How to Set Up a Company in Innovation City Free Zone

Setting up a company in a UAE free zone is a straightforward process once you understand how the system works. Innovation City Free Zone Authority in Ras Al Khaimah has made its registration process faster and more accessible than most other free zones in the country. For founders in digital assets, blockchain, Web3, AI and technology, it is one of the most practical entry points into the UAE market.

This guide walks through the complete setup process, from choosing your licence package to receiving your trade licence and getting your company operational. It covers documents, timelines, costs, visas, banking, renewals, and how Innovation City compares to other UAE free zones.

What is Innovation City Free Zone Authority?

Innovation City Free Zone Authority is Ras Al Khaimah’s dedicated free zone for technology, digital asset and innovation-driven companies. It launched in 2023 under the name RAK Digital Assets Oasis and was rebranded to Innovation City in September 2025, reflecting a broader mandate covering artificial intelligence, robotics, gaming and healthtech alongside digital assets and blockchain.

The free zone operates under the regulatory framework of Ras Al Khaimah and issues licences directly for the activities it supports. It was designed from the outset for founders in emerging technology sectors, and its administrative systems, including onboarding and licensing, are built on AI-powered and blockchain-based infrastructure.

Within its first year of operations, nearly 400 companies were licensed. The free zone now supports over 1,500 business activities across its sector focus areas, making it one of the most activity-rich free zones in the UAE for technology-oriented businesses.

Innovation City vs. RAKEZ vs. IFZA: Which UAE Free Zone Fits Your Business?

Before diving into the setup steps, it’s worth knowing how Innovation City stacks up against the two free zones founders compare it to most often.

Bottom line: Choose Innovation City if your business is in tech, AI, or digital assets and you want sector-specific credibility with banks and investors. Choose RAKEZ if you need physical premises, warehousing, or a general trading licence. Choose IFZA if you want the broadest activity list and are not sector-specific.

(Figures are government/package fees as published by each authority at the time of writing; confirm current rates before budgeting, as free zone fee schedules are revised periodically.)

Step 1: Decide What Your Company Will Do

Before you apply, you need to know what activities your company will conduct. Innovation City supports over 1,500 business activities and allows you to combine multiple activities under a single licence. This matters because your activity list determines which package is appropriate, what documents may be required and how you present the business to banks during account opening.

The most commonly selected activities by IncHub clients include proprietary trading in digital and virtual assets, blockchain and distributed ledger technology development, smart contract development, NFT platforms, Web3 infrastructure, DAO operations, AI product development, AI agent development, RWA tokenisation, SaaS platforms and technology consulting.

If your business model covers multiple categories, list them all at the outset. Adding activities after incorporation is possible but involves an amendment process. Getting the activity list right from the start saves time and administrative cost later.

What Is a DAO Structure, and Why Does Innovation City Offer It?

Innovation City is one of a small number of jurisdictions worldwide with a legal framework specifically for Decentralised Autonomous Organisations (DAOs). In practice, this means a DAO, an organisation governed by token-holder voting and smart contracts rather than a traditional board, can register as a recognised legal entity, with the free zone’s blockchain-based registry serving as the on-chain record of its governance rules, membership and decisions.

This matters for founders building DAO-governed protocols, treasuries, or investment vehicles, because most jurisdictions still treat a DAO as an unincorporated association with no liability protection for its members. An Innovation City DAO registration gives the organisation a recognised legal wrapper, a bank-facing corporate identity, and clearer accountability for contracts, tax and compliance, while still allowing governance to run through smart contracts and token voting.

If your business activity list includes “DAO operations,” IncHub can advise on whether a standard FZC/FZE structure or a dedicated DAO registration is more appropriate for your governance model.

Step 2: Choose Your Licence Package

Innovation City offers four annual licence packages. The right package depends on how many shareholders the company has, how many UAE residence visas you need and whether you want a shared or dedicated desk at the Innovation City Hub.

Idea Package: AED 6,600 per year The Idea package is the entry-level option. It supports multiple shareholders and includes up to 10 standard or custom activities. There is no visa included, which makes it suitable for founders who do not need UAE residency themselves or for companies being set up as a holding or management vehicle. It includes shared desk access at Innovation City HQ.

