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RAK DAO — RAK Digital Assets Oasis

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

RAK DAO company formation process

  1. Choose your business activities and license type. 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
  2. Determine the legal entity of your business. In RAK DAO you can open a LLC, register as a freelancer.
  3. Prepare and file the required documentation. 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.

  4. Collect the license and registration documents. They are:
    • Certificate of incorporation
    • Trade license
    • MoA and Articles of Association
  5. Secure your establishment card. It contains information about your company and makes it eligible to sponsor residence visas.
  6. 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.
  7. Take a medical test and submit visa documents. Undergo a medical checkup and submit documents for a residence visa. Different registration packages may provide for a varying number of visas available for owners and employees of the company.
  8. Collect your Emirates ID. Once your visa is issued, secure your Emirates ID card. The processing and issuance of a visa and Emirates ID usually take 5-7 working days after the visa approval.
  9. Open a bank account. Apply to a UAE bank to open a corporate bank account in one of local or international banks in the UAE. After receiving the account details, you can start running your business in the UAE.

With us you can navigate this process quickly and effortlessly. You don't even have to arrive in Dubai — the registration procedure can be completed remotely. However, you will need to visit the UAE for medical checkups, visa formalities, and account opening.

RAK DAO license 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.

PACKAGE COST
Zero-visa freelance permit for 1 year 6,250 AED
Freelance permit + 1 visa for 1 year 12,985 AED
Zero-visa digital nomad license for 1 year 9,250 AED
Standard company + 1 visa for 1 year 20,435 AED
Proprietary + 1 visa for 1 year 29,435 AED

Additional fees, not included in the packages:

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

Is RAK DAO suitable for your business?

  • Best choice for digital assets and Web3 companies
  • Payments in cryptocurrencies are accepted
  • High success rate in bank account opening
  • Easy and cost-effective set-up for freelancers and digital nomads

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 licenses and 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.
  • 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

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

RAK DAO facilities

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

Dedicated desk

A reserved workspace with a dedicated desk, chair, and basic facilities, allowing you to leave your computer and belongings securely.

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 residence visas

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.

FAQ

RAK DAO — FAQ

The UAE has no personal income tax. However, there is a 5% import tax on goods brought into the country and a 5% VAT on trading or service transactions that occur within the UAE. The UAE Corporate Tax regime applies, and the standard rate is 9% on taxable income above the applicable threshold. Eligible free zone companies may benefit from 0% Corporate Tax on qualifying income if they meet the Federal Tax Authority (FTA) conditions and maintain compliance; otherwise, the standard Corporate Tax rules may apply.

While we strive to make the account opening process as smooth as possible, we cannot guarantee approval, as the final decision always depends on the bank’s internal compliance and risk assessment. Each case goes through several bank departments for approval, and the bank may contact you directly for clarifications. Providing a clear picture of your business to the bank increases the chances of successful account opening. We do our best to prepare you and your company for a smooth and fast bank account opening process.

Basically no, as a personal visit to the UAE is required as per the regulations of the UAE Central Bank. Local banks require this visit to verify the client's identity. However, some banks allow remote account opening through their digital bank applications or website.

In most cases, you can obtain a debit card for your newly opened company, especially if there is only one shareholder. However, a credit card is usually issued against a fixed deposit. As for loans, banks may consider your eligibility based on your company's operations and profits. It is recommended to apply for a loan after at least one year of operations.

Officially, the office of a company should be located within the free zone where it is registered. However, if you need an office in Dubai, you have the option to rent space in a Business Center and use it on a flexible basis. It is important to note that the minimum required space (flexi desk) in the free zone cannot be cancelled.

A flexi desk is a mandatory requirement for any company eligible for resident visas. It serves as the minimum physical office space. Additionally, a flexi desk can facilitate bank account opening as banks require evidence of a company having some form of office or physical presence.

VAT obligations depend not only on the place of registration but also on where the business activity takes place. VAT becomes applicable when the taxable turnover reaches AED 375,000. If a company's trading activities take place abroad, the turnover is not considered taxable as long as the goods or services are supplied outside the UAE. However, if the goods or services are supplied to customers within the UAE, the 5% VAT will be applicable.

The suitability of a free zone entity versus an offshore or mainland entity depends on your business model and requirements. However, a free zone setup offers advantages such as 100% foreign ownership, eligibility for resident visas, the ability to conduct business both within and outside the UAE, and greater favorability with banks compared to offshore companies. Additionally, free zones often offer a flexi desk option instead of executive offices, making it a cost-effective way to start a business without unnecessary obligations.

Your company should be renewed annually, and the cost is typically lower than the initial setup cost. The renewal fees depend on your package, and you can obtain the price by downloading the Estimate from our website. Renewal does not require the personal presence of the owner and can be done by your agent. After renewal, the new license must be presented to the bank to extend the bank account, which is included in our renewal service.

You have multiple options for fee payment. You can make payments via bank transfer, cash, or online using a card.

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