Farahat & Co, are UAE approved auditors, we provide consultation to companies with an easy-to-understand ICV process and how it can benefit them.
The National In-Country, Value Certification Program, was introduced with the goals below.
- Localization of the procurement and development of local industries
- Increase foreign investments
- Creating Job opportunities
- Develop companies that participate in the growth of the UAE Economy
- Create a modern business environment through investments in Research and developments
- Boast private sector investment and development to increase the contribution to the GDP
Below are some of the frequently asked questions about the getting ICV Certification
What documents are needed for ICV Certification?
- Audited financial statements not older than two years in the IFRS format. Companies recently incorporated will need to furnish financials prepared by company management accounts for at least 10 Months of the latest financial year closing.
- ICV Application template duly filled and submitted online.
- How is the relevant activity classified for an ICV Certification?
Companies with an industrial license will apply for the ICV Certification as a good manufacturer, whereas companies that provide services will be regarded as service providers. While all the attributes for calculating the ICV score remain the same, the goods manufacturer score will be calculated on the manufacturing costs. ICV certification body will consider the service provider cost of third-party services.
- What is the difference between participating entities and a certifying body?
Under the In-Country Value initiative program, companies that consider ICV Certification and are registered with the Ministry of Industry and Advanced Technology are termed Participating Entities. Companies that provide the ICV certificates by verifying the company’s ICV Application and scrutinizing their financials are certifying bodies. Currently, there are 21 certifying bodies across the UAE. Companies that wish to get certified can request a quotation from any of these approved certifying bodies.
- Where can I get the financial statements audited as per the ICV Requirement?
Only audit companies certified by the Ministry of Economy can audit the company’s financial statements and provide a licensed audit report. The In-Country Value Certification guidelines have mentioned keeping special cost account codes to accounts related to the expenditure towards the ICV Attributes such as Emiratization Costs, Local Purchases, and Foreign investments. It helps in quickly entering the details on the ICV Template applicate and, in turn, makes it easier for evaluation by the certifying bodies. Companies must submit all the financials in the IFRS format.
- Is ICV beneficial for small and medium ( SME) sized companies?
Yes, the ICV Calculation is based on the percentage spent rather than the total amount spent. SMEs do get a chance to participate and win bids from the participating entities.
- Is it mandatory to have an ICV Certification?
The UAE government is increasingly planning to outsource most of its operations to the local UAE private sector. While bidding for the same companies with an ICV Certification can get up to 40% leverage in the commercial evaluation. Not certified companies can participate; however, their ICV score will remain ZERO, lowering their chances of winning the bid.
- Can I use the same certificate every year to participate in the bid?
The ICV certificate is valid only for 14 months. Hence, once certified, the companies must reapply for the same as they would for a company trade license. The changes in the financials result in changes in the ICV Score; hence, companies bid for projects with their recent ICV score.
- Where can I find affordable audit services and ICV consultation?
Several licensed companies offer audit services. But it is beneficial to hire a company like Farahat and Co, which have extensive experience advising companies on the potential benefits of acquiring an ICV certification. Farhat and Co have helped several companies successfully file for their ICV application. Farahat and Co is a pioneer audit firm in Dubai and has branches in other emirates.
- What if my ICV application contains errors and misrepresenting financial data?
Misrepresented data or manipulation of data is strictly prohibited for the ICV certificate application. A company that has entered wrong financial information or manipulated the financials will need to face a penalty or even disqualification from applying for the ICV certification.
- Is the ICV certificate limited to companies in the UAE?
Companies within and outside UAE can both apply for the ICV Certificate. Within UAE, mainland and Free zone companies can apply for the ICV Certificate.
- Is there a digital platform for ICV Applications?
The Ministry of Industry and Advanced Technology incorporated an Artificial Intelligence-based platform for the ICV application. From Data entry to providing a seamless and uninterrupted process for ICV certification applicants. The service was recently launched and has helped several companies to benefit from the same.
If you have more questions regarding the In-Country Value Certifications, contact Farahat & Co today. We have helped several companies to find their potential ICV attributes and enabled them to increase their ICV score quickly. Our team of expert auditors are trained to the latest requirements laid by the MoIAT for obtaining the ICV Certification.
Contact us today to find affordable audit services and consultation for your ICV application.