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Industries that are exempt from the requirements of Industrial Licensing under THE INDUSTRIES (DEVELOPMENT AND REGULATION) ACT I (D&R),1951 are required to file information relating to the setting up of industries, known as IEM (Industrial Entrepreneur Memorandum). The confirmation for receipt of such information by this Department is known as 'IEM Acknowledgement'.

IEM Part A – For Establishment of Business
Industrial undertakings that are exempt from the industrial license, including existing units undertaking substantial expansion, need to file an Industrial Entrepreneur Memorandum (IEM) in Part ‘A’ (as per the 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 establishments that have filed IEM Part A are required to report the commencement of commercial production. This is done by filing information on the G2B portal in the prescribed format of Part B of the IEM. Part B needs to be filed after the commencement of commercial production by the establishment.

A copy of the IEM Acknowledgment is required to be uploaded along with this information onto the G2B portal. The Department will issue an electronic acknowledgement for Part B, which will be followed by a physical copy sent through the post.

Purpose of IEM

The categories in which a promoter can file an Industrial Entrepreneur Memorandum are as follows:

-To establish a new industrial enterprise
-To produce a new article
-To conduct the business of existing SSI units after graduating into large-scale industry
-To bring about significant expansion of the industrial undertaking




Eligibility for getting IEM

Any large scale industry outside of the manufacturing sector that wishes to invest more than Rs. 10 crore or the service sector that wishes to invest more than Rs. 5 crore have to file an application for an Industrial Entrepreneurs Memorandum, also known as IEM.

The procedure for filling of IEM

The promoter has to make an application to the Government of India in the prescribed format. They will need a Demand Draft of Rs. 1000/- in the name of Secretariat for Industrial Assistance (SIA), New Delhi. They will need six copies in total. The prescribed format is available on Directorate of Industries website:

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