How to open and manage a company GameDev and eSports

How to open and manage a company in the field of computer games and eSports in Ukraine: legal aspects

The computer games and eSports industry is one of the fastest growing markets in the world. Ukraine, with its strong IT base and talented community of developers and players, is becoming an attractive platform for creating companies in this area. However, for effective and sustainable work, the right legal and tax structure is necessary. In this article, we will analyze the key aspects of creating and managing companies engaged in game development and organizing eSports tournaments, with an emphasis on licensing, intellectual property protection and international tax planning.

 

General information about GameDev and eSports

Regulation of the activities of a game development or eSports company in Ukraine differs little from other IT companies. The main specifics are related to eSports, and especially in cases where games border on the gambling business. But about the gambling business – separately, not in this publication.

The eSports was officially recognized as a sport in Ukraine since 2020. You can read about the legal aspects of athletes’ activities at the link.

It is imperative to take into account and comply with GDPR and AML.

 

How to create a computer game development company in Ukraine?

Creating a computer game development company is no different from creating an IT company, which we wrote about in this article.

 

How to organize a tournament or community in eSports?

Depending on the scale and time plans, you can register a public organization (club, federation), sole proprietorship or LLC/JSC (links provide detailed information). We recommend consulting a lawyer on the issue of choosing an organization for a tournament or community in eSports.

The organization of tournaments is regulated by the Regulations on the conduct of sports competitions , as well as by the internal regulations of associations.

 

Do you need a license for a game development or eSports company?

No, if the company’s activities do not show signs of financial services or gambling, a license is not required.

 

Is permitting documentation required? for gamedev or eSports?

Age ratings: games must be classified according to the PEGI system or local equivalents to comply with the Law on Media.

Permission to hold tournaments : it is necessary to notify the Ministry of Youth and Sports or the relevant federation , and in some cases, obtain the consent of the Ministry of Youth and Sports if the event has the status of an all-Ukrainian or international event.

 

The Role of Contracts for Game Developers and Esports Participants

The legislation provides quite broad freedom to game developers and eSports participants in regulating their activities, therefore, correctly drafted and timely concluded contracts on various issues are the key to calm and successful activities.

We recommend that game development companies enter into the following agreements:

1. Contracts for work or provision of services with developers, designers, scriptwriters, etc.
2. Agreements with distributors, partners.
3. Employment contracts with staff.
4. License agreements for the software used and for the right to use games.
5. Etc.

 

Depending on the situation in the eSports industry, it is recommended to enter into the following agreements/policies:

1. Club/Federation Rules.
2. Contracts for work or provision of services with developers, tournament organizers, etc.
3. Agreements for participation in tournaments or agreements for the provision of services to ensure participation in a tournament.
4. Equipment lease agreements .
5. License agreements for the software used.
6. Etc.

 

What taxes does a game development or eSports company need to pay?

Ukrainian legislation does not provide for a special tax regime for game development or eSports companies, so we recommend reading our publications on this topic.

 

How are the intellectual property rights of a game development or eSports company protected?

The protection of intellectual property rights largely depends on the legally competent registration of such rights from the moment the intellectual property objects themselves arise: agreements with creators (authors, developers, scriptwriters, composers, employees), software licenses (if third-party engines are used (Unreal Engine, Unity), agreements on the transfer of intellectual property rights, license agreements, NDA, etc. Another important tool is the registration of TM (marks for goods and services). And, it is important to monitor compliance with your intellectual property rights and undertake appropriate legal protection (claim work, going to court, etc.).

 

In which country to open a game development or eSports company?

The choice of a country to open a game development or eSports company, a holding company or a distribution company is always individual and depends on many factors. In our article, we have revealed the main aspects that influence the choice of a country .

Common model:

• Registration of the main developer company in Ukraine (for example, an LLC on a simplified tax system or a resident of Diia.City);
• Establishment of a holding/IP company in a jurisdiction with a favourable regime for income from intellectual property (Cyprus, Estonia, Ireland);
• Transfer of distribution, marketing or franchising rights through foreign companies.

Advantages:

• Protection of intellectual property at the international level;
• Optimization of tax burden;
• Simplifying the process of attracting investment and concluding international contracts.

Important to note:
Ukraine has introduced rules on controlled foreign companies (CFC), so professional support is required for correct reporting.

 We recommend that you contact our specialists for advice on choosing a country for registering a foreign company.

 

How often do searches occur in a game development or eSports company?

If the company operates legally, then searches are unlikely. There are cases of abuse of power and illegal actions by government officials, but well-established work with lawyers minimizes such risks.

 

Recommendations from lawyers “Zilver”

1. Protect your IP at the start: register trademarks, patent unique technologies.
2. Check contracts : with developers, publishers, sponsors – avoid onerous conditions.
3. Structure your taxes : Use EU treaties and offshores to reduce the burden.
4. Automate compliance : implement KYC systems for tournaments and payments.

 

How we help at ZILVER

Law firm ZILVER offers comprehensive services for companies in the field of game development and eSports:

• Business registration in Ukraine and abroad;
• Support in the creation and protection of intellectual property;
• Development of license agreements and user policies;
• Building international corporate structures;
• Support of tournaments, events and sponsorship contracts;
• Tax planning and compliance with CFC requirements.

 

Why “Zilver”?

• Specialization in IT and gaming: we support projects from startup to IPO.
• International network: partners in the EU, US and Asia for seamless structuring.
• Full range of services:
  • Company registration and licensing.
  • Protection of intellectual property.
  • Tax audit and dispute resolution.

• We combine legal solutions with an understanding of the technological specifics of your business.

 

Want to take your gaming project or eSports business to the international level? The
ZILVER team will help you build the right legal framework.