In Country Value Certification (ICV) is a certification for companies based in the UAE. ICV Certification is an added leverage for companies that bid for UAE government companies, such as the ADNOC procurement process. If you are looking for precise and simple information on how to obtain an ICV certificate and add a competitive edge to your companies bidding processing, read further.
Why was ICV certification launched?
Regular procurement consists of quotes, bids, samples, requisitions, and orders. However, the ICV certification in the UAE has given a competitive edge to companies that help develop the economy through its local operations. It would directly benefit certificated companies to have leverage in the tender bidding process for various government projects. A company having an ICV certification can get up to 40% leverage while bidding, whereas a non-certified company has to begin with a score of zero. To receive assured benefits, companies in the UAE are motivated to get an ICV certification from certifying bodies. The impact of ICV certification leads to companies understanding the importance of investing within the UAE and being a part of its economic growth.
The conclusive aim of the ICV certification program is to have healthy and diversified competition in the bidding process for tenders across UAE and provide an opportunity for various sectors to develop the economy of the UAE, its Emiratis and expatriates.
How to get an ICV for a company in the UAE?
Apply for an ICV Certificate through a certifying body
An empaneled certifying body is a company authorized by participating entities to verify a company’s ICV certification application and issue the ICV Certificate. The ICV certificate can only be awarded through authorized ICV certifying bodies. Companies cannot change their certifying body for the valid ICV Certificate period unless justified by the appropriate authority.
Complete the ICV Certification Template
The company looking to get ICV Certified must have their IFRS-compliant audited financials ready for the period, not older than two years. Audit firms in Dubai assist companies with stamped audited financial statements for ICV certification applications.
Vendor companies can use the audited statement for the last ten months if the company is relatively new to ICV Calculations. The ICV certification is valid 14 months after the issuance of the audited financial statements. It is highly recommended that companies use a separate accounting code to highlight the key metrics required for ICV certification, such as Emiratis Payroll, training costs, locally manufactured and purchased goods, and any research and development done within the UAE.
Vendor companies can start the ICV certification process by downloading the template from the Department of Economic Developments website.
Verification of the application template
The participating entities have the right to procure information and documents from the empanel certifying bodies that audit and certify the ICV applicants. Any misrepresentation or erroneous data shared by the applicant will lead to rejection, and a penalty may be awarded. Illegal or data manipulation may bar applicants from applying for the ICV certification. Hence, completing the financial audit before uploading the same for the ICV Certification verification is always advisable. It takes between 3 to 15 days to verify and issue the certificate.
The metrics on which the ICV score is calculated are:
- Good Manufactured
- Third-party spending by the company
- Investments top up
- Emiratization within the organization
- Hiring of ex-pats
- Additional bonus (Revenue from outside UAE+Emirati Head Count+ Investment Growth)
- Once the template is completed and submitted, the ICV scores will be calculated. A company can either be a good manufacturer or a service provider. If both the relevant activities are applicable, then a separate ICV certificate will be required.
- LLC Main land companies the goods and services within UAE
- Free zone companies are the goods manufactured within UAE
- The offshore company, outside UAE services
- Representative office- goods and services based on the parent company
- Branch office in Mainland UAE, goods and services within UAE will be considered.
- The ICV score is calculated, and the certificate is shared with the company after a successful application. The certificate is valid once signed and stamped by the company’s authorized signatory and the ICV-empaneled certifying body. Every vendor must ensure that the ICV score is mentioned on the tender to increase their chance of procuring the bid.
Importance of Audited financial statements in an application for ICV certification
The certifying bodies will verify the company’s financial statements in the UAE. ADNOC ICV certification agents list provides approved agencies to help you get your ICV certification. However, only audited and stamped financial statements can be used for ICV certificate applications. Certain reclassifications of costs and revenues are mentioned in the guidelines of the ICV applications. Audit firms in the UAE, such as Farahat and Co, regularly undertake ICV certification consultation and audit and provide accurate financial statements. An ICV Certification application may seem easy, but only an experience audit firm in the UAE can help you gain a better score by reviewing your financial statements and understanding your business.
Our expert consultants will present the entire process and guide you so that you can quickly achieve your ICV Certification Score. We will help you understand the calculator of the ICV score and how you can build a higher score based on your relevant business activities. Contact us today and speak to one of our ICV expert consultants.