I am an amateur game developer, living in the UK. I have been advised to form a corporation in order to protect the IP of the game that I'm working on.
In the UK, corporation tax is 20%. What's to stop me from forming the company in a country with much lower tax rates, like Montenegro? If all our business is done online and we have no need for an office or anything, it seems like a no-brainer to do this. I'm not educated at all on this issue, maybe there is an obvious reason not to, but from my brief research into the matter it looks like the best course of action.
If the company grows to a point where we have several people working in an office, we can just found a new one in a real country. But until then, when it's just 2 or 3 dudes max working remotely, why not do it like this and save a lot of money?
To clarify: Most of our sales (if we make any) will be coming through online stores such as Steam and the Epic Store, which belong to companies based in America. As I understand it, their profits will get taxed in America, and ours will be taxed in whatever country the company is in. (Plus every customer pays VAT at the time of purchase depending on the country they're in)
In the UK, corporation tax is 20%. What's to stop me from forming the company in a country with much lower tax rates, like Montenegro? If all our business is done online and we have no need for an office or anything, it seems like a no-brainer to do this. I'm not educated at all on this issue, maybe there is an obvious reason not to, but from my brief research into the matter it looks like the best course of action.
If the company grows to a point where we have several people working in an office, we can just found a new one in a real country. But until then, when it's just 2 or 3 dudes max working remotely, why not do it like this and save a lot of money?
To clarify: Most of our sales (if we make any) will be coming through online stores such as Steam and the Epic Store, which belong to companies based in America. As I understand it, their profits will get taxed in America, and ours will be taxed in whatever country the company is in. (Plus every customer pays VAT at the time of purchase depending on the country they're in)