A Power of Attorney (PoA) is one of the most practical tools for companies operating in the UAE. It enables businesses to delegate authority to trusted representatives, allowing corporate activities to continue smoothly even when shareholders or directors are not physically present.
In a country where dealing with multiple government departments, banks, and regulators is part of day-to-day business life, a PoA is often the difference between operational efficiency and costly delays. For international investors and free zone companies, it is particularly valuable as it enables decisions to be executed locally while owners remain abroad.
Why a Power of Attorney Matters for Businesses
The UAE business environment is formal and document-driven. Whether applying for licences, handling immigration matters, or appearing before a court, authorities will not accept an agent acting on behalf of a company without evidence of authority.
A notarised PoA provides that authority in a format recognised by every court, bank, and government department across the country.
For free zone entities, including those set up in DUQE, it offers foreign shareholders the ability to empower local managers or consultants to act without requiring constant travel.
Defining a Corporate Power of Attorney in the UAE
At its core, a corporate PoA is a legally binding document in which a company (the principal) authorises another person (the agent or attorney-in-fact) to act in its name. The UAE Civil Transactions Law treats this as a contract of agency, known in Arabic as wakala.
To be enforceable, the document must be notarised by a licensed notary public. This formality is not optional. It ensures the agent’s authority is clear, legally valid, and difficult to challenge.
Types of Corporate Power of Attorney
General Power of Attorney
A general PoA gives the agent wide authority to manage almost every aspect of the company’s affairs. This can include signing contracts, handling banking, representing the company before government departments, and even selling assets if that power is explicitly mentioned.
Companies often issue a general PoA to a trusted general manager when the owner is absent for long periods. The benefit is efficiency, but the risk is obvious: such broad powers can be misused if not carefully controlled.
Special Power of Attorney
A special PoA is narrowly tailored to a specific task or transaction. It might empower an agent to sell a single property, represent the company in a single lawsuit, or open a specific bank account. Because the scope is defined in detail, special PoAs are less risky and more commonly used for high-value or sensitive matters.
For example, the Dubai Land Department will not accept a generic PoA for property sales. The document must cite the property and explicitly authorise the sale.
How UAE Companies Use a Power of Attorney
Government and Regulatory Affairs
Businesses frequently use PoAs to authorise PROs or consultants to deal with licensing authorities, free zone administrations, and ministries. This allows the company to renew trade licences, submit applications, and collect official certificates without requiring a director to be present.
Banking and Financial Transactions
A PoA may allow an agent to open accounts, sign banking documents, or negotiate credit facilities on behalf of the company. Banks, however, often apply their own strict conditions. Many insist on seeing the original notarised PoA and will only accept it if banking powers are stated clearly.
Employment and Immigration Matters
Companies regularly delegate the management of visa processing, work permits, and Emirates ID applications through PoAs. HR managers or PROs often hold such documents to facilitate efficient interaction with immigration authorities and the Ministry of Human Resources and Emiratisation (MoHRE).
Real Estate and Property Deals
When companies buy, sell, or lease property, they often appoint agents via a special PoA to sign contracts and appear at the land department. As mentioned, the Dubai Land Department requires property-specific wording, making a special PoA the only acceptable form.
Legal and Court Proceedings
UAE courts require companies to be represented by licensed lawyers. To enable this, the company must issue a special PoA to its legal counsel, allowing them to file claims, defend lawsuits, and attend hearings. Courts will reject representation unless the PoA is correctly notarised and proves the signatory had authority to issue it.
Drafting and Executing a Corporate PoA in the UAE
Drafting Essentials
The PoA should identify the company by name, licence number, and the authorised signatory issuing it. It must list the agent’s details and clearly outline the scope of powers. Sensitive powers, such as selling real estate or borrowing money, must always be stated explicitly. Although a duration is optional, many companies set an expiry period for additional control.
Notarisation in the UAE
If signed locally, the document must be notarised before a public notary, either in person or through approved e-notary services. The notary checks the company documents to confirm the signatory’s authority and ensures the text is in Arabic or bilingual. Once notarised, the PoA becomes effective nationwide.
Executing Abroad and Bringing into the UAE
If the signatory is outside the UAE, the PoA must be notarised in the home country, attested by the local foreign ministry, legalised at the UAE Embassy, and finally attested by the UAE Ministry of Foreign Affairs and International Cooperation.
It also requires an Arabic translation certified by the Ministry of Justice. Only then does it carry the same weight as a locally issued PoA.
Registering with Relevant Authorities
Some authorities, such as courts and banks, will keep a copy of the PoA on file before allowing the agent to act. Land departments and free zone registries also require submission of the original or a certified copy when transactions are carried out.
Validity, Renewal, and Revocation of PoAs
A PoA remains valid until its term expires, until the principal revokes it, or until the company is dissolved. It also terminates automatically if the principal or agent dies or becomes legally incapacitated. Revocation is straightforward: the company issues a notarised revocation notice.
It informs all relevant parties, ensuring the agent’s authority is withdrawn. Dubai does not recognise irrevocable PoAs, which protect companies from being locked into unfavourable delegations.
Risks and Limitations Companies Should Consider
Granting a PoA always carries risks. A broad general PoA may allow an agent to bind the company to contracts or financial commitments that the owners never intended. Misuse can result in both civil liability and criminal charges against the agent. However, the company may still be dragged into disputes.
Some powers, such as selling property or representing the company in higher courts, require very specific wording. Others, like signing certain government declarations, cannot be delegated at all. To minimise risk, companies should limit the scope of authority, set expiry dates, and issue revocations promptly when powers are no longer needed.
Key Laws and Regulations Governing PoAs in the UAE
The Civil Transactions Law provides the general framework for agency and delegation of powers. The Notary Public Law and related cabinet decisions govern how PoAs are notarised, including the use of remote notarisation services. The Civil Procedure Regulations outline strict rules governing powers of attorney in court proceedings.
Land departments and banks also enforce their own procedural requirements, particularly around property transactions and financial authority.
Power Of Attorney In The UAE
A Power of Attorney is a cornerstone of efficient corporate operation in the UAE. It enables businesses to navigate licensing, immigration, banking, and legal processes without constant involvement of owners or directors. When drafted carefully, notarised properly, and managed responsibly, it is a tool that balances flexibility with security.
For free zone companies such as those in DUQE, it allows international shareholders to empower local representatives while maintaining full compliance with UAE law. The key is to define authority precisely, choose trustworthy agents, and keep control over the duration and revocation of every PoA issued. Reach out to us today for further information.
FAQs
Can a UAE company issue a Power of Attorney to someone abroad?
Yes. The document must be notarised in the foreign country, legalised by the UAE Embassy, attested by the UAE Ministry of Foreign Affairs, and translated into Arabic before use.
Is a general PoA accepted for selling property in Dubai?
No. The Dubai Land Department requires a special PoA that specifically references the property and authorises the sale.
How can a company revoke a Power of Attorney in the UAE?
By signing a notarised revocation deed before a notary public and notifying the agent and relevant authorities, such as banks or courts.
Does a corporate PoA expire automatically after a certain time?
Not necessarily. It only expires if a duration is stated, if the principal revokes it, or if the company is dissolved. Without an expiry clause, it continues indefinitely.
What happens if an agent misuses a Power of Attorney in the UAE?
The agent can face civil liability for damages and may be prosecuted for breach of trust. The company, however, might still need to undo transactions entered into by the agent.