Key Differences: General Power of Attorney vs. Business Power of Attorney

General Power Of Attorney

General power of attorney provides pervasive capabilities to an agent to take action on behalf of a principal in several circumstances. A general power of attorney is used to give the agent control over all of the principal’s affairs.

A general POA online allows the agent to:

• Manage general affairs of the company before third parties, government departments, banks Etisalat, DU, DEWA, and more.
• Become a representative of the principal to handle the legal affairs and appoint lawyers.
• Purchase shares in a business
• Sign contracts and other documents

Documents Required for a General POA

A general POA online requires two parties. One that authorizes the power, and the other receives the power. To make the general POA, documents of both parties are needed. Following is the list of documents required for both parties:

1. Copy of passport 
2. Copy of the visa 
3. Copy of the Emirates ID

Business Power of Attorney

A business power of attorney is used to authorize another person to manage the affairs related to the company like running the daily operations, signing contracts, and managing government-related affairs. Company matters can be assigned to an authorized person with the help of the company POA. A business power of attorney is valid in Umm Al Quwain, Abu Dhabi, Sharjah, Dubai, Ajman, Fujairah and Ras Al Khaimah.

A business power of attorney authorizes another person to:

• Regulate the daily affairs of the company and sign important documents.
• Deal with the government departments.
• Renew a license and apply for business visas.
• Manage tax-related issues.
• Manage bank accounts of the company.
• Manage the workforce of the company (Hiring, Termination)
• Deal with matters relating to trademarks and intellectual property rights
• Appoint lawyers on behalf of the company.

Documents Required for Business Power of Attorney

To file a business POA, here are the necessary documents that are required to submit before the notary public.

For UAE Residents:

• Passport, visa page and Emirates ID of both principal and agent
• Important documents and information depending on the type of business POA.

For Non-UAE Residents:

• Passport of the principal
• Passport, visa page and Emirates ID of the attorney/agent.
• Important documents and relevant information depending on the type of POA.

Types of Business Power Of Attorney

There are several types of business power of attorney based on the requirements.

POA For Company Formation

A business POA allows the grantor to appoint one or more agents to establish a company, incorporate a branch of another company or enter into a partnership for and on behalf of the principal. 

POA For Company Management 

A business POA allows the grantor to authorize any person related or not related to the company to manage the regular operations of the company. The shareholders of the company can authorize any individual from the company with any powers through this POA.

POA For Sale and Purchase of Company Shares

A business POA allows the principal to authorize another person to represent their interests in the sale, purchase or transfer of shares of the company. 

POA For Sale and Purchase of the Business 

A business power of attorney authorizes the agent to sell or purchase the business from a third party on behalf of the principal. 

POA For Involvement in Legal Proceedings

A business POA authorizes the agent to represent the company in UAE courts and arbitration centers. 

POA To Register Company Trademarks

A business POA authorizes the agent to register trademarks on behalf of the company. 

Conclusion

The general POA is an effective document that is used when the principal is out of the country, physically or mentally incapable of handling the affairs, or if the principal is a minor. A general POA gives an attorney broad powers to act on behalf of the principal. These powers include managing the financial and business transactions, buying life insurance, settling claims, operating business, sending gifts, and employing professional help. A general PoA is often included in an estate plan to make sure that someone accountable can handle the financial matters of the company.

A power of attorney for a company in the UAE must state that the company is providing another person the authorization to act on its behalf. A representative of the firm must sign the contract. Any organization in the UAE can get Power of Attorney for businesses. A business POA is often made when a company engages an accountant or legal advisor, and the organization has to provide permission for the person to file papers or collect documents on the company’s behalf. Before signing a POA in the UAE, you must be sure that the individual or organization is trustworthy for your company.