Industrial Entrepreneur Memorandum (IEM) - Filing Through DPIIT’s G2B Portal

Industrial Entrepreneur Memorandum (IEM) - Filing Through DPIIT’s G2B Portal. The Government of India, through the Department for Promotion of Industry and Internal Trade (DPIIT), has taken several significant steps to simplify regulatory procedures and improve transparency for businesses. One such major initiative is the introduction of the enhanced DPIIT G2B Portal, which provides an online platform for entrepreneurs to file for the Industrial Entrepreneur Memorandum (IEM). This article covers everything you need to know about the IEM, the filing procedure, its purpose, eligibility, and how the new portal works—explained in a simple and clear manner.
What is the Industrial Entrepreneur Memorandum (IEM)?
The Industrial Entrepreneur Memorandum (IEM) is a document that entrepreneurs are required to file with the government to inform about the establishment of industrial undertakings. This applies to businesses that are exempt from industrial licensing but fall under the purview of the Industries (Development and Regulation) Act, 1951. The IEM serves as an acknowledgment from the government that the entrepreneur is starting a manufacturing activity or undertaking a major expansion in operations.
There are two parts to the IEM: Part A and Part B. Part A is filed at the time of establishing a new business or expanding an existing one, while Part B is filed once commercial production has commenced. Obtaining an IEM is important because it helps the government maintain an updated record of industrial units operating in the country and also allows businesses to be recognized officially. Filing for IEM has now been made completely digital through the DPIIT G2B Portal, which means no physical applications are entertained anymore.
DPIIT G2B Portal
The DPIIT G2B Portal is an integrated digital platform launched by the Department for Promotion of Industry and Internal Trade to facilitate a business-friendly environment in India. The portal allows entrepreneurs to file for Industrial Entrepreneur Memorandum (IEM), Industrial Licenses (IL), and other related approvals. It also supports paperless application processing, real-time status tracking, and issuance of acknowledgment certificates electronically.
The newly enhanced portal ensures that entrepreneurs can file their applications easily and securely from anywhere. Upon successful approval of the application, acknowledgment certificates are issued with QR codes, which can be verified online. Entrepreneurs also receive real-time email and SMS updates about the status of their applications. The portal also maintains a complete history of applications, making it easy for users to refer to past submissions and certificates.
The DPIIT G2B Portal is a one-stop solution for entrepreneurs seeking to start or expand their industrial businesses without facing the complexities of traditional bureaucratic processes.
Purpose and Eligibility for Filing IEM (Industrial Entrepreneur Memorandum )
The Industrial Entrepreneur Memorandum is intended to serve as a formal intimation to the government about the entrepreneur's intention to start a new industrial undertaking, manufacture a new product, expand their current business, or upgrade from a Small Scale Industry (SSI) to a large-scale unit. The purpose is to promote transparency, accountability, and data-driven policy-making by gathering reliable information about industrial activity in the country.
IEM is required for the following purposes:

To establish a new industrial undertaking.

To manufacture a new article or product not previously produced.

To expand the capacity or scope of an existing industrial unit.

For existing SSI units transitioning to a large-scale industry.

IEM is mandatory for industrial undertakings that are exempt from the requirement of an industrial license but fall within the scope of the Industries (Development and Regulation) Act, 1951. Generally, large-scale manufacturing and service sector industries with investments exceeding ?10 crores (in manufacturing) or ?5 crores (in services) are required to file an IEM. This includes existing units, new undertakings (NU), and units planning to manufacture new articles (NA).
However, if the manufacturing activity is reserved for the Small Scale Sector, then an IEM is not required. The entrepreneur must ensure that their proposed product or activity is not on the list of industries that require a compulsory license before proceeding.
Procedure to File IEM Through DPIIT G2B Portal
Filing an IEM through the DPIIT G2B Portal involves a simple, step-by-step online procedure. The process is divided into two parts – IEM Part A and IEM Part B.
Registration on DPIIT G2B Portal
To begin the process, the entrepreneur must visit the official DPIIT G2B portal. On the homepage, click on the "Registration" button. A user registration form will appear where the applicant has to provide necessary details such as name, email ID, mobile number, and address.
Once the required information is submitted, the portal sends an OTP (One-Time Password) to the registered mobile number and email ID for verification. After successfully entering the OTP, the user ID is generated. This user ID and password can be used to log in and access the portal’s services.
Filing IEM – Part A
Part A of the IEM is required for the establishment of the business. After logging in, click on “Industrial Entrepreneur Memorandum (IEM)” and choose Part A. The form requires the following details:

