If you run an online business and you are considering leaving the EU tax system, one of the first questions you will face is: where should I register the company?
It is a deceptively simple question. The answer depends on your specific situation — the kind of work you do, how much you earn, whether you work alone or with a team, where you actually live, and what kind of banking and administration you can handle. The right jurisdiction is not necessarily where your clients are, or where you happen to be sitting right now. It is the place that fits your business model and your life.
This article walks you through the questions that matter, then introduces the main types of setups available — including why Georgia has become a compelling option for many online entrepreneurs.
Key Takeaways
The right place to register depends on your work type, revenue, team size, and banking needs — not where your clients are.
Georgia offers a 1% small-business tax regime for Individual Entrepreneurs, with no VAT up to a high threshold — ideal for many service providers.
You can register and manage a Georgian business entirely remotely, without ever setting foot in the country.
Start with your own situation — not a list of countries — and the best option becomes clear.
Start With Your Situation, Not a Country List
Most articles about business registration begin with a menu of jurisdictions: Estonia, Singapore, Delaware, Georgia, and so on. That approach skips the most important step — understanding your own needs.
Before you evaluate any country, ask yourself these questions. They will guide you toward the right structure, and only then toward the right place.
What Kind of Work Do You Do?
Are you a consultant, a software developer, a writer, a coach, a trader, or an e-commerce seller? Different activities face different tax treatments and licensing requirements. For example, IT services often qualify for special regimes in countries like Georgia (Virtual Zone status), while e-commerce may require VAT registration in the customer’s country.
What Is Your Expected Revenue?
Your revenue level determines which tax regimes are available. A solo freelancer earning €40,000 per year has very different options than a growing agency turning over €500,000. Some small-business regimes have revenue caps — Georgia’s 1% regime, for instance, is available to Individual Entrepreneurs with annual turnover below 500,000 GEL (roughly €165,000 as of 2026).
Do You Work Alone or With a Team?
If you are a solo operator, an Individual Entrepreneur (IE) registration may be all you need. If you have employees or co-founders, you will likely need a limited liability company (LLC) to separate personal and business risk, and to issue shares.
Where Do You Live Most of the Time?
Your physical residence matters for tax residency rules. If you live in the EU, your home country may still tax your worldwide income unless you sever ties properly. Georgia, for example, uses a territorial tax system — you are generally taxed only on income sourced from Georgia — but your personal tax residency status depends on days spent in the country.
Do You Need Limited Liability?
If your work carries professional risk — consulting, software development for large clients, handling client funds — limited liability protection is worth considering. An LLC separates your personal assets from business liabilities. An IE registration does not offer this separation; your personal assets are on the line.
Do You Need Payment Providers or a Business Bank Account?
Some jurisdictions make it easy to open a business bank account remotely; others require physical presence. If you need Stripe, PayPal, or other payment gateways, check whether they support the country you choose. Georgia’s banking system is accessible, and a dedicated business account at Bank of Georgia is available through our process — opened fully remotely.
Do You Want to Manage Everything Remotely?
Some countries require you to visit in person for registration, annual filings, or banking. Others allow full remote management. Georgia is one of the more remote-friendly options: you can register an IE or LLC via a Power of Attorney, handle tax filings online through rs.ge, and manage banking digitally once the account is open.
How Much Ongoing Administration Are You Willing to Handle?
Some regimes are simple: file a quarterly or annual tax return, pay a flat tax, done. Others require monthly payroll filings, VAT returns, and audited accounts. Be honest with yourself about how much admin you want in your life. A low-tax jurisdiction with heavy compliance may cost you more in time and stress than you save in tax.
The Main Types of Setups
Once you have clarity on your situation, the next step is understanding the broad categories of business registration. Each has trade-offs.
Keeping the Business in Your Home Country
This is the simplest option: register as a sole trader or company where you already live. The advantage is familiarity — you know the language, the tax system, the banks. The disadvantage is that you remain inside the EU tax system, with its high social contributions, corporate taxes, and increasingly aggressive reporting requirements (DAC7, CESOP).
If your goal is to leave the EU tax system, this option may only be a temporary staging ground.
Using an E-Residency Solution
Estonia’s e-Residency program is the best-known example. You can register a company remotely, manage it online, and benefit from Estonia’s 0% tax on retained profits (tax is due only when dividends are distributed). However, you still need a physical presence or a local agent for some steps, and Estonian banks often require an in-person visit. The tax rate on distributed profits is 20% (or 14% on regular dividends).
Other countries offer similar programs, but none are as mature as Estonia’s.
Creating a Foreign Company
You can register a company in a jurisdiction you do not live in — for example, a US LLC (Delaware or Wyoming), a Hong Kong company, or a Georgian LLC. This gives you access to that country’s legal and tax framework, but you must comply with its filing and reporting requirements. You may also face tax obligations in your country of residence, depending on how the business is managed.
A US LLC, for instance, is popular for its simplicity and privacy, but the IRS requires a tax ID (EIN) and annual reporting. Non-US residents face additional filing requirements.
Using a Freelancer or Small-Business Regime
Many countries offer simplified tax regimes for small businesses and freelancers. Georgia’s Individual Entrepreneur (IE) regime is a strong example: you pay 1% tax on turnover (not profit) if your annual revenue stays below 500,000 GEL (~€165,000). There is no VAT until you exceed 100,000 GEL in a 12-month period. Filing is quarterly, and you can do it online.
