HomeFinanceGovt eases filing of Industrial Entrepreneurs Memorandum move probably to advantage midsize enterprises

Govt eases filing of Industrial Entrepreneurs Memorandum move probably to advantage midsize enterprises

Ease of Doing Business for MSMEs: The Commerce Ministry on Tuesday announced upgradation of the paperless method for filing Industrial Entrepreneur Memorandum (IEM) to improve ease of carrying out small business amongst new and current organizations in the manufacturing and services sectors. Enterprises will now be capable to disclose investment specifics connected to the setting up of new industrial units and commencement of industrial production via a single on the internet kind alternatively of reporting the two separately. “This single form will facilitate filling of investment intentions (IEM-Part A) and reporting of commencement of production (IEM-Part B) in a seamless manner,” the ministry mentioned in a statement.

Industrial undertakings, which are exempted from the needs of industrial licensing beneath the Industries (Development &amp Regulation) Act, 1951, had been necessary to file info as IEM with respect to the setting up of industries. This was filed as per ‘Part A’ of IEM. Once enterprises start industrial production, they had been necessary to report the similar as per prescribed kind ‘Part B’ of the IEM. The most recent move is anticipated to advantage medium enterprises. “The single form will have both parts to facilitate investment intent such as land, investment to be made, machines to be used, and beginning of commercial production. This will help medium units and it has been one of our demands as well,” Pankaj Kumar, President, Indian Industries Association told TheSpuzz Online.

According to the Department for Promotion of Industry and Internal Trade (DPIIT), all exempted industrial from the needs of industrial licensing and possessing an investment of Rs 10 Crore or above in the manufacturing sector and Rs 5 crore or above in services sector are necessary to file IEM. According to the MSME definition modified final year, entities with the investment in plant and machinery or gear involving Rs 11 crore and Rs 50 crore are defined as medium enterprises.

Also study: MSME registration crosses 25-lakh mark on Modi govt’s Udyam portal grows 130% in almost five months

Any amendments to the IEMs can also be carried out in order to stay clear of duplication in filling info, the ministry mentioned. “Earlier, the things we projected in Part A and what we furnished in Part B used to different. For instance, increase in machinery used from the time of disclosing investment to commencement of production. Now, if we have to do so, the government has given the clause of amendment to make the changes. This will help in transparency and reduce duplicity,” added Kumar.

Importantly, the government had in July final year launched Udyam Registration portal for paperless registration and classification of enterprises wherein entities will not have to upload any documents or proof except the Aadhaar quantity for registration. As of March 22, 2021, the portal had registered 25,07,112 MSMEs, up almost 130 per cent from more than 11 lakh registered MSMEs as of November 7, 2020, according to the information from the MSME Ministry.

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