Who Is an Authorised Signatory in a UAE Company, and How Is One Appointed?
A UAE company may have several shareholders, managers and employees, but not all of them can sign legally binding paperwork on its behalf. Before signing contracts or opening an account, a business needs to establish who can act for it. That person is its authorised signatory.
What does an authorised signatory do?
An authorised signatory is an individual permitted to sign particular documents or approve transactions for a company. Their authority may be recorded in the memorandum of association, a shareholder or board resolution, a signing mandate or another accepted corporate document. The permission must be documented.
Being a shareholder is not the same as having authority to sign. Similarly, an employee with the title of general manager may still need an appropriate appointment or mandate before a bank or third party accepts their signature. The scope of the authority matters just as much as the person’s job title.
Who can be appointed?
Depending on the company’s structure and the relevant authority’s requirements, a signatory may be a founder, director, manager or another formally appointed representative. For a small consultancy, one founder might be authorised to sign routine contracts while both shareholders retain approval over major borrowing or asset sales.
This helps overseas owners, although banks and authorities may have their own recognition requirements.
Which decisions can the signatory make?
Common responsibilities include signing customer and supplier agreements, executing leases, handling certain registration forms and completing bank documentation. A company can also establish limits: one person may sign day-to-day contracts, while larger financial commitments require two signatures or separate board approval.
A signing appointment should describe the decisions covered instead of granting vague, unrestricted authority. Being an authorised signatory does not automatically create personal liability for every company debt, but someone acting outside their authority or engaging in misconduct may face legal consequences.
For a fuller breakdown of eligibility, powers and documentation, this explanation of an authorised signatory in a UAE company provides further detail on the appointment process.
How to appoint an authorised signatory in the UAE
1. Confirm the company’s constitutional rules. Review the memorandum or articles of association and any existing resolutions to determine who may grant or change signing authority.
2. Record the appointment. Where required, adopt a shareholder or board resolution naming the individual and stating whether they can sign alone or jointly, including any approval limits.
3. Prepare the supporting documents. These commonly include a passport copy and, where applicable, Emirates ID, proof of address and the relevant corporate records. Foreign-issued papers may need translation or attestation.
4. Complete the authority’s formalities. Depending on the jurisdiction and document, the company may need notarisation, a corporate-record amendment or submission through the relevant free-zone or mainland authority.
5. Update third-party records. Inform the bank and other organisations that rely on the mandate. An internal resolution does not necessarily update a bank account’s authorised signatory list automatically.
What about a power of attorney?
A power of attorney can authorise a representative to perform specified acts, including certain signatures, without making that person a shareholder. It is not interchangeable with every corporate signing mandate. The document should clearly state its permitted activities, and the institution receiving it may require notarisation, attestation or additional verification. Some regulated businesses are subject to stricter limits on delegation.
Avoiding problems after the appointment
Common issues include mismatched names, expired documents, unclear signing limits and outdated mandates. Keep the resolution, authority records and bank instructions consistent. When powers are withdrawn, notify affected organisations promptly and complete any formal revocation or amendment procedures.
Fees and turnaround times vary. An appointment made during incorporation may be handled differently from a later change, particularly where notarisation, translation or bank reviews are involved. Obtain the current document checklist from the relevant authority rather than relying on a single nationwide fee or timeline.
Getting the company’s paperwork right
When establishing a business through Meydan Free Zone, founders can organise the signing authority alongside incorporation documents and keep subsequent changes aligned with their company records.
A clearly documented signatory helps routine operations move forward while giving shareholders control over the decisions they choose to reserve. Setting the limits early, checking them against institutional requirements and keeping records current are practical steps for any UAE company.
