A Power of Attorney (POA) is a legal document that allows an individual to act on your behalf. A NRI Power of Attorney (PoA) is a legal document that allows a person (the principal) to authorize another individual (the attorney or agent) to act on their behalf in India.

Using a NRI Power of Attorney, NRI can perform various functions without his physical presence in India. These can be:

• Carrying out functions as a Director of a company.
• Make and accept all claims under a WILL or succession.
• To cash fixed deposits even before maturity and close bank accounts.
• Carry all the operations of depository accounts including instructions for debit & credit cards.
• Selling, buying & renting properties.
• Signing documents for loans
• Representing himself in court.

For Non-Resident Indians (NRIs), issuing a PoA is crucial, especially when dealing with financial, legal, or property-related matters in India while residing abroad. This article explores the types of PoAs NRIs can issue, who they can authorize, and the step-by-step process for executing a PoA.

Must note that – A POA is revoked when the grantor dies, becomes insane or is declared insolvent.

Types of NRI Power of Attorney

There are primarily two types of PoAs that NRIs can issue:

1. General Power of Attorney (GPA):
   • A GPA grants broad powers to the agent to handle almost all activities on behalf of the principal.
   • Activities may include managing bank accounts, selling or renting property, signing contracts, or conducting business.
   • It is suitable for situations where the principal cannot frequently provide specific instructions.
2. Special Power of Attorney (SPA):
   • An SPA is limited to specific tasks, such as selling a particular property, managing a bank loan, or representing the principal in court for a particular case.
   • It is often preferred for one-time transactions or narrowly defined responsibilities.

An NRI can issue a PoA in the name of:

1. Family Members:
   • Close relatives like parents, siblings, spouses, or adult children are often chosen as attorneys due to trust and shared interests.
2. Friends or Trusted Individuals:
   • In the absence of eligible family members, trusted friends or associates can be designated.
3. Legal Professionals:
   • For tasks requiring legal expertise, such as litigation, lawyers or legal consultants can be appointed as agents.
4. Corporate Entities or Representatives:
   • If the tasks involve business or organizational activities, PoA can be issued in the name of a specific company representative or a corporate body.

It is essential to ensure the chosen individual is trustworthy and competent to handle the designated responsibilities.

Steps for NRIs to Issue a Power of Attorney

The process of issuing a PoA for NRIs involves several key steps:

1. Drafting the Power of Attorney:
   • Consult a legal professional to draft the PoA as per Indian laws.
   • Clearly define the scope of authority, whether it’s a GPA or SPA, and specify the rights and limitations of the agent.
2. Notarization and Authentication Abroad:
   • The NRI must sign the PoA in the presence of a notary public in the country of residence.
   • In some countries, the PoA must also be authenticated by the Indian Consulate or Embassy. This involves:
     • Visiting the nearest Indian Embassy or Consulate.
     • Carrying valid identification (passport and proof of residency) and the drafted PoA.
     • Paying the requisite fees and signing the document in the presence of consular officials.
3. Stamp Duty and Registration in India:
   • Once the authenticated PoA reaches India, it must be stamped and registered to be legally valid.
   • The recipient in India can:
     • Submit the PoA to the local sub-registrar’s office.
     • Pay the applicable stamp duty, which varies by state and the nature of the PoA.
   • Registration ensures the PoA can be used for property-related transactions or court matters.

Key Considerations When Issuing a PoA

1. Validity and Revocation:
   • A PoA is valid only for the specified period or tasks outlined in the document.
   • It can be revoked anytime by the principal through a formal revocation notice, provided it is not irrevocable by nature.
2. Legal Compliance:
   • Ensure the PoA complies with the laws of both the NRI’s country of residence and India.
3. Verification:
   • Before delegating authority, verify the agent’s willingness and capability to fulfill the responsibilities.

Can NRI Issue POA while He is Outside of India?

Yes, an NRI (Non-Resident Indian) can issue a NRI Power of Attorney (PoA) while residing outside of India. This is a common practice for NRIs who need to delegate authority to someone in India to manage their financial, property, or legal matters. The process for issuing a PoA from abroad involves a few additional steps compared to issuing it within India.

The PoA must be drafted in accordance with Indian legal requirements. It can be a General Power of Attorney (GPA) or a Special Power of Attorney (SPA), depending on the scope of authority you wish to grant.

Once the PoA is drafted, the NRI needs to sign it in the presence of a notary public in the country where they reside. Notarization ensures that the document is legally validated in that country.

The notarized PoA must then be authenticated by the Indian Embassy or Consulate in the NRI’s country of residence. This involves – visiting the embassy or consulate with the notarized PoA, a valid passport, and proof of address in the foreign country. Signing the document again in the presence of consular officials & paying any applicable fees for authentication.

Then POA can be sent to India and then a similar process as mentioned above needs to be carried out in India.

Digital PoA (An Emerging Option)

In some cases, depending on legal advancements in India and the NRI’s country of residence, digital execution of PoA may also be possible, provided both countries recognize digital signatures.

By following these steps, an NRI can seamlessly issue a PoA from abroad, ensuring their interests are managed efficiently in India while they reside overseas.