This regime is ideal for solo service providers — consultants, developers, designers, writers, coaches — whose revenue fits the cap and whose clients are outside Georgia.
Why Georgia Stands Out for Online Entrepreneurs
Georgia is not the only option, but it has a combination of features that make it particularly interesting for location-independent service providers.
Tax Certainty
Georgia’s Economic Freedom Act (sometimes called the Economic Liberty Act) legally requires a nationwide referendum before any tax increase. This gives businesses a level of predictability that is rare in Europe. The law is embedded in Georgia’s constitution-like framework, so the government cannot raise taxes through a simple parliamentary vote.
Territorial Taxation
Georgia taxes only income sourced from within Georgia. If your clients are outside Georgia and you perform the work remotely, your income is generally not taxable in Georgia — provided you are not a Georgian tax resident. This is a key distinction: as an IE, you pay 1% on turnover, but your global income from non-Georgian sources is not taxed if you are not a tax resident.
Crypto-Friendly Environment
Georgia has a clear and permissive stance on cryptocurrency. The National Bank of Georgia (NBG) has issued guidelines, and crypto trading and mining are legal. There is no specific crypto tax regime yet, but the general tax principles apply: capital gains from crypto are treated as income. This makes Georgia a viable base for crypto traders and investors.
Accessible Banking
Bank of Georgia and TBC Bank offer business accounts. Through our process, you can open a dedicated solo business account at Bank of Georgia (roughly 55–80 GEL per month). Banking is not fully remote — the account is arranged through our in-country process — but once open, it can be managed digitally.
Remote Registration
You can register an IE or LLC in Georgia entirely through a Power of Attorney. You do not need to be present. The process involves: profile assessment → passport submission → Power of Attorney → notary session (remote or in-person) → registration at the House of Justice. Everything is managed inside the EU-Exit platform.
Low Ongoing Administration
For an IE under the 1% regime, filing is quarterly. No monthly payroll, no VAT returns (until you exceed the threshold), no audited accounts. It is one of the simplest regimes to maintain.
How to Choose: A Practical Framework
Here is a decision framework you can use to narrow down your options.
- Start with your activity. Is it a service (consulting, development, design) or a product (e-commerce, SaaS)? Services are easier to fit into small-business regimes. Products may require VAT registration and more complex logistics.
- Check your revenue. If you earn under €165,000 per year, the Georgian IE regime is worth a serious look. If you earn more, you may need an LLC or a different jurisdiction.
- Assess your team. Solo? IE works. Have employees or co-founders? You need an LLC or equivalent.
- Evaluate your banking needs. Do you need a business account with Stripe, PayPal, or a specific bank? Check whether the jurisdiction supports those services.
- Consider your time. How much admin do you want? Georgia’s IE regime is low-maintenance. An LLC with employees is not.
- Think about your exit. If your goal is to leave the EU tax system, choose a jurisdiction that is genuinely outside the EU and has no plans to join. Georgia is not an EU candidate in any active sense, and its tax system is independent.
The right answer is the one that fits your actual life — not the one that looks best on paper.
What Georgia Does Not Solve
Georgia is a strong option, but it is not perfect for everyone. Here are the main trade-offs.
- Limited liability: The IE regime does not protect personal assets. If you need liability protection, you need an LLC — which is a separate registration with higher costs and more compliance.
- Revenue cap: The 1% regime caps at 500,000 GEL. If you grow beyond that, you move to a different tax treatment.
- No EU passport: Georgia is not in the EU. If you need EU market access or an EU banking license, Georgia will not provide it.
- Tax residency complexity: If you spend significant time in Georgia, you may become a tax resident, which changes your tax obligations. The rules are clear, but they require attention.
Final Thoughts: Structure Makes Freedom Possible
Choosing where to register your online business is one of the most consequential decisions you will make when leaving the EU tax system. It is not a decision to rush, but it is also not one to overthink. Start with your situation — not a list of countries — and the best option will become clear.
Georgia offers a compelling combination of low taxes, remote registration, accessible banking, and long-term stability. For many solo service providers, consultants, developers, and creatives, it is the right fit. But the only way to know is to work through the questions above.
If you are curious whether Georgia fits your specific business and life, the EU-Exit platform guides you through the entire process — from profile to registration to banking — so you can make an informed decision.
Frequently Asked Questions
Can I register a business in Georgia without ever going there?
Yes. You can register an Individual Entrepreneur (IE) or an LLC in Georgia entirely through a Power of Attorney, without setting foot in the country. The process involves submitting your documents, notarising a Power of Attorney, and having a local representative handle the registration at the House of Justice. Banking, however, is not fully remote — the account is arranged through an in-country process.
What is the 1% tax regime in Georgia and who qualifies?
The 1% small-business regime applies to Individual Entrepreneurs (IEs) with annual turnover below 500,000 GEL (roughly €165,000 as of 2026). You pay 1% on total revenue — not profit — and file quarterly. There is no VAT until you exceed 100,000 GEL in a 12-month period. It is best suited for solo service providers like consultants, developers, and designers whose clients are outside Georgia.
Does registering in Georgia protect my personal assets from business liabilities?
No — not if you register as an Individual Entrepreneur (IE). The IE regime does not provide limited liability; your personal assets are at risk if the business faces a lawsuit or debt. If you need liability protection, you should register an LLC instead, which separates your personal and business assets. LLC registration is a separate process with higher costs and ongoing compliance.