In 2023, Ras Al Khaimah (RAK) introduced the RAK Digital Assets Oasis (RAK DAO), the world’s first free zone dedicated exclusively to digital and virtual assets. This pioneering initiative offers a robust regulatory framework, zero-tax environment, and a crypto-friendly ecosystem, positioning RAK DAO as a premier destination for Web3, blockchain, and fintech ventures.
Why Set Up in RAK DAO?
RAK DAO offers founders and tech innovators a uniquely forward-looking environment:
- 100% Foreign Ownership: Entrepreneurs can retain full control over their businesses without the need for a local sponsor.
- Zero Tax Regime: Enjoy 0% corporate and personal income tax, along with 100% repatriation of profits and capital.
- Common Law Jurisdiction: Operate under a legal system familiar to international investors, enhancing legal clarity and business confidence.
- Crypto-Friendly Payments: RAK DAO supports cryptocurrency transactions, allowing businesses to pay fees and conduct operations using digital currencies.
- Streamlined Licensing: Obtain business licenses swiftly, with approvals typically completed within seven working days.
- Guaranteed Banking Access: RAK DAO facilitates introductions to local banks, ensuring businesses have access to essential financial services.
RAK DAO Business Activities & Licenses
RAK DAO offers specialized licenses tailored for digital asset ventures, including:
- Blockchain & Distributed Ledger Technology (DLT) Development
- NFT Platforms & Tokenization
- DAO Governance (DARe Framework)
- Smart Contract Development & Audits
- GameFi, eGaming & Metaverse Projects
- AI & Agent Technology Development
- Non-Custodial Crypto Mining
- Web3 Incubators & Studios
- Proprietary Digital Asset Trading
- Non-Custodial Wallet Services
For businesses offering regulated services such as exchanges, custodial wallets, or brokerage, a separate Virtual Asset Service Provider (VASP) license from the UAE Securities and Commodities Authority is required.
DARe: DAO Association Regime Explained
RAK DAO has introduced the DAO Association Regime (DARe), a structured legal framework designed specifically for decentralized autonomous organizations. DARe grants legal personality to DAOs, allowing them to interact with off-chain entities, sign contracts, and hold assets both on-chain and off-chain.
Setup Timeline and Costs
- Setup Time: Typically completed within seven working days.
- Costs: Business licenses start from AED 13,095, with additional fees for visas, office space, and other services.
Office Space and Visa Options
RAK DAO offers flexible office solutions, including flexi-desks and private offices, to accommodate businesses of all sizes. Visa quotas are available based on the office space chosen, with options to scale as your business grows.
Why Choose RAK DAO?
RAK DAO stands out as a forward-thinking jurisdiction for digital asset companies, offering:
- Innovative Ecosystem: A dedicated hub for Web3 and digital asset ventures.
- Regulatory Clarity: A legal framework tailored to the needs of digital businesses.
- Strategic Location: Situated in Ras Al Khaimah, providing access to global markets.
- Supportive Infrastructure: Access to banking services, office spaces, and a network of industry professionals.
Ready to Launch Your Digital Asset Venture?
Contact Safari Star today to explore how RAK DAO can serve as the ideal launchpad for your digital asset business. Our team of experts is here to guide you through every step of the setup process, ensuring a smooth and efficient experience.
FAQs: RAK DAO & Digital Asset Licenses
Q1: What types of businesses can register in RAK DAO?
Any business related to blockchain, NFTs, DAOs, smart contracts, metaverse, and digital asset infrastructure can register.
Q2: Can I operate a crypto exchange in RAK DAO?
Only with a VASP license from the UAE SCA. RAK DAO facilitates the process but does not issue regulated licenses itself.
Q3: Is RAK DAO suitable for solo founders?
Yes — low-cost flexi-desk and solo founder structures are available with visa options.
Q4: Can I use crypto for business payments in RAK DAO?
Yes. RAK DAO is crypto-friendly and allows certain fees and transactions to be made using digital assets.