The form of authorization passed on to a person or entity for a third party to act on their behalf is referred to as POA. The validity of POA is determined by the criteria set by the Federal Law No (5) of 1985- The Civil Transactions Law. Such criteria are as follows;
- The person issuing the POA must have the right to act by himself in matters endowed to the attorney.
- The attorney must not be prevented from acting in matters in-charged of him.
- All matters that are subjects of POA must be possibly delegated.
In the UAE, there are different types of POA that are recognized, including a special or restricted POA and a general or absolute POA. There are some certain cases where the state requires a specific POA and disqualifies the general POA. Such cases occurs when an attorney is involved in selling a property to himself or by participating in contracts or donations with himself. Specific POA’s are also necessary in financial institutions, banks and government departments. In any case, the principal (person granting a POA) is responsible in paying all costs related to an attorney exercising his rights under POA.
authorizes another person to act in general, legal, financial and business matter on behalf of the Principal’s behalf.
A General POA can :
- buy shares in companies on your behalf
- sign contracts on your behalf
- Set up companies, sole establishments and businesses
- Represent you before banks across UAE
- Represent you in legal matters and appoint lawyers on behalf
- Buy lease and manage real estate properties in UAE.
given to any individual to act on behalf of the company and exercises any power chosen by the company.
A Company POA can :
- Apply for visa, renew license and carry out related matters
- Open and close new and existing bank accounts respectively.
- To manage business affairs on a day to day basis
- To sign contracts and all other documents
- To deal with trademarks and intellectual property rights
- Represent the company before the governement
- To open branches of the company
- To register the Company with Federal Tax Authority for VAT
We welcome your enquiries and concerns. Our friendly business consultants look forward to assist you.