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The UAE government is making the country the prime hub of ventures, whether it is domestic or international. Many guidelines and rules have been launched by UAE authorities to protect and secure international trade. Similarly, domestic ventures are also bound to follow some rules and regulations. This is the government-launched ICV Certification in the UAE. If you are a local business operator in UAE, then you must be wondering if you need ICV Certification or not or how to get ICV certified. In this blog, let’s learn everything you need to know about the ICV Certification in the UAE
What is an ICV Certification in the UAE?
The ICV is a short form used for “In-Country Value Certificate”. The UAE government ensures economic development and also looks after the companies if they are contributing to their home country. This certification helps to keep a record of goods and services produced locally. The local businesses later are assigned the ICV score based on their performance. If the score is higher, that means you are more committed and aligned to the UAE government’s Emiratization and domestic industry growth initiative.
Therefore, the ICV Certification in the UAE has become important to comply with the Emirates guidelines.
Why ICV Certification is Necessary?
There are several reasons why the ICV Certification is necessary. Some of the reasons are listed below.
- Easier Operation
Amongst all the companies, the ICV Certified Companies are the ones that get faster approvals in terms of licensing, renewal of license, other permits, and clearances. Other companies with no ICV Certification may face difficulties or delays in terms of approvals. There, it enables faster and smoother functioning.
- Competitive Reputation
Having an ICV Certification makes your company look more committed to your work and makes it easy for investors, clients, and other people to trust the company.
- Access to Government Contracts
Some government authorities only allow ICV-certified companies to hold government tenders and other contracts. For example, ADNOC, an oil company in Abu Dhabi, allows companies with ICV Certification to make bids.
- Long-Term Sustainability
The ICV Certification does not only provide short-term benefits but also makes it easier for companies to look forward to long-term growth. It provides more opportunities to businesses and helps to sustain in this competitive market. ICV Certification in the UAE comes up with greater and more profitable opportunities.
How to Get an ICV Certificate in UAE
Regarding the ICV Certification procedure in the UAE, obtaining an ICV Certification is not a difficult undertaking. You can get your ICV certified by following the instructions.
Step 1: Audited Financial Statement
You need to prepare an audited financial statement, not more than two years from the year of certification. The statements must follow IFRS (International Financial Reporting Standards). It should be kept in mind that if you have multiple ventures, then you must apply for ICV certification for both businesses.
Step 2: Fill out an ICV Template
You need to visit the MOIAT website, which will provide you with the template of ICV certification that needs to be filled.
Step 3: Evaluation
To satisfy all the requirements in accordance with ICV, one of the certifying bodies of MOIAT will review your financial statements and ICV template to grant you ICV certification.
Step 4: Get an ICV Certificate
Once you get the certificate after all the evaluation and assessment, your company is now ICV Certified. This can be presented to your investors, clients, and other parties to show your contribution to the company’s economy.
How is ICV Calculated?
Your business is given an ICV score by the government authorities to keep a check on your performance. Various factors are included while providing an ICV Score to a business. The factors are as follows:
Research and Development: It depends on how much a business has contributed to the local research and development issues.
Local Procurement: The ratio of how much goods and services are produced locally is also taken into consideration.
Labor utilization: The amount of employment generated through your business is also an important factor considered.
Is Obtaining ICV Certification Mandatory for All Companies in the UAE?
In the UAE, there is no such mandatory rule to apply for ICV certification. But if a company or business wants to achieve greater opportunities such as government contracts and tenders then the ICV score plays a vital role. The ICV score acts as a commitment of the entity towards its work and the economy of the business in general. One can have the ICV certification for a good reputation in this competitive market.
Conclusion
The UAE economy is a major growing economy and has an incredible impact on the global economy. It has become important to remain on the top among the other competitors in the business. For this, ICV Certification plays an important role in taking business to new heights. Even if it is not mandatory by the authorities it can boost the business with amazing opportunities in the future.
Applying for ICV Certification can also be done through expert guidance if you do not want to miss out on any step while applying for the certification.