Keeping the business moving without you
With a business power of attorney, you or your company can authorize a trusted person to act on the company’s behalf. That person, the attorney or agent, can then sign, pay, apply and negotiate within the limits you set while you are abroad, unwell or simply tied up elsewhere. Without one, many routine tasks in the UAE stall, because banks, notaries and government offices will deal only with someone who can prove their authority.
What a business POA can cover
The scope is entirely up to you, and it can be as wide or as narrow as your situation needs. Owners commonly delegate some or all of the following tasks.
- Signing contracts with clients, suppliers and partners
- Operating bank accounts, issuing cheques and collecting payments
- Renewing or amending the trade licence and adding activities
- Opening a branch, appointing a manager or increasing capital
- Representing the company before government departments and courts
- Handling staff matters and daily operations
- In wider mandates, even closing down the company
General, special or something else
A general business POA hands over broad control of the company’s affairs, while a special one is limited to a defined task, such as one contract or one licence application, and ends when that task is done. Neither should be confused with a commercial agency, which is a distribution or sales arrangement that falls under the Commercial Agencies Law and usually has to be registered separately. Picking the wrong type is one of the quickest ways to end up with a document that either does too little or hands over far too much.
Mistakes that cause the most trouble
Most problems with business POAs trace back to the drafting stage rather than to the agent’s conduct. Watch out for these in particular.
- Vague wording such as all powers, which invites disputes and refusals
- Granting more authority than the task needs, especially over assets and money
- Choosing an agent for convenience rather than proven honesty and ability
- Leaving out an expiry date or the conditions for revocation
- Being unclear about which bodies the agent may deal with
- Having the POA signed by someone who lacks authority under the company documents
- Skipping notarization, or attestation if it was signed abroad
- Forgetting to keep certified copies or to cancel the POA once it is no longer needed
What a sound document includes
A reliable business POA identifies the principal and the agent precisely, including the company’s details and the capacity in which the signatory acts. It then lists each permitted action, the authorities and private parties the agent may deal with, any value or time limits, and whether the agent may delegate to someone else. Finally, it states how long it lasts, whether until a fixed date, the end of a task or revocation, and it must serve a purpose that is lawful under UAE law.
Notarization and paperwork
To be accepted by UAE authorities, a business POA is normally notarized by a public notary or a licensed private notary, who checks who each party is and that they have legal capacity. Many notaries can now handle this remotely by video call, but the rules on who qualifies can change, so check them before you book. Have these ready in advance.
- Passport copies for the principal and for the agent
- Emirates ID copies, front and back, for any UAE resident
- Contact details for both parties
- Trade licence, MoA or Articles, and the incorporation certificate
- Share certificate or certificate of incumbency, where relevant
- Any board resolution authorizing the signatory
- The agreed draft of the POA
Keeping it up to date
A POA should change when your business does. If the agent leaves, loses your trust or you no longer need the arrangement, cancel it before a notary and send the agent formal notice, then tell banks and authorities that relied on it. Remember that it also ends when its term runs out, when its task is complete or if the company is dissolved, and an expired POA can be renewed or replaced if you still need help.
How we can help
We can draft a business POA tailored to your company and arrange its notarization, in person or remotely. If you already hold one, we are glad to review whether it still fits your needs.