ICV Certification Process: A Complete Guide For Businesses In The UAE

In recent years, the UAE has rolled out several initiatives to accelerate domestic businesses and enhance economic self-reliance. One such initiative is the In-Country Value (ICV) programme, allowing companies to maximize the value of their local investments and contribute to the UAE’s economic development, while also creating more jobs for UAE nationals. If your business operates in the UAE, and you want to demonstrate your capabilities and competitive edge, particularly when tendering for government contracts or large-scale private-sector projects, the ICV certification is a settlement move. This article briefly explains ICV certification process, the ICV score UAE, how to obtain an ICV certificate and compliance requirements for ICV. And how with Accountax, you will not need to enter data manually, significantly lowering human error.

What is ICV Certification?

The UAE government has introduced the In-Country Value (ICV) program as part of efforts to incentivize businesses to contribute more to the local economy. The ICV program is aimed primarily at evaluating a company’s contribution to the economy of the UAE, particularly in regard to local spend, jobs for UAE nationals and local suppliers. The ICV certification is a mechanism for companies to demonstrate their contribution to the UAE’s long-term economic diversification strategy.

The ICV certification measures a company across a number of factors such as local sourcing of goods and services, investments into the UAE workforce and local manufacturing and research and development. The ICV assessment process UAE results in the issuance of an ICV certificate for a company that passes the ICV compliance requirements, which can greatly increase its ability to win tenders in the UAE.

ICV Certification Steps

Certification by ICV requires businesses to play a series of steps pertaining to compliance with the criteria specified. Here’s an overview of the ICV certification process:

1. Determine Eligibility

The ICV certification process begins with an eligibility check to determine whether your business is eligible to apply. EligibilityTypically applicable to most companies operating in the UAE that partake in procurement activities or participate in tendering for government contracts. ICV is a government program aimed at increasing local businesses participating the procurement of goods and services and in some cases also construction and manufacturing, across the UAE.

2. Gather Required Documentation

It requires companies to collect all documentation that are relevant, before they can apply for ICV certification. This entails financial reports, tax documents, employment supporting documents of UAE citizens and a list of local vendors, along with a description of investments or partnership in country. The precise documentation your organization will need will differ based on the size and structure of your organization, but make sure that you are well-prepared.

3. Evaluate Your National Labels

At this stage businesses must gauge their in-country contributions, including spending on local suppliers, the number of UAE nationals employed, and other critical indicators that impact the economy of the country. This is crucial for correctly determining your ICV score UAE.

4.  Submit the Application

When all the documents are prepared, companies can apply for the ICV certification at relevant government authorities. The application needs to be submitted through an authorized ICV certifying body that will assess the documents and assess the company’s performance against ICV criteria.

5. ICV Assessment Process

The certifying body for ICV will conduct an entire assessment on whether the company is functioning correctly. This involves an in-depth review of financial records, local procurement activity, employment practices and local community investment. This serves to maintain that all organizations are compliant with their ICV requirements and in the greater interest of the UAE’s economy.

6. Receive ICV Score

Once the assessment is complete, your company will receive an ICV score based on your contributions to the economy of the United Arab Emirates. The ICV score calculation UAE comprises a range of factors to determine the score, which includes local spending, the employment of UAE Nationals, investments, and buying goods and services produced within the region. The score is on a scale of 0 to 100, with higher numbers meaning a greater contribution to the local economy.

7. Obtain the ICV Certificate

When this calculation is complete, and if the business meets the necessary threshold, the company will be granted the ICV certificate. This certificate is temporary and lasts for a duration of typically 12 months following which a business has to repeat the certification process.

ICV Score Calculation UAE

UAE, The ICV score calculation is based on a complex formula that assesses various aspects of a company’s operations. The factors that play a central role in the calculation are:

Local Procurement: The value/proportion of goods and services sourced from local suppliers. Higher ICV scores are awarded to companies that give priority to local estate sourcing.

Employment of UAE nationals: The third major factor in the calculation of the ICV score UAE is the number of UAE nationals employed by the company. The higher the proportion of UAE nationals employed, the higher the score.

Direct Investment: Direct investments in the UAE (e.g. capital investments, infrastructures and joint ventures with local companies) are also favorable for the score.

R&D and Innovation: Investment in research and development chiefly with a focus on innovation and developing new home-grown products will yield a higher score on ICV.

From these factors the ICV certifying body can calculate an overall score which it then assigns to the company. The score indicates how the business is strengthening the UAE’s objective to diversify its economy.

How to Obtain an ICV Certificate?

Steps to acquire the ICV certificate are the same as discussed before. If your business is planning to apply for this certificate, then it is important to keep in mind that the process may be complex, and thus, every aspect requires utmost attention to detail and adherence to all regional regulations.

The ICV certificate is a testament of your company’s contribution to the economic development of the UAE and it also has numerous advantages. They are also favoured by the government for contracts, proprietary strategic power, and become positioned better in the geoeconomic environment of the UAE.

ICV Compliance Requirements:

Businesses need to meet ICV compliance requirements to get and maintain an ICV certificate. Such requirements are aimed at ensuring companies are making an active contribution to the UAE’s economy and also are conducting their business in a way that connects with local communities.

Here are some of them top ICV requirements:

Local Procurement: Firms need to show that most of their procurement activities are dedicated to local suppliers.

UAE Nationals in Their Workforce: Businesses should hire a large number of UAE nationals.

Sustainable practices: Companies are required to meet sustainability and environmental requirements that allow them to operate with little environmental implications.

How Accountax Can Help?

Those with internal resources to handle some of the compliance requirements may find the ICV certification process daunting. That’s where Accountax enters the picture. Accountax, being one of the top business consultancy and accounting services providers in the UAE, can assist you end to end with the entire ICV certification process, from preparing documentation to applying for and receiving your ICV certificate.

We understand the nuances of what is required in the ICV assessment process UAE and will ensure that your business meets all the relevant ICV compliance requirements. We help you obtain your ICV certificate with minimum hassle and help you increase your chance of winning the tenders in Government as well as the private sector.

Conclusion

The ICV certification is a valuable achievement for all corporations engaging in business in the UAE.It not only reflect the dedication of your company to support the economy of the UAE, but it also helps you gain a competitive edge in the market. Through the above-mentioned ICV certification steps everyone should follow as well as the ICV compliance requirements to comply, empowers businesses to enhance their opportunities in the country’s tendering process. For Expert assistance for ICV certification, please connect with Accountax today to make the entire process smooth and hassle-free. Contact us now and get ready to drive your business’s success in the UAE marketplace.