RAK Digital Assets Oasis (RAK DAO) is the UAE's first Web3-focused economic free zone. Launched in 2023 in the emirate of Ras Al Khaimah it is merging as a global hub for the blockchain and digital assets ecosystem. By setting up in RAK DAO, you'll benefit from a supportive legal framework and access to a growing ecosystem of technology and finance partners.

A DAO legal wrapper is a legal structure that provides a decentralized autonomous organization (DAO) with a recognized legal personality, enabling it to enter contracts, own assets, and interact with off-chain entities. Our legal wrapper for DAOs is titled DAO Association and the legal form is that of a ‘Company Limited by Guarantee’.

A legal wrapper is essential for giving your DAO legitimacy in the eyes of the off-chain entities, such as regulators, customer, members and tax authorities. Without one, your DAO may not be able to enter legally binding contracts, own property, or comply with regulatory requirements. A legal wrapper does also limit the DAO’s founders, contributors and members personal liability and facilitates off-chain operations, such as opening bank accounts and signing contracts.

A DAO Association can engage in a range of lawful business activity that aligns with its trade license issued by RAK DAO. It can generate revenue, manage assets, and conduct commercial activities, but profits cannot be distributed to members, as DAO Associations are structured as non-profit entities.

The requirements are very straightforward and outlined in this Guide.

At least two Founding Members are required to establish the DAO Association, and each needs to sign a Guarantee, the amount is at their discretion and so is the currency, be it fiat or crypto. This Guarantee secures the debts and obligations of the DAO Association, and the liability of the Founding Members is limited to the amount of this Guarantee.

Yes, your DAO can issue tokens, including Governance Tokens, but certain regulatory requirements must be met. These include registering a White Paper with the Registrar, conducting a cybersecurity audit of the smart contracts, and obtaining a legal opinion on whether the tokens constitute a security token.

If your DAO plans to carry out regulated Virtual Asset (VA) activities, you will need to obtain a Virtual Asset Service Provider (VASP) license from the Securities and Commodities Authority, as these activities are regulated at the UAE federal level.

Yes, you can establish a DAO in RAK DAO even if you are located outside of the UAE. RAK DAO allows international founders to register their DAO associations remotely, while making use of an agent registered in the UAE. This structure enables global businesses to benefit from its regime without needing the physical presence of one of your DAO’s members in the UAE.

The setup process for a DAO in RAK DAO is designed to be efficient. While timelines can vary based on the complexity of the DAO and the completeness of your application, the registration process typically takes a few days, assuming all necessary documentation is in place and regulatory requirements are met.

The incorporation and annual renewal fees are $4,500 for Startup DAOs and $9,500 for Alpha DAOs.

No minimum capital is required. This makes it accessible for startups looking to establish their DAO without significant initial financial investment.

Yes, after your DAO is legally established and registered in RAK DAO, you can open a corporate bank account in the UAE. However, keep in mind that the specific requirements and available banking services may vary depending on the nature of your DAO’s activities and the bank’s policies toward digital asset businesses.

To begin, you'll need to prepare the required documentation, including a Memorandum of Association and a Constitution that outlines governance, and member rights. Once ready, submit your application to the RAK DAO Authority for registration. Click here to start the process.