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To start an indie game studio, begin with a small playable prototype, not a company. The legal and business structure matters, but it only becomes urgent once there is something worth protecting and shipping. Most small studios that last do the work in this order: prove the idea, set up the basics, release something small, then grow.

This guide follows that order. It covers general steps only. Company law, tax and employment rules differ between countries, so confirm those details with your national business registry or a qualified adviser.

What you need before you begin

• A game idea you can describe in two sentences.
• One person who can program, one who can make art or find it, and someone responsible for design decisions. These can be the same person on a very small team.
• Savings or other income that lets you work without expecting early revenue.
• A willingness to ship something modest first.

Step 1: Shrink the first game

The most common reason first projects fail is scope. A game that needs forty levels, multiplayer and a long story will take years for a small team. Choose something you could finish in three to six months, and cut features until that is true.

A useful exercise is to write the game as a single sentence and a list of five features. Anything outside the list is a “later” item. Common mistake: treating a first release as the final vision, rather than a stepping stone.

Step 2: Build a prototype and test the fun

Use a tool that lets you move quickly. Unity, Godot and Unreal Engine are widely used game engines, and each has its own licence terms, which you should read yourself because they change. Godot is open source; the others are commercial products with their own licensing models.

Aim for a rough but playable build within weeks. Put it in front of people who are not your friends if possible, watch them play without helping, and note where they get stuck. Their confusion is a design problem, not a player problem.

Step 3: Choose a platform strategy

Different platforms suit different games.

Platform	Typical fit	Things to check
iOS and Android	Short-session, casual and puzzle games	Store review rules, device variety
PC (digital storefronts)	Deeper or longer games	Store requirements, community expectations
Consoles	Polished titles with larger budgets	Platform approval and development kits

Each store publishes its own developer terms, review guidelines and account requirements. Read the official pages directly, because fees and rules are revised from time to time.

Step 4: Set up the business basics

Once a prototype looks promising, formalise things.

1. Legal form. Options range from sole proprietorship to a limited company, depending on where you live. Each has different liability and tax effects. Your government’s business portal is the right place to start.
2. Agreements between founders. Write down who owns the code, art and the game’s name, and what happens if someone leaves. Handshake deals are a frequent source of later disputes.
3. Separate finances. A dedicated bank account and simple bookkeeping save trouble at tax time.
4. Intellectual property. Check that the studio name and game title do not clash with existing trademarks, and keep records of any licensed assets such as fonts, music and sound effects.

Common mistake: using assets “temporarily” from other games or websites and forgetting to replace them before release.

Step 5: Plan for privacy and policies

Even a tiny game collects some data, whether analytics, crash reports or advertising identifiers. Stores generally expect a privacy policy and honest data disclosures. If children could be playing, laws such as the US children’s privacy rules (COPPA) and the EU’s GDPR add further obligations. Plain-language examples of policy pages appear in this site’s privacy summary and terms summary, though a real studio should have its policies reviewed against the law that applies to it.

Step 6: Release small, then learn

Ship the first game even if it is humble. A release teaches things no planning can: how store listings work, what reviews say, how crashes look on devices you did not own. Keep expectations realistic. Most new games earn little, and a studio’s real asset after a first release is experience and a small audience.

Plan updates in modest rounds rather than a giant sequel. Listen to feedback, but decide what fits the game’s identity.

Frequently asked questions

Do I need a registered company to publish a game?

Not always. Many solo developers begin as individuals or sole traders, and stores accept both individual and organisation accounts. Rules about taxes and liability differ by country, so check your government’s business guidance before you earn income.

How much money does it cost to start?

It varies enormously, from almost nothing for a solo developer with free tools to large sums for a team with salaries. The largest cost is usually time, so the sensible approach is to plan around how long your savings can sustain you.

Which game engine should a beginner use?

Pick the engine whose learning materials you find easiest to follow and that supports your target platform. Godot and Unity are common starting points for 2D and mobile work. Switching engines mid-project is expensive, so decide once.

Should I find a publisher?

Some studios self-publish, others sign with publishers who provide funding or marketing in exchange for revenue share or rights. Read any contract carefully and seek legal advice before signing, because terms differ widely.

A sensible starting point

A studio is built by finishing things. Keep the first game small, document who owns what, respect player data, and let each release teach the next.