Checklist for Choosing a Jurisdiction for Gaming Studios: A Comprehensive Guide with Lawyer Commentary
The video gaming market is global, and in the current macroeconomic and geopolitical environment, choosing the right jurisdiction is particularly relevant. With insights from experts at Futura Digital and Prospectacy, we present a detailed guide analyzing the most relevant locations, key aspects, trends, and potential pitfalls.
Experts from Futura Digital, Digital Practice Leader Alina Davletshina and Junior Associate Elizaveta Vostokova, along with Prospectacy's International Law Attorney Irma Novikova, answered questions for App2Top.
In recent years, selecting a jurisdiction for a gaming company has been met with numerous new challenges and requirements, the failure of which can significantly complicate the process of establishing in the chosen location.
Tax rates and benefits still play an important role, but the nuances have increased significantly. Greater attention needs to be paid to compliance requirements, banking restrictions, capital origins, and the reputation of beneficiaries.
Alina Davletshina and Elizaveta Vostokova
Unfortunately, there is no one perfect jurisdiction for all game studios where taxes are low (preferably zero), a DTT [Double Taxation Treaty — editor's note] is in place with the U.S., banks easily open accounts, and local regulators generously offer incentives.
Irma Novikova
When selecting a jurisdiction for a gaming company, it is crucial to soberly assess not only taxes but also other conditions: ranging from the availability of banking services and requirements for founders and directors to the country's reputation for online platforms and the geopolitical situation.
In today's extensive article, we will cover:
- a checklist for choosing a jurisdiction — key points to consider;
- peculiarities and problematic areas related to banking;
- nuances and errors when opening your first foreign legal entity;
- new centers of attraction: UAE, Singapore, etc.;
- the state of affairs in Cyprus: how attractive the island is for gaming companies today;
- declining and problematic jurisdictions;
- prospective directions for the near future;
- which countries small studios should pay attention to.
