Industrial Entrepreneur Memorandum (IEM)

Mandatory Filing for Large-Scale Manufacturing Units

The Industrial Entrepreneur Memorandum (IEM) is a mandatory filing under the Industries (Development and Regulation) Act, 1951, for setting up industrial undertakings in the delicensed sector. It serves as an official intimation to the Department for Promotion of Industry and Internal Trade (DPIIT), Government of India.

What Is IEM?

IEM is required for industrial units that do not require an industrial license but intend to set up operations in sectors covered under the delicensed category, with an investment above the prescribed limits.

When Is IEM Required?

  • For manufacturing undertakings not requiring industrial licensing

  • Where investment in plant & machinery exceeds ₹50 crore (for manufacturing) or ₹10 crore (for service sector)

  • When the unit is not in a small-scale or micro-enterprise category

Structure of IEM Filing:

IEM is filed in two parts:

  • Part A: Filed before commencement of production to inform the government of intention to set up the unit

  • Part B: Filed after commencement of commercial production

Key Benefits:

  • No industrial license required for most sectors

  • Acts as a record with DPIIT for policy and statistical purposes

  • Enables eligibility for certain central and state-level subsidies

  • Required for large-scale investments and bank funding

Exemptions:

IEM is not required for:

  • Small & Micro Enterprises (SMEs)

  • Sectors requiring mandatory licensing under IDRA

  • Non-manufacturing sectors

Our Services:

  • End-to-end IEM Part A and Part B filing

  • Preparation of required documents and application

  • Liaison with DPIIT and relevant authorities

  • Compliance advisory post-filing

Contact SS Industrial Consultancy

Email: info@ssconsultancy.net
Phone: +91 92468 22006