Power of Attorney for Establishing New Businesses

A Power of Attorney (POA) is a legal instrument in which the principal appoints another person to act on their behalf. The document grants the agent the power to decide on a specific range of issues or a more comprehensive range of topics. The person chosen to carry out this function may sometimes be referred to as having “Power of Attorney.” 

A POA or power of attorney in the UAE gives another person or organization the right or authority to make decisions, file papers on your behalf, or collect documents. Although it is usual for people to grant papers like POAs, your company may also need someone else to act on its behalf. This procedure is accepted and authorized. You will need to set up a power of attorney (POA) from you to this third party if you want to permit them to carry out tasks on your behalf and on behalf of your business. A third party is defined as someone who is not a shareholder, manager, or employee of your firm.

The POA must be adequately created and approved for the different state agencies in the UAE to accept it.

1. Outside of the UAE

In this scenario, the POA must be legalized for the UAE authorities to accept it as an official document. The following actions must be taken to legalize the document:

  1. The document must be attested at the following places: the Ministry of Justice in the country where the POA is prepared (or another appropriate body),
  2. The Ministry of Foreign Affairs in the same country, and
  3. Lastly, the UAE consulate or embassy in the country where the POA was prepared. You must contact the UAE Ministry of Foreign Affairs and get the appropriate stamp placed on the document if you want it to be recognized in the UAE.

Read also: Power of Attorney for Company Shares

 2. Within the UAE

You must create an English-language draught of the POA if you wish to draft it in the UAE. Preparing a bilateral legal translation into Arabic is advised. Finally, you must go to a Notary Public, get the paper notarized before the local court, and pay all necessary government costs. The second method of creating an official power of attorney is less costly, and in most cases, generating and attesting a POA only needs one day.

On the other hand, if you choose the first option, the procedure may take up to 3 weeks or more, and it would also be significantly more expensive to prepare a power of attorney that way. However, if you don’t have any immediate intentions to go to the UAE and you need to give someone permission to act on your behalf, the first method could be your only choice.

It is crucial to note that not all government, semi-government, and commercial organizations in the UAE recognize POAs. For instance, banks in the United Arab Emirates do not use powers of attorney. It implies, for example, that a bank will not consider a power of attorney as permission to create a bank account on someone else’s behalf if the POA contains a paragraph granting the ability to a person to open a bank account. Determining if the institution you want to contact accepts POAs is crucial. In addition, before the document is attested or legalized, it must first have the approval of the draught (the document’s language). It is especially crucial if you are drafting the POA to complete a single transaction, such as the transfer of business shares or the incorporation of a new company.

Read more: Online procedure for Power Of Attorney (POA) Notarization in the UAE

Who is eligible for a Power of Attorney for businesses?

Any person or organization in the UAE may get a Power of Attorney for businesses. A different company is indeed included in this. It is often done when a company engages an accountant or legal advisor, and the organization has to provide permission for the person to file papers or collect documents on the company’s behalf. Before signing a POA in the UAE, you must be sure that the individual or organization is trustworthy for your company. Pay close attention to and carefully consider the authority that the POA grants. Refrain from granting needless authority. Give power following your demands and requirements, not arbitrary ones.

What is the most effective method for drafting a Power of Attorney?

A power of attorney in the UAE must state that the company is providing another person or business authorization to act on its behalf. A representative of the firm must sign the contract. Ensure that the business, not its trade name or a representative, is granted a power of attorney. List the jobs and people who have the authority for businesses that want just a select few to have access to sensitive information.

Contact us at Notary Public Dubai if you want more details about UAE power of attorney for businesses.