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Dubai, UAE

Designation in the company and granting a POA

The question is connected with an LLC company from Dubai. I am the only employee.

I am not sure if I can use Director titles for people not listed on the company organization chart (not employed). I need to sign an agreement with 2 signatories on our side.

The second signatory is a contractor from abroad (contracted through a Polish/European entity). Can I give him a Power Of Attorney, so based on Dubai law - can he sign documents on behalf of the LLC?

Which title can we use for him as a person which has a Power of Attorney from LLC or me: Managing Director OR Account Manager?

Can we create a power of attorney only in English? Is it mandatory to use Arabic?

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11 Oct 2018, 19:45

Dear Sir/ Madam,

Thank you for getting in touch with me.

You have raised quite a few queries so let me take them in order and please feel free to clarify if I didn't deal with the query properly.

1- You cannot use the tags related to the company to those not employed as it may amount to misrepresentation to third parties dealing with the company.

2- Yes, you can give him the power of attorney to sign on your behalf. Please note that in this instance, you will need to draft a very specific and relevant power of attorney in order to achieve the desired object and not to give more power than intended.

3- If the POA is signed on behalf of the company, then you can choose to give power directly from the company or you being the managing partner (both the titles will achieve the same object).

4- The power of attorney can be bilingual (English and Arabic). Having Arabic is mandatory in the UAE. Please note that the translation of the POA is a very technical job as the Arabic text in the POA will prevail over English.

I hope I have dealt with all your queries to your satisfaction. Feel free to raise further queries and I would be happy to assist you with the drafting of agreement and power of attorney.

You may get in touch with me on hari.wadhwana@gmail.com or 052-9495731.

Regards,

Hari Wadhwana

14 Oct 2018, 21:29

4 - Is it mandatory to have documents in Arabic if we don't need to present the documents to legal authority in the UAE? for example:

- Creating business agreements with companies from outside the UAE?

- Creating a POA for companies/people to represent LLC outside the UAE?

Can we create this type of document in English and If legal authority in the UAE asks us to present our business documents then translate to Arabic?

15 Oct 2018, 04:50

Dear Sir,

1- If the agreements are binding relations between the UAE company and Foreign company, then the said agreement can be made in English.

However, in case of an unlikely event of a dispute arising under the agreement and the foreign company attempts to sue you in the UAE, then the agreement will have to be translated into Arabic for the purpose of litigation.

2- You can prepare a poa in English if it is delegating powers to a foreign company/resident.

However, you will have to notarize the POA in the UAE, get multiple stamps from the authority for the POA to be valid in a foreign country.

The notary public in the UAE will require the POA to be in Arabic or Bilingual.

15 Oct 2018, 09:39

Dear Sir,

Let's assume that I won't use the POA with legal authorities in the UAE, do I have to notarize every POA inside the UAE?

I want to give a power of attorney to another company to represent me and LLC in one of the countries in Europe.

If I create a Power of Attorney in other countries (It will be created and signed outside the UAE) must it be in Arabic either?

15 Oct 2018, 09:43

Dear Sir,

The usual procedure of granting any POA is to notarize the POA in the home country (UAE in this case), thereafter, this POA is stamped by multiple authorities like MOFA, Embassy and the original is again stamped in the authorities of foreign countries.

Hence, you will have to prepare a bilingual POA in the UAE for it to be attested before the notary public.

In the second scenario, if you prepare a POA outside the UAE, then there is no requirement to prepare in Arabic.

You can contact me on 052-9495731 for further explanation if required.

18 Oct 2018, 14:12

Dear Sir,

I want to be sure that I understand everything properly:

1. If I want to use POA in UAE it must be in Arabic. If it's in English I cannot use it.

2. If I go to another country, I can sign/prepare a POA on behalf of LLC:

- I create a document according to the law of the country where I create a POA.

- This PoA (Created and signed in another country) will be valid for my LLC entity. It is created outside the UAE but I sign the documents on behalf of LLC. In that case, should I notarize the POA in the home country?

18 Oct 2018, 14:17

Dear Sir,

Yes, you have got it all right.

Of course, you should notarise the POA in the home country. All POA's should be notarized for it to have a lawful effect.

18 Oct 2018, 14:35

Dear Sir,

When I have a full PoA to represent the LLC then I can sign all of the documents even when they are not in Arabic. Do they still have a lawful effect in the UAE?

Your advice is very helpful.

18 Oct 2018, 14:41

Dear Sir,

If the POA is from outside the UAE and the said document is signed outside POA, then yes.

If the document is signed in the UAE, then it would need an Arabic POA.

18 Oct 2018, 14:48

But If the POA is from the UAE and the document is signed outside the UAE, according to the thing that you've mentioned about misrepresentation:

"1- You cannot use the tags related to the company to those not employed as it may amount to misrepresentation to third parties dealing with the company."

When I will give someone the PoA what title he should use when signing the agreements on companies behalf? "Representative" is ok?

18 Oct 2018, 14:52

Dear Sir,

If the POA is from the UAE, then it has to be made in Arabic and then using that POA, the holder can sign the document outside the UAE. This is a perfectly legal transaction.

The title will be "POA Holder"

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