We note that a UAE onshore LLC carrying out industrial activities must be licenced by the Department of Economic Development (“DED”). In addition to the DED licence, the UAE onshore LLC may obtain an Industrial Production licence (“IPL”) issued by the UAE Ministry of Economy (“MOE”), entitling it to be exempted from custom duties in respect of its manufactured goods when imported into any GCC country.
The UAE onshore LLC may start to carry out its manufacturing or industrial activities at the time its relevant licence is issued by the DED. Please note that the licence issued by the MOE is not a pre-requisite for the UAE onshore LLC to commence its activities, provided it has obtained the DED licence. This is due to the fact that the IPL issued by the MOE enables the UAE onshore LLC to mainly benefit from custom duties exemptions.
It is worth noting that a UAE onshore LLC which intends to carry out industrial activities may not be eligible to obtain an IPL from the MOE, as it may no