Innovation City Free Zone Authority
Innovation City is Ras Al Khaimah’s premium free zone built specifically for founders and operators in digital assets, blockchain, artificial intelligence, gaming and robotics. It is fast to set up, competitively priced and operates with a regulatory framework that gives technology companies room to build without the layers of approval that slow things down in other UAE jurisdictions.
licence issuance
What is Innovation City?
Innovation City started life in 2023 as RAK Digital Assets Oasis (RAK DAO), the world’s first free zone created exclusively for digital and virtual asset companies. Within 12 months, nearly 400 companies had been licensed. The projects ranged from early-stage Web3 startups to established international blockchain platforms using RAK as their compliant UAE base.
In September 2025, the Ras Al Khaimah government rebranded it to Innovation City, reflecting a broader mandate that now covers artificial intelligence, robotics, healthtech and gaming alongside digital assets. The free zone operates as a strategic engine for the emirate, combining startup-friendly flexibility with the institutional structure that banks, investors and counterparties require.
Today, Innovation City supports over 1,500 business activities. It uses AI-powered onboarding, blockchain-based licensing and a DAO Association framework that gives decentralised organisations full legal personality in the UAE for the first time anywhere in the world.
Who Sets Up in Innovation City?
Innovation City was built for founders who are building in the technology and digital economy, not for general trading or services businesses. The five main sectors the free zone serves are:
Web3 and Blockchain
Protocol developers, blockchain infrastructure teams, smart contract developers, DeFi projects, NFT platforms, DAO foundations and decentralised application builders. The free zone supports on-chain licensing, DAO-friendly activities and wallet-native operations. For protocol teams and DAO-governed projects, the DAO Association structure provides legal recognition and the ability to open bank accounts and enter contracts without departing from on-chain governance.
Proprietary Trading
Firms trading their own capital in cryptocurrency and digital assets. This is one of the most practical applications of the Innovation City licence. Because proprietary traders are deploying their own money and not managing client funds, they fall outside the Virtual Assets Regulatory Authority’s licensing requirements. The licence is issued directly by Innovation City, covering next-generation financial operations and algorithmic trading strategies.
Artificial Intelligence
AI product companies, machine learning infrastructure builders, AI agent developers and companies deploying intelligent automation. Innovation City describes its own AI infrastructure as enablement for builders to automate, accelerate and scale, and the free zone’s own administrative systems are AI-powered, which gives it a genuine operational understanding of what these companies need.
Gaming
Game studios, mobile gaming companies, Web3 gaming infrastructure builders and metaverse developers. The free zone provides access to licensing infrastructure, industry partners, events and global distribution networks relevant to the gaming sector.
Robotics and Healthtech
Robotics companies working on warehouse automation, autonomous systems, drones and industrial engineering can use RAK’s industrial zones and university pipelines for testing and deployment. Healthtech companies benefit from data partnerships, clinical networks and regional market access through the Innovation City ecosystem.
The key distinction is between trading on own capital and managing client funds. Companies trading their own capital in digital assets fall within Innovation City’s licensing framework and are issued a licence directly by the free zone authority. Setup typically completes in 7 to 15 working days.
1,500+ Business Activities: The Most Relevant
Innovation City supports more than 1,500 licensed business activities. Most founders combine multiple activities under a single licence, which lets the business evolve without restructuring. The activities that generate the most interest from IncHub clients include:
The breadth of the activity list matters practically. A founder building a protocol who later wants to add a token advisory service, an NFT marketplace function or an AI layer does not need a separate licence. They amend the existing one. This saves time and cost as the business grows.
The Regulatory Position: How It Works
The UAE is a federation of seven emirates, each with its own regulatory environment and free zone jurisdictions. This distinction has practical implications for technology and digital asset companies establishing operations in the country.
Innovation City Free Zone Authority operates under the regulatory framework of Ras Al Khaimah and issues licences directly for supported activities without requiring a separate federal approval process. These activities include blockchain development, NFT platforms, Web3 infrastructure, proprietary trading on own capital, AI development, gaming and other technology-related businesses.
This makes Innovation City one of the most accessible and operationally efficient jurisdictions in the UAE for technology companies, allowing founders to incorporate and begin operations quickly.
