Have you outgrown the MSME limit? Industrial undertakings exempted from Compulsory Licensing must file an Industrial Entrepreneur Memorandum (IEM) to secure government recognition.
Verify if IEM applies to your unit.
The Industrial Entrepreneur Memorandum (IEM) is a registration required for industrial undertakings in India that are not covered under the Compulsory Licensing provisions of the Industries (Development and Regulation) Act, 1951, and have investments exceeding the MSME threshold.
[Image of IEM Classification Diagram]It is filed with the Department for Promotion of Industry and Internal Trade (DPIIT). IEM serves as a statistical data point for the government but acts as a crucial identity document for the business to obtain bank loans, import capital goods, and apply for state incentives.
IEM is filed in two distinct stages of your business lifecycle.
Intent to Manufacture
Filed before setting up the industry. It signifies your intention to establish a new industrial undertaking, expand an existing unit, or manufacture a new product.
Commencement of Production
Filed after commercial production has started. It updates the actual investment figures and production capacity. This acts as the final registration.
Any modification to IEM Part A (like change in location, company name, or capacity) must be filed as an amendment request before Part B is filed.
Accurate documentation is key to avoiding queries from DPIIT. The list varies slightly for Part A and Part B.
Important: If your industry falls under the "Compulsory Licensing" list (e.g., Defense, Explosives, Hazardous Chemicals), you cannot file IEM. You must apply for an Industrial License (IL) instead.
Check IL ApplicabilityCreate User Profile on DPIIT G2B Portal with DSC.
Fill Part A/B form. Map NIC Codes for products.
Pay government fee (approx ₹ 1,000) online.
DPIIT verifies details. Queries raised if any.
IEM Acknowledgement issued instantly upon approval.
IEM is a 'Declaration' that becomes a 'Permission.' If your NIC codes are wrong, your future expansions will be blocked.
Your IEM is linked to specific NIC (National Industrial Classification) Codes. CloudDesk ensures your codes are perfectly aligned with your actual production and the Foreign Direct Investment (FDI) Policy. A mismatch here can block foreign funding or export incentives.
We manage the full lifecycle. Part A is filed when you intend to set up the unit (the "Planning" phase). Part B is filed once you commence commercial production (the "Execution" phase). CloudDesk ensures Part B is filed within the mandatory 6-month window of starting production.
Some industries (defense, hazardous chemicals, tobacco) still require a mandatory Industrial License. CloudDesk performs a Regulatory Filter to see if you can use the simple IEM route or if you must go through the rigorous IL Licensing process.
The DPIIT's G2B (Government to Business) portal is the only way to file in 2026. We handle the digital signatures, document uploads (MoA/AoA, Land docs), and the tracking of the Acknowledgment Number — which is your de-facto license number.
Any industrial undertaking that: (1) is NOT an MSME (i.e., investment in plant/machinery > ₹50 Crore), (2) is in the "Non-Licensed" sector (most manufacturing), and (3) is not covered under the MSMED Act.
No. MSMEs must register under Udyam. If an MSME grows and crosses the ₹50Cr/₹250Cr limit, they must transition from Udyam to IEM.
No. IEM is strictly for Industrial Undertakings (Manufacturing/Processing). Services usually fall under Shop & Establishment or Udyam (for service MSMEs).
As soon as you have "Taken Effective Steps" to set up the unit — this means you have acquired land, placed orders for machinery, or secured financing.
You must file Part B (Commencement of Production) within 6 months of starting commercial operations. Failure to do so can lead to the cancellation of your Part A acknowledgment.
This is common. Part B allows you to report the actual final investment and employment figures. CloudDesk manages the "Variation Analysis" to ensure the deviation is within acceptable limits.
No. IEM is an industrial license. However, a copy of your IEM is often required by the DGFT when you apply for a Certificate of Origin or Export Incentives.
The government fee is currently ₹1,000 for Part A. There is no fee for Part B, but professional management is key to ensuring the data matches your GST and Income Tax filings.