Complete IEM Registration Guide for Large-Scale Industries : Essentials Explained

Hasslefree IEM Registration in India – Industrial Entrepreneur Memorandum Filing Guide for Large-Scale Industries

India’s industrial policy framework requires eligible large-scale, de-licensed industrial undertakings to file an Industrial Entrepreneur Memorandum (IEM) with the Department for Promotion of Industry and Internal Trade (DPIIT). IEM registration is a mandatory pre-commencement intimation for businesses that meet prescribed financial thresholds and operate in sectors not requiring an industrial licence.

Unlike renewal-based compliance, new IEM registration is the first regulatory step before setting up or expanding a large manufacturing unit. It establishes official recognition of the proposed industrial activity under the Industrial (Development & Regulation) Act, 1951.

At Legal Babu, we assist businesses with end-to-end IEM registration, ensuring accurate filings, proper documentation, and smooth processing through the National Single Window System (NSWS).

What is IEM Registration?

An Industrial Entrepreneur Memorandum (IEM) is a formal declaration filed with DPIIT by eligible industrial undertakings proposing to:

• Establish a new large-scale industrial unit

• Expand an existing manufacturing unit

• Manufacture additional products in a de-licensed sector

IEM is applicable only to industries that do not require an industrial licence but meet prescribed investment or turnover thresholds.

When Is New IEM Registration Required?

A new IEM (Part A) must be filed before commencement of commercial production in the following cases:

• Setting up a new large manufacturing unit

• Substantial expansion in plant and machinery

• Diversification into additional products

• Crossing prescribed financial thresholds

Financial Thresholds for IEM Applicability

IEM registration is required for industrial undertakings with:

• Investment in plant and machinery exceeding INR 125 crore, OR

• Annual turnover exceeding INR 500 crore

If either of these thresholds is met, IEM filing becomes mandatory (subject to sector eligibility).

Accurate disclosure of financial projections and investment estimates is critical, as DPIIT may scrutinise supporting documentation.

IEM Registration Process (Step-by-Step)

1. Filing of IEM Part A

The first step is filing IEM Part A through the National Single Window System (NSWS) portal. This includes:

• Details of the industrial undertaking

• Proposed manufacturing activity

• Location of plant

• Investment in plant and machinery

• Expected production capacity

• Product details (NIC Code classification)

Upon successful submission and fee payment, DPIIT issues an IEM Acknowledgement Number.

2. Commencement of Commercial Production

After the manufacturing unit becomes operational and commercial production begins, the undertaking must proceed to the next step.

3. Filing of IEM Part B

Once production starts, IEM Part B must be filed to formally intimate DPIIT of commencement of commercial production.

Failure to file Part B may create compliance complications in the future.

IEM Filing Platform – Fully Digital Framework

All IEM filings are submitted online through the National Single Window System (NSWS). The process is entirely digital, including:

• Submission of forms

• Payment of fees

• Issuance of acknowledgement

• Queries and clarifications

• Amendment filings

Consistency in PAN, MCA records, GST registration, and entity details across government systems is essential to avoid delays.

Applicability Across Ownership Structures

IEM registration applies uniformly across eligible legal entities, including:

Private & Public Limited Companies

• Must ensure alignment between MCA records and IEM details

• MOA objects should include manufacturing activity

• Any future changes require amendment filing

Partnership Firms

• Registered partnership deed required

• Consistency in PAN and GST details mandatory

Cooperative Societies

• Recognised under SOP as eligible undertakings

• Must submit registration certificate and by-laws

Other Recognised Industrial Undertakings

Any legally recognised entity meeting financial thresholds and operating in de-licensed sectors may be required to file IEM.

DPIIT evaluates compliance based on the legal structure and authenticity of documents submitted.

Documents Required for New IEM Registration

For Companies whether public limited or private limited: 

• PAN Card of the company

• Certificate of Incorporation

• MCA Master Data

• Memorandum of Association (MOA)

• Articles of Association (AOA)

• GST Registration Certificate

• Board Resolution / Authorisation

• Details of plant location

• Project report (where applicable)

For Partnership Firms:

• PAN Card of the firm

• Registered Partnership Deed

• GST Registration Certificate

• Authorisation letter

For Cooperative Societies

• PAN Card

• Registration Certificate from Registrar

• By-laws

• GST Registration

For All Entities

• Details of investment in plant & machinery

• Proposed production capacity

• Product description and NIC codes

• Address proof of manufacturing location

DPIIT may request additional clarification documents during scrutiny.

Government Fees for IEM Registration

For IEM registration you need to pay a certain fee depending your requirement: