Industrial Entrepreneur Memorandum Services

Frequently Asked Questions relating to Industrial Entrepreneur Memorandum (IEM)

(1) 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 given on the spot 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 through portal G2B.

(2) Whether all industries are required to file IEM?

All industrial undertakings exempted from the requirements of industrial licensing under I (D&R) Act, 1951 and having an investment in plant and machinery of Rs 50 Crore and above; and turnover of Rs. 250 crore and above , including Existing Units, New undertaking (NU) and New Article (NA), may file an IEM, i.e. "Form IEM" in the prescribed format 'Part A'. Press Note issued on 30th March 2021 by PIB regarding upgradation of paperless process for grant of IEM may be referred.

(3) 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.

(4) 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' through its portal.

(5) 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.

Applications for IEMs (Part A & Part B) and amendments can be filed online on this portal.

Disclaimer: This information is only for facilitating the applicant for filing of IEM application and may not be used for any other purposes.

DPIIT