Where to Open a Business and Pay Low Tax: Why Entrepreneurs Are Choosing Georgia

If you've searched "where can I open a business and pay low tax," you've almost certainly landed on Georgia — the country, not the U.S. state — and a headline number: 1% tax. It's a real regime, and for the right business, it's a genuine advantage. It's also one of the few countries where remote business registration is genuinely possible from start to finish, without ever setting foot in the country. But the details matter more than the headline, and getting the structure wrong can mean paying far more than expected, or qualifying for nothing at all.

This article walks through what Georgia actually offers, how remote company registration works, and the steps worth taking before you register anything.

Why Georgia Is a Top Pick for Low-Tax Remote Business Registration

Georgia has spent the last two decades building a reputation as one of the easiest countries in the world to open a business remotely. A few features drive that:

• A territorial-leaning, low-complexity tax system, with several simplified regimes built specifically for small businesses, freelancers, and sole operators.
• No residency or citizenship requirement to register a business or apply for most of these regimes — foreign nationals can register remotely in many cases.
• Fast, remote-friendly registration, often within one to three business days through the National Agency of Public Registry, via power of attorney.
• A geographic position between Europe and Asia, with a growing base of relocated freelancers, remote-first companies, and digital nomads.

None of this makes Georgia the right fit for every business. It depends heavily on your activity, your turnover, where your clients are based, and your own tax residency — which is a separate question from where your company is registered.

The Headline Regime: 1% Small Business Status

The regime behind most of the "1% tax" marketing is Small Business Status (SBS), available to Individual Entrepreneurs (IEs) — not to LLCs or other corporate structures.

How it works, in practice:

• You register as an Individual Entrepreneur with the Revenue Service, then separately apply for Small Business Status.
• Once approved, you pay 1% tax on gross turnover, not net profit — as long as annual turnover stays under 500,000 GEL (roughly $185,000).
• Cross this threshold in two consecutive years, and Small Business Status is revoked, with income taxed at the standard rate going forward.
• Certain activities are excluded from the regime, and the list has changed over time — for example, some construction-related services provided to Georgian businesses no longer qualify.
• Foreign nationals can register as an IE and apply for SBS without being Georgian tax residents, though your own country's tax rules on worldwide income still apply to you personally — Georgian registration doesn't exempt you from obligations at home.

What this regime is not: it is not an automatic status you get by registering a business, and it is not available to LLCs. A lot of confusion — and a lot of disappointed entrepreneurs — comes from assuming "1% tax" applies to any Georgian company. It doesn't.

Can You Register a Business in Georgia Remotely?

Yes — this is one of Georgia's biggest practical advantages over other low-tax jurisdictions. Both Individual Entrepreneur registration and the Small Business Status application can be completed remotely, and many entrepreneurs never need to travel to Georgia at all:

• Registration can be handled through a power of attorney, letting a local representative file on your behalf.
• Bank account opening can, in many cases, also be initiated remotely, depending on the bank and your documentation.
• Day-to-day tax filing and reporting is done through Georgia's online Revenue Service portal, with no requirement to be physically present.

This makes Georgia a practical option for remote workers, freelancers, and online business owners who want a low-tax company structure without relocating or spending weeks abroad to set it up. It's worth noting, though, that remote registration being possible doesn't mean every step is automatic — power-of-attorney documents, translations, and bank compliance checks still need to be handled correctly.

What About Companies (LLCs)?

For businesses that need a legal entity rather than a sole proprietorship — for liability protection, for hiring employees, or because clients expect to contract with a company — Georgia also offers:

• Standard corporate tax, with a model similar to Estonia's: profits are generally not taxed until distributed as dividends, which can support reinvestment-heavy businesses.
• Virtual Zone status, a separate regime aimed at IT and software companies exporting services abroad, offering reduced corporate tax on qualifying foreign-sourced income.
• Free Industrial Zone companies, for certain manufacturing and trade activities, with their own exemptions.

LLC registration can also generally be completed remotely via power of attorney, though the documentation requirements are more involved than for an Individual Entrepreneur. Each of these regimes comes with its own eligibility rules, reporting obligations, and restrictions — they are not interchangeable with the 1% IE regime, and choosing the wrong one is one of the most common (and costly) mistakes we see.

Banking: The Part Most Guides Skip

Low tax on paper means little if you can't move money through the business. Georgian banks are generally open to non-residents, but:

• Account opening increasingly involves real compliance checks — proof of activity, source of funds, and sometimes an in-person visit, depending on the bank and your nationality.
• Not every bank serves every type of business or client base equally; some are more accustomed to international freelancers and e-commerce, others to local trade.
• International transfer costs, currency conversion, and card fees vary significantly between institutions — worth comparing rather than assuming.

Opening an account is not guaranteed by having a registered business, and requirements can change without much public notice.

Common Mistakes We See

• Assuming 1% tax applies to an LLC. It doesn't — that rate is for Individual Entrepreneurs with Small Business Status specifically.
• Registering before checking activity eligibility. Some business activities are excluded from SBS, and the exclusion list has changed in recent years.
• Confusing company tax residency with personal tax residency. Registering a Georgian business does not automatically change where you are taxed as an individual — that depends on your own country's rules and how much time you spend where.
• Treating "offshore" as a legal shortcut. Georgia is a transparent, cooperative jurisdiction with real reporting obligations — it is not a way to avoid disclosure requirements elsewhere.
• Not budgeting for the threshold. Growing past 500,000 GEL in turnover is a good problem to have, but it changes your tax position — plan the transition rather than being surprised by it.
• Assuming "remote" means "no paperwork." Power-of-attorney registration still requires the right documents, properly translated and legalized — missing a step can delay everything.

Is It Right for You?

Georgia tends to suit:

• Freelancers, consultants, and solo service providers with turnover comfortably under the SBS threshold.
• Remote-first businesses with clients outside Georgia, looking for low-tax company registration without relocating.
• Entrepreneurs who want a fast, low-cost, remote registration process without heavy local bureaucracy.

It tends to suit less well:

• Larger teams or businesses needing significant local hiring, where Georgian payroll and social contribution rules apply in full.
• Businesses in activities excluded from the simplified regimes.
• Anyone expecting "1% tax" to apply without doing the correct registration steps in the correct order.

Government authorities, banks, and the Revenue Service make their own determinations, and eligibility depends on your specific activity, structure, and circumstances. Requirements can and do change — what's accurate today may not be in a year.

Plan It Properly, From the Start

Opening a business in Georgia remotely can be fast and genuinely tax-efficient — but only when the structure matches the business, the activity qualifies, and the paperwork is done in the right order the first time. Antonov & Partners works with entrepreneurs and freelancers registering remotely in Georgia, and can walk you through which structure fits your situation, what Small Business Status actually requires, and how to set up banking without the usual delays.

Book a personalized consultation and we'll go through your specific activity, turnover expectations, and residency situation before you register anything.