Why Choose RAK DAO Free Zone?

RAK DAO stands for Ras Al Khaimah Digital Assets Oasis, it is the latest cutting-edge initiative by Ras Al Khaimah to position itself as the epicenter of blockchain and digital asset development. 

The newly launched free zone caters exclusively to virtual assets firms, along with providing a business-friendly environment for blockchain, crypto, NFTs, and Web3-related ventures. 

RAK DAO offers an ecosystem that meets specific requirements necessary for digital asset companies, including regulatory clarity, frictionless setup, and affordable licensing options.

Corporations benefit from zero corporate tax burdens, 100% foreign ownership, and full repatriation of profits, plus a formidable legal framework to ensure compliance with the UAE laws.

Designed to attract startups, SMEs, and global digital innovators, RAK DAO is part of RAK's wider strategy in positioning the Emirate as a hub for technology and digital finance in the Middle East. This will create a specific zone that will make RAK DAO a cornerstone for blockchain and digital transformation in the region.

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Benefits of Setting Up a Company in RAK DAO

1. Focus Exclusively on Digital Assets

RAK DAO is designed only for blockchain, crypto, NFTs, and Web3 ventures. Therefore encouraging companies to network and collaborate amongst themselves to prosper in the same field. 

2. Cost-Effective Licensing

RAK DAO offers cost-effective licensing and business setup for startups and SMEs, ensuring that the overheads remain minimal. 

3. Tax Advantages

All the companies operating under RAK DAO have zero corporate tax liability and zero income tax at a personal level. 

4. Full Foreign Ownership

It provides RAK DAO with 100% foreign ownership, thus allowing international entrepreneurship and businesses to retain full control over their ventures and profits.\

5. Regulatory Support

It maintains regulatory guidance unique to digital assets, hence allowing companies to maintain full compliance with UAE laws.

6. Ease of Repatriation

RAK DAO maintains full profit repatriation, thus allowing seamless business to transfer their profits back to their respective home countries.

7. Robust Infrastructure and Location

RAK DAO avails companies access to the strong infrastructure as well as strategic location of the UAE, thereby placing businesses in an ideal position for growth in the Middle East and further.

Activities Allowed for Company Incorporation in RAK DAO

Although the free zone is designated for a particular industry, it permits a broad range of activities in the digital and virtual assets space itself, Including:

1. Blockchain and Distributed Ledger Technology (DLT) Development

Businesses engaged in creating blockchain infrastructure, protocols, and DLT applications.

2. Crypto to Digital Asset Trading

Businesses involved in trading, exchanging, and dealing in cryptocurrencies and digital assets.

3. NFT Creation and Marketplace Operations

Business enterprises dealing in NFTs for art, collectibles, and other digital assets are permitted, including marketplaces and platforms that facilitate the buying, selling, and trading of NFTs.

4. Web3 and dApp Development

Web3 companies develop dApps in various industries, including finance and gaming, are welcome to establish business units in RAK DAO. 

5. Digital Wallet and Custody Services

Companies involved in digital wallet services and asset custody solutions, provide safekeeping options for end-users as far as their cryptocurrencies and other forms of digital assets are concerned.

6. Digital Marketing and Consultancy Services

Consultants and service providers in blockchain, crypto, and Web3-related services, including provision of marketing, branding, and strategic consulting across the industry.

7. Fintech and DeFi

Business applications powered by blockchain allow decentralized transactions, eliminating intermediaries.

RAK DAO permits a wide range of activities and thus is the perfect corporate structure for companies that lead in digital and blockchain innovation.

Company Registration Process in RAK DAO

RAK DAO Company Setup has been designed to make things as smooth as possible to meet the requirements of both blockchain and digital asset companies. How to register in RAK DAO step by step: 

1. Select the activity to license and the preferred legal entity

 Choose from the activities mentioned above and the legal entities of LLC., foreign branches, and others.

2. Initial Application

Fill out the application form provided by RAK DAO, which can be done online via the portal of RAK DAO. A representative will go through your application for initial approval.

3. Accord and Submission of Documents

After the preliminary approval, provide further documentation needed. Requirements will also vary depending on the exact nature of the digital asset activities being conducted.

4. Review and Compliance Checks

RAK DAO conducts a compliance check to ensure that the organization aligns with UAE laws related to digital asset firms. Due diligence on shareholders and directors is part of the application process.

5. License Issuance and Fee Payment

Once the compliance check has been issued and when approved, payment of applicable license fees falls due. When paid, RAK DAO grants the business license, and hence the company can begin its activities.

6. Office Space Setup and Bank Account Opening

In addition to the license, register a physical or virtual office if needed. Finally, open a corporate bank account for transaction activity in the UAE.

This seamless process allows digital asset companies to be established in RAK DAO in record time and activity to begin in the UAE.

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RAK DAO Company Types

The RAK DAO also provides flexible company structures tailor-made for the digital asset and blockchain businesses. The main types of companies that can be set up in RAK DAO are: 

1. Free Zone Limited Liability Company (FZ-LLC) 

For startups and SMEs, such a structure is ideal for entrepreneurs who intend to establish a stand-alone digital asset or blockchain company with limited liability to the shareholders.

2. Branch of a Foreign Company

RAK DAO allows foreign companies to open their branch offices, enabling international digital assets firms to enter the UAE without the need to set up another legal entity.

3. Subsidiary of a Local Company

In RAK DAO businesses can also be a subsidiary formation of local UAE-based businesses, this corporate structure comes with limited liability. Featuring as an apt entity type for UAE firms that intend to establish a dedicated division with an exclusive commitment to either blockchain or crypto-related services.

4. Holding Company

Investors can, through a holding company, hold and administer the representative and intellectual property rights in cryptocurrency, NFTs, and blockchain in general. Such an arrangement would be indicated in retaining and managing digital assets within a compliant environment.

5. Freelancer Permit

For professional individuals in digital consulting, development, and design, RAK DAO provides freelancer permits. The permit is ideal for the Web3 developers, blockchain advisors, and digital marketing experts seeking to be freelancing in the digital asset market.

Each company type of RAK DAO offers distinct benefits, catering to various business models and goals in the digital economy.

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Documents Required for RAK DAO License

A checklist of some of the important documents that a business needs to provide for registering a company includes:

1. Application Form

The application form must be filled out with the proposed business activities and structure.

2. Passport Copies

Copies of the passports of all the shareholders and directors are to be provided. These should be clear and readable, all details, therefore must be visible.

3. Proof of Residence

The proof of address for each shareholder and director is needed, utility bills or bank statements can be provided. Proof of residency should be recent and must show both name and address of the individual.

4. Business Plan

A comprehensive business plan that explains the nature of the business, operational strategy, target market, and financial projections. 

5. No Objection Certificate

If the applicant is resident in the UAE and already holds another residence visa in the UAE, the current sponsor, must give a No Objection Certificate to the applicant, to avoid a conflict.

6. Shareholder Agreement

A draft of the shareholder agreement, which states all the stakeholders' roles and responsibilities and how the shares will be distributed among them.

7. Payment Receipt

The payment receipt for initial registration fees must be presented to complete the application process.

All the above documents should be prepared well in advance as the preparation of these documents may take some time and also to ensure complete compliance with the requirements laid by RAK DAO for accelerating the process of obtaining a license.

To escape the legal hassle whilst complying with the regulations, contact our professionals.

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