Company Formation Power of Attorney in UAE

A Company Formation Power of Attorney, often called a Company Formation POA, is a simple legal document. It's like a formal "permission slip" that you give to someone.

• You (the Principal): You are the person who wants to start the company. You are giving permission.
• Your Agent (the Attorney): This is the person or company you trust. They get the permission to act for you.

This special paper lets your Agent do specific things to set up your new company. For example, they can sign official papers, submit documents, and deal with government offices. They do it just as if you were there yourself. In the UAE, this Power of Attorney usually needs to be notarized. If signed outside the UAE, it must also be legalized at the UAE Embassy abroad and attested once more inside the UAE.

Note: This POA is only for setting up your company. It does not give your Agent power over your personal money, your home, or other parts of your life. It keeps the powers very focused and safe for you.

Using a Company Formation POA makes starting your business much easier and faster. Here’s why it's a smart choice:

• Saves Time: The agent handles all government visits and paperwork, save your travel and waiting time.

• Super Convenient: Company setup can proceed remotely, even if you are abroad or unable to visit the UAE.

• Faster Setup: An experienced agent completes the process quicker by following the correct steps.

• Expert Handling: Professionals ensure all legal requirements are met and common mistakes are avoided.

• No Delays: Proper documentation and signatures are managed correctly, preventing setup delays.

Basically, a Company Formation POA gives you peace of mind. You know your new business is being started correctly, even when you can't be there yourself.

A Company Formation Power of Attorney draft will clearly list what your Agent can do. This list is custom-made for your needs. Here are common things an Agent can do for you:

• Company Name: Apply for and reserve the chosen name for your new company.
• Licenses: Apply for the official business license (e.g., for trading goods, offering services, or manufacturing products). They can also sign initial approval forms.
• Main Company Papers: Sign important founding papers like the "Memorandum of Association" (MoA) or "Articles of Association" (AoA). These are like the main rulebook for your company.
• Office Space: Sign papers to rent an office or shop space for your business, like an Ejari contract in Dubai.
• Bank Account: Start the process to open a business bank account for your company. This includes signing initial bank forms.
• Talk to Government: Your Agent can deal with all key offices, like the DED, MOHRE, Immigration, FTA, and Free Zone Authorities (such as DMCC, IFZA, RAKEZ). They can submit forms, get approvals, and collect your trade license and other permits.
• Get Documents: Pick up your final trade license, necessary permits, certificates, and other official papers once they are issued.

The POA must list every single power your Agent might need. If a power is not written, your Agent cannot take that action for you.

When we talk about giving power for company formation, there are two main ways, but one is much better:

1. Special Power of Attorney (SPA) :

This is the ideal type. It gives your Agent permission for only the specific job of setting up your company. Special Power of Attorney lists exact powers for this one task.

Why it's Good: It's very safe. It means your Agent can't do anything else with the POA outside of setting up your business. This protects you because their power is limited and clear.

2. General Power of Attorney (GPA) (Not Recommended for this!):

This gives very wide powers. It lets your Agent do almost anything for you, in business and personal matters.

Why it's Risky: Authorities in the UAE prefer POAs with clearly defined powers. A General Power of Attorney (GPA) might accidentally give your Agent control over things that have nothing to do with your business, like your personal or financial matters, which could lead to misuse or legal issues.

Tip: If you're a foreign investor planning to set up your business from outside the UAE, make sure your Power of Attorney includes copies of your passport and Emirates ID. Also, the POA should be either in Arabic or in both Arabic and English, as this is usually required by UAE authorities.

Many different people and businesses find a Company Formation POA very helpful:

• Non-residents of UAE: If you don't live in the UAE but want to start a business here, a POA is essential. It lets you get your business going without always needing to fly in and out.
• Time-Constrained Business Owners: If you're already very busy with other work or businesses, a POA lets someone else handle all the time-consuming paperwork and official visits for you.
• Foreign Companies Expanding to UAE: If an existing company from another country wants to open a new branch or a separate company in the UAE, it can use a POA. This lets a local representative handle all the registration steps

Know more about: How to Open a Branch Office in Dubai?

• Multi-Partner Companies: If your new company has many owners, it can be hard for everyone to be present for every signature. A POA can let one person or an expert company act for all owners during the formation process.
• Professional Assistance: Even if you're in the UAE, you might prefer an expert to handle the entire formation process. Giving them a POA allows them to do it officially and efficiently, preventing mistakes.
• Overseas Business Starters: If you don't live in the UAE but want to start a business here, a POA is essential. It lets you get your business going without always needing to fly in and out.
• Overseas Business Starters: If you're already very busy with other work or businesses, a POA lets someone else handle all the time-consuming paperwork and official visits for you.