Certain regulated activities, including custodial services, broker-dealer operations and some retail-facing financial services, may still require additional approvals. IncHub reviews each business model carefully and advises clients on the appropriate structure and regulatory requirements before submission.
Company Structure and Setup
Innovation City companies are incorporated as Free Zone Companies (FZC) for multi-shareholder structures or Free Zone Establishments (FZE) for sole shareholders. Both structures allow 100% foreign ownership with no requirement for a UAE national sponsor.
Legal Structure
Governance
Operations & Activities
Tax & Treatment
Innovation City HQ: The Physical Base
The Innovation City Hub is a purpose-designed workspace in Ras Al Khaimah, approximately 45 minutes from Dubai. It is a serious working environment with boardrooms, private offices, open coworking areas and dedicated desks, all with sea views and a design that reflects the sectors the free zone serves.
Every licence package includes access to the Hub. Shared desk holders can use the space as needed. Growth package holders receive a dedicated desk. The HQ also includes a content creator studio and event space available to all licensed companies, which is particularly relevant for founders building public-facing Web3.
For companies that operate primarily remotely, the physical presence requirements are minimal. The shared desk satisfies the registered address requirement and gives visa eligibility. A visit to the UAE is only strictly required for the biometric and medical steps of the visa process, and for bank account opening.
Licence Packages
Innovation City offers four annual licence packages. All prices are starting-from figures. Actual cost depends on the number of visas needed beyond the included allocation, any premium activity selections and the office space configuration chosen.
Establish a UAE entity quickly without committing to visa allocation.
- 0 visa quota
- Multiple shareholders permitted
- Shared desk access
- 10 standard or custom activities
- Innovation HQ ecosystem access
Solo founder ready to move to the UAE on an investor visa.
- 1 visa included (capped at 1)
- Single shareholder structure
- Shared desk access
- 1 premium activity (200+ options)
- Investor visa pathway included
Team in place and ready to operate. The right balance of capacity and cost.
- Up to 4 visas
- Multiple shareholders
- Shared desk access
- 10 standard or custom activities
- Banking partner introductions
Scaling operations with dedicated workspace and full visa capacity.
- Up to 4 visas
- Multiple shareholders
- Dedicated private desk
- 10 standard or custom activities
- Priority banking introductions
Every package includes access to the Innovation HQ event space and content creator studio, unlimited refreshments at the Hub, and the Innovation City ecosystem network including banking partners, legal partners, accelerators and technology providers.
Additional costs to budget for separately: visa processing fees (medical examination, Emirates ID, immigration stamping), establishment card, bank account opening support and any post-incorporation compliance requirements. IncHub provides a complete cost breakdown before any application is submitted.
Innovation City Partner Ecosystem
Innovation City offers more than company formation for Web3, blockchain and digital asset businesses. Its curated partner ecosystem provides access to banking, legal, compliance, liquidity, security, infrastructure and growth support. This transforms the free zone into a complete operational launchpad for technology companies building from the UAE.
Banking Partners for Web3 and Digital Asset Companies
Banking is one of the biggest challenges for crypto and Web3 companies in the UAE.
Innovation City works with banking and financial partners including Zand, WIO Bank, RAKBANK, Ruya and AMINA Bank. These institutions may support different business profiles depending on the company’s activity, ownership structure, source of funds, compliance framework and risk rating.
For Web3 companies, having access to a curated banking network can be a major advantage.
- Trade licence activity
- Shareholder nationality and residency status
- Source of funds
- Source of wealth
- Business model clarity
- Expected transaction volume
- Exchange or wallet relationships
- AML and compliance framework
- Personal and corporate bank statements
- Risk rating of the activity
Bank account approval is always subject to the bank’s internal KYB, AML and compliance review.
Exchange and OTC Partners
Innovation City’s ecosystem includes access to exchange and OTC partners such as CoinMENA, Binance and HashKey MENA.
- Proprietary trading firms
- Token projects
- Treasury operators
- Web3 infrastructure companies
- Digital asset businesses
- Market access platforms
Access to exchange or OTC partners remains subject to partner onboarding, compliance review and commercial approval.
