🚀 Ignite your growth: Discover 30+ new tools to get ahead in our new Ecwid Igniter. Learn more →
Everything you need to sell online

Set up an online store in minutes to sell on a website, social media, or marketplaces.

What Is the Industrial Entrepreneur Memorandum (IEM)?

6 min read

India’s Department for the Promotion of Industry and Internal Trade (DPIIT) has recently updated the processes for registering a business in the country. Now, most industrial undertakings must file an Industrial Entrepreneur Memorandum (IEM) in order to be recognized by the DPIIT. This new registration process is designed to improve transparency and ease of registration for entrepreneurs in India.

But what is the Industrial Entrepreneur Memorandum, exactly? Who is required to file for it, and what is the filing process? This helpful guide will answer all of these essential questions.

How to sell online
Tips from e-commerce experts for small business owners and aspiring entrepreneurs.
Please enter a valid email address

What is Industrial Entrepreneur Memorandum?

Per the DPIIT, IEM’s registration is intended for “Industrial undertakings exempted from the requirements of Industrial Licensing under the Industries Development and Regulation Act.”

IEM registration is completed in two parts: Part A and Part B. These are sometimes also referred to as IEM Number 1 and IEM Number 2.

Breaking Down IEM Part A and B

IEM Part A is for the establishment of the business. Exempted industrial undertakings must file IEM Part A in order to receive IEM Acknowledgment (Ack. Receipt). Once the Ack. A receipt is secured, the industrial undertaking must then follow up by filing IEM Part B.

IEM Part B is for the “commencement of commercial production.” In other words, when the undertaking is prepared to launch as a commercial business, it must file Part B. The IEM Part B filing must have an attached copy of the “Ack. Receipt” from Part A of the filing.

Once both Part A and Part B are filed and acknowledged, the industrial undertaking is approved to conduct business. Filing IEM Part A has a small fee (1000 rupee) attached. Part B is free to file as long as Part A has been properly filed and approved beforehand.

Who is Required to File IEM?

Not all industrial undertakings are required to file for the Industrial Entrepreneur Memorandum. The memorandum is reserved for large scale industrial undertakings, with some exceptions. Most notably, manufacturers of industrial explosives and hazardous chemicals must still obtain industrial licenses under the Industries Development and Regulation Act.

An IEM filing is also required for the manufacturing of products that are not exclusively reserved for the Small Scale Industrial sector. Thus, most non-SSI industrial undertakings must file for Industrial Entrepreneur Memorandum.

A Note on the SSI Industrial Sector

The SSI industrial sector generally refers to industries that manufacture products on the small or micro level. This includes things like toys, handcrafted goods, and many food goods.

However, if your business has produced SSI units but is now graduating into a large scale industry, you must also file an IEM in order to be approved for expansion.

How Do I Know if I Must File an Industrial Entrepreneur Memorandum?

If you are an Indian entrepreneur who wishes to launch a business that produces large scale products, you likely need to file for IEM. This filing is only required for industrial undertakings in the nation of India. If you are registering a business in any other country, you must follow local registration requirements in that region.

For most Indian entrepreneurs outside of SSI manufacturing, IEM Parts A and B are necessary filings. These filings are necessary when starting a new large scale industrial undertaking or when expanding an existing one.

Need Help Following Your Entrepreneurial Dreams?

Filing all of the necessary documents is a great place to start for any entrepreneur. But this is not the end of the journey. Once your industrial undertaking is registered, you have a lot more preparations to make. This includes steps like hiring your team, manufacturing products, and finding ways to reach your target market.

For both B2B and B2C companies, Ecwid is the best e-commerce platform for entrepreneurs. Ecwid is free to use and offers easy setup while you build your own custom online store. Moreover, Ecwid’s adaptable features include a wide range of payment processing options, cross-platform selling, SEO and marketing analytics tools, and more.

With so many consumers and businesses making purchases online, every entrepreneur needs an e-commerce platform. You can get started with Ecwid today to learn more or begin your entrepreneurial journey.


Table of contents

Sell online

With Ecwid Ecommerce, you can easily sell anywhere, to anyone — across the internet and around the world.

About the author

Max has been working in the ecommerce industry for the last six years helping brands to establish and level-up content marketing and SEO. Despite that, he has experience with entrepreneurship. He is a fiction writer in his free time.

Ecommerce that has your back

So simple to use – even my most technophobic clients can manage. Easy to install, quick to set up. Light years ahead of other shop plugins.
I’m so impressed I’ve recommended it to my website clients and am now using it for my own store along with four others for which I webmaster. Beautiful coding, excellent top-notch support, great documentation, fantastic how-to videos. Thank you so much Ecwid, you rock!
I’ve used Ecwid and I love the platform itself. Everything is so simplified it’s insane. I love how you have different options to choose shipping carriers, to be able to put in so many different variants. It’s a pretty open e-commerce gateway.
Easy to use, affordable (and a free option if starting off). Looks professional, many templates to select from. The App is my favorite feature as I can manage my store right from my phone. Highly recommended 👌👍
I like that Ecwid was easy to start and to use. Even for a person like me, without any technical background. Very well written help articles. And the support team is the best for my opinion.
For everything it has to offer, ECWID is incredibly easy to set up. Highly recommend! I did a lot of research and tried about 3 other competitors. Just try ECWID and you'll be online in no time.

Your ecommerce dreams start here

By clicking “Accept All Cookies”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.
Your Privacy

When you visit any website, it may store or retrieve information on your browser, mostly in the form of cookies. This information might be about you, your preferences or your device and is mostly used to make the site work as you expect it to. The information does not usually directly identify you, but it can give you a more personalized web experience. Because we respect your right to privacy, you can choose not to allow some types of cookies. Click on the different category headings to find out more and change our default settings. However, blocking some types of cookies may impact your experience of the site and the services we are able to offer. More information

More information

Strictly Necessary Cookies (Always active)
These cookies are necessary for the website to function and cannot be switched off in our systems. They are usually only set in response to actions made by you which amount to a request for services, such as setting your privacy preferences, logging in or filling in forms. You can set your browser to block or alert you about these cookies, but some parts of the site will not then work. These cookies do not store any personally identifiable information.
Targeting Cookies
These cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant adverts on other sites. They do not store directly personal information, but are based on uniquely identifying your browser and internet device. If you do not allow these cookies, you will experience less targeted advertising.
Functional Cookies
These cookies enable the website to provide enhanced functionality and personalisation. They may be set by us or by third-party providers whose services we have added to our pages. If you do not allow these cookies then some or all of these services may not function properly.
Performance Cookies
These cookies allow us to count visits and traffic sources, so we can measure and improve the performance of our site. They help us know which pages are the most and least popular and see how visitors move around the site. All information these cookies collect is aggregated and therefore anonymous. If you do not allow these cookies, we will not know when you have visited our site.