Seed Package: AED 13,200 per year The Seed package is designed for sole founders. It is restricted to one shareholder and includes one visa. Critically, it allows one custom or premium activity, chosen from over 200 technology and innovation-related options. This is the appropriate package for a solo founder who needs UAE residency and wants to licence a specific premium activity such as proprietary trading.

Startup Package: AED 15,400 per year The Startup package supports multiple shareholders and includes one visa, with a cap of four visas available in total. It includes 10 standard or custom activities and shared desk access. This is the most commonly used package for small founding teams.

Growth Package: AED 22,550 per year The Growth package matches the Startup package in activity and visa allowances but upgrades the workspace to a dedicated desk at the Innovation City Hub. This is appropriate for companies that need a consistent physical presence in the free zone or that want their team members to have a permanent workstation.

All packages include access to the Innovation City HQ event space and content creator studio, and unlimited refreshments at the Hub. Additional visas beyond the included quota are available at an extra cost per visa.

Step 3: Choose Your Company Name

Your company name must be reserved before the application is submitted. Innovation City follows standard UAE free zone naming conventions. The name must not include words that suggest a government or regulatory affiliation. Words like bank, insurance, national or government typically require additional approvals or are restricted.

The name can be in English, Arabic or a combination. Most international founders use an English name. The company will be registered as a Free Zone Company (FZC) for two or more shareholders or a Free Zone Establishment (FZE) for a sole shareholder. The legal suffix appears after the company name on all official documents.

IncHub runs a name check during the initial consultation and reserves the name with the free zone authority before the full application is submitted. Name reservation lapses if the application is not completed within the specified period, so it is done as close to the submission date as possible.

Step 4: Prepare Your Documents

The document requirements for a standard Innovation City application are minimal compared to most other jurisdictions. The following are required for all shareholders and directors:

• Passport copy, clear colour scan, valid for at least six months beyond the application date
• Passport-size photograph with white background
• Proof of residential address, typically a recent utility bill or bank statement dated within three months
• Specimen signature on a plain white sheet
• No Objection Certificate from current UAE employer if the applicant holds an existing UAE residence visa

For most standard applications, no notarisation or attestation is required. Applications involving certain nationalities or specific activity types may require additional documents. IncHub advises on any additional requirements before document collection begins.

Corporate shareholders, meaning companies rather than individuals as shareholders, require additional documentation including the parent company’s certificate of incorporation, memorandum and articles of association, and proof of the ultimate beneficial owner. These may require notarisation and attestation depending on the country of origin.

Step 5: Submit the Application

Once documents are ready and the name is reserved, IncHub submits the full application to Innovation City Free Zone Authority on your behalf. The application includes the completed registration forms, the activity list, the chosen package and the supporting documents for all shareholders and directors.

The process can be completed entirely remotely. You do not need to be in the UAE at the point of application. All forms can be signed electronically and documents sent digitally. Physical presence is only required at later stages for visa processing and bank account opening.

Innovation City uses an AI-powered onboarding system that processes applications efficiently. Once the application is submitted and fees are paid, the review and approval process runs quickly.

Step 6: Receive Your Licence

For standard applications, the trade licence is issued within 7 to 15 working days from the date of submission. You will receive a package of incorporation documents including the trade licence, certificate of registration, memorandum of association, and the company’s share certificate.

At this point the company legally exists. You can use the incorporation documents to open bank accounts, sign contracts, onboard clients and demonstrate your UAE legal entity status to counterparties. The company address is the registered address at Innovation City HQ.

Innovation City also issues each licensed entity a blockchain-based digital business identity. This is a cryptographically verifiable on-chain record of the company’s registration details, ownership and operational status. Counterparties can authenticate the entity directly without contacting the free zone authority, which simplifies due diligence processes with banks, investors and business partners.

Step 7: Process Your Visas

Once the licence is issued, visa applications can be submitted for the investors and employees covered by your package quota. The visa application process requires applicants to travel to the UAE and complete the following steps:

The visa process typically takes two to three weeks from the point of application. IncHub coordinates the full process, books the medical appointment and provides clear instructions for the UAE visit. Most founders can complete all visa-related steps in a single visit of one to two days.

