HomeCatalogE-Sports Ecosystem

Article: 5374

Company setupE-Sports Ecosystem

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JurisdictionInnovation City
Service
Short description

The company can engage in the providing a robust single platform (ecosystem) to bring multiple stakeholders, from game developers to players, sponsors, advertisers, team managers, and media all together. Allows industry to take holders to connect in a peer-to-peer way and allowing for the transfer of players, media rights, and more provided that any such game assets are not represented by a virtual asset (e.g. NFTs). The activity cannot include hosting of games on web portals, issuance of coins, off/on ramping ofcrypto, NFT market place, move assets across chains etc.

About the company's activities

Types of activities

The following business activity has been selected for the RAK DAO company setup:

  • E-Sports Ecosystem (S-084). A company based on blockchain technology that provide a robust single platform (ecosystem) to bring multiple stakeholders, from game developers to players, sponsors, advertisers, team managers, and media all together. Allows industry to take holders to connect in a peer-to-peer way and allowing for the transfer of players, media rights, and more provided that any such game assets are not represented by a virtual asset (e.g. NFTs). This activity does not include hosting of games on web portals, issuance of coins, off/on ramping ofcrypto, NFT market place, move assets across chains etc.

The company can engage in up to 3 business activities under one license without additional fees.

Share Capital Requirements

There is no minimum share capital requirement for RAK DAO companies.

Additional External Regulator Approvals

No additional approvals are required to register a company conducting this business activity.

Company name requirments
  • Must not violate the country laws or contain words that are obscene, indecent or generally offensive
  • Must not contain the names of Allah, Buddha or God, or any other religious terminology
  • Must not infringe any third party's intellectual property rights
  • Must not be identical or similar to local/global brands or registered trademarks
  • Must not contain geographical names, such as the names of emirates, cities, countries and other landmarks
  • Must not contain the names of local/international religious, political or governmental organizations
  • Pricing for the Premium rate
  • Provider designates the activity type as Custom
  • Must correspond to the company’s business activities
Bank Account

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When choosing a bank to open a corporate account, consider the following: service level, fees, available currencies, online banking performance, bank reputation, as well as other conditions that may be important for your business.

Successfully opening a corporate bank account requires a well-prepared documentation package, which may vary depending on the specific requirements of each bank. Documents submitted incorrectly or incompletely may negatively affect the bank's final decision in processing the application.

About Jurisdiction

Name and Description
  • Title: Innovation City
  • Description:

    Innovation City (formerly RAK DAO) is a free economic zone established in 2023 in the Emirate of Ras Al Khaimah, UAE. The free zone is focused on supporting companies operating in the fields of Web3, blockchain, artificial intelligence, metaverse, fintech, and digital assets.

    The free zone provides companies with access to advanced digital infrastructure and innovative solutions, creating a favorable environment for the development of technology projects and the scaling of international initiatives. Companies registered in Innovation City are permitted to conduct business both within the free zone and beyond the UAE.

    Innovation City issues the following type of business license:

    • Business License 

    The free zone actively develops partnerships with technology companies, blockchain platforms, and educational institutions, forming an ecosystem that fosters innovation and sustainable business growth. With its strategic focus on digital technologies and integration into the global innovation landscape, Innovation City has become an attractive platform for startups and technology companies aiming for international expansion and the creation of next-generation products.

Tax regime and income management

  • The UAE has several taxes and fees that regulate the financial activities of both legal entities and individuals. Below are the main ones.

    1. Value Added Tax (VAT)

      • Since January 1, 2018, the UAE has implemented a VAT rate of 5%, which applies to most goods and services and is charged to companies operating within the country, except for those registered in designated zones.

      • A Designated Zone is a territory within a free zone that is treated as outside the UAE for tax purposes, allowing goods to be exempt from taxation, provided certain criteria are met. The main taxation rules in Designated Zones are as follows:

        • The Designated Zones are listed in the Cabinet Decision to Federal Decree-Law No. (8) of 2017 on Value Added Tax (VAT).

        • Goods moved between or within Designated Zones are not subject to tax.

        • The export and import of goods between a Designated Zone and a foreign company are also not subject to tax.

      • For local companies and those registered in Non-Designated Zones (free zones not included in the Designated Zones list), the standard tax rules set forth in the Federal Decree-Law on VAT apply.

        • Companies with an annual turnover exceeding AED 375,000 are required to register with the Federal Tax Authority (FTA) as VAT taxpayers.

        • Companies with a turnover between AED 187,500 and AED 375,000 may register on a voluntary basis.

        • Companies can offset VAT paid on purchases of goods and services (input VAT) against the VAT they collect on sales (output VAT), shifting the tax burden to the final consumer.

        • Some goods and services may be exempt from VAT or taxed at a 0% rate, such as international transportation, educational, and medical services.

    2. Corporate Tax

      • As of June 1, 2023, the UAE has introduced a corporate tax at a rate of 9%, levied on the taxable net profit of companies with income exceeding AED 375,000.

      • A 0% rate is applied to taxable income not exceeding AED 375,000.

      • Charitable, non-profit organizations and medical institutions are fully exempt from corporate tax.

    3. Excise Tax

      • Since October 1, 2017, the UAE has introduced an excise tax aimed at reducing the consumption of harmful products and funding healthcare initiatives. The tax applies to alcohol, tobacco products, and beverages containing added sugar, including energy drinks and carbonated beverages.Excise tax rates vary depending on the product category:

        • 50% on carbonated drinks (excluding mineral water)

        • 100% on tobacco products

        • 100% on energy drinks

        • 100% on electronic smoking devices and liquids used for them

        • 50% on products containing added sugar or sweeteners.

      • Companies dealing with excise goods must register with the Federal Tax Authority (FTA), submit monthly declarations, and maintain records. Excise tax is paid upon the import, production, or release of goods for consumption in the UAE.

    4. Customs Duties

      • Custom duties in the UAE are applied to most imported goods at a standard rate of 5% of the cost, insurance, and freight (CIF). Exceptions include certain categories of goods, such as medicines and food products, which may be exempt from duties or subject to a reduced rate.

      • Goods imported into UAE free zones are generally not subject to customs duties as long as they remain within these zones. However, when such goods are transferred to the UAE mainland, standard duties apply.

    5. Personal Income Tax

      • In the UAE, personal income is not subject to taxation.

      • UAE citizens and residents are exempt from paying taxes on their personal income, including salaries, interest, dividends, inheritances, gifts, luxury goods, and capital gains.

    6. Local Taxes and Fees

      • Individual emirates may impose specific local taxes and fees in line with their economic and social needs. These taxes and fees are aimed at supporting public services and implementing infrastructure projects.

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