Welcome to the DAO Legal Guide focusing on the Ras Al Khaimah (RAK) DAO Associations, an integral segment of the Pontinova Global Top 100 DAO Legal Report.
Delve into this comprehensive guide to gain insights into the legal set up requirements and the regulatory compliance framework surrounding RAK DAO Associations. Explore the other jurisdictions to understand why they excel at fostering DAO initiatives and navigating the intricacies of decentralized governance structures.
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Legal Requirements
Legal
DAO Associations are incorporated as Companies Limited by Guarantee under the DAO Association Regime (DARe).
Constitution
Memorandum of Association, Constitution, business plan, white paper, tokenomics documents, legal opinion and other documents showing viability and legality, two Founding Members (max. ten); Council Members; Token Holders or General Members.
Regulatory Board
RAK Digital Assets Oasis Authority
Administration, Management
Founding Members, Council Members, Token Holders or General Members. A bank account is not required. A RAK DAO can be 100% foreign owned.
Reporting, Accounting, Auditing
A DAO Association is required to prepare and file with the Registrar its audited Annual Accounts. Within four weeks from the end of its financial year, DAO Associations must submit an Annual Return. Incorporation and annual re-newal of a Startup DAO will be subject to a 4,500 USD fee, while incorporation and annual renewal of an Alpha DAO will be subject to a 9,500 USD fee.
Taxation
0% of Corporate Income Tax.
Regulatory Compliance Framework
The RAK Digital Assets Oasis, established under Law No. (2) of 2023, is a Free Zone with a regulatory framework known as the DAO Association Regime. Within this regime, DAOs can be registered as either a Startup DAO Association or an Alpha DAO Association, each with different fees and limitations. A Startup DAO Association has a registration and annual fee of USD 4,500 and is limited to DAOs with a treasury of under USD 1 million and fewer than 100 members. Startup DAOs are also restricted from con-ducting public token sales. The Alpha DAO Association, by contrast, re-quires a USD 9,500 registration and annual fee but allows for an unrestrict-ed treasury size and membership count. Alpha DAOs may conduct public token sales and can create Sub DAO Associations, which enable the sepa-ration of assets and liabilities within the DAO structure.
Federal Cabinet Resolution No. (111) of 2022 Concerning the Regula-tion of Virtual Assets and their Service Providers
[A, P / VA S]
Applicable, if virtual asset services are provided.
DAO Association Regulations [VA I]
Applicable for token issuing. A white paper, legal opinion, and cyberse-curity audit of the Smart Contracts need to be provided to the registrar.
Federal Anti-Money Laundering and Countering the Financing of Terrorism Laws [P, A / VA S]
Applicable to all VASPs operating within RAK Digital Assets Oasis..
Foreign Account Tax Compliance Act and Common Reporting Standard Regulations [P, A / VA S]
Applicable to all VASPs operating within RAK Digital Assets Oasis..
Check the other DAO Jurisdictions:
• Switzerland - Foundation
• Switzerland - Association
• Lithuania - Private Limited Liability Company
• Marshall Islands - DAO (Non-Profit) Limited Liability Company
• Cayman Islands - Foundation
• British Virgin Islands - Limited Liability Company
• Liechtenstein - Foundation
• Abu Dhabi ADGM - Distributed Ledger Technology Foundation