Information about the industrial undertaking

Promoter’s status and contact details

Address and proposed location of the unit

Description of the product or item to be manufactured

Proposed and existing investments

The entrepreneur is also required to upload the following documents:

Memorandum of Association (MOA)

Articles of Association (AOA)

Certificate of Incorporation

Once all information is correctly filled in and documents are uploaded, the applicant must pay a fee of ?1,000 for filing Part A. The payment can be made online using debit/credit cards or net banking.
After successful submission and payment, the application is processed by the IEM Section of DPIIT. If the details and documents are verified and found in order, the acknowledgment certificate for IEM Part A is issued electronically with a QR code and is also sent via post.
Filing IEM – Part B
Part B is filed after the commencement of commercial production. The entrepreneur needs to log in to the DPIIT portal and click on Part B of the IEM. The form asks for:

Reference of IEM Part A

Date of commencement of production

Details of actual investments

Employee strength

Final product details

A copy of the IEM Part A acknowledgment certificate must be uploaded along with the form. No fee is required for filing Part B.
After submission, the application is again reviewed by the IEM Section. Once verified, the acknowledgment for IEM Part B is issued both electronically and through the post.
Benefits and Features of IEM Acknowledgment via DPIIT G2B Portal
The enhanced DPIIT G2B Portal brings several advantages to industrial undertakings and entrepreneurs. It significantly reduces paperwork, eliminates manual processing delays, and enhances transparency. Below are the key benefits:
1. Paperless Application Process: Entrepreneurs can apply from anywhere using a secure online platform. All stages of the application are managed digitally, including submission, verification, payment, and issuance of certificates.
2. Real-time Notifications: Applicants receive instant SMS and email alerts regarding the status of their applications and issuance of acknowledgment certificates.
3. Acknowledgment with QR Code: The acknowledgment certificates issued are embedded with a QR code that allows any third party, including investors, banks, or government departments, to verify their authenticity online.
4. Application Tracking and History: The portal maintains a record of all previously filed applications, licenses, and acknowledgments, making it easier to access historical data and track progress.
5. Single Window for IEM and IL: The portal also allows filing of Industrial Licenses (IL), enabling businesses to manage multiple compliance requirements from a single platform.
These features help reduce the time and cost involved in starting or expanding an industrial business in India, contributing to the Government of India’s “Ease of Doing Business” initiative.
Key Takeaways for Entrepreneurs
Filing an Industrial Entrepreneur Memorandum (IEM) is now easier and more efficient than ever, thanks to the DPIIT’s improved G2B portal. Entrepreneurs looking to establish new industrial units or expand existing ones must ensure timely filing of IEM Part A and subsequently Part B upon the commencement of production. With the shift to an entirely digital platform, businesses no longer have to go through lengthy paperwork or wait for approvals.
It is essential for industrial undertakings to understand the importance of IEM acknowledgment as it not only formalizes their industrial activity under the regulatory framework but also adds credibility in the eyes of financial institutions, investors, and other stakeholders. Moreover, since acknowledgment certificates are issued with QR codes, they offer a trustworthy and easily verifiable record of industrial compliance.
Conclusion
The Industrial Entrepreneur Memorandum is an important document for large-scale industrial units operating in India. The DPIIT G2B Portal simplifies the entire filing process by providing a transparent, online, and paperless platform for businesses to register their industrial undertakings. Entrepreneurs are encouraged to take advantage of this initiative to ensure timely compliance and provide smooth industrial operations. By knowing the procedure and adhering to the guidelines, businesses can focus more on growth and innovation while staying in sync with the regulatory framework of the country.
If you have any queries regarding IEM then you can connect with Compliance Calendar experts through mail info@ccoffice.in or Call/Whatsapp at +91 9988424211.
FAQs
Q1. What is an Industrial Entrepreneur Memorandum (IEM)?
Ans. An Industrial Entrepreneur Memorandum (IEM) is a formal notification submitted to the Department for Promotion of Industry and Internal Trade (DPIIT) by industrial units that are exempt from licensing under the Industries (Development and Regulation) Act, 1951. It is required for large-scale industries to inform the government about the establishment of a business and commencement of commercial production.
Q2. Who needs to file an IEM?
Ans. Entrepreneurs planning to set up or expand large-scale industrial units with investments exceeding ?10 crores in the manufacturing sector or ?5 crores in the service sector need to file an IEM. This includes:

