Dubai has slowly become the hub of business and immigration. Thousands of companies are headquartered here and millions of expatriates call Dubai home. The state-of-the-art business infrastructure and high quality of life attract big companies and expatriates worldwide.
All this development has led to the formation of a fast-paced professional and personal life. And, a lot of people today find themselves in situations where they wish they had someone else acting on their behalf because they couldn’t be present there for reasons such as — not being present physically, incapacitated, or for any reason that may deny them the chance to act.
In such scenarios, the Power of Attorney has become an indispensable instrument used by individuals and companies to act on their behalf and complete important tasks without delays.
What is the Power of Attorney?
A power of attorney is a legal instrument using which a person (Principal) grants power and authority to another person (an agent or attorney-in-fact) to act and make decisions on his/her behalf.
It is a very effective tool for people who want to have their financial and personal affairs in order in case they become incapacitated or if they leave the country for an extended period.
For a power of attorney to be valid in Dubai, it must be written in Arabic or English with an Arabic translation which is to be notarized by a notary public. The person(s) appointed as an agent must be 21 years of age or above.
Uses of Power of Attorney in Dubai
A Power of Attorney is commonly used in Dubai to delegate legal authority over personal, professional, and financial tasks. It serves multiple useful purposes for individuals and companies alike. Here are the top uses of a power of attorney in Dubai;
- Real Estate Transactions – For purchase, sale, or even rental purposes, especially in a scenario where the principal lives outside Dubai or is out of town. The agent may finalise the paperwork, negotiate the terms, and fulfil any other responsibilities.
- Representation in Business – A POA can be used to give a representative the authority to act in business matters, enter contracts, open bank accounts, and administer company assets.
- Banking and Financial Management – It allows the attorney-in-fact access to bank accounts, pay bills, administer investments, and carry out any financial transactions on behalf of the principal.
- Legal Proceedings – A Power of Attorney in Dubai allows the agent to carry out legal cases, file litigations, or deal with legal claims; this saves the principal some hassle in conducting legal proceedings.
- Visa and Immigration – Visa processing, renewal, or immigration procedures often require the use of a POA if the principal cannot appear personally.
- Healthcare Decisions – A healthcare POA grants an agent authority to make medical decisions for you if you are incapacitated or unconscious and unable to make them for yourself.
- Labour and Immigration Processes – Companies often issue a POA to handle employee visa applications, renewals, and other government-related processes.
- Delegation to third parties – An agent may appoint third parties including vendors, lawyers, and auditors by using a POA.
In Dubai, a POA must be notarised and attested to be considered valid. It ensures the protection of all the involved parties in case of official transactions using a Powe of Attorney.
Types of Power of Attorney in Dubai (UAE)
In Dubai, companies and individuals generally use two types of POA — General Power of Attorney and Special Power of Attorney.
Let’s take a look at the different types of Power of Attorney for individuals and companies alike.
For Individuals
- General Power of Attorney
As the name suggests, a General POA is used to grant the agent a broad set of decision-making powers including financial, legal, corporate and personal matters on behalf of the principal. The agent under this category has a broad range of powers.
It is the most commonly used type of power of attorney in Dubai. The agent can represent the interests of the principal in legal matters, buy or sell real estate, incorporate legal entities, sign contracts, purchase vehicles, etc. However, it is important to note that with greater power greater chance of misuse.
- Special Power Attorney
A Special Power of Attorney (SPoA) is the opposite of the General Power of Attorney. It grants an agent the power to perform certain specific acts on behalf of the principal and as soon as the task is completed, the PoA becomes void. It is used in various situations. Some of the important scenarios where SPoA are used are as follows;
- The sale of a given piece of property
- The execution of a particular business contract
- The completion of a particular financial transaction
- Power of Attorney for Real Estate
- Power of Attorney for Marriage
For Companies
- General Management Power of Attorney
This type of power of attorney generally authorises the General Managers to handle the everyday operations and other general affairs of a company. The owners of the business provide General Management PoA.
Since the operations of a company involve multiple tasks, including certain sensitive tasks this Power of Attorney specifically outlines the transactions in which the general manager is allowed to take actions to maintain the everyday smooth functioning of the company.
- Special Power of Attorney
A Special Power of Attorney (SPoA) for a company in Dubai grants the right to an authorised agent to represent the company for particular purposes like signing contracts, sale of an asset or processing government-related matters.
This document is valuable for business in Dubai as transactions can be carried out effectively without direct executive interference.
An SPoA has to be notarised for its legal validity, and if executed outside the UAE, may also need legalisation to be considered valid locally.
Attestation of a Power of Attorney in Dubai
Attesting a Power of Attorney issued in India for use in Dubai requires several steps to authenticate the document for use in the UAE. The steps are as follows;
- Notarization by a Public Notary – Firstly, the PoA is required to be notarized by a notary public of the region of India. Such notarization will attest to the identities and signatures of all the parties. This notarization will testify that the document is signed and executed lawfully in India.
- Home Department or SDM Attestation – Now, after the notary, the document has to be attested by either the Home Department of the issuing state or the SDM. This step is performed to attest the document on a state level.
