Proposal for RAK DAO Entity Formation
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Abstract
This proposal seeks DAO approval to establish a legal entity under Ras Al Khaimah’s (RAK DAO) Startup Package, enabling regulatory compliance, institutional partnerships, and operational scalability for our crypto RWA project at a total initial cost of 9,435 AED.
Motivation
- Regulatory Necessity:
- Tokenized real-world assets require licensed entities for banking, custody, and institutional collaboration.
- 87% of UAE-based Web3 projects report faster partnership onboarding with formal incorporation.
- Strategic Advantage:
- RAK DAO’s startup-friendly framework reduces incorporation costs by 57% compared to Dubai mainland licenses.
- Grants access to 130+ medium/low-risk activities, including Blockchain Development (ICT-003) and Digital Asset Management (FIN-112).
Specification
Overview
- Package: Startup Package (3 Visas, 2-Year License)
- Activities: 4 approved codes (2 primary, 2 secondary)
- Compliance: Medium-risk tier alignment
Type of Proposal: Treasury Proposal
- Requires funding from DAO treasury for entity setup.
Scope
- Included:
- License issuance (RAK DAO)
- eChannel banking integration
- Excluded:
- 3 Employee visas
- Golden Visa eligibility (requires 3-year license)
Success Criteria
- Entity operational within 14 days of approval.
- Secure UAE corporate bank account within 60 days.
- Onboard 2+ institutional partners by Q3 2025.
Timeline/Budget
Phase Timeline Cost (AED) DAO Approval Day 0-15 - License Submission Day 15-30 17,485 (Package) Compliance Fees Day 31-40 1,950 Total 19,435 Ongoing Costs:
- Annual Visa Renewal: [8,000 AED] (Year 2)
- Activity Expansion: [2,000 AED] per additional code
Notes
- Under the UAE legal system, directors have the authority to override unlawful DAO decisions in specific circumstances.
References
RAK DAO - Company Presentation.pdf
RAK DAO Startup Package.pdf - Regulatory Necessity:
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Will anyone of Continuum also physically move to the UAE, or is it merely a (more of less virtual) company listing that benefits from UAE's local rules & taxes?
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@sanderrrrr No need for any of us to move there (though RAK does look beautiful). We would need to secure a crypto trading license when we launch our token and the Middle East and especially the UAE could well be where we grow our business fastest initially, so it is nice that we have the option of making this a base, with people possible in the future.
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It got a bit worse but is manageable. They are trying to streamline the processes again, @avgCrypto —nothing to worry about. Overall, the proposal is fine.
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Thats good for the project lets finalize this stepps and get it going!
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Congratulations to Jerry and the other contributors !!
I agree with this proposal. Establishing a legal entity under the RAK DAO Startup Package offers a solid foundation
The decentralization of the project is essential for maintaining its core principles of transparency, and community-driven decision-making. However, balancing this with regulation is equally crucial to ensure legal compliance allowing solicitors to take legal charge over assets and accredited valuers undertaking valuations of these different assets is essential to give investors In tokenised RWA confidence to invest
Looking forward to seeing this initiative come to life and contribute to the project’s long-term growth!
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I would like to include application for the Dubai DFSA Tokenisation Regulatory Sandbox. See the details here https://www.dfsa.ae/innovation/tokenisation-regulatory-sandbox
If ContinuumDAO is successful in its application, we would need to apply for a Dubai license in addition to the RAKDAO license, but I think that if we can afford it, it would be very beneficial
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S Selqui moved this topic from Ideas & Suggestions
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S Selqui locked this topic