RAK DAO free zone company formation

Company setup from 6,250 AED

Registration from 10 working days

Bank account Guaranteed

Residence visas for 2 years

Emirabiz experts’ opinion

Is RAK DAO suitable for your business?

— Yes

• If you conduct business in digital products and Web3 (from startups to large companies), the RAK DAO free zone is specifically designed for this sector. It offers a comprehensive list of the most modern activities that have emerged along with widespread digitalization and the development of virtual assets. RAK DAO is the only free zone in the UAE with these types of activities and also regulates activity on web services acting as the Authority itself. 
• If you are a freelancer, sole proprietor, or digital nomad, i.e. someone who works remotely using digital tools, the setup in RAK DAO is ideal for you. With options for a flexi desk or dedicated desk and one visa, the setup cost is very affordable.
• If you want to register a Limited Company (LTD).
• If you want to open a bank account without hassle, RAK DAO has strategic partnerships with local banks, such as RAKBANK. An applicant with a RAK DAO license is guaranteed to receive a bank account (78% is the success rate).
• If you want to make payments in cryptocurrency, RAK DAO is one of the few free zones to accept such payments.

— No 

• If you are involved in any type of manufacturing, RAK DAO does not offer an industrial license. In this case, consider RAKEZ, another free zone located in the Emirate of Ras Al Khaimah, which provides activities related to industry.

RAK DAO company formation process

Company registration can be done fully remotely, no physical presence is required. Your company can be registered in 10 working days.

Step 1. Determine which type of business and the type of license offered by the RAK DAO free zone suits you.

It is crucial to approach this question carefully, as choosing the wrong activity, registration authority, or location can lead to errors during company registration, creating problems with opening a bank account or getting a residence visa.

RAK DAO offers the following types of business registration:

• Freelance permit - for freelancers and solo entrepreneurs
• Digital nomad license - for remote employees and business owners
• Standard company - for companies of all sizes, from startups to corporations

Step 2. Prepare the necessary documents. RAK DAO requires a minimal documentation package.

For individuals:

• Copy of passport valid for at least 6 months
• Valid residence visa and Emirates ID (for residents) or entry stamp
• Business plan

For companies:

• Certificate of registration
• Certificate of good standing 
• Certificate of incumbency
• Memorandum and Articles of Association
• Board resolution

After all the documents have been compiled and the necessary paperwork has been drafted, it is required to pay the necessary fees for the registration process to proceed with the application.

Step 3. Receive the license and registration documents for the company, namely

• Certificate of incorporation
• Trade license
• MoA and Articles of Association

Step 4. Receive an establishment card that contains information about your company and makes it eligible to sponsor residence visas.

Step 5. Apply for an entry permit.

If you apply from inside the UAE, after the entry permit is issued you have to change your visa status from the previous visa to a residence visa. If you are outside the UAE, then arrive in the country, get your entry permit stamped and then proceed with the rest of the residence visa process, submitting the necessary documents.

Step 6. Undergo a medical checkup and submit documents for a residency visa.

Step 7. Apply for an Emirates ID.

Step 8. Complete biometrics procedure in one of the Emirates ID centers.

Step 9. Once you have the results of your medical test and biometrics you can submit all the details for a visa approval. Your electronic visa will be sent to you by email. You can also find it in the UAE ICP app.

Step 10. Receive your Emirates ID. After the residence visa is issued, the Government prepares a plastic identity card which is an important document that is required to open a bank account, rent an apartment, pay bills or fines, etc. It also entitles you to many local services and discounts.

Step 11. Open a bank account. Apply to a UAE bank to open a corporate bank account. In RAK DAO you will get assistance with the bank account opening as the free zone has partnered with some major UAE banks.

After receiving the account details, you can start running your business in the UAE.

RAK DAO licenses and cost

The minimal license cost offered by RAK DAO is 6,250 AED for a freelance permit without visas. Standard company setup starts from 13,095 AED.

RAK DAO offers the following types of licenses:

• Freelance permit - you will get a flexible working space tailored for digital assets businesses and a residence visa.
• Digital nomad license - you can work remotely and have a UAE address (in the RAK DAO free zone) and a virtual office. Ideal for those who work online and target international markets.
• Standard company - You receive a complete package of services, including a license, facility, visa, and E-channel registration. This type of license is suitable for those who want to conduct business in the UAE.
• Proprietary trading license - You receive all you may need for conducting business activities in the UAE, including up to 8 visas in the package, a shared office as a facility, and discounts for multi-year licenses.
• Premium license - The flagship package for tech startups and companies in Web3, blockchain, and online gaming includes a dedicated office.