Existing large units

New undertakings (NU)

Units starting new product lines (NA)

SSI units upgrading to large-scale units

Q3. What is the difference between IEM Part A and Part B?
Ans.  IEM Part A is filed before establishing the industrial unit and is necessary for obtaining government acknowledgment to start operations.

IEM Part B is filed after the commercial production begins, to report the commencement of business activities to DPIIT.

Q4. What documents are required to file an IEM?
Ans. For IEM Part A, you need:

Memorandum of Association (MOA)

Articles of Association (AOA)

Certificate of Incorporation

For IEM Part B, you need:

Acknowledgment certificate of IEM Part A

Q5. What is the fee for filing an IEM?
 
Ans. The fee for filing IEM Part A is Rs.1,000. There is no fee for filing IEM Part B.
Q6. How do I file an IEM online through the DPIIT G2B Portal?
 
Ans. To file an IEM:

Visit the DPIIT G2B Portal

Select “Industrial Entrepreneur Memorandum”

Fill in the required information in Part A or Part B

Upload necessary documents

Pay the applicable fee for Part A

Submit the application

Acknowledgment certificates will be issued electronically with a QR code.
Q7. How can I track my IEM application status?
 
Ans. You can track the status of your IEM application by logging into the DPIIT G2B Portal. The dashboard provides real-time updates, including acknowledgment generation and any pending actions. You will also receive email and SMS alerts on the registered contact details.

The Government of India, through the Department for Promotion of Industry and Internal Trade (DPIIT), has taken several significant steps to simplify regulatory procedures and improve transparency for businesses. One such major initiative is the introduction of the enhanced DPIIT G2B Portal, which provides an online platform for entrepreneurs to file for the Industrial Entrepreneur Memorandum (IEM). This article covers everything you need to know about the IEM, the filing procedure, its purpose, eligibility, and how the new portal works—explained in a simple and clear manner.

What is the Industrial Entrepreneur Memorandum (IEM)?

The Industrial Entrepreneur Memorandum (IEM) is a document that entrepreneurs are required to file with the government to inform about the establishment of industrial undertakings. This applies to businesses that are exempt from industrial licensing but fall under the purview of the Industries (Development and Regulation) Act, 1951. The IEM serves as an acknowledgment from the government that the entrepreneur is starting a manufacturing activity or undertaking a major expansion in operations.

There are two parts to the IEM: Part A and Part B. Part A is filed at the time of establishing a new business or expanding an existing one, while Part B is filed once commercial production has commenced. Obtaining an IEM is important because it helps the government maintain an updated record of industrial units operating in the country and also allows businesses to be recognized officially. Filing for IEM has now been made completely digital through the DPIIT G2B Portal, which means no physical applications are entertained anymore.

DPIIT G2B Portal

The DPIIT G2B Portal is an integrated digital platform launched by the Department for Promotion of Industry and Internal Trade to facilitate a business-friendly environment in India. The portal allows entrepreneurs to file for Industrial Entrepreneur Memorandum (IEM), Industrial Licenses (IL), and other related approvals. It also supports paperless application processing, real-time status tracking, and issuance of acknowledgment certificates electronically.

