Proposal for RAK DAO Entity Formation

[Jerry]

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

1. 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.
2. 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

1. Entity operational within 14 days of approval.
2. Secure UAE corporate bank account within 60 days.
3. 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

1. 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

[sanderrrrr]

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?

[Selqui]

@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.