What is a POA
A Power of Attorney is a legal document that entrusts another person to make legal decisions on behalf of another. The person who has been entrusted with the legal authority is called the agent whereas the person who entrusts the other with the authority is the principal. A Power of Attorney in Dubai is usually appointed when the principal cannot be physically present at the site where the decision is taking place or the principal suffers from an illness or disability. A POA ends when the principal dies, revokes the agents authority or a court invalidates it.
Process of choosing a POA
In the UAE Power of Attorney is prepared in English and Arabic. Legal services in UAE are provided in Arabic so translation of the document is an important step. The document must be clearly drafted and list all the powers that are to be granted Once the document has been prepared three original copies are signed and notarized by the Notary Public UAE. For the signing of the POA, the principal must be present at the notary public in person. One copy is stamped and kept by the notary public for their personal record while the other two are returned to the principal.
Types of POA
Broadly speaking Power of Attorney in Dubai can be divided into two types: personal and business. A personal POA is granted by an individual to the principal. The authorities usually relate to personal decisions for example related to health and property that the agent will take. A business POA is granted by a company to the agent and it mainly relates to decisions related to finances, government, and transactions of the company. Within Personal and Business there are many sub categories of POA such as
1. General POA
A general POA gives broad powers to the agent to act on behalf of the principals over a range of legal and financial situations. For a general contract, the POA can provide several legal services in UAE related to property purchase or selling, signing contracts, representing the principal in financial transactions and bank procedures.
2. Property POA
A property POA authorizes the agent to carry out property transactions on the principal’s behalf. UAE is a booming real estate market. A property POA can buy and sell property on behalf of a person who may not be in the country at the time of purchase. Moreover, a property POA can also assist in the signing of tenancy contracts. Property POA’s can also represent their principals interests during disputes. They can be called upon by the Land department to accept and sign dispute resolution contracts.
3. Marriage POA
The UAE follows Sharia Law in all marriage cases. According to the Sharia law, a woman’s guardian must sign the marriage contract for it to be considered void. A marriage POA can assume this responsibility on behalf of the guardian if they are unavailable or incapacitated at the time of marriage.
4. Court POA
It is common to have a Power of Attorney in Dubai for court cases. A court case POA can represent the principal during court cases. Oftentimes, court cases can span over long periods of time and it is mandatory for both parties who are involved in the case to be present during hearings. A POA has the power to appoint a lawyer on the principal’s behalf, sign contracts, and be present in the court.
5. Inheritance POA
This document allows the POA to represent the legal heir of a property during the transfer of the inheritance or inheritance disputes.
1. Company formation POA
A company formation POA provides a range of legal services in UAE. They can handle the entire incorporation process for individuals. UAE is a booming site for new businesses. However, many of these businesses are owned and run by foreigners. A POA can act on the principal’s behalf if they are not present in the country. From notarizing documents to registering for the license a POA can set up the company. This type of POA is also quite common in the UAE and many business consultancies offer this services
2. Asset Sale/Purchase POA
Companies deal with large transactions of assets in the form of money or capital regularly. An asset sale purchase POA for business can oversee this process allowing the owners to focus on day to day governance. The POA is responsible for buying and selling company shares, sign shareholder agreements, and make payments on behalf of the company
3. Litigations POA
This POA can represent the company during disputes. Be in an arbitration or a court case, the POA has the power to appoint lawyers and sign an agreement on behalf of a company
4. Trademarks POA
Trademarks are an important intellectual property asset for any company. The ministry of Economy handles the registration of trademarks in the UAE, and a POA can manage this process for a company.
A Power of Attorney in Dubai is a highly trusted individual as they have great powers over highly personal cases. It is advisable to secure a POA from a trusted organization and have detailed comprehensive contracts.