Granting the Power of Attorney in South Africa

A power of attorney in South Africa is a type of legal document that conveys power from one party to another. Its use is common in multiple cases, and it can be a valuable instrument, as presented in this article by our lawyers in South Africa. If you want to know more about granting the power of attorney in South Africa, our team is at your disposal.

What is a power of attorney in South Africa?

The power of attorney (also referred to in this article as the PoA), is a written and legally drafted document used by a party that wishes to be represented by an agent (another party) for a specific matter or in multiple legal acts.

The person who authorizes the use of the power of attorney in South Africa in his or her name is the grantor (given the fact that he/she grants power) and the person receiving the rights is the agent (the one who will act on behalf of the grantor).

There is no standard, prescribed form for this type of document because it can be tailored to the needs of the grantor. A power of attorney does, however, fall under one of two types:

• General: when the grantor appoints the agent to act on various matters (property, business, health decisions, etc.);
• Special: when the grantor assigns the agent to handle one specific issue, for example, open a bank account in South Africa.

How is a PoA used?

There are many situations in which a power of attorney can be used. Our South African lawyers summarize some of these below:

• Company creation: the PoA can be used by the agent to handle all the company formation procedures and to make the registration submissions with the Companies and Intellectual Property Commission;
• To make healthcare-related decisions: if the grantor cannot consent, a written mandate under the National Health Act 61 of 2003 (an ordinary power of attorney lapses when the grantor loses mental capacity) allows the agent (or health care proxy) to make important choices about medical procedures and/or treatments;
• To buy or sell property: when a party cannot be present in South Africa to sign important property-related documents, the agent will act on their behalf;
• Financial management: the empowered party can make important decisions regarding banking and investments on behalf of the grantor;
• To pay takes: in some cases, the agent can also act to make the necessary payments with the SARS, the South African Revenue Service;
• Legal proceedings: when directed to do so, the attorney appointed under a power of attorney in South Africa can also engage in legal matters by initiating or responding to legal proceedings.

Our team can give you more information about each of the PoA uses briefly described above. We want to emphasize the fact that the power of attorney can be a highly personalized document, a true instrument that should only be used by persons who are willingly and knowingly authorizing another person on their behalf (see below).

In some cases, a power of attorney could be used to handle matters related to residency.

What are the requirements for drawing up a South African power of attorney?

Regardless of the reasons for which it is drawn up, whether it is to open a company in South Africa, to sell a property or to simply have someone else handle banking matters, the power granted under a PoA is equivalent to that person being granted full legal capacity in another’s name.

For this purpose, the experts at our law firm in South Africa remind those interested that certain requirements are in place so that a power of attorney in South Africa is considered valid:

• It must be a written document, verbal agreements do not qualify as a PoA;
• It has to contact the signatures of the parties;
• The grantor must be in full mental capacity at the time this document is drawn up.

In some cases, the power of attorney has to be registered.

Are you thinking of buying property in by appointing a local party? We highlight the following property trends and prices. These are to be taken into account in addition to the fees that will be required to draw up the power of attorney in South Africa:

• The national house price growth is recorded at 2.2% on a year-on-year basis (for April 2025);
• This is the fastest growth since March 2023;
• The estimated average time to sell is 12 weeks.

If you want to know how you can grant the power of attorney in South Africa, contact our lawyers in South Africa for complete assistance. Our team of experts in company formation in South Africa can also help you open a company.