Operating in the dynamic business environment of the United Arab Emirates necessitates continuous adjustments according to new regulations and compliance criteria. One of the most essential standards for enterprises dealing with governmental institutions, semigovernmental organizations, as well as major players of the oil and gas industry is the In-Country Value (ICV) Certification. Introduced initially by the Abu Dhabi National Oil Company (ADNOC), it later became widely accepted among all UAE federal governmental institutions as well as industries as a whole.
For any enterprise that wants to participate in governmental and semigovernmental contracts, receiving an ICV certificate is vital. However, the validity of your certification fully depends on the accuracy of your paperwork. The absence or inaccuracies in the latter may result in unnecessary waiting, calculation recalculation, or refusal from certified organizations.
In order to facilitate this process for your business, Planners Tax Consultancy prepared a full guide of the documents that are necessary for ICV certification.
Laying the Groundwork: Audited Financial Statements
Right at the core of how ICV is calculated rests your company’s finances. The certifying authorities require that no internally-generated management accounts be provided, but that each submission be supported by verified audited documents.
- Audited Financial Statements: The requirement here is for audited financial statements prepared in compliance with International Financial Reporting Standards (IFRS). These will be audited by an authorized and licensed external auditor in the UAE.
- The Importance of Proper Record-Keeping: Year-round clean and mistake-free accounting is imperative. Using professional Bookkeeping Services in Dubai guarantees that all expenses, revenues and asset entries are categorized well before the audit season even comes around.
- Consistency Audit: It is imperative that all financial amounts coincide with your official corporate financial records and tax records to avoid inconsistency when audited. Here the importance of professional Tax Services in Dubai becomes clear, ensuring your corporation’s tax submissions coincide with the financial amounts provided for ICV calculation.
Human Resources and Workforce Documentation
There is a considerable amount of your ICV score based on your Emiratization ratio and work force development efforts. Therefore, HR documentation becomes an important part of your checklist.
- MOHRE Reports: Formal reports showing the total number of your employees, employee classification, and payroll records.
- Documentation of Emirati Employees: Valid copies of their passports, Emirates ID cards, and signed employment contracts, in addition to WPS payments made within the set deadlines.
- Work Force Development Documentation: Documentation supporting your efforts in improving the skills of your employees.
Details Related to Investment and Assets in the UAE
ICV scheme is very generous in awarding businesses that make investments in the local economy. To obtain points for your fixed assets and investment, you will have to present:
- Fixed Asset Schedule: A list of all assets owned and used in the UAE by the business, which includes machinery, office furniture, or technology infrastructure.
- Evidence of Ownership & Depreciation Schedules: Purchase documents and/or leasing agreements for important assets, along with depreciation records as per your accounting books.
- Tenancy Agreements for Business Properties: Legitimate tenancy agreements for your business premises, such as Ejari.
Documentation of Sourcing and Supply Chain
The second equally critical pillar of the ICV calculation looks at how and where your business sources its raw materials, products, and external services.
- Invoices and Contracts of Suppliers: A selection of purchase invoices from your key suppliers. If your suppliers have ICV certificates, then you will need to provide valid certificates of theirs.
- Breakdown of Local vs. Imported Products: A breakdown showing which products were made locally in the UAE and which were imported from abroad.
Company Structure and Identity Documents
Before moving on to any financial calculations, the accreditation agency needs to authenticate your company identity. The necessary administrative documents include the following:
- Trade License: An up-to-date trade license issued by the DED or the free zone concerned.
- Memorandum of Association (MOA): Corporate documents stating details about company ownership and operations.
- Organizational Structure Chart: An up-to-date organizational structure chart of your company.
Professional Assistance for Smooth Process
Collecting the necessary papers is just half of the process; it is how you present it that will determine the efficiency of your certification process. By working together with experienced professionals, you can be sure that your information is correctly mapped to the most recent requirements. From finding a reliable ICV service provider to getting the best compliance advisory – with professional assistance, you can easily turn a complicated task into a routine one.
Conclusion
Getting a good ICV score can become a great motivator for growing your business in the area, giving you access to many prestigious contracts and establishing valuable partnerships. If you want to make sure your paperwork is perfect and your certification process is going to run smoothly, Planners Tax Consultancy can help you with that. Contact our specialists now and get your competitive advantage in UAE.
