Industrial Entrepreneur Memorandum (IEM) – DPITT G2B Portal

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Industrial Entrepreneur Memorandum (IEM) – DPITT G2B Portal

As part of the efforts to enhance the transparency and to ensure ease of doing business, the Department for Promotion of Industry and Internal Trade (DPITT) has launched an enhanced DPITT G2B Portal. The DPITT vide its notification has informed that the entrepreneur can now file an application for Industrial Entrepreneur Memorandum– Part A (for the establishment of business) and Part B (upon commencement of commercial production) online through the DPIIT’s enhanced portal. Industrial Entrepreneurs Memorandum (IEM) is an application for acknowledgement of the industrial unit. The current article briefs the procedure to obtain Industrial Entrepreneur Memorandum (IEM) through DPITT G2B Portal.

Gist of Notification

This enhanced portal offers online filing of applications for Industrial Entrepreneur Memorandum – Part A, Part B, and also for Amendments. Henceforth, no application for IEM – Part A, IEM – Part B, and Amendment can be filed physically.

  • All applications for IEM will be processed in paperless mode and IEM Acknowledgment Certificates with QR Code will be issued electronically. The certificates issued may be verified online with the assigned QR code.
  •  The entrepreneur will also be notified through email and SMS instantaneously upon approval of Application.

DPIIT G2B Portal

As part of an effort to create an investor-friendly business environment in India, the Government of India has launched the DPITT G2B portal.

This new integrated platform providing access to a number of Government to Business (G2B) services for filing of Industrial Entrepreneurs Memorandum (IEM) and Industrial License (IL). The registered entrepreneur can submit online queries specific to the businesses, submit applications for the respective licenses and check the status of the application. This portal also enables the user to keep track of the application filing history and previously obtained licenses and IEM.

IEM – Industrial Entrepreneur Memorandum

As mentioned above, Industrial Entrepreneurs Memorandum (IEM) is an application for acknowledgement of the industrial unit. The large scale industry which is outside the purview of the industrial licensing provisions needs to obtain the Industrial Entrepreneurs Memorandum IEM.

For setting up industrial units under Industries (Development and Regulation) Act, 1951of Government of India it is necessary to obtain an Industrial license or Letter of Intent. Industrial undertakings exempted from the requirements of this Industrial Licensing are required to file information relating to setting up of industries is called as IEM (Industrial Entrepreneur Memorandum). As per this notification, the information can be filed online by furnishing details as per ‘Part A’ of IEM through DPITT‘s G2B portal.

IEM Part A – For Establishment of Business

Industrial undertakings exempt from the industrial license, including existing units undertaking substantial expansion, are needed to file an Industrial Entrepreneur Memorandum (IEM) in Part ‘A’ (as per prescribed format) with the Department of Industrial Policy and Promotion, Government of India, and obtain an acknowledgement.

IEM Part B – For Commencement of commercial production

All Industrial undertakings which had filed IEM Part A are required to report the commencement of commercial production and this is also filed on-line on the G2B portal by way of filing information as per prescribed format of ‘Part B’ of the IEM. Part B need to be filed after the commencement of commercial production by the establishment

A copy of the IEM Part- A Acknowledgment also required to be uploaded while filing this information on the G2B portal. Like ‘Part A’ Acknowledgment of IEM, the Department also issues Acknowledgment for ‘Part B’ through the portal followed and the physical copy will be sent through the post.

IEM Acknowledgement

Confirmation for receipt of industry information by the Department for Promotion of Industry and Internal trade (DPITT) is known as IEM Acknowledgement.

Industries Required IEM

All industrial undertakings exempted from the requirements of industrial licensing under Industries (Development and Regulation) Act, 1951 need to file IEM.

  • The large scale industry has invested more than Rs. 10 crores in the manufacturing sector and more than Rs. 5 crores in the service sector have to apply for Industrial Entrepreneurs Memorandum means IEM.
  • For manufacture, a product which is not exclusively reserved SSI sector, the unit has to apply for Industrial Entrepreneurs Memorandum

Note: The large scale industry includes the Existing Units, New undertaking (NU) and New Article (NA) also need to file IEM.

