Question 1

Q-1. Can I create a asset purchase POA for the UAE if I am not a resident and am currently outside the country?

Accepted Answer

Yes, non-residents can legally issue a asset purchase POA for use in the UAE. You can either use the UAE's e-notarization system via video call with a local notary or sign the POA in your home country and legalize it through a multi-step attestation process. This includes notarization, Ministry of Foreign Affairs (MOFA) attestation, and UAE Embassy legalization.

Question 2

Q-2. What is the difference between an Asset Purchase POA and a General POA?

Accepted Answer

An Asset Purchase POA is a Special POA that grants specific powers for buying a defined asset, such as property or company shares. It's legally precise and preferred for secure transactions. A General POA, on the other hand, gives broad authority to manage a wide range of affairs, which may be rejected by UAE authorities for high-value asset deals due to the potential for misuse.

Question 3

Q-3. How long is a POA for buying property valid in Dubai?

Accepted Answer

In Dubai, a POA created for buying property is typically valid for up to 5 years. However, POAs for selling property are generally limited to a 2-year validity. This distinction ensures tighter control over the disposal of high-value assets. Renewal or reissuance is possible, but authorities may require updated notarization and documentation for extensions.

Question 4

Q-4. What happens if I lose trust in my agent? Can I cancel the POA?

Accepted Answer

Yes, you can cancel a POA at any time if you lose trust in your agent. The cancellation must be notarized and submitted to the same authority where the original POA was registered. It’s also important to notify the agent and relevant institutions (e.g., banks, property registries) in writing to prevent unauthorized use of the revoked POA.

Question 5

Q-5. Do I need a lawyer to draft my Asset Purchase Power of Attorney form?

Accepted Answer

While hiring a lawyer is not legally required, it is highly advisable. A lawyer ensures the POA meets UAE legal standards, contains the necessary protective clauses, and clearly limits the agent’s authority. This minimizes risks such as unauthorized transactions or future disputes, especially in high-stakes purchases like real estate or company shares.

Question 6

Q-6. Can my agent be a non-UAE resident?

Accepted Answer

Yes, your agent can be a non-resident of the UAE. The person must be at least 21 years old, mentally competent, and hold a valid passport for identification. However, non-resident agents may face limitations in physically completing tasks in the UAE, so it’s important to assess their availability and ability to act within the jurisdiction as needed.

Question 7

Q-7. Can the same Power of Attorney be used for multiple share transactions in different companies?

Accepted Answer

No, a Share Sale POA in the UAE must clearly define the specific company, number of shares, and details of the transaction. UAE authorities, especially in free zones, require the POA to reference only one company and a particular sale. Using one POA for multiple companies or transactions is likely to be rejected during the registration process due to a lack of specificity and legal clarity.

Question 8

Q-8. Is Arabic translation mandatory for Share Sale POA documents in the UAE?

Accepted Answer

Yes, Arabic translation is mandatory for any POA to be legally recognized by UAE courts and government authorities. If the original POA is in another language, it must be translated by a UAE Ministry of Justice-certified translator. Some entities also require both the Arabic and English versions to be submitted for official use, especially in corporate share transfer applications.

Question 9

Q-9. Can I issue a POA to a company or only to an individual?

Accepted Answer

You can issue a POA to either an individual or a legal entity, such as a corporate services firm. However, the POA must clearly state the full legal name and trade license number of the company, along with the authorized representative acting on its behalf. This is common for businesses using corporate nominees to handle formalities like share transfers or license amendments.

Question 10

Q-10. Does a notarized POA from my country automatically work in the UAE?

Accepted Answer

No, a notarized POA from another country does not automatically have legal effect in the UAE. It must go through a full legalization process, including attestation by your country’s Ministry of Foreign Affairs, the UAE Embassy in your country, and then final attestation by the UAE’s Ministry of Foreign Affairs (MOFA). Only after this chain is completed can the POA be legally accepted within the UAE.

Question 11

Q-11. Can a POA be used to open or manage a corporate bank account for a shareholding company?

Accepted Answer

Yes, but only if the POA explicitly grants the agent authority to open and operate corporate bank accounts. Banks in the UAE are extremely cautious and will not accept vague POAs. The POA must state powers such as “opening, managing, and closing bank accounts on behalf of [company name]” and may also require the bank’s internal approval or vetting of the agent involved.

Asset Purchase Power of Attorney in the UAE

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