A durable or lasting power of attorney (POA) for business is not just another legal document. It allows a business owner to nominate someone else, which is referred to as the attorney-in-fact or the agent, to handle business, financial, and investment affairs on his/her behalf while abroad or incapacitated. A power of attorney in UAE is useful for business owners, most especially in the following situations:
- Being abroad for business or on holiday
- Being incapacitated due to an accident, leaving important business decisions on hold
- Incapacitation due to a medical condition, causing a halt to business operations
If any of these situations arise and you have not made sure you have a power of attorney in UAE in place, then it is possible that nothing will be decided or done on your behalf until you are capable of handling each situation yourself. If an absolute must, your family members may apply to the local Sharia court for the appointment of a deputy in acting on your behalf. Although this is an option, there is a possibility of rejection by any third party. This process is also very risky, time-consuming, and more importantly, costly while exposing your business affairs to a much greater risk.
A business-related power of attorney in Dubai, UAE is most suitable for the following:
- Sole traders who aren’t separate legal entities from their businesses
- Self-employed professionals as they’re also not separate legal entities from their own businesses
- Directors of companies, most especially if incapacitation of directors isn’t covered by the company’s Memorandum of Association or Articles of Association
- Partner in a partnership, most especially if the incapacitation of a partner isn’t covered by the partnership’s Memorandum of Association or Articles of Association
Steps to Authorize Someone for Your Business Affairs in UAE
Here are steps to follow to successfully give your chosen person the authority in managing your business, legal, financial, and investment affairs for you:
Step 1: Select a trustworthy agent.
The primary agent named in your power of attorney in Dubai should be someone that you know will act in your best interests, as well as per your explicit instructions. Choosing a certain person or legal entity, in case of a company or firm, is not always a quick and easy job. Your chosen agent or attorney-in-fact will have freedom in handling your affairs if you have not been very specific in the power of attorney document on what can and should be done.
Also, the agent can spend a huge amount of time while acting on your behalf without financial compensation for the effort. There are a lot of things that have to be thought of carefully. This includes making sure that you are not forcing someone in signing a power of attorney.
If you are opting for one family member over the others, this can also be a very difficult decision and conversation to have with the rest of the family. More often than not, the right person for you to give the responsibility of being the agent in a power of attorney in Dubai isn’t the one that is closest to you.
Step 2: Execute the power of attorney.
A public notary in Dubai will have to witness the document signing. There is also a need for two witnesses during the signing of the power of attorney in UAE. Your chosen agent has to be of legal age and is considered fully competent, which means he/she/they must understand all of the implications of signing a power of attorney in Dubai. A public notary in Dubai will make sure that the power of attorney document follows all of the policies to be eligible for notarization. If you are not sure whether or not your document will be considered valid and qualified for a notarization in UAE, we suggest you consult with a trusted Dubai public notary. There is a possible for a public notary in Dubai to reject the notarization of a document, and this can cause delays.
Take note: it is not the responsibility of a public notary in UAE to ensure that you have specified the powers that you are transferring to your chosen agent. The drafting of a power of attorney has to be done with the help of a legal advocate to ensure that it will be effective, depending on your specific needs and requirements.
Upon signing and notarization of the power of attorney, you can then give the agent the original copy if you want to ensure that it takes immediate effect. You should also keep one copy. It is advisable to have several different certified copies of a power of attorney, most especially when there’s a large group of people involved. To know more, contact some experts like Notary Public Dubai today!