Unlocking Growth Potential: SOP for IEM Changes Empowers Entrepreneurs and Boosts Investment

In a significant move to enhance ease of doing business and transparency, the Department for Promotion of Industry and Internal Trade (DPIIT) has revamped its Industrial Entrepreneurs Memorandum (IEM) portal. This update, initiated in March 2021, introduces a streamlined, paperless process for the grant of IEM.

The IEM is a mandatory filing for industrial undertakings that are exempt from the requirements of industrial licensing under the Industries (Development and Regulation) Act, 1951. It serves as a formal intimation to the government regarding the setting up of an industrial entity. This acknowledgment, however, should not be misconstrued as a clearance or approval for commencing industrial activities.

The upgraded IEM portal simplifies the process of filing investment intentions (IEM-Part A) and reporting the commencement of production (IEM-Part B). It now offers a single form for one company to record details across all its locations and sectors, thereby eliminating repetitive data entry. Moreover, any amendments to previously filed IEMs can be easily made through this portal.

The process is designed to be completely paperless. All approvals will be communicated via email and SMS to applicants, ensuring a swift and transparent process. This information will also be concurrently sent to the concerned State Governments.

The G2B portal, operated by DPIIT, facilitates the application process for filing an IEM under the Industries (Development and Regulation) Act, 1951. This initiative marks a significant step towards reducing bureaucratic hurdles and fostering a more conducive environment for industrial growth in India.

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