The newly enhanced portal ensures that entrepreneurs can file their applications easily and securely from anywhere. Upon successful approval of the application, acknowledgment certificates are issued with QR codes, which can be verified online. Entrepreneurs also receive real-time email and SMS updates about the status of their applications. The portal also maintains a complete history of applications, making it easy for users to refer to past submissions and certificates.

The DPIIT G2B Portal is a one-stop solution for entrepreneurs seeking to start or expand their industrial businesses without facing the complexities of traditional bureaucratic processes.

Purpose and Eligibility for Filing IEM (Industrial Entrepreneur Memorandum )

The Industrial Entrepreneur Memorandum is intended to serve as a formal intimation to the government about the entrepreneur's intention to start a new industrial undertaking, manufacture a new product, expand their current business, or upgrade from a Small Scale Industry (SSI) to a large-scale unit. The purpose is to promote transparency, accountability, and data-driven policy-making by gathering reliable information about industrial activity in the country.

IEM is required for the following purposes:

To establish a new industrial undertaking.
To manufacture a new article or product not previously produced.
To expand the capacity or scope of an existing industrial unit.
For existing SSI units transitioning to a large-scale industry.

However, if the manufacturing activity is reserved for the Small Scale Sector, then an IEM is not required. The entrepreneur must ensure that their proposed product or activity is not on the list of industries that require a compulsory license before proceeding.

Procedure to File IEM Through DPIIT G2B Portal

Filing an IEM through the DPIIT G2B Portal involves a simple, step-by-step online procedure. The process is divided into two parts – IEM Part A and IEM Part B.

Registration on DPIIT G2B Portal

To begin the process, the entrepreneur must visit the official DPIIT G2B portal. On the homepage, click on the "Registration" button. A user registration form will appear where the applicant has to provide necessary details such as name, email ID, mobile number, and address.

Once the required information is submitted, the portal sends an OTP (One-Time Password) to the registered mobile number and email ID for verification. After successfully entering the OTP, the user ID is generated. This user ID and password can be used to log in and access the portal’s services.

Filing IEM – Part A

Part A of the IEM is required for the establishment of the business. After logging in, click on “Industrial Entrepreneur Memorandum (IEM)” and choose Part A. The form requires the following details:

Information about the industrial undertaking
Promoter’s status and contact details
Address and proposed location of the unit
Description of the product or item to be manufactured
Proposed and existing investments

The entrepreneur is also required to upload the following documents:

After successful submission and payment, the application is processed by the IEM Section of DPIIT. If the details and documents are verified and found in order, the acknowledgment certificate for IEM Part A is issued electronically with a QR code and is also sent via post.

Filing IEM – Part B

Part B is filed after the commencement of commercial production. The entrepreneur needs to log in to the DPIIT portal and click on Part B of the IEM. The form asks for:

Reference of IEM Part A
Date of commencement of production
Details of actual investments
Employee strength
Final product details

A copy of the IEM Part A acknowledgment certificate must be uploaded along with the form. No fee is required for filing Part B.

After submission, the application is again reviewed by the IEM Section. Once verified, the acknowledgment for IEM Part B is issued both electronically and through the post.

Benefits and Features of IEM Acknowledgment via DPIIT G2B Portal

The enhanced DPIIT G2B Portal brings several advantages to industrial undertakings and entrepreneurs. It significantly reduces paperwork, eliminates manual processing delays, and enhances transparency. Below are the key benefits:

1. Paperless Application Process: Entrepreneurs can apply from anywhere using a secure online platform. All stages of the application are managed digitally, including submission, verification, payment, and issuance of certificates.

2. Real-time Notifications: Applicants receive instant SMS and email alerts regarding the status of their applications and issuance of acknowledgment certificates.

3. Acknowledgment with QR Code: The acknowledgment certificates issued are embedded with a QR code that allows any third party, including investors, banks, or government departments, to verify their authenticity online.

