Set up in Ras Al Khaimah Digital Assets Oasis — the world's first free zone dedicated to digital and virtual assets, established under RAK Law No. 2 of 2023.
RAK Digital Assets Oasis (RAK DAO) was established under Ras Al Khaimah Law No. 2 of 2023 as the world's first free zone dedicated solely to digital and virtual asset activities. It licensed more than 400 companies in its first year. RAK DAO is a business-registration authority, not a financial regulator; regulated services require separate SCA or VARA approval.
RAK Digital Assets Oasis was established under Ras Al Khaimah Law No. 2 of 2023 as the world's first free zone dedicated solely to digital and virtual asset activities. The zone licensed more than 400 companies in its first year of operation — including blockchain start-ups, Web3 protocols, NFT platforms, decentralised application teams and crypto-native businesses — drawn by the combination of a clear registration framework, crypto-friendly payments and the UAE's broader virtual-asset regulatory landscape.
An important distinction: RAK DAO is a business-registration authority, not a financial regulator. It licenses non-regulated digital-asset activities — protocol building, software development, advisory and proprietary trading — in the same way that other UAE free zones issue commercial licences. Activities that fall under regulated virtual-asset services — including exchanges, custody and brokerage — require separate approval from the UAE Securities and Commodities Authority (SCA) or Dubai's Virtual Assets Regulatory Authority (VARA). Avyanco assesses where each business sits across this dual landscape before licensing begins.
RAK Digital Assets Oasis (RAK DAO) was established under Ras Al Khaimah Law No. 2 of 2023 as the world's first free zone specifically created for digital-asset and virtual-asset businesses. It is purpose-built for Web3 founders, blockchain protocol teams, NFT platforms, decentralised-application businesses, and crypto-native ventures. Critical to understand: RAK DAO is a registration authority, not a financial regulator — regulated activities (exchanges, custody) still require separate VARA or SCA approval.
Established under RAK Law No. 2/2023 — the first free zone in the world purpose-built for digital and virtual asset activities. No retrofitted legacy framework — the regulatory pathway was designed from a clean sheet around Web3 business needs.
Activity catalogue specifically includes blockchain protocol development, smart-contract engineering, NFT issuance, DAO governance services, metaverse infrastructure, and Web3 advisory. Activities that don't fit cleanly into traditional UAE free zone codes.
RAK DAO publishes explicit regulatory rulebooks for permitted activities — making the licensing pathway materially clearer than retrofitting Web3 businesses into traditional free zone activity codes elsewhere.
RAK DAO licence holders qualify for UAE residence visa sponsorship — material for international founders relocating physically to the UAE to be near customers and counterparties.
RAK DAO is a Ras Al Khaimah government strategic initiative — direct political-will backing from the Ruler's Court. Translates into faster turnaround on novel-activity approvals and dedicated stakeholder engagement.
RAK DAO operating costs sit materially below comparable Dubai zones (DIFC, DMCC Crypto Centre). The cost differential meaningfully extends Web3-venture runway in the pre-revenue and seed-funded stages.
RAK DAO issues five distinct licence categories tailored to the digital-asset ecosystem — from solo developers through to tech-led companies and proprietary trading firms.
Standard Company licences cover most Web3 start-ups, software firms and digital-asset advisory businesses; the Premium Licence is built around tech-led companies; the Digital Nomad Licence supports remote-first founders with a virtual-office model.
For prop-trading firms using their own capital across digital assets. The licence supports up to 8 visas and is designed for trading desks rather than client-facing exchanges.
Solo-practitioner route for individual builders, consultants, developers and advisors working across the Web3 and digital-asset ecosystem.
RAK DAO recognises two operating structures — covering new companies and branches of existing groups.
RAK DAO's standard structure. Limited-liability vehicle for solo founders, multi-shareholder partnerships and Web3 ventures incorporating in the UAE for the first time.
Branch of a UAE or overseas parent. Used by established Web3 groups, crypto-native firms and digital-asset operators extending into RAK DAO under the parent's name.
RAK DAO runs a fast, Web3-native onboarding process. Standard setups complete inside seven to ten working days.
Pick the licence category and confirm whether the activity is non-regulated (RAK DAO only) or whether it also needs separate VARA or SCA approval as a regulated virtual-asset service.
Submit the proposed company name through RAK DAO. UAE-wide naming rules apply.
Draft and prepare shareholder documents, the business plan and any required regulatory file — including activity scope, governance and AML framework where the business interacts with regulated services.
Submit the application through RAK DAO. Approval and payment can be settled in fiat or, uniquely among UAE free zones, in cryptocurrency.
RAK DAO issues the trade licence and corporate documents. Lease office or virtual office in line with the licence category.
Open a corporate bank account using the issued documents. Investor and employee visas are processed alongside Emirates ID and medicals.
Standard document set for individual shareholders, with a business plan typically required. Corporate shareholders need additional KYC documents.
RAK DAO pairs a Web3-native registration framework with the UAE's broader virtual-asset positioning — clear rules, crypto-friendly payments and access to a fast-growing ecosystem.