Once the investor visa has been issued, the holder can apply for dependant visas for their spouse and children. There are minimum salary requirements for sponsoring dependants. IncHub advises on the appropriate structure before the visa applications are submitted.

Step 8: Open Your Business Bank Account

Bank account opening is the final major step before the company is fully operational. Innovation City Free Zone Authority works with banking partners including Zand, WIO Bank, RAKBANK, Ruya and AMINA Bank, and facilitates simultaneous banking setup during the incorporation process.

The bank account application requires the full set of incorporation documents plus a corporate profile that explains the business, its shareholders, its source of funds, its expected transaction volumes and its counterparty relationships. IncHub prepares this profile as part of the account opening support service.

Bank account approval is always subject to the bank’s internal KYB, AML and compliance review. Timelines vary from two weeks to six weeks depending on the bank and the complexity of the business. Having the corporate profile and supporting documents prepared correctly from the outset significantly improves both the speed and the outcome of the application.

Which Bank Fits Your Business Model?

Not all of Innovation City’s banking partners are equally suited to every activity type. As a general pattern (always confirm current appetite directly, as bank risk policies shift):

• Zand and WIO Bank: digital-first banks generally more comfortable with early-stage tech and SaaS businesses with straightforward revenue models.
• RAKBANK: an established retail and commercial bank with broader UAE branch presence, often preferred by founders who want in-person branch access.
• Ruya: positions itself around ethical and Islamic banking principles, relevant for founders who want Sharia-compliant banking structures.
• AMINA Bank: specialises in digital assets and crypto-native businesses, typically the most relevant option for token issuers, exchanges and proprietary trading entities, though onboarding requirements are correspondingly more detailed.

IncHub matches your activity type and shareholder profile to the bank most likely to approve the application, rather than applying to all five in parallel.

What Does It Actually Cost in Year One?

IncHub provides a complete cost breakdown at the start of the engagement, covering all foreseeable fees for the first year of operations. You will have a clear understanding of all applicable costs before the application is submitted.

Is Innovation City Free Zone Right for You?

Innovation City is a strong fit for technology, AI, blockchain and digital asset founders, but it isn’t the right structure for every business. Consider a different free zone or mainland licence if:

• You need direct mainland trading access (retail, F&B, or any business selling directly to UAE consumers without a distributor): a free zone licence alone won’t cover this, so you’d need a mainland licence or agency arrangement.
• Your business needs physical industrial infrastructure: warehousing, manufacturing floor space, or logistics facilities. RAKEZ is built for this; Innovation City is not.
• Your activity isn’t on the 1,500+ list: general trading, F&B, healthcare provision (as opposed to healthtech development), or construction typically fall outside scope.
• You need more than four visas from a single small-team package: the Startup and Growth packages cap at four, so larger headcounts need a different package tier or a different zone entirely.

If any of these apply, IncHub can advise on whether a mainland licence, a different free zone, or a dual-structure setup (holding company in Innovation City plus an operating mainland entity) is the better fit.

After Incorporation: Renewals, Changes and Closing the Company

Annual renewal. Innovation City licences are issued for one year and must be renewed before expiry. Renewal generally carries the same package fee as the original licence, plus any applicable late-renewal penalty if missed. Visas linked to a lapsed licence are also affected, so renewal timing should be planned at least 30 days ahead of expiry.

Amending your activity list. Adding or changing business activities after incorporation is a standard amendment process with its own fee, typically processed faster than a fresh incorporation.

Adding shareholders or visas. Changes to shareholding structure or additional visa allocations beyond your package quota can be processed as amendments, subject to the free zone’s current fee schedule.

Closing the company (de-registration). If you need to wind down the entity, de-registration involves settling outstanding liabilities, cancelling visas and Emirates IDs, closing the corporate bank account, and obtaining final clearance from the free zone authority. IncHub manages this process end-to-end, including liaison with immigration and banking partners.

Frequently Asked Questions