IEM Registration in India: Documents Required and Procedure

To increase openness and ease of doing business, the Department for Promotion of Industry and Internal Trade (DPITT) has unveiled an improved DPITT G2B Portal.

What is an IEM Registration?

An industrial unit’s request for recognition is made in the IEM (Industrial Entrepreneurs Memorandum). Industrial undertakings that are exempt from the Industries Development and Regulation Act’s industrial licensing requirements must submit information important to the establishment of industries through the Industrial Entrepreneur Memorandum.

The DPITT has announced that business owners can now submit online applications for Industrial Entrepreneur Memorandum-Part A and Part B through its enhanced webpage.

Documents are needed to apply for an IEM license.

The following documents must be uploaded online by the entrepreneur in order to obtain the Industrial Entrepreneur Memorandum:

1. Documents required Part 1
   ● Declaration of Incorporation
   ● MOA (Memorandum of Association) (Memorandum of Association)
   ● Association Bylaws
2. Documents required for Part 2
   ● IEM Acknowledgement Certificate from Part 1

What is Part 1 and Part 2 of IEM?

Industrial Entrepreneur Memorandum is in Two Sections,

Part 1: For Business

Exempted industrial undertakings, such as current units that are significantly expanding, are required to submit and be approved by an Industrial Entrepreneur Memorandum (IEM) in Part ‘A’ to the Department of Industrial Policy & Promotion, Government of India.

Part 2: Commercial Production

The company must file Part B as soon as commercial production starts.

The start of commercial production must be reported by all industrial undertakings that submitted IEM Part A. A copy of the IEM Part-A Acknowledgement needs to be posted along with this information when it is submitted on the G2B portal. This can also be done electronically using the G2B portal by uploading information in the format required by IEM Part B.

Similar to IEM’s “Part A” Acknowledgement, the Department also releases “Part B” Acknowledgements through the portal, with a hard copy being mailed.

Eligibility requirements for industrial entrepreneurs

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 submit an application for an Industrial Entrepreneurs Memorandum (IEM).

Process for IEM

● To apply for the IEM, go to the DPITT G2B portal and click the Register button on the home page.
● Complete the necessary fields in the user registration form, then press the Proceed button.
● The user must enter all the data linked to the username and password once the application page has been opened.
● When you agree to the terms and conditions, an OTP will be sent to the registered mobile number and email address.
● After the OTP is entered, the user ID will be generated. After properly registering, the business owner can log in to the software using their Username and Password.
● To apply for the IEM process, go for the “Industrial Entrepreneur Memorandum (IEM)“.
● Part A and Part B will be the two portions.
● Assuming the data is accurate, click the next button to enter details about the planned manufactured good as well as the current and future rupee investments.
● After successfully submitting the required papers, the entrepreneur is required to pay the application cost.
● The “Payment” option will display after the form has been submitted, and the business owner must choose “Pay Now.” Enter the details of your credit card to complete the transaction.
● Any applications filed via the G2B portal of the DPITT will be examined under the “IEM Section” for things:
○ Incorporation certificate.
○ The memorandum of articles.
○ The articles of association
○ and codes related to the NIC and administrative ministry/department.
● The Department sends IEM acknowledgments via the G2B portal, and once the verification is finished and determined to be accurate, a hard copy IEM acknowledgment will be sent by mail.
● The entrepreneurs must submit an application for Part B of IEM after their application is approved.
● Log in to the portal, select Part B of the IEM Application, and complete Part B’s mandatory fields with the necessary data.
● Once all the required information has been entered, upload the IEM Acknowledgement of Part A and click the Final Submit button to submit the form.
● When you submit the form, the IEM Part-B Commencement of Production Return Summary will show up.
● Under the “IEM Section,” the application that was submitted via the DPITT G2B portal will be examined and confirmed.
● After verification is complete and deemed to be accurate, the Department issues IEM Part-B acknowledgments via the G2B portal, and a hard copy IEM acknowledgment is sent by mail.

Conclusion

Because of the government of India’s liberalization of the licensing requirements, only a small number of industries currently require industrial licenses especially those who work with explosives, and the vast majority of businesses have been delicensed.

The Secretariat of Industrial Approvals must receive information from all industrial operations that are exempt from industrial licensing requirements in the appropriate form for Industrial Entrepreneurs Memorandum and acknowledge it.

To know more about IEM Registration in India through professionals contact Tatva Consultancy, for easy and effortless processing. Our experts will guide you, help you submit documents properly, and get you IEM Certified in no time.