- Attestation by the Ministry of External Affairs in India – In this step, the PoA is sent to the MEA for further verification. The attestation by the MEA authenticates the document for international purposes and is an important step to be taken before the PoA can be sent to the UAE embassy for attestation.
- UAE Embassy Attestation – Finally, it is the UAE Embassy or Consulate in India that needs to attest the document after attestation by the MEA. After this step, the PoA, being an attested Indian document, is considered valid and acceptable for the legal and official purposes of the UAE.
- MOFA Attestation in the UAE – Once the PoA reaches the city of Dubai, attestation is required from UAE’s Ministry of Foreign Affairs, which will authenticate this document making it suitable for use in Dubai, thereby allowing it to be accepted for legal or business purposes by UAE authorities.
Please Note:
If the document is not in English or Arabic languages, then the translation of the same to Arabic may be sought by certified translators present in Dubai. The translated document may need a stamp from the UAE Ministry of Justice to certify the Arabic translation.
Mistakes to Avoid When Applying for a Power of Attorney in Dubai
Setting up a Power of Attorney in Dubai can be a complicated process and you must avoid certain mistakes to effectively use the document for its intended purpose. Listed below are some of the most common mistakes that you must avoid;
- Picking the Wrong Agent
Misusing or misinterpreting the authority granted may happen if you opt for an agent who is not dependable, trusted, or does not clearly understand your interests. The agent should be a person who understands your objectives and has proven responsibility in handling sensitive matters.
- Unspecified Declaration of Powers
A vague PoA may create confusion and even lead to legal complications. Ensure that you clearly state the powers being granted so that there is no unintended authority over certain actions or decisions. Tailoring the PoA to only include relevant permissions aligns the agent’s power with your expectations.
- Overlooking Legal Compliance
Every jurisdiction including Dubai, has its legal standards for a valid PoA document. Research these or seek a lawyer to make sure that your document meets the legal standards of your area and will be considered valid in Dubai.
- Not Including an Expiry Date
The open-ended POA might create problems if your circumstances change. It is always recommended to include a defined period whereby it becomes invalid to prevent its misuse and allow for the possibility of reviewing it as circumstances change.
- Not Reviewing it Regularly
Personal and business interests change with time. It is also important to periodically review and update the PoA if any changes in personal or business life occur.
- Not Notarizing the Document
In Dubai, a POA is considered valid only if it is notarized. Notarization is a process that authenticates the document before the eyes of the law making it valid for use. Without this, the POA might be invalid, and the agent cannot act on the principal’s behalf.
- Irrevocable Powers
Irrevocable powers ensure that the POA remains in place, and as such, cannot be changed when circumstances change. The general rule of thumb will be to avoid irrevocable powers and also all other forms that tend to complicate matters especially when you would want the authority rescinded in future. You should, thus ensure that the POA is not irrevocable.
- Failure to Consider Issues of Language and Translation
Legal documents in Dubai such as the POAs demand to be presented in Arabic language or include the translation in the said language. A wrong Arabic translation might lead to inappropriate implementation of the powers involved which could bring about unintended effects. Always double-check both versions to ascertain consistency and clarity.
Conclusion
Power of Attorney (PoA) is one of the most crucial tools for people in need of trusted representation within Dubai’s fast-paced business and personal life.
Starting from real estate transactions, carrying out business activities, attending to legal matters, or enforcing medical care decisions are all aspects where a well-formulated PoA ensures all matters would go just as planned by the principal in their absence or in case they are incapacitated.
In turn, knowing its types, attestation procedure, and possible mistakes to avoid is all the more important and essential to safeguard against misuse and ensure the validity of a Power of Attorney in the UAE.
With the right guidance and careful planning, a PoA can be a best friend to individuals and businesses alike.
Frequently Asked Questions
- What is a Power of Attorney in Dubai?
It is a legal document that gives an appointed person the power to act on your behalf and make personal, financial and medical decisions. The jurisdiction of powers depends on the kind of PoA one has prepared.
- Whom can I appoint as my agent in my Power of Attorney?
Anyone above 21 years can be appointed to act as your agent. However, the choice of the right agent is the key, since they will make decisions and take actions on your behalf. So, ideally, you should appoint a knowledgeable and experienced agent who can provide the proper guidance and support for the specific thing that you entrust them to do.
- What are the different types of PoA?
There are two main types of Power of Attorney for individuals and two for corporations. They are as follows;
- General Power of Attorney
- Specific Power of Attorney
- General Management PoA
- Special PoA for Businesses
- How can I ensure my Power of Attorney is legally valid in Dubai?
The PoA must be in Arabic or translated and notarized by a notary public to be legally valid. If executed outside the UAE, it must be attested, and its verification should be done by the Ministry of Foreign Affairs (MOFA) in Dubai.
- Can two agents be named together in a Dubai Power of Attorney?
Yes, a principal can appoint two agents to perform the specified tasks on their behalf. Having two agents can be cumbersome but gravely reduces the risk of PoA abuse.