And, also, If you don’t notify Epic about your game, in your country-specific grace period if any (country laws always override EULAs), then, IF you release your game AND your game gains enough traction AND Epic sees your game, AND, if up to this moment you still didn’t paid all your royalties AND Epic decides that your EULA breach is harmful for them, THEN you are in court trouble. Epic may decide to fire a lawsuit against you and nobody knows what may happen.
If your country has a grace period for business / company registration and/or for taxes, like some EU countries do, in general, this grace is not to be affecting the actual EULA, however, it’s challenging for companies, since country laws override EULAs if conflicting! (case with Tax-free periods being a good example)
If you are indie, notify Epic about your release and start tracking your revenues. If you still don’t have a company and do not want to register one yet, track your revenues. The $3000 grace Epic gives to you is extremely fair enough. Once your game reaches $3K/quarter, feel free to register a company and start paying Epic. If you do not want to register a company during your Tax-free or grace period based on country laws, then… contact Epic and decide if you can pay them without being an company. Since the form does not mention “Company”, then it looks like Epic have no problem with non-company indies.
However, if you start real earnings, e.g. 10K+/quarter, then, you will, by most jurisdictions, be enforced to register a company since, after your tax grace period ends [if any], you will owe taxes to your jurisdiction as well.
Also, Epic’s grace is based on your gross revenue. If you sell app for $10 on Steam, and your contract with VALVe is the classic 70/30, then, Valve takes $3, and you take $7. However, you owe Epic $0.50 (based on these whole $10).
Now you have $6.50. You owe tax to your country. And in case your country’s law is based on gross taxes as well, and the tax is 20% foe example, then, you give your jurisdiction $2. Now, you end up with $4.50… However, most modern jurisdiction base their taxes on the actual income, called Income Tax, so if for example, income tax is 10%, then you owe your jurisdiction $0.65 so your $6.50 become $5.85. This ends here.
Also please note that, unfortunately, EULAs aren’t true contracts from legal point of view. No contract is a contract if not physically signed, and most old companies will force you to sign a contract if they feel that a EULA will not suffice alone [country laws, again]
Please note, that, the above text is only informative. If you have further questions, seek legal consultation from a local lawyer.
Also, the law itself is a double-bladed sword. Imagine a country called Unityland. In this country a law that prohibits companies containing “Epic” in their name from collecting any loyalties and revenue from their engine. Epic will become aware and may ban the engine in this country since this country is break. However, if you pirate the engine from a friend and use it then it will be a total mess for Epic to sue you. If you only sell your game in Unityland then it will be very hard for Epic to sue you for non-owing royalties. However, epic may sue you for copyright violation. Now, if in the worst case scenario, this country have totally bugged policy and copyright does not exist, then Epic are out of luck. Well, no such country exist, so: be honest and play by the rules. Respect the EULA, pay your royalties, pay your taxes, or… if you dislike taxes, then write your own Engine, your own Steam,. sell it there and miserably fail [me being realist now if you decided to write your own Steam]