Purpose of IEM

The promoter can file Industrial Entrepreneur Memorandum in the following categories:

  • To set up a new industrial undertaking
  • To manufacture a new article
  • To carry on the business of existing SSI units after graduating into large scale industry
  •  To effect substantial expansion of the industrial undertaking

Documents for IEM Application

The entrepreneur needs to upload the following documents online for obtaining the Industrial Entrepreneur Memorandum (IEM)

Documents for IEM- Part A

  • Manufacture of Association
  • Article of Association
  • Certificate of Incorporation

Documents for IEM- Part B

  • IEM Acknowledgment of Part A

Fee for IEM application

To file the part-A of IEM, the entrepreneur needs to pay an amount of Rs.1000 as fee and No fee is required for filing part B of IEM

Application Procedure

To apply for the IEM application, access DPITT’s G2B portal, click on the Registration button from the home page.

Industrial Entrepreneur Memorandum (IEM) - DPITT G2B Portal
Industrial Entrepreneur Memorandum (IEM) – DPITT G2B Portal

In the user registration form, provide all the necessary information and click and continue button. The link will move to the nest page, where the applicant needs furnish the details of the user name and password.

Industrial Entrepreneur Memorandum (IEM) - User Registration1
Industrial Entrepreneur Memorandum (IEM) – User Registration1

By accepting the terms and conditions, an OTP will be sent to the registered mobile number and email ID. On furnishing the OTP, the user ID will be generated. After successful registration, the entrepreneur can log in to the application using User Name and Password.

Industrial Entrepreneur Memorandum (IEM) - User Registration
Industrial Entrepreneur Memorandum (IEM) – User Registration

File IEM – Part A

To apply for the IEM process, click on “Industrial Entrepreneur Memorandum (IEM)” Two parts that are Part A and Part B will display.

Industrial Entrepreneur Memorandum (IEM) - Login
Industrial Entrepreneur Memorandum (IEM) – Login

The first entrepreneur needs to fill details related to Part A of IEM:

  • Details of the Industrial undertaking
  • Address and Contact Details
  • Status of the Promoter
  • Location of Proposed undertakings
Industrial Entrepreneur Memorandum (IEM) - Part A
Industrial Entrepreneur Memorandum (IEM) – Part A

Once the details are furnished correctly, click on the next button to furnish details regarding the Proposed Item of Manufacture and Existing and Proposed investment in Rupees.

Industrial Entrepreneur Memorandum (IEM) - Part A 1
Industrial Entrepreneur Memorandum (IEM) – Part A 1

The applicant needs to upload the necessary documents to proceed further with the IEM application.

Industrial Entrepreneur Memorandum (IEM) - Part A document'
Industrial Entrepreneur Memorandum (IEM) – Part A document’

On successful submission of documents, the entrepreneur needs to make the payment towards the application fee. After submitting the form, the “Payment” option will display and the entrepreneur needs to click on the Pay now option. Provide the card details to process the payment.

Industrial Entrepreneur Memorandum (IEM) - Part A Payment
Industrial Entrepreneur Memorandum (IEM) – Part A Payment

Get IEM acknowledgement

All the applications filed through the DPITT’s G2B portal will be scrutinized in the ‘IEM Section’ for verification related to Incorporation Certificate, Memorandum of Article, Article of Association and Codes related to NIC and Administrative Ministry/Department etc.

Once verification is over and found correct; the Department issues IEM acknowledgement through the G2B portal and physical copy IEM acknowledgement will be sent through the post.

File IEM – Part B

After the commencement of commercial production, the entrepreneur needs to file Part B of the Industrial Entrepreneur Memorandum.

After login to the portal, click on Part B of IEM to proceed further and fill the following details:

  • Details of IEM Member of Part A
  • Amount of Investment
  • Proposed items of Manufacture
  • Employee details

Once the information is filled successfully, upload the IEM Acknowledgment of Part A to submit the form, click on the Final Submit button. After submitting the form, IEM Part-B Commencement of Production Return Summary will display.

The application filed through the DPITT’s G2B portal will be scrutinized in the ‘IEM Section’ for verification. Once verification is over and found correct; the Department issues IEM Part- B acknowledgement through the G2B portal and physical copy IEM acknowledgement will be sent through the post.

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