The world of digital assets and blockchain technology is evolving rapidly, and governments worldwide are creating environments to support this. The Ras Al Khaimah Digital Asset Oasis (RAK DAO) free zone in the United Arab Emirates supports companies working with digital technology, such as blockchain and virtual assets.
RAK DAO freezone is a dedicated space where businesses can operate under clear rules, access modern infrastructure, and receive strong government backing. It provides businesses with assurance of safety and stability and encourages foreign direct investment (FDI).
If you are in blockchain, Web3, fintech, or the digital asset sector, then exploring the RAK DAO free zone can open up a wide range of opportunities. Here we provide all the information that you need to learn about RAK Digital Asset Oasis.
What is the Ras Al Khaimah Digital Assets Oasis Free Zone?
The RAK DAO free zone is the first-of-its-kind free zone in the world dedicated entirely for businesses in the field of digital and virtual assets. Launched in 2023, it provides a regulated, business-friendly environment for next-gen companies. RAK DAO offers a supportive business environment for Web3, digital assets, and new technology companies and connected industries. The authorities have designed policies to make it simple to start and operate virtual asset businesses.
What are the Benefits of Starting a Company in RAK DAO?
Are you wondering why establishing a business in Ras Al Khaimah Digital Asset Oasis is a smart move? Check out the benefits you can avail by setting up a business in this free zone:
- Business-Friendly Regulations - The authorities have put in place rules and regulations tailored as per the needs of a business. It gives entrepreneurs the confidence to operate and grow legally without having the uncertainty that often surrounds blockchain and crypto-related ventures.
- Full Foreign Ownership - Business owners can have complete control over the operations without the need of having a local sponsor. This attracts investors and founders from various regions to this freezone in Ras Al Khaimah.
- Tax Incentives - Companies conducting business operations in the RAK DAO free zone can benefit from a range of tax advantages, such as low corporate tax and no personal income tax.
- Streamlined Company Setup - RAK DAO freezone offers a fast and simplified company registration process. From licensing to office setup, procedures are designed to be efficient and digital-friendly.
- Supportive Infrastructure - The free zone authority allows businesses to access top-notch infrastructure, high-speed internet, secure data centres, and practical and modern office spaces to ensure seamless business operations.
- Access to Similar Community - Having businesses operating in the same sector around you can have a major impact on the growth of your company. It encourages collaboration, networking, and knowledge sharing.
Business Structures Permitted in RAK DAO
Deciding on a legal structure is crucial for starting a business. Determining this requires you to understand your business needs, goals, and the type of operations you plan to carry out. The RAK DAO free zone offers flexible business structures to accommodate a wide range of digital and virtual asset-related activities. Let us have a look at them:
Free Zone Establishment (FZE)
An FZE is a company formed with a single shareholder. It offers complete foreign ownership and limited liability.
Free Zone Company (FZC)
This business structure allows two or more shareholders (individuals, companies, or both) to jointly own and manage a business within the free zone.
Branch Office
A branch office is an extension of an existing local or international company which operates under the parent company’s name in the RAK DAO free zone.
Types of Registrations in RAK DAO Free Zone
RAK DAO offers different registration packages to suit diverse businesses. Each option comes with unique benefits, helping you set up and grow within the Web3 ecosystem. Let us have a look at them:
Freelance Permit
The freelance permit in RAK DAO is designed for solo professionals. It helps you work legally while being part of the RAK DAO community. Availing this permit allows you to access flexible workspaces, a UAE visa, and a variety of activities to grow your freelance career.
Launch Startup
The launch startup package is best for new businesses engaging in digital asset ventures. This package helps you set up quickly and easily in the digital assets sector. It is a smart choice for startups that wish to enter the Web3 market while ensuring full compliance.
Launch+ Engage
This package is an upgraded version of the Startup option. It comes with extra help in legal, banking, and compliance matters, making it easier for startups to launch and reach the market faster.
Accelerate
This package is built for growing businesses with steady income. The Accelerate package connects you with RAK DAO’s Web3 ecosystem. It provides advanced support and resources to help your company expand further.
What do RAK DAO Activities Include?
RAK DAO activities cover a wide range of cutting-edge sectors that fuel innovation within the digital economy and Web3 space. The activities include:
- Gaming
- Virtual reality
- NFT platforms
- Digital wallet services
- Blockchain development
- Digital asset management
- Crypto exchange operations
- Virtual asset advisory services
- Tech research and development
- Web3 infrastructure development
- Cybersecurity and blockchain security
How to Start a Business in RAK DAO Free Zone?
Starting a business in the free zones in Ras Al Khaimah is simple when you follow the right process. Here’s a step-by-step breakdown to help you get started:
Step 1 - Reach out to business setup experts from Commitbiz. They will assist you with understanding the requirements and guide you through every step.
Step 2 - Decide on a legal structure with the help of business consultants. They will help pick the best option that aligns with your business goals.
Step 3 - Select a business name by adhering to the UAE’s naming guidelines. Our experts will apply for trade name registration in RAK with the relevant authorities.
Step 4 - Gather the required documents and submit them to the consultants, who will proceed with company registration and apply for the relevant trade license in RAK.
Step 5 - Pay the fees.
Step 6 - Lastly, open a business bank account in RAK.
What Documents Are Required for an RAK DAO Free Zone Business Setup?
Documentation is an essential part of a business setup in Ras Al Khaimah. You must ensure that you provide the authorities with the correct documents, as incorrect documentation can lead to delays in the setup process. The documents required to be submitted differ based on the factors like corporate entity or individual entity. Let us have a look at the list of documents needed depending on the entity:
For a Corporate entity:
- Registration Certificate
- Memorandum and Articles of Association or equivalent document
- Board/shareholders’ resolution
- Valid trade license (if applicable)
- Ultimate Beneficial Owner (UBO) declaration
- Incumbency Certificate or equivalent (issued within the last 3 months)
- Certificate of Good Standing/Extract Commercial Register (as applicable to the
jurisdiction).
For Individual Entity:
- Business plan
- Source of funds
- Valid Passport
- Copy of Emirates ID
- Power of Attorney (if applicable)
- Copy of residency visa (for UAE residents) or entry stamp and signature pages
How Can Commitbiz Help?
Setting up a business in a specialised free zone like RAK DAO can be complex without the right guidance, and that is where Commitbiz comes in. With years of experience in UAE business setup services, Commitbiz offers end-to-end support to help you establish your company smoothly and efficiently.
We handle company registration, licensing, document preparation, and coordination with RAK DAO authorities, ensuring a smooth and compliant launch. Our services also cover visa processing, bank account assistance, and ongoing business support, making it easier for you to focus on innovation and growth while we take care of the formalities. Contact us to start your business in the RAK DAO free zone.
Is the RAK DAO free zone regulated?
Yes, RAK DAO operates under clear regulations set by the Ras Al Khaimah government, making it a secure and trusted free zone for digital businesses.
What is the minimum capital requirement to start a company in RAK DAO?
The capital requirement varies depending on your license type and business structure.
How long are trade licenses in RAK DAO free zone valid for?
Trade licenses in RAK DAO are usually issued for one year with annual renewal options. Businesses also have the choice to apply for a multi-year license.