Company managers in Dubai: authority and liability

Before accepting a management position or signing a contract, establish the company’s legal form, permitted activities and the authority its current corporate documents actually give you.

BusinessDubaiSources checked:
  1. A UAE registration is only the starting point. Compare the licence, registry, constitutional documents and current manager appointments. Operating outside a Dubai free zone may require the relevant licence or permit; free-zone incorporation does not authorise every activity everywhere.

  2. An LLC partner’s liability is generally limited to their capital contribution, but a manager’s duties are a separate question. The Companies Law addresses fraud, misuse of powers, breaches of legal or contractual duties and gross error. An ordinary management mistake is not automatically a crime.

  3. For important decisions, record partner approvals, signing limits, borrowing authority and any personal guarantees. Keep minutes, contracts and payment evidence together. Do not assume the words “limited liability” neutralise a personal guarantee or resolve a transaction signed beyond your authority.

A practical next step

Review the licence, constitutional documents, signing powers and personal guarantees together before accepting a management role or major commitment.

Official sources

Adapted from a photo post shared on Dr. Bahrami’s Instagram and checked against official sources. This page provides the updated guidance.

Original Instagram post
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