Legal Partners
NeosLegal, Legal Nodes and Neo Legal are part of the Innovation City legal ecosystem. Licensed companies receive a complimentary legal consultation valued at USD 500 and a 10% discount on ongoing legal and corporate advisory services. For founders dealing with smart contract structuring, DAO formation, token launch compliance or general corporate legal work, having qualified legal firms embedded in the ecosystem simplifies the process considerably.
Tokenisation Tools and DAO Infrastructure
SettleMint supports tokenisation workflows for companies building in the RWA tokenisation space. Innovation City clients receive USD 250 in free platform credits and a complimentary tokenomics consultation. DeXe provides DAO tooling for decentralised governance structures. MetaMask is available for wallet integration needs.
Blockchain Infrastructure Partners
NEAR Protocol, XDC Network, Avalanche, The HBAR Foundation and Hedera Hashgraph. For companies building on these networks, the Innovation City ecosystem provides a route to access foundation teams for technical support, grant programmes and ecosystem development opportunities.
Accounting Partners
SS&Co., AAA and BCL provide accounting, bookkeeping, VAT and audit support for Innovation City licensed companies. IncHub also provides these services directly for clients who prefer a single point of contact across formation.
Liquidity and Market Access
Liquidity is essential for many digital asset companies.
Through partners such as GSR, eligible companies may access institutional-level discussions around OTC execution, liquidity strategy, token markets, market-making and digital asset conversion.
This can be valuable for token projects, DeFi protocols, proprietary trading companies and digital asset businesses planning treasury operations or secondary-market strategies.
Any liquidity or market access arrangement is subject to the partner’s own compliance review, risk assessment and commercial terms.
Accelerators, Venture Studios and Capital Access
OokeLabs, Foundership, Tencent Cloud, DECA4 Advisory, NewTribe Capital and XVC Tech form the accelerator and capital access layer of the ecosystem. For early-stage companies, these relationships provide routes to mentorship, co-investment consideration and market access that a standard free zone incorporation does not offer.
Security Auditing
Hacken provides smart contract security auditing and Web3 security reviews for Innovation City companies. For projects preparing for token launches, protocol deployments or public-facing platforms, independent security audits are often essential for investor confidence, exchange listings and operational credibility. Through Innovation City’s ecosystem, founders gain direct access to recognised blockchain security expertise, helping them strengthen infrastructure, identify vulnerabilities and prepare projects for secure market deployment. This support is particularly valuable for startups seeking to scale responsibly while expectations.
How the Setup Works
IncHub manages the complete process from initial discussion to licence issuance and beyond. Here is what the journey looks like:
Consultation
IncHub reviews your business activities, intended operations, ownership structure and visa needs. We confirm the right package, activity list and any considerations specific to your sector or nationality.
Name and Activities
Your company name is reserved and activities are finalised with the free zone authority.
Document Preparation
Shareholder passports, application forms and supporting documents are compiled. No notarisation or attestation required for most standard applications.
Application
Submitted to Innovation City on your behalf. Can be completed fully remotely for the incorporation stage.
Licence Issued
Certificate of registration, incorporation documents and trade licence are issued within 7 to 15 working days.
Visa Processing
Investor and employee visas are applied for. A UAE visit is required for medical examination, Emirates ID and immigration stamping. IncHub coordinates the visit to minimise time required.
Bank Account
IncHub prepares your corporate profile and supports the account application with Innovation City’s banking partners. Account opening runs concurrently with or shortly after the incorporation process.
Ongoing Compliance
Corporate tax registration, VAT position assessment, AML/CFT policy setup, bookkeeping and audit are all available through IncHub as part of the post-incorporation service.
Documents Required
The document requirements for a standard Innovation City application are straightforward. IncHub handles all submission, follow-up and coordination with the free zone authority.
No document attestation or notarisation is required for the majority of standard applications. Additional documents may be needed for certain activity types or nationalities. IncHub advises on any specific requirements at the outset.
Frequently Asked Questions
Is Innovation City a brand new free zone or has it been operating for some time?
Innovation City Free Zone Authority has been operating since 2023, originally under the name RAK Digital Assets Oasis (RAK DAO). It was rebranded to Innovation City in September 2025 following a broadening of its mandate beyond digital assets into AI, robotics and healthtech. The regulatory framework, licensing structure and authority remain the same. Companies incorporated under RAK DAO continue operating under Innovation City Free Zone Authority without any change to their legal status.
