DAO Freezone Company Setup

Ras Al Khaimah Digital Assets Oasis (RAK DAO) is designed as a global hub for innovators and entrepreneurs focusing on digital and virtual assets. This special economic zone caters to forward-thinking businesses in blockchain, AI, and various emerging digital technologies. The RAK DAO provides a supportive environment with benefits that include strategic geographic positioning, favourable regulatory frameworks, significant tax advantages, and 100% foreign ownership. These features make it an ideal location for businesses aiming to tap into international markets while benefiting from advanced infrastructural support and a dynamic community conducive to growth and innovation.

Whether starting up or scaling up, Filings.ae offers expert guidance to navigate the complexities of setting up your business in RAK DAO, ensuring a smooth transition and compliance with all local regulations.

RAK DAO Freezone

 Located in the vibrant hub of Ras Al Khaimah, UAE, the Ras Al Khaimah Digital Assets Oasis (RAK DAO) is recognized as the world's pioneering purpose-built Free Zone specifically tailored for next-generation innovators. Exclusively dedicated to enterprises dealing with non-regulated digital and virtual assets and pushing advancements in emerging sectors, RAK DAO is positioned at the forefront of innovation. It is the authoritative body responsible for issuing licenses within the RAK UAE Free Zone. It creates a unique environment that balances regulation and enablement, thus fostering a space where innovation can thrive.

Benefits of  DAO Freezone Company Setup

For entrepreneurs looking to transform visionary ideas into groundbreaking realities, RAK DAO offers a dynamic platform designed to support and nurture future-focused projects.

Setting up a company in the DAO Freezone offers a range of benefits tailored to foster innovation and growth for businesses, especially those in the digital and virtual assets sectors. Here are some key advantages:

• Strategic Location: Positioned in the UAE, the DAO Freezone provides easy access to major global markets, bridging the East and West, ideal for businesses aiming to operate internationally.
• Regulatory Benefits: The freezone offers a regulatory framework that is supportive of digital and blockchain technologies, providing a conducive environment for businesses operating in web3, fintech, and related sectors.
• Tax Advantages: Companies in the DAO Freezone benefit from tax incentives, including zero corporate and personal income taxes, which can significantly reduce overhead costs and enhance profitability.
• 100% Foreign Ownership: Unlike many other regions, the DAO Freezone allows 100% foreign ownership of businesses, enabling full control and repatriation of profits without the need for a local partner.
• Advanced Infrastructure: The freezone is equipped with state-of-the-art facilities and infrastructure, catering to the needs of tech-driven businesses, from high-speed digital connectivity to modern office and commercial spaces.
• Comprehensive Support Services: From registration and licensing to ongoing operational support, companies in the DAO Freezone benefit from a range of services designed to streamline business processes and foster growth.
• Networking Opportunities: Being part of a vibrant community of businesses and innovators provides ample opportunities for collaboration, partnership, and networking, which can lead to new ventures and expansions.

These benefits make the DAO Freezone an attractive destination for entrepreneurs and companies looking to leverage advanced technologies and favourable business conditions in a dynamic economic environment.

Types of Companies That Can Be Incorporated in DAO Freezone

In the DAO Freezone, businesses can incorporate the following types of companies:

Company Limited by Shares

This is a common corporate structure in which each shareholder's liability is limited to the amount invested in the company. Such companies are suitable for businesses that plan to raise capital by issuing shares.

Company Limited by Guarantee

Unlike companies limited by shares, these do not have share capital. Instead, they are supported by members who act as guarantors rather than shareholders. This structure is typically utilized by non-profit organizations, clubs, or societies where the members guarantee to cover potential debts or liabilities.

Branch

A branch office operates as an extension of its parent company and is not a separate legal entity. It carries out business activities under the name and corporate structure of the parent company. Branches are ideal for foreign firms looking to expand their presence without forming a separate legal entity in the Freezone.

Business License  in RAK DAO Free Zone

RAK DAO offers specialized licenses tailored to companies and individuals within the Web3 and non-regulated digital assets sectors. Here's a brief overview of the types of licenses available:

• Standard Company: This license is suitable for entrepreneurs looking to establish a new company, branch, or subsidiary within the RAK DAO Free Zone. It is designed to foster innovation, collaboration, and growth within a supportive ecosystem.
• Freelance Permit: This is ideal for individuals embarking on a career in the virtual assets sector. The Freelance Permit simplifies the process of setting up as a freelance professional, providing the flexibility to work independently and the opportunity to obtain a UAE residence visa.
• Remote Company: This license allows for the operation of a company from anywhere in the world, offering unparalleled flexibility for businesses focused on Web3 ventures. It eliminates geographical limitations, enabling entrepreneurs to explore new markets and opportunities remotely.