RAK DAO entities follow the standard UAE Free Zone Corporate Tax regime. Important caveat: where a RAK DAO entity carries on regulated activities (exchange, custody, brokerage), those activities require separate VARA or SCA approval — tax classification can hinge on which regulator covers the activity.
Corporate Tax at 9% above AED 375,000. RAK DAO entities can elect QFZP for 0% on Qualifying Income. Software development, qualifying intellectual property, and certain headquarters/qualifying services activities can qualify — but trading-in-digital-assets income typically does not qualify under the Qualifying Activities list (Ministerial Decision 265/2023) and is taxed at 9%.
Standard UAE VAT — 5% on taxable supplies, AED 375,000 mandatory registration threshold. Cryptocurrency transactions have specific VAT treatment under FTA published guidance — transfers of cryptocurrencies in their own right are generally outside VAT scope, but services performed in connection with crypto (advisory, custody, exchange) are typically taxable.
Sources & official references: Federal Decree-Law 47/2022 (Corporate Tax) · Cabinet Decision 100/2023 (QFZP) · Ministerial Decision 265/2023 (Qualifying activities) · Federal Decree-Law 8/2017 (VAT) · RAK Law No. 2 of 2023 (RAK DAO establishment) · VARA / SCA virtual-asset regulations
RAK DAO's member base is unapologetically Web3 — protocol teams, infrastructure builders, advisory firms and prop-trading desks.
Avyanco runs RAK DAO engagements end-to-end — from confirming the regulated/non-regulated split through to a banked, visa-ready entity registered for Corporate Tax and VAT.
We confirm whether the activity needs RAK DAO alone, or whether it also requires VARA or SCA approval as a regulated virtual-asset service — clear-eyed about the right combination.
Token-economics-friendly holding and ownership structures designed for digital-asset businesses and UAE Corporate Tax efficiency.
Business plan, governance and AML framework drafted to the standard RAK DAO and (where required) VARA / SCA will assess.
Introductions to UAE banks that actively onboard digital-asset entities — including the compliance file the bank's KYC will require.
Investor, partner and employee visas processed end-to-end with Emirates ID and medicals coordinated.
FTA registrations and ongoing filings — including QFZP eligibility assessment for the 0% qualifying-income rate.
Five partner-level advisors covering every leg of a RAK DAO setup — formation, regulatory scoping, tax and ongoing compliance.
Three things that come up in every RAK DAO engagement.
Live engagements with protocol teams, prop-trading desks, NFT platforms and Web3 advisors means we know which RAK DAO licence and which secondary regulator approval (VARA or SCA) actually applies.
Application, business plan, office, bank, visa and tax — handled by one team on one engagement letter.
We're explicit about which activities RAK DAO covers and which need a separate VASP licence — not best-case framing.
RAK DAO suits Web3 builders and digital-asset businesses. Other zones — DMCC and DIFC for regulated activities, IFZA or Meydan for non-Web3 SMEs — serve different ecosystems. Compare here.
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Read moreA slice of recent feedback from founders who set up their UAE companies through Avyanco.
I've used the services of Avyanco twice over the past 3 years for visa processing, and they have never failed to impress me.
Read more — Dominic Pinto's review on GoogleI had an excellent experience with Avyanco Business Setup Consultancy for both my company formation and family dependent visa process in the UAE.
Read more — Eder Schaphauser Ziomek's review on GoogleWe had an excellent experience working with this company for our ADGM company setup in Abu Dhabi.
Read more — Nikhil Nadanga's review on GoogleI have been dealing with Akshta for more than a year now and she has been very professional.
Read more — Sherif Ayub's review on GoogleIn so far as the emigration process can ever be made easy, Avyanco achieves exactly this.
Read more — Sheru George's review on GoogleWe are very satisfied with Avyanco's support for Nanasu Realty — especially across AML compliance, accounting, and company setup.
Read more — Purushottam Mukkundi's review on GoogleCommon questions about setting up in Ras Al Khaimah Digital Assets Oasis.
Content verified against the live Avyanco site and publicly verifiable secondary sources as of June 2026. The official RAK DAO About page was unreachable during compilation, so verification triangulated across multiple independent sources including the RAK Law No. 2 of 2023 references. Avyanco Business Consultancy LLC is independent of RAK DAO, the Government of Ras Al Khaimah, the UAE Securities and Commodities Authority and the Virtual Assets Regulatory Authority, not endorsed by any of them, and not affiliated with any UAE government agency.
Digital-asset regulation evolves rapidly across the UAE. The non-regulated / regulated split between RAK DAO, VARA and SCA — and Qualifying Free Zone Person treatment for digital-asset income — can change. Always confirm the current rules for your specific activity directly with RAK DAO, VARA, SCA and the Federal Tax Authority before acting on any fact on this page.
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Speak to an Avyanco partner about a RAK DAO licence scoped to your business — whether you're standing up a Web3 protocol, a digital-asset advisory, a prop-trading desk or a solo developer practice.
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