4. Application Tracking and History: The portal maintains a record of all previously filed applications, licenses, and acknowledgments, making it easier to access historical data and track progress.

5. Single Window for IEM and IL: The portal also allows filing of Industrial Licenses (IL), enabling businesses to manage multiple compliance requirements from a single platform.

These features help reduce the time and cost involved in starting or expanding an industrial business in India, contributing to the Government of India’s “Ease of Doing Business” initiative.

Key Takeaways for Entrepreneurs

Filing an Industrial Entrepreneur Memorandum (IEM) is now easier and more efficient than ever, thanks to the DPIIT’s improved G2B portal. Entrepreneurs looking to establish new industrial units or expand existing ones must ensure timely filing of IEM Part A and subsequently Part B upon the commencement of production. With the shift to an entirely digital platform, businesses no longer have to go through lengthy paperwork or wait for approvals.

It is essential for industrial undertakings to understand the importance of IEM acknowledgment as it not only formalizes their industrial activity under the regulatory framework but also adds credibility in the eyes of financial institutions, investors, and other stakeholders. Moreover, since acknowledgment certificates are issued with QR codes, they offer a trustworthy and easily verifiable record of industrial compliance.

Conclusion

The Industrial Entrepreneur Memorandum is an important document for large-scale industrial units operating in India. The DPIIT G2B Portal simplifies the entire filing process by providing a transparent, online, and paperless platform for businesses to register their industrial undertakings. Entrepreneurs are encouraged to take advantage of this initiative to ensure timely compliance and provide smooth industrial operations. By knowing the procedure and adhering to the guidelines, businesses can focus more on growth and innovation while staying in sync with the regulatory framework of the country.

If you have any queries regarding IEM then you can connect with Compliance Calendar experts through mail info@ccoffice.in or Call/Whatsapp at +91 9988424211.

FAQs

Q1. What is an Industrial Entrepreneur Memorandum (IEM)?

Ans. An Industrial Entrepreneur Memorandum (IEM) is a formal notification submitted to the Department for Promotion of Industry and Internal Trade (DPIIT) by industrial units that are exempt from licensing under the Industries (Development and Regulation) Act, 1951. It is required for large-scale industries to inform the government about the establishment of a business and commencement of commercial production.

Q2. Who needs to file an IEM?

Ans. Entrepreneurs planning to set up or expand large-scale industrial units with investments exceeding ?10 crores in the manufacturing sector or ?5 crores in the service sector need to file an IEM. This includes:

Existing large units
New undertakings (NU)
Units starting new product lines (NA)
SSI units upgrading to large-scale units

Q3. What is the difference between IEM Part A and Part B?

Ans. IEM Part A is filed before establishing the industrial unit and is necessary for obtaining government acknowledgment to start operations.

IEM Part B is filed after the commercial production begins, to report the commencement of business activities to DPIIT.

Q4. What documents are required to file an IEM?

Ans. For IEM Part A, you need:

Memorandum of Association (MOA)
Articles of Association (AOA)
Certificate of Incorporation

For IEM Part B, you need:

Acknowledgment certificate of IEM Part A

Q5. What is the fee for filing an IEM?

Ans. The fee for filing IEM Part A is Rs.1,000.
There is no fee for filing IEM Part B.

Q6. How do I file an IEM online through the DPIIT G2B Portal?

Ans. To file an IEM:

Visit the DPIIT G2B Portal
Register as a user by providing basic details
Log in using your credentials
Select “Industrial Entrepreneur Memorandum”
Fill in the required information in Part A or Part B
Upload necessary documents
Pay the applicable fee for Part A
Submit the application

Acknowledgment certificates will be issued electronically with a QR code.

Q7. How can I track my IEM application status?

Ans. You can track the status of your IEM application by logging into the DPIIT G2B Portal. The dashboard provides real-time updates, including acknowledgment generation and any pending actions. You will also receive email and SMS alerts on the registered contact details.