A General Manager (GM) is an important individual in any company who has a significant role, such as leading management efforts in overseeing various operations. This would involve looking over the various day-to-day operations of the company; thus, they are quite elemental to the effective management of the business. The general manager is fully responsible for all aspects of operations and management. The general manager will also have to monitor the company’s activities, employees, and finances. For any business in the UAE, full knowledge of the legal and regulatory environment is very important.
In both offshore and mainland companies, the general manager position is a requirement as per the regulations of the country. The specific requirements differ depending on the type of industry the company is in. For instance, in the construction industry, the general manager would need certain certifications and experience. Whereas, in the retail sector, the general manager would need more management skills and knowledge of the local market.
What Are the Steps for Changing the General Manager in the UAE?
The process of changing the general manager of a company in the UAE, either for an LLC or a foreign branch, is challenging. To ensure a smooth transition, it is crucial to understand the process.
Process for changing general manager for an LLC:
- Obtain shareholder approval: Since the LLC is owned by shareholders, their approval is necessary. A meeting of the shareholders will be convened to approve the substitution of the new general manager.
- Board resolution: If the LLC has a board of directors, they must pass a decision to support the change.
- Amended Memorandum of Association (MOA): The MOA, a legal document outlining the company’s structure, must be amended to state the new general manager.
- Notify the Department of Economic Development (DED): The DED in the respective emirate must be informed of the change of general manager.
- Update company records: Internal company documents, such as the company seal, bank accounts, and official correspondence, must be amended with the new general manager’s information.
- Visa and labour contract procedures: The new general manager must receive a labour contract and a residency visa sponsored by the company.
Process for changing General Manager for a Foreign Branch:
- Obtain parent company approval: The parent company must issue proof of their authorisation to the change of general manager of the subsidiary.
- Notify the government authority: Both the Department of Economic Development (DED) and the Ministry of the Economy should be notified about the change.
- Company records: The internal company documents must be updated.
- Visa and labour contract procedures: The new general manager must receive a labour contract and a work visa.
Documentation Requirements for New General Manager
The following documents must be revised to incorporate the appointment of the new general manager:
1. Trade license application: A recent trade license application must be brought before the local administration to give a new general manager an official record.
2. Memorandum of Association (MoA): The MoA, which, among other documents, summarises the company’s management and governance, must be updated to include the new general manager.
3. Board Resolution: The board of directors might need a resolution vote to either proclaim or decline the new general manager.
4. Power of Attorney: If the new general manager happens to be a shareholder, no POA is required in this regard as the company is authorised. But if they are not, the new general manager will be obliged to have a POA, which makes them an authorised person to sign on the company’s behalf.
The following documents must be provided by the new general manager:
- A passport copy of the general manager
- A copy of the general manager’s UAE residence visa
- A copy of the general manager’s valid Emirates ID
Other documents may include:
- Educational and professional qualification certificates; include degree or diploma certificates or licenses to practice in an industry.
- Experience certificates to prove experience for a specific relevant industry or field.
How can Gatestone Group help you?
Navigating through changing a general manager can be tiresome and challenging. At Gatestone Group, our expertise is in guaranteeing a smooth transfer while complying with all the regulations to avoid fines. Our team of experts will take care of all the formalities, including updating legal records, securing essential approvals, and alerting the right authorities. Allow us to help you ensure a seamless and effective transition. Contact us today for a free consultation via email at [email protected] or call +971 4 450 1023.
