Key FAQs on National ICV Program in UAE
Getting an In-Country Value (ICV) certification in the UAE has become one of the most essential aspects of successfully doing a business. The ICV programme was launched first in 2018 in Abu Dhabi by the Abu Dhabi National Oil Company (ADNOC) to encourage Emiratisation, GDP diversification and strategic considerations. The program was later launched at the national level in 2021 under the supervision of the Ministry of Industry and Advanced Technology (MoIAT) 2021. The National ICV Certification program provides an opportunity for the supplier to win tenders from government and semi-government entities.
By obtaining an ICV certificate in the UAE, the suppliers can gain a certain weightage during the assessment of tenders. The suppliers can obtain an ICV certificate that shows a score based on their contribution as per the latest audited financial statements and other factors. Consulting with ICV certification services in Dubai will help the suppliers to navigate the challenges associated with the process. Read ahead to know the key FAQs:
Major FAQs to Obtain an ICV Certificate in the UAE
Suppliers must be aware of the key requirements they must meet before applying for ICV certification in the UAE. Providers of ICV certification services in Dubai can assist the suppliers to obtain the ICV certificate. The following are the key conditions:
1. How to certify if multiple legal entities are involved?
If the suppliers have multiple legal entities that need to be certified, they should obtain the ICV certificate for each of them. The government considers each license of the company as a separate legal entity even if the owner is the same.
2. How to certify if multiple branches are involved?
If a company has multiple branches in the same emirate that conduct similar activities and ownership, then the MoIAT will issue a combined ICV certificate for the Company in that Emirate
3. Is Audited financial statements required?
Suppliers should make sure that every figure entered in the ICV certificate tallies with the supplier’s audited financial statements. Also, make sure that the audited financial statements are made as per the International Financial Reporting Standards (IFRS).
4. What’s the validity of Audited financial statements?
The audited financial statements should not be older than two years from the certification year. It means suppliers seeking ICV certification for 2020 should not submit audited financial statements older than 2018.
5. Should new companies submit Audited financial statements?
Newly established companies (less than 10 months old) may not have audited financial statements. Such companies can submit the Management Accounts for a period of up to 9 months and can be used for ICV calculations. However, management accounts greater than nine months should be audited.
6. What’s the validity of an ICV certificate?
The ICV certificate will be valid for 14 months starting from the date the audited financial statements have been issued. Suppliers who wish to recertify their ICV certificates can do so during the validity period using the same audited financial statements. However, the 14 months validity from the first issuance will continue to be the same.
7. Who issues an ICV certificate?
Suppliers should appoint an empanelled certifying body that will issue the ICV certificate in the UAE. However, suppliers are not allowed to change certifying bodies for any given year without proper justifications.
Process of Obtaining ICV Certification in the UAE
The MoIAT has designed a streamlined procedure to obtain an ICV certificate in the UAE. The best ICV certification service providers in Dubai can guide suppliers regarding the process. The following simple steps must be executed to obtain the ICV certificate:
- Issue audited financial statements for the company/supplier, based on IFRS
- Fill out the certificate application form according to recent guidelines & financial statement
- Utilise the certificate according to the guidelines of each applicable authority
How can Jitendra Chartered Accountants Help You?
Obtaining an ICV certification in the UAE is a complex procedure that requires expert assistance. Suppliers must meet many requirements such as presenting the audited financial statements and filling out the supplier submission template prescribed by the MoIAT. The template must be filled out as per the latest audited financial statements. Leading providers of ICV certification services in Dubai, such as Jitendra Chartered Accountants (JCA) can help suppliers meet such key requirements.
JCA has a team of highly qualified accountants and auditors who can assist the companies with Template submission guidelines for the companies that require ICV certification. Apart from that, JCA can advise the companies on the factors determining their ICV score and also prepare the audited financial statements as per international standards such as the IFRS.