What is the validity of ICV certificate

What is the validity of the ICV certificate?

The UAE’s In-Country Value (ICV) initiative is critical for fostering local economic growth, Emiratisation, and industrial development. Obtaining the ICV certificate, which acts as documentation of a company’s contribution to the UAE economy, is an essential component of this program. Understanding the validity duration of the ICV certificate is critical for businesses to ensure compliance and competitiveness in government and semi-government contracts.

This blog provides a thorough summary of the ICV certificate’s validity, renewal process, and advice for remaining compliant.

What Is The ICV Certificate?

The ICV certificate is an official certification issued by a certifying authority approved by the UAE Ministry of Industry and Advanced Technology (MOIAT). It assesses a company’s contribution to the UAE economy using particular criteria such as local procurement, Emiratisation, investments, and exports.

The ICV certificate is necessary for enterprises bidding on contracts with government bodies and significant corporations that participate in the ICV program, such as ADNOC, Etisalat, and Mubadala. A certified certificate increases a company’s chances of getting contracts and displays its commitment to the UAE’s economic aims.

Validity Period of the ICV Certificate

The ICV certificate is valid for 14 months from the date of issue. This prolonged validity term guarantees that firms have enough time to use their certifications for tenders and contracts without having to renew them frequently.

Key Points to Consider About the Validity Period

Single-Year Financial Basis: The certificate is based on the company’s audited financial statements from the most recent fiscal year.

Renewal Timing: Although valid for 14 months, businesses are recommended to begin the renewal procedure well in advance to avoid lapses.

Continuous Tenders: A valid ICV certificate is required for participation in tenders with companies that need ICV compliance.

Why is the Validity Period 14 Months?

The 14-month validity period aims to balance the following:

Business Flexibility: During this period, enterprises can engage in tenders and contracts without the necessity for quick re-certification.

Alignment with Financial Reporting: Because the certificate is based on audited financial accounts, its validity extends somewhat beyond one fiscal year to account for differences in financial reporting timeframes.

Encourage Regular Updates: The validity period guarantees that organisations update their financial data on a regular basis, keeping the ICV program current and relevant.

What happens when the certificate expires?

Once the ICV certificate has expired, it cannot be used to submit tenders or establish compliance with ICV criteria. Businesses must renew their certification to continue working on government and semi-government projects.

Consequences of an Expired Certificate: Tender Ineligibility – Expired certificates prevent organisations from competing on ICV-compliant projects.

Missed Opportunities: Without a legitimate certificate, organisations risk losing out on valuable projects and contracts.

Reputation Impact: Having a valid certificate demonstrates a company’s dedication to the UAE’s economic aims. An expired certificate can indicate noncompliance.

How Do I Renew the ICV Certificate?

Renewing the ICV certificate is a simple process that requires updating financial information and submitting it for re-certification. Here’s a step-by-step instructions:

1. Prepare Updated Financial Statements

Ensure that your company’s audited financial accounts for the most recent fiscal year are prepared. These materials provide the foundation for calculating the ICV score.

2. Select an Approved Certifying Body

Submit your financial statements to a certifying organisation approved by the MoIAT. Select a reputable and experienced certifying authority to ensure a seamless process.

3. Calculate the new ICV Score

The certifying authority will analyse your financial information and determine your revised ICV score based on the most recent fiscal year’s contributions.

4. Receive the New Certificate

Once the certifying agency has verified your information, they will issue a reissued ICV certificate valid for the next 14 months.

Tips for Keeping a Valid ICV Certificate

To ensure continuous participation in ICV-compliant tenders, organisations should implement the following practices:

1. Keep Track of Expiration Dates

Keep track of your certificate’s expiration date and start the renewal process at least 1-2 months in advance.

2. Keep Accurate Financial Records

Regularly update and examine your financial statements to ensure they are ready for submission at renewal time.

3. Work with ICV Consultants

Engage ICV advisors who can help you navigate the renewal procedure and improve your score.

4. Align Operations with the ICV Goals

To improve your score and competitiveness, continue to work on enhancing local procurement, Emiratisation, and other ICV characteristics.

Advantages of Renewing the ICV Certificate On Time

Renewing your ICV certificate before it expires provides the following benefits:

Continuous Eligibility for Tenders

A valid certificate enables easy participation in government and semi-government tenders.

Enhanced Business Reputation

Timely renewal indicates your dedication to the UAE’s economic growth objectives.

Improved Scoring Opportunities

Updating financial data during renewal can result in improvements in your ICV score, offering you a competitive advantage.

Operational Stability

Maintaining a valid certificate allows for continued business operations and access to lucrative contracts.

Common Challenges to Maintaining Validity

Despite the uncomplicated renewal process, firms may face problems such as:

Delayed Financial Audits: The renewal procedure may be delayed if audited financial statements are prepared late.

Lack of Awareness: Some businesses fail to monitor their certificate’s expiration date, resulting in lapses.

Insufficient Local Contributions: Failure to meet the ICV standards during the renewal term may result in a lower score.

How AbstractICV Can Help

AbstractICV specialises in helping businesses navigate the ICV certification and renewal procedure. With our knowledge, you can ensure timely preparation and submission of financial data, receive personalised suggestions for improving your ICV score, maintain compliance with UAE legislation and maximise tender chances.

Conclusion

The ICV certificate is an important tool for businesses in the UAE since it allows them to contribute to the local economy and receive government contracts. With a 14-month validity period, you must be proactive in renewing your certificate to preserve competitiveness and compliance.

Businesses may assure continuous participation in the ICV program and connect with the UAE’s aim for long-term economic growth by understanding the renewal process and implementing best practices.

Need help with your ICV certification? Contact AbstractICV now for expert advice and support!

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