Acknowledgement Of Receipt Of Industrial Entrepreneur Memorandum
Online Link to Act/Rule/Legislation
Initial Setup or Ongoing Maintenance
Initial Setup only
Filing and Maintenance Requirements
As per the Industrial Development (Regulation) Act, 1951, any person, who intends to establish a large scale industry for a regulated product which is under the licensing regime, is required to obtain prior license from the Secretariat for Industrial Assistance, Ministry of Commerce and Industry, Department of Industrial Policy and Promotion, Government of India (“SIA") which shall act as the enforcement authority. The requirement of licensing has been liberalized by the Government of India and pursuant to such liberalization industrial licenses are now required only for a few industries (such as industrial explosives or specified hazardous chemicals) and majority of the industries have been de-licensed.
All industrial undertakings exempt from the requirements of industrial licensing are required to file information in the prescribed form for Industrial Entrepreneurs Memorandum with the SIA and obtain an acknowledgement.
Application Guidelines / Responsible Persons / Comments
(a) All industrial undertakings exempt from the requirements of industrial licensing, including existing units undertaking substantial expansion, need to file information in the prescribed Industrial Entrepreneurs Memorandum, i.e. Form IEM (Annexure-VII) . The form is available at all outlets dealing in Government Publications, Indian Embassies, the Entrepreneurial Assistance Unit (EAU) of the Secretariat for Industrial Assistance (SIA), Department of Industrial Policy and Promotion, Udyog Bhavan, New Delhi-110011, and can also be downloaded from the Web site of the SIA (http://indmin.nic.in).
(b) The Memorandum (IEM) should be submitted to the EAU of the SIA in person or by post. A computer acknowledgement containing the SIA Registration Number (for future reference) will be issued across the counter immediately if delivered in person or sent by post if received through post. No further approval from SIA is required.
(c) The IEM should be submitted along with a crossed demand draft of Rs.1000/- drawn in favour of "The Pay & Accounts Officer, Department of Industrial Development, Ministry of Industry", payable at the State Bank of India, Nirman Bhawan Branch, New Delhi up to 10 items proposed to be manufactured in the same unit. For more than 10 items, an additional fee of Rs 250 up to 10 additional items needs to be paid through crossed demand draft.
(d) All Industrial undertakings also need to file information in Part 'B' of the Memorandum at the time of commencement of commercial production. The prescribed form is appended to Form IEM. This second Memorandum has also to be filed with the EAU in SIA, but no fee is required.
(e) No amendment/modifications are made to any IEM filed before 30th June, 1998 except for clerical errors. Where any amendment/modification is sought to be made in such IEMs, a fresh memorandum in Form IEM, along with the prescribed fee has to be filed for which a fresh acknowledgement will be issued. An IEM would be cancelled/deleted from the SIA records if, on scrutiny, it is found that the proposal contained in the IEM is licensable.
(f) In respect of IEMs filed in the new form made effective from 1st July, 1998, amendments/modifications will be made on the request of the entrepreneur, as per the notified procedure.