How does the regulatory framework work for technology and digital asset companies?
Innovation City Free Zone Authority operates under the regulatory framework of Ras Al Khaimah and issues licences directly for the activities it supports. For most technology, Web3, blockchain and digital asset activities, there is no separate federal regulatory approval step required before the free zone can issue a licence. Founders submit their application, pay the fees and receive their licence. Some activity types such as custodial services or certain client-facing financial operations do require additional approvals. IncHub reviews your specific business model before any application to confirm the correct structure.
Can a proprietary crypto trading firm genuinely operate through Innovation City without additional regulatory approvals?
Yes. Proprietary trading means deploying the company’s own capital, not managing funds on behalf of clients. Companies trading their own capital in digital assets fall within Innovation City Free Zone Authority’s licensing framework. The licence is issued directly by the free zone. This is one of the most commonly asked questions IncHub receives, and the answer is clearly yes for genuine proprietary trading structures.
What is a DAO Association and is it relevant to most founders?
A DAO Association is a legal structure Innovation City introduced specifically for decentralised autonomous organisations. It provides legal personality, the ability to enter contracts and the right to open a business bank account, while accommodating on-chain governance. Most standard companies do not need this structure. It is most relevant for protocol foundations, DeFi projects and DAO-governed treasuries where the governance is primarily on-chain and the team needs a legal wrapper that does not conflict with the DAO’s governance model.
How long does the full process take from start to operating company?
Licence issuance typically takes 7 to 15 working days. Visa processing takes a further 2 to 3 weeks and requires a UAE visit. Bank account opening timelines vary by bank and business profile, from 2 weeks to 6 weeks in most cases. From first consultation to a fully operational company with a bank account, most clients are set up within 4 to 8 weeks.
Do I need to visit Ras Al Khaimah to set up my company?
No, the incorporation can be completed remotely. A UAE visit is required for the visa process, specifically the medical examination, Emirates ID biometrics and immigration stamping. For bank account opening, most banks require an in-person meeting or at minimum a video KYC call. IncHub plans the visit efficiently so clients typically need only one short trip to complete all steps.
Will my Innovation City company need to register for UAE corporate tax?
Yes. All UAE entities are required to register with the Federal Tax Authority for corporate tax. Free zone companies qualify for a 0% rate on eligible free zone income, provided they meet the qualifying conditions, which include not conducting business with the UAE mainland in certain ways and maintaining adequate substance. IncHub handles corporate tax registration and advises on structuring to maximise the qualifying free zone income treatment.
How does banking work for an Innovation City company, particularly for digital asset businesses?
Banking is one of the most important practical considerations for any Web3 or digital asset company. Innovation City Free Zone Authority works with banking partners including Zand, WIO Bank, RAKBANK, Ruya and AMINA Bank. These institutions cover different business profiles and risk appetites. Bank account approval depends on the trade licence activity, shareholder profile, source of funds, source of wealth, business model clarity, expected transaction volumes, compliance framework and the bank’s own internal KYB and AML review. IncHub prepares the full corporate profile and documentation package to support the application, and advises on which institutions are most likely to be suitable based on your specific business. The free zone facilitates simultaneous banking setup during incorporation, which helps reduce the time between licensing and full operational readiness.
Can I add shareholders or change the company structure after incorporation?
Yes. Shareholders can be added, removed or changed, and activities can be amended after incorporation. IncHub manages all post-incorporation changes through the free zone authority.
What is the difference between Innovation City and RAKEZ?
RAKEZ (Ras Al Khaimah Economic Zone) is a general-purpose free zone serving manufacturing, trading, industrial and services businesses. Innovation City is a specialist free zone with a specific focus on digital assets, blockchain, AI, gaming and technology. The two zones have separate activity lists, pricing structures, ecosystems and regulatory approaches. For crypto, Web3 and technology companies, Innovation City is the appropriate choice. For general trading or industrial businesses, RAKEZ is more suitable.
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We advise UAE-based founders, family offices, and international investors on offshore structuring, company formation, and ongoing compliance.
