The introduction of the ICV abbreviated as the “In-Country Value Certificate” program presents a great foundational base for sellers to be productive when bidding for government and semi-government entities. It was first introduced in 2018 in Abu Dhabi by the Abu Dhabi National Oil Company (ADNOC). An ICV Certificate is a document that verifies the level of local content or value-added in products and services offered by a business within an explicit country. Later on, it was launched at the national level in 2021 under the administration of the Ministry of Industry and Advanced Technology (MoIAT). In this article, we discuss all you need to know about getting an ICV Certificate.
What are the criteria to get an ICV Certificate?
To get an ICV Certificate in the UAE, here are the criteria for businesses that must be met such as;
1) Distinct Certificates for Legal Entities
Each legal entity of a business or supplier has to get its own ICV certificate. The MoIAT considers each license a distinct entity that necessitates an individual certificate.
2) Precise Financial Information
Businesses have to ensure that the records in the ICV certificate form must match their audited financial statements.
3) Joint Certificates for Branches
Businesses with various branches engaged in parallel activities within the Emirates can get a joint ICV certificate for all branches.
4) New Companies’ Financial Submissions
Newly listed companies can submit financial records for up to 9 months for ICV score calculations. Financial statements surpassing 9 months have to be audited.
5) Recent Financial Statements
Audited financial records should not exceed 2 years from the business’s certification year. For example, a company applying in August 2024 should not use statements from July 2022.
6) Certificate Validity
The ICV certificate is only effective for 14 months from the date of the audited financial statements. If the same financial statements are used for the renewal of certification, the expiry date of the ICV certificate remains unaffected.
What are the steps to get an ICV Certificate?
The steps involved to get ICV Certificate are;
I. File Audited Financial Statements
The step in the process of getting an ICV certificate is the revelation of audited financial records. For newly established companies, financial records for up to 9 months can be submitted in compliance with International Financial Reporting Standards.
II. Complete the ICV Certification Form
The ICV score of a company can be calculated by using the standard ICV template. The template is used to record data on numerous aspects of a business’s processes such as;
- Local sourcing
- Investment in community amenities
- Employment of Emiratis
It is important to know that companies have to follow the ICV program’s protocols when completing the ICV template.
III. Evaluation
The third important step in getting an ICV certificate is to approach one of the known certifying entities for the valuation of the ICV template in the UAE. Autonomous businesses that have been given authorization by the ICV program to evaluate and verify businesses for their ICV compliance are known as legal certifying entities. These attesting entities have the familiarity and tools essential to evaluate the ICV template and other subsidiary materials provided by the business. After the evaluation of the provided information, the certifying entity will go for an on-site audit to authorize the information.
IV. Getting ICV Certificate
The final step is getting the ICV Certificate after the effective evaluation of your provided form. The certifying entity will then issue the ICV certificate once they inspect the ICV template and any of the provided documents and find that the business fulfills the program’s obligations.
What are the benefits of getting an ICV Certification?
There are several advantages that an ICV Certificate offers to businesses such as;
- ICV Certificate gives the company access to Lucrative Markets when bidding for tenders.
- ICV Certificate represents business as communally responsible and keen to contribute to the development of the country.
- Businesses with higher ICV scores offer businesses to get huge benefits from cost savings.
- Having an ICV Certificate gives businesses a competitive advantage over competitors who do not have one. It sets businesses apart and more attractive choices.
- ICV certification offers access to increased access to financing for newly established businesses. It can have an impact as a game changer in the market.
Conclusion
The ICV certification program has evolved. If you are uncertain about the ICV certification procedure or need support in handling the complications of getting an ICV Certificate, it is recommended to get professional assistance from ICV Certificate UAE. Their well-capable team can help businesses to get ICV certificates effectively.
