How to start Web3 Business in RAK DAO?

How to start Web3 Business in RAK DAO?
July 3, 2024

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The UAE’s emirate of Ras Al Khaimah is growing into a business destination, by following Dubai and Abu Dhabi. Ras Al Khaimah Digital Assets Oasis (RAK DAO) free zone is attracting global attention for FinTech and blockchain sectors. You can start Web3 business in RAK DAO to tap into the potential of virtual assets in 2024.

Many countries struggle to implement robust legislation for regulating virtual assets like cryptocurrencies. However, the UAE is among the countries who are early adopters of these technologies. The launch of RAK DAO is a significant moment in the transformation of the UAE.

RAK DAO offers entrepreneurs access to robust regulations, excellent infrastructure, and all services under one roof. The move towards Web3 technology is going mainstream with Dubai showcasing advance-level digital experiences. Etihad Airways’ releasing of Mission Impossible Livery tokens is another step in this direction.

Registration Process of Web3 Company in RAK DAO

The process of setting up a virtual assets business in RAK DAO can get challenging for foreign investors. However, professional business setup consultants can simplify the whole procedure. The steps to start Web3 business in RAK DAO are as follows.

  • Prepare your business plan and other documents.
  • Choose the legal structure of your company.
  • Pick a suitable name for your Web3 business in RAK DAO.
  • Select a suitable option from Freelance Permit, Digital Nomads License, and Standard Company.
  • Get your initial approval from the regulatory authority.
  • Draft your articles of association (AoA) detailing the shareholder information.
  • Make the memorandum of association (MoA) if necessary.
  • Find an appropriate office location and sign a tenancy agreement.
  • Submit the application form with legal paperwork and pay the fees.
  • RAK DAO authority will review the application and accompanying documents.
  • You will obtain the Web3 license after the approval.

Necessary Documents to get Web3 License in RAK DAO

UAE’s focus on blockchain technology for customer engagement is driving the digital landscape in the country. The government support is empowering global entrepreneurs to establish their Web3 firms in the UAE. RAK DAO requires submission of these documents for Web3 company incorporation.

  • Business Plan
  • Initial NOC from RAK DAO authority
  • Memorandum of Association (MoA)
  • Articles of Association (AoA)
  • Certificate of Registration
  • Resolution from the Board or Shareholders
  • Incumbency Certificate
  • Valid Trade License

Permitted Business Activities in RAK DAO

For starting a company in RAK DAO, you need to understand the permissible business activities by the free zone authority. RAK DAO license is available for activities including Web3 consultancy, AI, meta-verse, NFT consulting, Web3 accelerator, blockchain, cyber-security, VR/AR, etc. Other business activities like programming, technology services, software development, gaming/eGaming, management services, and accounting are also up for selection.

Benefits of incorporating Web3 Firm in RAK DAO

International investors can avail these fabulous advantages by forming business in RAK DAO.

  • 100% Foreign Ownership and Profit Repatriation
  • Tech-enabled Work-spaces
  • Extensive Professional Services
  • Innovation and Growth
  • Cyber-security for Digital Transactions
  • Zero Corporate and Income Tax

Now we briefly look upon the perks of setting up business in RAK DAO.

100% Foreign Ownership and Profit Repatriation

RAK DAO free zone offers 100% foreign ownership, and full repatriation of profits. This makes it an ideal location for company formation for Web3, virtual assets and relative sectors. Moreover, it enables expatriate business leaders to easily own and run ventures without a local partner in Ras Al Khaimah.

Tech-enabled Work-spaces

RAK DAO delivers modern facilities and infrastructure, including tech-enabled work-spaces. Various sizes of workplaces, meeting rooms, work cafes, and event spaces, make business operations more efficient and hassle-free. The technology-driven work environment is making Ras Al Khaimah a preferable hub for digital businesses.

Extensive Professional Services

Ras Al Khaimah Digital Assets Oasis houses a network of top-tier professional services providers. For instance, financial institutions, tax auditing, business consulting, law advisory, visa consultancy, etc. Common companies, special-purpose businesses, and general public can utilize these professional services for fulfilling their needs.

Innovation and Growth

RAK DAO presents a dynamic environment for innovation and growth. It encourages companies to adapt and thrive in the rapidly evolving digital asset and blockchain landscape. By fostering innovation, RAK DAO is showcasing advancement in the rapidly growing digital economy.

Cyber-security for Digital Transactions

The regulatory framework of Ras Al Khaimah ensures proper cyber-security and compliance. Blockchain uses smart contracts for providing transparent environment for creating, issuing, and managing digital assets. RAK DAO allows users to generate tokens, establish governance structures, and conduct transactions with confidence and transparency.

Zero Corporate and Income Tax

RAK DAO enables foreign owners to enjoy the zero corporate tax. Also, the freelancers are subject to 0% income tax. It is encouraging the digital nomad culture in Ras Al Khaimah.

Prospects of Business Formation in RAK DAO

The unique platform of RAK DAO assists businesses in venturing into new technology sectors. For example, Web3, meta-verse, blockchain, NFTs, FinTech, digital wallets, virtual money, DApps, etc. RAK DAO provides control over business operations, financial compliance, and special tax incentives.

Initially, businesses focus on non-monetary aspects, but they may eventually incorporate money-related activities. RAK DAO is developing a “Mall of the Metaverse” for shopping and entertainment. Accordingly, it is actively spreading the Web3 technology in Ras Al Khaimah.

Etihad Airways (one of the national airline of the UAE) is proudly embracing the Web3 technology. It is utilizing NFTs to enhance customer experience by offering unique designs on their planes. Likewise, it is using the blockchain technology to enhance the excitement of flying.

Conclusion

RAK Digital Assets Oasis is a prime location for companies and individuals taking interest in digital money and cryptocurrencies. It presents excellent facilities, rules, and facilities that support businesses and adhere to international regulations. The commitment of RAK DAO to technology is creating a conducive environment for future growth.

Expert business consultants like KWS ME can assist foreign investors in starting a Web3 business in RAK DAO. They offer personalized help, including company registration, financial management, and adherence to rules. Their professional team provides trustworthy advice at every step of the business journey in the UAE.

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