A general commercial power of attorney (poder general mercantil) is a notarial document by which an individual or a legal entity (known as the grantor) authorises another person (the attorney-in-fact) to act in their name and on their behalf in a wide range of acts relating to commercial or business activity. It is formalised by public deed (escritura pública) before a notary, who attests to the grantor's wishes and to the lawfulness of its content.
This type of power of attorney is mainly used by businesses, companies and sole traders who need to delegate powers for the management and administration of their businesses.
What is it used for?
- Delegating business functions to managers, directors or trusted employees
- Signing commercial contracts (sales and purchases, leases, loans, insurance, etc.)
- Representing the company before banks, suppliers, customers or public authorities
- Carrying out commercial or financial management operations
What does the notary do?
- Drafts the power of attorney deed according to the grantor's instructions
- Verifies the legal capacity and standing of the person granting it
- Explains the scope and limits of the power granted
- Authorises the public deed, attesting to its content
- Provides certified copies of the power of attorney for use before third parties
Main features
- It may be valid indefinitely or for a fixed period
- The attorney-in-fact must act within the authorised commercial scope
- It does not cover the grantor's personal affairs, only those relating to their economic activity
- It may be revoked by the grantor at any time
Important considerations
- It is important to clearly define the powers granted in order to prevent abuse
- Acts carried out by the attorney-in-fact are legally binding on the grantor
- It is common to include specific clauses on contracting, collections, payments, legal representation, etc.
- In the case of companies, the power of attorney may be registered at the Companies Registry (Registro Mercantil)
Legal value
A general commercial power of attorney is fully valid in law while it remains in force and the attorney-in-fact acts within the limits set. Executing it before a notary guarantees the authenticity of the document and the legal certainty of the commercial relationships arising from it.