The In-Country Value (ICV) certification program encourages businesses to hire and train UAE nationals and source goods and services from local suppliers to strengthen the nation’s economy. The program provides several benefits to certified businesses, including preferential treatment in the bidding process and increased access to government funding. This article outlines the ICV certification process and explains the steps and key considerations to regard for obtaining the certification. Top ICV Consultants in UAE assists businesses to seamlessly obtain ICV certification and to effectively ensure compliance with ICV regulations.
Steps to obtain ICV certification in UAE
Businesses must fulfil requirements based on the proportion of their value chain generated in the United Arab Emirates to obtain ICV certification. This includes how much money they spend on local R&D, how many UAE nationals they employ, and how much of their goods and services are local. The steps for obtaining ICV certification include the following:
- Deliver your audited financial statements: Following your MoIAT registration, you must deliver your audited financial statements for the preceding fiscal year. International Financial Reporting Standards (IFRS) must be followed in the preparation of these statements, and a certified public accountant (CPA) must certify them.
- Fill out the ICV certification template: This document lists the requirements that need to be fulfilled to receive ICV certification. The MoIAT website offers a template for download.
- Seek a certifying body: To ensure compliance with the ICV criteria, businesses must seek a certifying body after completing the ICV certification template. The MoIAT website has a list of recognized certifying bodies.
- After ensuring compliance with the ICV criteria and after obtaining evaluation from a certifying body, the business will be required to pay a certification fee. The cost varies based on how big and complex your Company is.
- Get your ICV certificate: Your ICV certificate will be sent to you after the certification fee has been paid. Fourteen months after the date of issuance, the certificate will be valid. Businesses can start submitting bids to participating entities soon after receiving certification. Your ICV score will decide the precise advantage you get during the bidding process.
Read more: What are the key considerations for obtaining an ICV Certificate?
Importance of an ICV certificate in the UAE
For companies looking to bid on contracts and participate in government tenders in the United Arab Emirates, the ICV certificate serves immense importance. The government’s In-Country Value (ICV) program requires businesses bidding on government contracts to meet a predetermined level of ICV, with the goal of stimulating the local economy.
One way to gauge a company’s impact on the UAE economy is through the ICV certificate. It is determined by a number of factors, such as the employment of UAE nationals, local research and development investments made by the company, and local procurement practices.
In the competitive bidding process for government contracts, companies with a higher ICV score are given greater consideration. It follows that businesses with ICV certification have a higher chance of obtaining government contracts. ICV certification offers businesses a number of additional advantages in addition to a competitive edge during the bidding process, including:
- Enhanced reputation: Organizations certified by ICV will be considered to be more dedicated to the economy and society of the United Arab Emirates. Customer loyalty and brand reputation both benefit from this.
- Opening up new markets: A few public and private organizations exclusively collaborate with ICV-certified businesses. This implies that businesses with ICV certification might have access to new markets that are closed to businesses without the certification.
- Financial advantages: Tax breaks and access to government grants are just two of the financial incentives that the UAE government provides to ICV certified businesses.
Read more: Why is ICV Certification Critical for Your UAE Business?
Key considerations for submitting an application for ICV certification
Businesses should consider the following essential factors when submitting an application for ICV certification:
- Eligibility: Businesses must be duly constituted and registered in the United Arab Emirates to be eligible for ICV certification. They must also be in good standing with the UAE government and possess a valid trade license.
- Financial reporting: To receive ICV certification, businesses must submit their audited financial statements for the preceding fiscal year. A Certified Public Account must certify that the financial statements were prepared in compliance with IFRS.
- Steps to obtain of ICV certification in the UAE: Businesses can find instructions on how to compute their ICV score in the ICV certification template.
- Fees for certifying bodies: Depending on the size and complexity of your Company, different certifying bodies charge different fees. Before making a choice, it is essential to evaluate the fees assessed by various certifying organizations.
- Validity of the ICV certificate: The certificate expires after fourteen months from the date of its issuance. To keep the certification status, businesses must renew their ICV certification annually.
Professionals at ICV Certificate UAE can help you obtain an ICV certificate for your business.
How long is the ICV Certificate valid?
The 14-month validity period of the ICV Certificate begins on the date the audited financial statements are issued. To submit a bid for a tender, there is no minimum score or benchmark needed. The score varies depending on the various attributes and is comprehensively assessed using the Company’s audited financial statements. Without an ICV certificate, a company can still participate in tenders, but its ICV score will be zero.
Seek the Expert Guidance of ICV Certificate Consultants in UAE
Top ICV Consultants in UAE assist businesses to seamlessly obtain ICV certification and to effectively ensure compliance with ICV regulations. Thus, contact us today and we shall be glad to assist you.
