ICV is an unprecedented competitive advantage for vendors and suppliers in the tender market. The Ministry of Industry and Advanced Technology (MoAIT) primarily aims to achieve the goals below by implementing the ICV certification.
- Localization and development
- Increase in Foreign Investments
- Creation of job opportunities
- Raise the GDP
- Become a research and development hub
- Increase the value of the pirate sector towards GDP contribution.
Who needs an ICV Certificate?
Participating entities such as ADNOC, Etisalat, Aldar, and Emirates Steel consider ICV-certified companies to propose various tenders in the market for local and international service providers and manufacturers. By getting the ICV score and certificate, suppliers and vendors get an added advantage to compete in the tender process. The ICV score calculation is percentage-based, so tier-two and tier-three suppliers can compete with tier-one suppliers. Mainland and Free zone small and Medium-sized companies can participate in the bidding process as much as larger companies can.
How do I get an ICV Certification?
The validity of the ICV Certificate is 14 months from the last audited financial statements. Companies can renew their ICV certificate by providing their latest audited financial statements. Below are the requirements for getting an ICV certification for your company
- Audited Financial statements not older than two years. The company can apply for ICV certification based on the ten-month management accounting financial statements if the company has been established. The financial statements must be submitted in the IFRS format and audited by a Ministry of Economy licensed auditor.
- While submitting the financials, it is advised to use accounting codes that specifically show the ICV indicators such as UAE Nationals Payroll costs, UAE investments cost, or local hires cost.
- Complete the ICV certification template or the ICV Template. All the details added in the ICV template must be as per the applicant company’s latest audited financials. In case of any misrepresentation or error, there can be a delay in issuing the certificate, penalty or disbarment. If you need any consultation on how to get an ICV certification, contact Farahat and Co for a free consultation.
- Select a certifying body. The empanelled certifying bodies are auditing firms in the UAE selected by the participating entities to review the ICV certification applications and verify the ICV Score. If the application passes through all the verification stages, the certifying body issues the ICV certification.
- The In-Country Value Certification can be obtained in 3 to 15 working days once the certifying body approves the application. ICV 3.0 is the certification issued by the participating entities, whereas ICV 2.0 was distributed by ADNOC.
Read more: How to get an ICV for a company in the UAE
Points to remember while applying for an ICV certification
- Companies with industrial licenses will be considered under the goods manufacturer, and the score parameter will be on the goods manufactured cost. A non-manufacturing company will be a service provider, and Third Party Costs will be one of the parameters for the ICV score. The other parameters of Investment in the UAE, Emiratization, Expat contributions and Bonuses, remain the same for both types of companies.
- Companies with both types of relevant activity will need two ICV certificates, one for each manufacturer and one for the services.
- Companies must submit the ICV certificate while submitting their bid, as requested by the participating entities.
The cost of ICV Certification
The certifying bodies issue the ICV certification, and a company can seek quotations from the approved certifying bodies. If you have unaudited financials, you must seek the services of UAE Approved Auditors to conduct the audit and certify the financials.
It is essential to note that based on the company type and its relevant activity under the license, the ICV certifications are issued. For example, if you are industrial license manufacturing in one emirate and provide services in another, you will need two different ICV certifications for each license. Similarly, for group entities, each entity’s financials which include the revenues, ICV parameters costs, assets, liabilities, and costs related to every entity under the combined or group financial statement, must be disclosed accurately.
ICV Certificate Consultant
During a tender bidding process, the ICV score column will be zero for companies that do not have an ICV certification. In contrast, companies with an ICV certification can gain almost 40% weightage on the bid evaluation. Your company may be eligible for a higher ICV score. Accurately audited financial statements setting the correct accounting codes for the ICV parameters stand a better chance for a higher ICV evaluation score. ICV certificate UAE assist companies to identify the critical components of ICV. Book a consultation today with ICV certificate UAE.