Recently, several flavors of Formal Methods (FMs) have been gaining industrial acceptance and production quality software tools have begun emerging. Domain Engineering (DE) has been introduced as one of outstanding ideas in software development. It serves form al methods that provide a rigorous, mathematical based framework (domain model) for specifying, defining, and verifying systems in the software development. The increasing demands for extended products and services along with advances in IT industry have motivated researchers to create Virtual Organizations (VOs) in order to better respond to business opportunities and produce qualitative services and products. The purpose of this paper is to describe Virtual Organization and Domain engineering with introducing formal methods especially RAISE as a formal method that has been used successfully on diverse applications. Then, a primary formal model is presented using RAISE method and its language (RSL) formula for the improvement of VO creation process. Formal model presented in this paper is provable to implement. It improves reusability and reliability in such environments.