Not every transaction presented to a notary may be completed solely because the parties have supplied the usual contractual and identification documents.
Where a proposed transaction concerns activities or services regulated by Dubai Courts, the notary may also be required to verify that the necessary internal approval has been obtained before proceeding.
Dubai Courts Circular No. 1 of 2026 introduces specific verification, documentation and rejection requirements for notaries handling transactions connected with Dubai Courts activities and services.
The Circular applies to transactions involving the issuance, amendment or cancellation of commercial licences associated with those activities, as well as other transactions falling within its stated scope.
Its central message is clear: a notary must not complete a relevant transaction unless the required Dubai Courts approval has first been issued and verified.
The Circular also places responsibility directly on the notary to retain the approval within the transaction record and reject applications where the supporting approval is absent.
For Dubai private notaries, legal-service providers, business setup advisers and companies operating in regulated legal-service sectors, the Circular introduces an important procedural safeguard that should be addressed before documents are submitted for notarisation.
What Does Dubai Courts Circular No. 1 of 2026 Address?
The Circular concerns the verification of transactions related to activities and services of Dubai Courts.
It was issued following observations concerning the processing of certain commercial licence transactions and refers to the regulatory framework governing notaries and private notaries in Dubai.
The Circular is intended to ensure that transactions affecting activities regulated by Dubai Courts are not processed without the required regulatory review.
Its requirements are particularly relevant where a transaction involves:
- issuing a commercial licence connected with a Dubai Courts activity;
- amending such a licence;
- cancelling such a licence;
- licensing private notary activities;
- amending the scope or details of a regulated activity; or
- another transaction requiring internal approval from Dubai Courts.
The Circular should not be interpreted as requiring separate Dubai Courts approval for every ordinary notarisation conducted in the Emirate.
Its focus is on transactions linked to activities and services falling under Dubai Courts’ regulatory authority.
Prior Approval Must Be Obtained Before the Transaction
The first obligation is procedural.
Before completing a relevant transaction, the notary must verify that the applicant has obtained the necessary internal approval from Dubai Courts.
The approval must therefore exist before the transaction is processed.
This means that an applicant cannot rely solely on:
- a commercial licence application;
- an approval from another licensing authority;
- a draft amendment;
- a shareholders’ resolution;
- a memorandum of association;
- a private agreement between the parties; or
- confirmation from a business setup adviser.
Where Dubai Courts approval is legally required, those documents do not replace it.
The applicant must first complete the relevant approval process with Dubai Courts and then present evidence of that approval to the notary.
Which Licence Transactions Are Covered?
The Circular expressly refers to transactions associated with issuing, amending or cancelling commercial licences relating to Dubai Courts activities and services.
This may include situations where a company seeks to:
- add a regulated legal-service activity;
- amend an existing activity;
- remove or cancel a regulated activity;
- establish or modify a private notary service;
- change details connected with a previously approved activity; or
- process corporate documents that affect a regulated licence.
Whether approval is required will depend on the exact activity and the nature of the proposed transaction.
Businesses should therefore avoid relying only on the wording appearing on a trade licence or licensing application. The relevant question is whether the activity falls within an area subject to approval or supervision by Dubai Courts.
Where uncertainty exists, the position should be clarified before the notarial appointment.
The Notary Must Verify the Approval
The Circular does not allow the notary to accept an unsupported statement that approval has been obtained.
The notary must verify the existence of the relevant internal approval.
Verification is therefore a substantive compliance step rather than a routine administrative formality.
The notary should be satisfied that the approval:
- was issued by the competent authority within Dubai Courts;
- relates to the correct applicant;
- covers the particular activity or transaction;
- remains valid;
- corresponds with the documents presented for notarisation; and
- has not been superseded, withdrawn or materially altered.
A general approval relating to one activity may not necessarily support a different amendment or transaction.
Similarly, approval granted to one legal entity should not automatically be treated as extending to another company, branch or shareholder.
A Copy Must Be Retained With the Transaction Documents
The Circular requires the notary to retain a copy of the internal approval among the supporting documents for the transaction.
The approval must also form part of the electronic record maintained through the relevant notarial system.
This creates an auditable compliance trail.
The transaction record should demonstrate that:
- approval was required;
- the applicant produced it;
- the notary reviewed it;
- the approval corresponded with the transaction; and
- the transaction was completed only after verification.
The record-keeping obligation is important because regulatory compliance may need to be reviewed after the transaction has been completed.
