4 things you need to know about powers of attorney in the UAE:
United Arab Emirates has become a major business hub in the world. The country provides state-of-the-art business infrastructure and quality of life that attracts businesses and expatriates from around the world. Given the fast-moving environment, power of attorney has become one of the most used documents relied upon by businesses as well as individuals to meet their day-to-day needs.
Here are the four 4 most important things you need know about powers of attorney in the United Arab Emirates:
1. What is a power of attorney?
A power of attorney is a legal document signed by a person (often referred to as the ‘principal’) to authorize someone else (referred to as the ‘agent’ or ‘attorney-in-fact’) to act on principal’s behalf in front of third parties. Depending on the nature of the power of attorney, the agent can typically be a relative, friend, partner, employee or a lawyer.
2. Personal vs Business power of attorney
It is important to understand the difference between a personal and a business power of attorney in the UAE.
A personal power of attorney is given by an individual to someone, whereby the principal grants general or specific powers to the agent. This type of power of attorney is often used by individuals to ensure that work is carried out in situations such as illness or disability or when the principal is abroad or cannot be present to sign necessary legal documents.
A business power of attorney is given by a company to someone (an employee or a third party) to carry out general or specific transactions on behalf of the company.
3. Types of Powers of Attorney in the UAE
(a) For Individuals
There are two (2) types of powers of attorney typically used by individuals in the UAE:
(b) For Companies
Companies typically use the following two (2) types of powers of attorney:
4. Process of signing
The process of signing a power of attorney in the United Arab Emirates is as follows:
This article only provides a high-level understanding of four (4) major facts about powers of attorney in the United Arab Emirates. The requirements and process may however vary from one situation to the other.