on-line applications filed through the portal are scrutinized in ‘IEM Section’ for verification related to ‘Incorporation Certificate’; ‘Memorandum of Article’; ‘Article of Association’, ‘Master data’, ‘PAN’ and ‘Codes related to NIC & Administrative Ministry/Department etc. Once the above is verified and found correct; the Department electronically issues IEM Ack. to the applicant.
What is Part B?
All Industrial undertakings which had filed IEM are required to report commencement of commercial production and this is also filed on-line on the same portal by way of filing information as per prescribed form ‘Part B’ of the IEM after commencement of commercial production by the establishment; a copy of the related IEM Ack. is required to be attached while filing this information on the portal. Like ‘Part A’ Ack. of IEM, the Department also issues Ack. for ‘Part B’.
What is modification/amendment?
No amendment/modifications are made to any IEM filed before 30th June, 1998 except for clerical errors. It has now been decided that lEMs filed in the new form made effective from 1st July, 1998, and notified through Press Note No.4 (1998 Series) dated 15.6.98, would be amended/modified as per the request of the entrepreneurs. The amendments would be subject to the terms and conditions spelt out in Press Note No. 17(1997 Series) dated 27th November, 1997 with reference to the Statutes/regulations/ notifications issued by the Central and State Governments issued from time to time.