An approval that was merely shown informally but not retained may not provide sufficient evidence that the required verification occurred.
What Happens if the Applicant Does Not Produce the Approval?
The Circular directs the notary not to proceed where the required approval has not been presented.
The transaction should be rejected, and the applicant should be informed that Dubai Courts approval must first be obtained.
This means that the notary should not:
- complete the transaction conditionally;
- accept an undertaking that approval will be produced later;
- rely on an application receipt;
- proceed because the matter is commercially urgent;
- assume another authority will verify the approval; or
- treat the absence of approval as a minor documentary defect.
Where prior approval is mandatory, it is a condition to processing the transaction.
The applicant must return after the requirement has been properly satisfied.
Can the Approval Be Submitted After Notarisation?
The Circular indicates that approval must be verified before the transaction is completed.
Submitting it after notarisation would therefore not satisfy the intended procedure.
Post-transaction approval may also create uncertainty as to whether the regulatory authority would have approved the transaction in the form actually executed.
For example, the final documents may contain:
- a different activity description;
- additional corporate powers;
- amended ownership arrangements;
- a different legal entity;
- altered licence details; or
- terms not considered during the approval process.
The approval and the transaction must correspond at the time the notary acts.
Applicants should therefore finalise the regulatory approval process before arranging execution or notarisation.
The Notary Bears Responsibility for Non-Compliant Processing
One of the most significant aspects of the Circular is the express emphasis on the notary’s responsibility.
The Circular states that the notary bears full responsibility for processing a transaction contrary to the applicable laws, decisions and approval requirements.
This reinforces that the notary is not merely witnessing signatures.
A notary performs a regulated legal function and must verify that the transaction satisfies the requirements applicable to it.
Where a relevant transaction is completed without the necessary approval, potential consequences may include:
- regulatory review;
- administrative action;
- professional accountability;
- questioning of the transaction’s procedural validity;
- disruption to the related licensing process; and
- possible liability arising from non-compliance.
The precise consequences will depend on the facts and the applicable legal framework.
However, the Circular makes clear that the notary cannot transfer responsibility entirely to the applicant or adviser who submitted the documents.
Does the Applicant Also Have Responsibilities?
Yes.
Although the Circular places direct duties on the notary, the applicant remains responsible for presenting accurate and complete documentation.
Businesses and their advisers should determine at an early stage:
- whether the proposed activity is regulated by Dubai Courts;
- whether internal approval is required;
- which authority or department issues it;
- what documents must be submitted;
- how long the approval process may take; and
- whether the final corporate documents match the approved activity.
Failure to address these matters before notarisation may result in rejection, delay and additional cost.
An applicant should also avoid presenting incomplete or inconsistent documents in the hope that the notary will identify and resolve the regulatory requirements during the appointment.
The approval process and the notarial process are separate steps.
Commercial Licensing Approval Is Not Always Enough
A business may obtain preliminary approval, name reservation or another form of consent from a commercial licensing authority.
That does not necessarily mean that every sector-specific approval has been obtained.
Many commercial activities in the UAE are subject to dual or multiple layers of regulation.
A licensing authority may require consent from another competent body before it can issue or amend the commercial licence.
Where the activity relates to Dubai Courts services, the relevant internal approval from Dubai Courts may form part of that regulatory chain.
Businesses should therefore distinguish between:
- approval to establish or amend a company generally;
- approval to conduct a particular regulated activity;
- approval of the wording appearing on the commercial licence; and
- approval of the legal transaction being notarised.
Receiving one does not automatically satisfy the others.
Why the Circular Strengthens the Digital Audit Trail
The requirement to retain the approval within the electronic transaction record is an important governance measure.
Digital notarial systems can improve efficiency, but they also require consistent documentary controls.
By ensuring that the regulatory approval is stored with the transaction, Dubai Courts can more readily verify:
- whether approval was obtained;
- when it was issued;
- which transaction it covered;
- who processed the transaction; and
- whether the notary complied with the Circular.
This supports regulatory oversight and reduces reliance on informal communications or documents held outside the official record.
It may also protect the notary where the file clearly demonstrates that the required checks were performed.
What Should Private Notaries Do?
Private notaries should incorporate the Circular into their transaction-screening procedures.
A practical compliance process may include:
- identifying transactions connected with Dubai Courts activities;
- including an approval question in the client intake form;
- requesting the approval before scheduling execution;
- verifying that it applies to the correct entity and transaction;
- retaining a legible copy;
- uploading it to the electronic record;
- recording the verification step; and
- refusing to proceed where the requirement has not been satisfied.
