In Abu Dhabi, there are different kinds of Power of Attorney with each tailored for a specific purpose. The main types are:
1. General Power of Attorney (GPOA)
A General Power of Attorney gives the Agent authority over multiple domains. The Agent can handle almost all financial and legal matters for the Principal. This can include:
- Managing bank accounts.
- Collecting money owed.
- Buying or selling property.
- Signing agreements.
- Representing the Principal in front of the Court.
Because this POA gives a lot of power, it's crucial to use it very carefully. The best way is to authorize an individual who is trustworthy and related (best and mostly used scenario). General POA usually stays legal until being legally cancelled or the Principal dies or can no longer make decisions.
Note: In Dubai, a General POA is often not sufficient to sell real estate unless the agent is a first-degree relative.
2. Special Power of Attorney (SPOA)
A Special Power of Attorney gives the Agent specific, limited powers. It is used for just one task or for a certain time. For example, a Special POA might only be used to:
- Sell a certain piece of property.
- Start a new company.
- Speak for the Principal in one specific court case.
- Manage a certain bank account.
- Handle one specific vehicle deal.
It typically expires upon task completion or at a predefined time, making it safer and more precise.
3. Personal Power of Attorney
A Personal POA is issued by individuals who want to delegate their personal responsibilities to a trusted person. This type of POA may cover tasks such as:
- Property purchases or sales,
- Managing bank accounts,
- Handling family-related documentation,
- Registering vehicles,
- Applying for visas, or
- Representing you in government offices while you are abroad.
For expatriates living in Abu Dhabi, a personal POA is particularly useful when they travel frequently and cannot personally attend to legal or financial matters.
4. Business Power of Attorney
A Business POA is specifically designed for entrepreneurs, shareholders, and company directors who need an authorized representative to handle corporate matters. It enables the agent to:
- Sign contracts,
- Represent the company before government bodies,
- Open and manage bank accounts,
- File corporate paperwork, and
- Participate in business transactions on behalf of the principal.
This type of POA is essential for investors or foreign companies who want to ensure their Abu Dhabi operations are managed seamlessly without being physically present.