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Power of Attorney

Power of Attorney for Company Management

You can give someone the authority to administer the daily operations of your business using a Power of Attorney for Company Management. This person might be you or the General Manager of the business. The range of tasks that the attorney or general manager is permitted to carry out under such a power of attorney includes:

  • Negotiating and signing contracts for selling the company’s goods or services.
  • Hiring or firing employees.
  • Engaging the services of auditors or attorneys.
  • Purchasing and selling real estate.
  • Dealing with banks and managing bank accounts.
  • Handling export/import and customs.
  • Representing the company before judicial, other authorities, and federal and state governments.

The ability to designate or restrict the general manager’s authority is another feature of this business power of attorney form that is crucial for the efficient and secure management of your firm.

What is the Power of Attorney?

A power of attorney is a written legal instrument that the person who signs it, known as the “principal,” uses to empower another person, known as the “agent” or “attorney-in-fact,” to represent the principle before third parties. Depending on the power of attorney, the agent may generally be a family member, friend, partner, coworker, or attorney.

Power of Attorney: Personal vs Business

The distinction between a personal and commercial power of attorney in the UAE must be understood.

Personal POA:

An individual may give someone a personal power of attorney, in which case the principal delegated basic or special rights to the agent. People frequently use this kind of power of attorney to ensure that work is completed in the circumstances like illness or incapacity when the principal is away from home or cannot be present to sign necessary legal papers.

Business POA:

A firm may grant a business power of attorney to an employee or other third party so they can handle general or particular business transactions on the company’s behalf.

UAE Powers Of Attorney: Types

  1. For Individuals

In the UAE people commonly employ one of two (2) forms of powers of attorney:

General Power Of Attorney

In the UAE, a general power of attorney enables an agent to take action on behalf of a principal in several circumstances. This kind of power of attorney provides pervasive capabilities. When the principal is incapacitated, a general power of attorney is typically utilized to give the agent control over all of the principal’s affairs.

Special Power Of Attorney

In the UAE, a special power of attorney allows an agent to act on behalf of the principal only in certain circumstances.

  1. For Companies

Businesses frequently employ the following two (2) forms of powers of attorney:

General Manager Power Of Attorney

This kind of power of attorney is given to the general manager of the firm by the owner(s) to enable the general manager to oversee the business’s daily operations. The particular transactions that the general manager may be permitted to carry out on the company’s behalf to guarantee smooth operations are also listed in this power of attorney.

Special Power of Attorney

When a business needs an employee or third party to handle particular activities, such as signing contracts or selling assets, the company will provide the person with a unique power of attorney.

Process Of Signing Of Poa

The document must be created and validated correctly in one of the following ways for the POA to be accepted by various state agencies in the UAE:

1.If residing within the UAE

Once you have signed a power of attorney for Company Management, the notary public will instantly stamp and record one original in the court’s official records, completing the notarization procedure and returning two originals to you. Once this is completed, your agent will have the legal authority to exercise a power of attorney.

  • Create the draft

The power of attorney for Company Management must be created either in Arabic-only format or in English and Arabic. A power of attorney should be carefully prepared and include all the authority the agent needs to act on your behalf. The effort and money spent drafting and notarizing a power of attorney may be wasted if third parties and government agencies reject it for failing to utilize properly defined wording and include all relevant authorities.

  • Sign it in front of a notary public

You must sign your power of attorney in person before a notary public in the UAE at this phase. The notarization of a power of attorney is frequently used to describe this procedure. You must appear in person before the notary public to sign or have a power of attorney notarized. There is no requirement that your agent appears before the notary.

The notary public will notarize a power of attorney upon your signature, return two (2) originals to you, and promptly stamp and register one (1) original in the court’s official records. 

A power of attorney will then be able to be used by your agent lawfully when this is completed.

2.If outside the UAE

It is not compulsory that any power of attorney used in the UAE be signed by the person known as the ‘principal’ inside the UAE. Even if the principal signs a power of attorney outside the UAE, it might become legitimate in the UAE.

Suppose you want to sign a power of attorney outside the UAE and subsequently utilize it in the UAE. In that case, it must be legalized and authenticated in the country of origin and the UAE. In this scenario, legalization is required for the POA for the UAE authorities to accept it as an official document. The following actions are necessary to legalize the document:

  • You (the principal) must first sign a power of attorney in front of a notary public in the nation where you reside.
  • After a power of attorney has been formally executed before a notary public,
  • The minister of foreign affairs (or a comparable government agency) in the same nation must certify a power of attorney.
  • You must have a power of attorney approved by the UAE Embassy or Consulate in the same country.

Depending on the power of attorney’s nature and whether it is considered a personal or a commercial/company document, the notary public fee and the government charge for the procedure may change.

Procedures within the UAE

When the verification procedure mentioned above is finished, a power of attorney may be transported into the UAE. As part of this stage, you must perform the following actions:

  • You must first have a power of attorney certified by the UAE Ministry of Foreign Affairs.
  • The UAE Ministry of Justice’s approved legal translators must translate a power of attorney into Arabic after receiving approval from the UAE Ministry of Foreign Affairs.
  • To authenticate the Arabic translation after it has been finished, you must obtain a power of attorney stamped by the UAE Ministry of Justice.

Notary Public Dubai assists customers worldwide with the legalization process and attestation both inside and outside the UAE. If you have any concerns about this procedure or want to use our services, don’t hesitate to contact us at notary@hhslawyers.com.