INDUSTRIAL ENTREPRENEUR MEMORANDUM (IEM)

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INDUSTRIAL ENTREPRENEUR MEMORANDUM
(IEM)

Department for promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce and Industry, Government of India streamlined the regulatory and registration procedure for medium and largescale industries in sectors exempted from licensing requirements as Industrial Entrepreneur Memorandum (IEM). It reduces the regulatory burden to entrepreneurs

WHY IEM

It acts as a formal notification process that allows enterprises to register for industrial expansion or initiation operations without any Industrial license except in exempted sectors. It creates business friendly environment and transparency to government with respect to the industrial growth with simplified process for business.

ELIGIBILITY

  • • Industries that fall out of ambit of Licensing.
  • • Medium and Largescale Enterprises which have investment of rupees 50 crores in manufacturing and Rs 5 crores in services.
  • • New and Expanding Businesses.

SCOPE

The IEM applicable Industrial sectors:

  • • Electrical and Electronics
  • • Machinery and Equipment
  • • Textiles and Apparel
  • • Chemicals (Non-Hazardous)

Industries outside the scope of IEM which require Licensing due to regulatory or security concerns:

  • • Defense and strategic industries
  • • Alcohol, Tobacco and Hazardous Chemicals
  • • Mining and Atomic energy
  • • Geographical Flexibility
  • • Railway transport

REGISTRATION DETAILS

Before Registration the applicant need to have a clear idea regarding the Name and location, Line of activity, type of Manufacturing, Investment details and production capacity and planed operations for the proposed unit . Registration Process need to be made in two parts

PART A: Intended for initializing proposed projects or for setting up a new industrial unit or expansion of the existing unit or in diversifying their product offerings.

PART B: Intended for industrial units that has begun commercial production.

Only after filing and submission of Part A and Part B, the IEM registration is considered to be completed.

VALIDITY

It has life time validity with no expiry date but the industrial information needs to be updated especially during diversification of the products or Major expansion of the industry.

BENEFITS

  • • Ease of business setup with Simplified regulatory process and Streamlined compliance.
  • • Enhances the Credibility with stakeholders
  • • Access to State and Central government subsidies and incentives.
  • • Provides Export Assistance.
  • • Serves as Official notification to the government that business is operational and creating transparency.
  • • Pan India applicability
  • • Freedom to Operate and Expand
  • • Recognition under “Make in India initiative” and Alignment with government initiatives, Support for skill development and Innovation
  • • Long term validity.

In conclusion, the formal recognition provided by IEM registration strengthens credibility with financial investors and institutions, enabling access to policy benefits and government incentives and allows the entrepreneurs to focus on growth and innovation.

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