Formation of a Power of Attorney

Formation of a Power of Attorney

A power of attorney (POA) is a legal document that gives one person the authority to act on behalf of another person in certain situations. The person who grants the power of attorney is called the principal, and the person who receives it is called the attorney-in-fact or agent.

In Nepal, there are two kinds of power of attorney: ordinary and authorised. An ordinary power of attorney can be used to initiate, defend or withdraw a case, or to perform other legal actions on behalf of the principal. An authorised power of attorney can be used to transfer immovable property, such as land, by stating the valid reason for the principal's absence.

How to create a power of attorney in Nepal?

To create a power of attorney in Nepal, you need to follow these steps:

• Prepare a power of attorney document with the help of a registered lawyer in Nepal. The document should clearly mention the name, address and identity number of the principal and the agent, the extent and duration of the power, and the signature and date of both parties.
• Attach a photograph of the agent at the top of the document and get it certified by a notary public or a district court.
• If you are giving an authorised power of attorney for transferring immovable property, you also need to get a tax clearance certificate from the relevant office and attach it with the document.
• If you are living abroad and want to give a power of attorney in Nepal, you can contact the Nepali embassy in your country and get your signature verified by them. You will need to provide your passport, citizenship certificate and two passport-sized photographs along with the power of attorney document.

How to cancel a power of attorney in Nepal?

To cancel a power of attorney in Nepal, you need to follow these steps:

• Prepare a cancellation document with the help of a registered lawyer in Nepal. The document should clearly mention the name, address and identity number of the principal and the agent, the reason for cancellation, and the signature and date of both parties.
• Attach a photograph of the agent at the top of the document and get it certified by a notary public or a district court.
• Send a copy of the cancellation document to the agent and inform him or her about your decision. You can also publish a notice in a national newspaper or online portal to inform the public about your cancellation.
• If you have given an authorised power of attorney for transferring immovable property, you also need to register the cancellation document at the land revenue office where the property is located.

What are the benefits of a power of attorney in Nepal?

A power of attorney can be useful in many situations where you cannot be present in person to handle your affairs. For example, you can use a power of attorney to:

• Manage your financial transactions, such as banking, investing or paying bills
• Sell or buy property or assets on your behalf
• Represent you in legal matters, such as filing or defending a case
• Make medical decisions for you if you are incapacitated
• Take care of your personal matters, such as travel arrangements or childcare
• What are the risks of a power of attorney in Nepal?

A power of attorney can also pose some risks if you do not choose your agent carefully or limit their authority. For example, you may face these problems:

• Your agent may abuse your power and act against your interests or wishes
• Your agent may commit fraud or theft with your money or property
• Your agent may refuse to follow your instructions or revoke your power
• Your agent may become unavailable or incompetent to act on your behalf
• Your agent may create conflicts with your family members or other parties

Therefore, it is important to trust your agent and monitor their actions regularly. You should also review your power of attorney periodically and update it as per your changing needs.

How to choose an agent for your power of attorney in Nepal?

To choose an agent for your power of attorney in Nepal, you should consider these factors:

• The agent should be competent to conclude a contract according to law
• The agent should not be a defaulter of any government dues or court fees
• The agent should not be convicted for any criminal offence involving dishonesty or moral turpitude
• The agent should be reliable, honest and loyal to you
• The agent should be willing and able to perform their duties
• The agent should be familiar with your situation and preferences

You can appoint anyone as your agent, such as your family member