Authorised Signatory Letter Template for the United Arab Emirates

An Authorised Signatory Letter is a formal document that grants specific individuals the legal authority to sign documents and conduct business on behalf of your company in the United Arab Emirates. This document serves as official proof that designated personnel have been given permission to execute contracts, authorize transactions, and represent your organization in various business dealings.

When do you need this document?

You need an Authorised Signatory Letter when your company must delegate signing authority to employees or directors for specific business purposes. This is particularly crucial when opening bank accounts, where financial institutions require clear documentation of who can authorize transactions. The document is also essential when entering into commercial agreements with suppliers, clients, or government entities that require formal proof of authorization. Additionally, you'll need this letter when dealing with regulatory bodies like the Department of Economic Development or when your company's primary signatories are unavailable for important transactions.

Key legal considerations

The scope of authority granted must be clearly defined to prevent unauthorized actions that could bind your company beyond intended limits. You should specify whether the authorization covers all business matters or is limited to particular transactions, monetary thresholds, or time periods. The letter must include precise identification details of the authorized signatory, including their full name, position, and passport or Emirates ID number. It's crucial to establish clear revocation procedures and communicate any changes to all relevant parties immediately. Consider including liability provisions that protect your company from actions taken outside the granted authority, and ensure the letter specifies whether the signatory can delegate their authority to others.

Legal requirements in United Arab Emirates

Under UAE Federal Law No. 2 of 2015 (Companies Law), the authorization must be granted by properly authorized corporate officers, typically the board of directors or managing director. The document should comply with UAE Federal Law No. 18 of 1993 (Commercial Transactions Law) regarding commercial agency and representation requirements. Depending on the intended use, you may need to notarize the letter under UAE Federal Law No. 4 of 2000 (Notary Public Law), particularly for banking or government transactions. The letter must be prepared on official company letterhead and include the company's trade license number and registration details. For certain high-value transactions or regulatory submissions, additional attestation from the UAE Ministry of Foreign Affairs or relevant chambers of commerce may be required. Banks and government entities often have specific formatting requirements, so verify these before finalizing your document.