Staff and data-entry personnel should also be trained to recognise affected transactions.
The Circular expressly extends its implementation requirements to the relevant persons involved in transaction processing, not only the individual notary signing the document.
What Should Business Setup Advisers Do?
Business setup advisers frequently coordinate licensing, corporate documentation and notarial appointments.
They should not assume that the notary will obtain the Dubai Courts approval on the client’s behalf.
Before arranging the appointment, advisers should:
- confirm whether the proposed activity requires Dubai Courts approval;
- obtain the approval in advance;
- compare the approved activity with the draft corporate documents;
- ensure the legal entity details are consistent;
- provide the approval to the notary;
- account for regulatory processing time; and
- avoid committing to licence completion dates before all approvals are secured.
Failure to sequence the process correctly may result in the notarial transaction being refused even where the other corporate documents are complete.
What Should Companies Check Before Amending Their Licence?
A company planning to issue, amend or cancel a licence associated with Dubai Courts services should review the entire proposed transaction before submitting it.
The company should verify:
- the exact activity being added, amended or removed;
- whether Dubai Courts regulates that activity;
- whether the current licence already contains an approval condition;
- whether the transaction affects ownership, management or authorised personnel;
- whether the approval is entity-specific;
- whether any professional qualifications or permits are required;
- whether the corporate documents match the application; and
- whether the approval must be renewed following the amendment.
A licence amendment may appear commercially simple but still trigger additional regulatory requirements.
The correct sequence should be identified before resolutions, amendments or agreements are executed.
Does the Circular Affect Ordinary Powers of Attorney?
The Circular should not be read as imposing prior Dubai Courts approval on every power of attorney or routine notarial act.
An ordinary power of attorney, declaration, signature authentication or corporate resolution may fall outside its scope unless it forms part of a transaction connected with the regulated activities described in the Circular.
The decisive issue is the substance and purpose of the transaction.
Where a power of attorney is being issued specifically to establish, amend, cancel or operate a regulated Dubai Courts-related activity, the approval requirement may become relevant.
Where it concerns an unrelated private or commercial matter, the Circular may not apply.
This distinction should be considered case by case.
Why the Requirement Matters
Regulated legal-service activities require more than ordinary commercial registration.
Dubai Courts must be able to ensure that entities and individuals conducting such activities satisfy the applicable professional and operational requirements.
Requiring notaries to verify approval before processing related transactions helps prevent:
- unauthorised activities;
- licence amendments that bypass sectoral controls;
- inconsistent corporate and regulatory records;
- transactions involving unapproved entities;
- incomplete digital files; and
- later disputes over whether approval existed.
The Circular therefore connects notarial compliance with broader regulatory supervision.
Practical Consequences of Failing to Prepare
Applicants who approach a notary without the required approval may face:
- rejection of the transaction;
- missed licensing deadlines;
- repeated notarial appointments;
- additional professional fees;
- delay in commencing or amending the activity;
- inconsistencies between approved and executed documents; and
- possible expiry of related applications or reservations.
These consequences can often be avoided through early regulatory review.
The correct question should not be asked at the signing appointment.
It should be asked when the transaction is first planned:
Does this activity require prior approval from Dubai Courts?
Conclusion
Dubai Courts Circular No. 1 of 2026 reinforces that notarial processing cannot be separated from sector-specific regulatory approval.
Where a transaction concerns an activity or service regulated by Dubai Courts, the notary must verify that the necessary internal approval has been issued before completing it.
The approval must be retained within the supporting documents and electronic transaction record. If the applicant does not produce it, the transaction must not proceed.
The Circular also places direct responsibility on notaries to ensure that affected transactions comply with the applicable legal and regulatory requirements.
For businesses and advisers, the practical lesson is straightforward: identify the approval requirement early, obtain it before notarisation and ensure that the approval matches the transaction being executed.
A complete set of corporate documents may still be insufficient where the required regulatory approval is missing.
Al Kabban & Associates
For businesses seeking guidance, Al Kabban & Associates, with over 30 years of experience in UAE law and recognition by Legal 500, stands ready to help corporations build resilience against legal risks while ensuring compliance with local and international standards. For more information or to schedule a consultation, contact us at +971 4 453 9090 or visit www.alkabban.com. You can also follow us on social media for more updates on everything law related in the UAE: @Alkabban_Law
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