These licensing options cater to a range of business needs, from individual freelancers to established companies looking to innovate within the digital and virtual assets space

Business Activities in  DAO Freezone

In RAK DAO, a free zone tailored specifically for cutting-edge Web3 and virtual asset activities, businesses can engage in a diverse array of innovative activities. Here are the categories available for business setup:

Documents Required  for DAO Free Zone

The Following documents are required for DAO Freezone Company Setup:

For Corporate Shareholders:

• Certificate of Registration 
• Incumbency Certificate 
• Valid Trade License (if applicable) 
• Memorandum and Articles of Association 
• Board/Shareholders Resolution 

For Individual Shareholders (including General Manager, Director, Secretary, UBO, Nominees, Trustees):

• Valid Passport Copy
• Copy of Residence Visa (for UAE residents) or entry stamp
• Copy of Emirates ID
• Business Plan
• Power of Attorney (if applicable)
• Proof of Address (if applicable)

Procedure for Company Registration in RAK DAO Free Zone

Registering a company in RAK (Ras Al Khaimah) DAO (Decentralized Autonomous Organization) Free Zone involves several steps. Here's a general procedure:

• Select Business Activity: Determine the primary business activity of your company. Ensure it aligns with the permissible activities allowed by DAFZA.
• Choose Company Structure: Decide on the suitable company structure for your business.
• Choose Trade Name: Select a unique and appropriate trade name for your company. Ensure it complies with DAO Freezone naming regulations and is not already in use.
• Apply for Business License: Submit an application for the desired business license to DAFZA. Include all required documents. Provide comprehensive details about the company, including.
• Registered Office Address: The official address for company correspondence.
• Share Capital: Minimum required capital as specified by the DAC regulations.
• Nominal Value of Shares: Define the nominal value per share.
• Stakeholder Details: List full names, nationalities, and addresses of:
• Shareholders
• Ultimate Beneficial Owners (UBOs)
• First Directors or Manager
• Company Specifications
• Shareholder Limits: Determine if the company will have one or multiple shareholders. Companies can have up to 50 shareholders, while Public Limited Companies (PLCs) can have more, all subject to Registrar approval.
• Special Purpose Vehicles: If forming a Special Purpose Vehicle (SPV), ensure to indicate this clearly in the application as it affects regulatory and reporting requirements.
• Approval Process: DAO will review your application and documents. Upon approval, you will receive an initial approval letter.
• Office Space: Choose the type and size of office space required for your business activities within DAO. This is mandatory for company registration.
• Draft Memorandum of Association (MoA): Prepare the MoA in English, ensuring it includes all regulatory required details. It should be divided into numbered sections for clarity. Include governance structures and any additional clauses shareholders wish to incorporate, provided they do not contravene existing laws. Consider adopting the Standard Memorandum of Association provided by the Authority, wholly or partially, to ensure compliance.

 Registrar Review and Approval

• Screening Process: The Registrar reviews all application materials and the MoA to ensure compliance with regulatory standards.
• Approval or Rejection: The Authority has the right to approve or reject the application without the obligation to provide reasons. This decision is final and not subject to appeal.

Registration Confirmation

• Certificate of Incorporation: Upon approval, the Registrar will issue a certificate of incorporation and a trade license detailing permitted business activities.
• Company Registration Number: The company will also be assigned a unique registration number.
• Legal Entity Status: The company becomes a corporate body capable of exercising all functions of an incorporated entity.

Post-Registration Requirements

• Visa Processing: If you require visas for yourself or your employees, submit the necessary documents to DAO Freezone for visa processing.
• Bank Account Opening: Open a corporate bank account in a UAE bank of your choice. Submit the required documents, including your company's trade license and registration documents.

After obtaining all necessary approvals and licenses, you can commence your business operations in DAO Freezone.

Streamline Your Business Setup in DAO Freezone with Filings.ae !

Are you looking to establish your business in the DAO Freezone? Filings.ae is here to assist you every step of the way. Our experts specialize in navigating the complexities of setting up businesses in the DAO Freezone, offering tailored guidance from initial consultation to finalizing your trade license. Whether launching a startup or expanding an existing enterprise, Filings.ae provides comprehensive support to ensure your business setup is seamless and compliant with local regulations. 

Ready to Launch Your Business in DAO Freezone? Contact our Experts Today!