For a Company Formation POA to be legal and accepted by all government offices and banks in the UAE, it must follow some important rules:

• Must Be Written: It has to be a physical legal document. You can't just agree with verbal words.
• Clear Information: It must clearly say who you are (the Principal), who your Agent is (their full name and ID details), and exactly what specific powers you are giving them for Company Formation.
• Arabic Language: The POA must be in Arabic. If it's written in English, it must be officially translated into Arabic by a special legal translator approved in the UAE. This is because most UAE government offices use Arabic for official documents. This is the Company Formation Power of Attorney translation part, and it's mandatory.
• Official Stamp (Notarization): This step makes the POA legally strong.
  • If signed in UAE: You (the person giving power) must sign the POA in front of a Notary Public in the UAE. The Notary is an official authorized by the government who checks your ID (like your original passport and Emirates ID) and makes sure you are signing willingly. This makes the document official in the UAE and is called the Company Formation Power of Attorney notarization.
  • If signed outside UAE: First, you sign it in front of a Notary Public in that country.
• More Official Stamps (Attestation - if from outside UAE): If your POA is signed in another country, it needs more official stamps to be legal here. This chain of stamps makes the foreign document officially recognized in the UAE. This is the Company Formation Power of Attorney attestation process:
  • Stamp from a Notary in the country where you signed it.
  • Stamp from that country's Ministry of Foreign Affairs (MOFA).
  • A stamp from the UAE Embassy in that country.
  • Finally, a stamp from the UAE Ministry of Foreign Affairs (MOFA) here in the UAE.

Our team makes sure your Company Formation Power of Attorney format follows all these detailed rules.

Here’s the accurate way to get a Company Formation POA in the UAE:

Step1. Write the POA:

An expert will carefully write the Company Formation Power of Attorney draft. This paper will accurately list all your details, your Agent's details, your intended company name, and every single power your Agent needs for your company formation. Being very exact here is crucial.

Step2. Translate (if needed):

If your POA is in English, it must be translated into Arabic by an official, sworn legal translator in the UAE. This is a very important step for the Company Formation Power of Attorney translation.

Step3. Get Official Stamp (Notarization):

If you are in the UAE: You (the Principal) will sign the POA in front of a Notary Public. You will need your original passport and Emirates ID (if you have one). The Notary checks your ID and stamps the paper, making it legally official. This is a Company Formation Power of Attorney notarization.

If you are outside the UAE: You sign it in front of a Notary in your country.

Step4. Get More Stamps (if signed outside UAE):

If your POA was signed outside the UAE, it needs more official stamps from your home country's government (MOFA) and the UAE Embassy. Then, the last stamp is from the UAE Ministry of Foreign Affairs (MOFA) here in the UAE. This is the Company Formation Power of Attorney attestation process, and it can take some time.

Step5. Use It:

Once all the stamps are done, your Agent can use the original POA paper to help set up your company. They will show this paper to government offices and banks.

The whole process can take from a few days to a few weeks, depending on whether it's signed in the UAE or needs attestation from abroad.

Making a Company Formation POA needs careful work. Avoid these common mistakes to save time, money, and stress:

• Unclear Powers: Avoid vague wording; clearly specify each authority granted.

• Wrong Details: Ensure names, passport numbers, and company details exactly match official IDs.

• Skipping Legal Stamps: Missing notarization or required attestation makes the POA invalid.

• Using Inaccurate Templates: Generic or outdated templates can cause rejection and delays.

• Picking the Wrong Agent: Choose a fully trusted, knowledgeable, and reliable agent.

• No Arabic Translation: POAs must be translated into Arabic by a sworn legal translator.

We help you avoid all these mistakes and make sure your POA is perfect.

The Company Formation Power of Attorney cost can change based on where it's signed and what help you need:

For an exact price, it's best to ask a reputable service like ours, as costs can vary.

How long a Company Formation Power of Attorney stays valid in the UAE is important:

• Valid Until Company Formation is Complete: A POA made just for Company Formation usually lasts until your company is fully and officially registered. Once the purpose is achieved, it no longer has power.
• Expiry Based on a Specified End Date: You can choose to write a specific end date in the POA itself (e.g., "This POA is valid for 6 months from the signing date"). If you do, it automatically stops working on that date, even if the company isn't fully set up yet.
• Termination by Revocation: You always have the right to cancel the POA (see next section). If you do this properly, it stops working right away.
• Automatic Termination Due to Incapacity or Death: If you (the person giving power) or your Agent dies, or becomes legally unable to make decisions (e.g., due to severe illness), the POA usually stops immediately.

It's always good to check your specific POA for its expiry of the Company Formation Power of Attorney terms.

If you want to stop a Company Formation POA before it naturally ends, you can do it. This is called the cancellation of the Company Formation Power of Attorney.

• Draft a Revocation Deed: Prepare a formal document clearly canceling the original POA and referencing its details.

• Notarize the Revocation: Sign the revocation deed before a UAE Notary Public to make it legally effective.

• Notify All Relevant Parties: Inform the agent and all concerned authorities, banks, and entities to prevent use of the old POA.

Properly cancelling a POA protects you from any future actions taken by the Agent that you did not authorize.

Note: Failure to notify third parties could lead to legal complications if the agent continues to act using the revoked POA.

A Company Formation POA is generally not "renewed" like a license you pay for every year. It's a bit different:

• If your POA has an end date and the company formation isn't finished by then, or if it stops working for any other reason (like a change in your plans), you usually need to make a brand new POA.
• This new POA will go through all the same steps again: writing, translating, notarizing, and maybe getting more stamps (attestation).

It's a good idea to prepare your first POA with enough time for the whole formation process to avoid needing a new one later.