Ras Al Khaimah's tech free zone, formerly RAK DAO: a real operating-company base with residence visas attached, and a tax rate that depends on how you run it.
Innovation City is the Ras Al Khaimah free zone that used to be RAK Digital Assets Oasis (RAK DAO). It was rebranded in September 2025 and widened from digital assets to five sectors: Web3, AI, gaming and iGaming, robotics, and healthtech [1][2]. Third-party formation guides list three legal forms: company limited by shares, company limited by guarantee, and branch [6][7]. Foreign founders can own 100% and can incorporate remotely, though some later steps (visa biometrics, bank onboarding) need a UAE visit [5][6]. What it does not do is license exchanges, custody or brokerage; those need federal approval [5][8]. And on tax, a free zone licence is not a 0% switch: the 0% rate only applies to a Qualifying Free Zone Person on qualifying income [9][10].
Four things that set Innovation City apart from a generic UAE free zone company.
The zone started as the world's first free zone for virtual-asset businesses and now runs five sector pillars, with Web3 and digital assets still one of them [1][2][5]. For healthtech the licence covers technology development, not clinical services [8].
No local sponsor or UAE partner is required, and incorporation can be done without travelling. A UAE visit is needed later for visa biometrics or bank onboarding [5][6].
Both are UAE free zone vehicles Otonomos sells. They solve different problems.
| Innovation City company | ADGM Foundation | |
|---|---|---|
| Legal form | Company limited by shares or guarantee, or branch [6][7] | Hybrid between a company and a trust; no shareholders or members [14] |
| Who runs it | Shareholder(s) and manager; nominee options available [13] | Council of at least two members [14] |
| Residence visas in the Starter Kit | Yes, 2 Visa Standard Package [13] | None listed [14] |
| Corporate tax | Federal regime; 0% only for a Qualifying Free Zone Person on qualifying income [9][10] | Same federal regime [9][10] |
| Otonomos Starter Kit | $21,724 [13] | $9,000 [14] |
| Best known for | Web3, AI and gaming operating companies [1][2] | DAO-ready foundations and holding structures [14] |
Rule of thumb: Innovation City suits a team that wants an operating company with residence visas; the ADGM Foundation suits a project that wants a shareholder-less wrapper. Both sit inside the same UAE federal corporate tax regime.
The law as published, not tax advice. Check your facts with an adviser before relying on any of it.
UAE corporate tax is 0% on taxable income up to AED 375,000 and 9% above it [11][13]. Free zone persons can get 0% on qualifying income only as a Qualifying Free Zone Person, which requires, among other things, adequate substance in the free zone, qualifying income, arm's-length dealings with transfer pricing documentation, audited financial statements, and non-qualifying revenue under the lower of AED 5,000,000 or 5% of revenue. Fail a condition and QFZP status is lost for that tax period and the next four [9]. Every free zone person must register for corporate tax, QFZP or not [10].
The UAE's separate Economic Substance Regulations were discontinued for financial years ending after 31 December 2022, so there is no annual ES notification any more [12]. The QFZP test still asks for adequate substance in the free zone [9][12], so a structure with no real assets, people or spend there may not qualify.
Visa quotas are tied to the licence package and the type of office or desk, and published figures vary between guides [6][7][8]. Residence visa issuance, Emirates ID and biometrics need you physically in the UAE [8]. Otonomos's Starter Kit includes two visas, extra allocations are $500 each, and the order-page residency visa is valid for 2 years [13].
A free zone licence does not guarantee a bank account: banks run their own KYC, want clear funding sources and revenue logic, and most want at least one in-person meeting [6][8]. Otonomos offers a UAE fiat bank account on a best-effort basis and requires a Dubai-resident shareholder [13].
What Otonomos charges to set one up. Live prices, read from the order page on 19 October 2026.
| STARTER KIT (MANDATORY BASE) | |
|---|---|
| 2 Visa Standard Package (one-time) | included |
| Incorporation (one-time) | included |
| Government Fee (annual) | included |
| Establishment Card (annual) | included |
| Registered Agent and Local Address (annual) | included |
| Total | $21,724 |
| INNOVATION CITY PRIVACY PACKAGE | |
|---|---|
| Nominee Shareholder (annual) | bundled |
| Nominee Manager (annual) | bundled |
| Total | $26,775 |
| POPULAR ADD-ONS | |
|---|---|
| UAE Residency Visa, Normal (valid 2 years) | $3,669 |
| Per Visa Allocation | $500 |
| Corporate Tax Registration | $2,550 |
| Nominee Shareholder (annual) | $17,000 |
| Nominee Manager (annual) | $9,775 |
| Fiat bank account in the UAE (best effort; Dubai-resident shareholder required) | $5,100 |
| Crypto Exchange account opening | $1,200 |
| Skyline Digital OTC account opening | $1,200 |
| Inside country status change | $745 |
The order page has the live pricing, add-ons and checkout. This page was just the homework.