Question 1

Q-1. What is the main difference between a local partner and a local service agent?

Accepted Answer

A local partner (or sponsor) holds a 51% equity stake in certain types of mainland companies, which is required for foreign investors in some business structures. In contrast, a Local Service Agent (LSA) is only needed for professional licenses, such as clinics or consultancies. An LSA does not hold any shares but acts as your representative for a fixed annual fee, helping with administrative tasks and legal compliance.

Question 2

Q-2. Can I notarize my POA online from my home country?

Accepted Answer

Yes, the UAE offers remote notarization services. Through this service, you can connect with a UAE Notary Public via a secure video call, where they will verify your identity and witness your signature electronically. This process saves time and eliminates the need for foreign attestation, allowing you to complete the notarization from abroad.

Question 3

Q-3. What happens if my local partner misuses the POA?

Accepted Answer

If your local partner acts outside the scope of authority granted in the POA, their actions are considered invalid. A well-drafted POA helps protect your interests and can serve as key evidence in a legal dispute. This is why a vague or general POA is risky, as it may open the door for misuse or unauthorized actions by your partner.

Question 4

Q-4. Do I need a lawyer to draft the POA?

Accepted Answer

While it is not legally mandatory, hiring a lawyer to draft your POA is highly recommended. A lawyer ensures that the document is legally sound, compliant with UAE regulations, and tailored to your specific needs. This small investment can protect your business and avoid legal complications or potential loopholes in the future.

Question 5

Q-5. Can I give someone the authority to sign specific contracts or perform certain actions using a POA in the UAE?

Accepted Answer

Yes, a Power of Attorney in the UAE can be tailored to allow someone to sign contracts or carry out specific actions on your behalf. You can choose to issue a General POA (broad authority) or a Specific POA (limited to particular tasks like signing one contract, representing you in court, etc.). Clearly stating the scope of powers in the POA helps avoid confusion or misuse.

Question 6

Q-6. Can my agent act on my behalf in a UAE court with a POA?

Accepted Answer

Yes, your agent can represent you in court with the proper POA. In the UAE, a Litigation Power of Attorney (LPOA) gives the agent the authority to act on your behalf in legal matters, including attending hearings and making legal decisions. The POA must be clear and specify the authority granted for court-related actions.

Question 7

Q-7. Do I need to register my POA in the UAE?

Accepted Answer

In most cases, you do not need to register a POA for it to be valid in the UAE, but it must be notarized. If the POA is used for legal or official purposes, it may also need to be attested by the UAE Ministry of Foreign Affairs or other relevant authorities, especially if it was signed outside the UAE.

Question 8

Q-8. Can a foreigner be my agent under a POA in the UAE?

Accepted Answer

Yes, a foreigner can be appointed as your agent under a POA in the UAE. There are no nationality restrictions on who can be designated as an agent. However, it is essential to ensure that the person you choose understands UAE laws and is reliable to manage the responsibilities given in the POA.

Question 9

Q-9. Is there a limit to the number of agents I can appoint in a POA?

Accepted Answer

No, there is no legal limit to the number of agents you can appoint in a POA in the UAE. However, it is crucial to clearly define the scope of each agent's authority. You can assign multiple agents, but be sure to specify whether they must act jointly or can act individually, depending on your needs.

Local Partner Power of Attorney in the UAE

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