Additional fees, not included in the packages:

• E-channel deposit - 1,050 AED
• Change of visa status - 1,000 AED

RAK DAO business activities

All business activities in RAK DAO can be divided into two categories:

— Standard activities. Licenses in RAK DAO allow up to 5 activities. An additional fee of 2,000 AED is charged for each extra activity. The list is extensive and includes rare and niche activities not found in other free zones, such as Coding, Artificial Intelligence, Cybersecurity, Web3 Services, DAO Services, and Proprietary Mining of Cryptocurrencies. You can request the full list from your business consultant.

Note: RAK DAO is the only free zone that regulates activity on web services acting as the Authority itself.

— Premium activities. A license can have only one activity—additional activities cannot be combined. The premium category includes:

• Web3 Venture Studio
• Web3 Incubators
• Online Gaming Services
• Offshore Gaming Operator
• Mining Equipment Manufacturing
• DLT Services - Registry

RAK DAO facilities

RAK DAO offers a wide range of working spaces, from co-working facilities to standard offices.

There are two office options offered in RAK DAO Business Center, on the ground floor and on the fifth floor.

On the ground floor, office size starts from 8 sq m with 2 desks available. The rental price is from 11,180 AED.

On the fifth floor, minimum office size is 33.3 sq m with up to 9 anticipated visas (1 visa per 3.7 sq m). The rental price is minimum 35,800 AED.

Additional costs associated with leasing facility:

• Maintenance fee - 1,500 AED
• Security deposit - 2,000 AED

RAK DAO visa costs

All the above-mentioned business set-up packages include a processing fee for only 1 visa (including medicals, entry permit and Emirates ID). Each additional visa costs 4,000 AED.

Also, you will have to pay for:

• E-channel registration - 1,050 AED
• Change of status inside the country - 1,000 AED

Upon the visa's expiration, you can renew it under more favorable conditions (also for 2 years).

You can also obtain residence visas for your dependents.

RAK DAO company license renewal

The company in RAK DAO needs to be renewed annually. Company renewal cost will be exactly the same as registration fees.

The renewal can be done remotely, without the physical presence of the shareholder.

Before starting the application process you will need to present a business plan for your company to the free zone authority.

RAK DAO company amendments

The company can be amended at any time. The most frequently happening amendments include the following changes:

• Shareholders/managers
• Company name
• Business activity
• Office facility

The fee charged for company amendments in RAK DAO is 2,500 AED.

RAK DAO company liquidation

RAK DAO has simplified the liquidation procedure. The current fee for company closure stands at approximately AED 2,000. The process takes about 1 month. It consists of these major steps:

1. Visa cancellation  (7-10 working days) - if there is a visa in the company.
2. Establishment card cancellation (7-10 working days) - if it was a visa eligible company.
3. License cancellation.

In the event of liquidation, you're required to provide a final audit report and return all original company documents. Any existing lease agreements should be terminated and visas closed.

If you had a corporate bank account, it should be closed before applying for company liquidation. You should obtain a letter proof from the bank confirming that. 

After the company is dissolved, you will get an official deregistration letter from the free zone as a formal confirmation of the liquidation.

About RAK DAO

RAK DAO is a unique free zone located in the Emirate of Ras Al Khaimah, just a 45-minute drive from Dubai. Its main feature is its focus on cutting-edge technological industries such as the metaverse, AI, blockchain, online gaming, and Web3.

In RAK DAO, you can establish any type of business related to the production and management of digital and virtual assets, from a freelance permit to a standard company.

RAK DAO is one of the few free zones in the UAE that permits cryptocurrency payments.

The cost of setting up a company is quite reasonable, and the setup process is straightforward, taking about one week. While physical presence of the company owner is not required, a personal visit is necessary to open a bank account.

In RAK DAO you can register an LTD company.

RAK DAO has strategic partnerships with local banks, helping clients open bank accounts more quickly and with fewer complications. The success rate in opening bank accounts reaches 78%, which is quite impressive.