Cross-border comparison
Estonia vs Georgia: Where Should You Incorporate in 2026?
A side-by-side analysis of cost, tax, banking, privacy, and remote formation for Estonia (Osaühing (OÜ)) vs Georgia (LLC).
The numbers, side by side
| Estonia | Georgia | |
|---|---|---|
| Entity type | Osaühing (OÜ) | LLC |
| Region | Europe | Asia |
| Filing fee (one-off) | $290 | $35 |
| Annual fee | $0 | $0 |
| Registered agent / corp sec | Not required | Not required |
| Headline corporate tax | 22% | 15% |
| Effective tax note | 0% on retained earnings. 22% only when distributed as dividends (rising from 20% in 2025). | Estonian-style: 0% on retained profits, 15% on distributions. Small Business Status = 1% on revenue < GEL 500k. |
| VAT / GST | 22% | 18% |
| Minimum paid-up capital | Nominal | Nominal |
| Processing time | 1 days | 1 days |
| Remote formation | ||
| Banking accessibility | 6/10 | 7/10 |
| Privacy score | 5/10 | 6/10 |
| UBO register public | ||
| Stripe available | ||
| PayPal Business | ||
| Wise Business |
Estonia: when it wins
- 0% tax on retained profits
- e-Residency program for remote founders
- Full digital management
Trade-offs
- Estonian bank accounts hard without local link
- CRS reporting
e-Residency card €100-€120 + state fee €265. Dividend tax rises to 22% in 2025.
Georgia: when it wins
- 1% small business tax
- 1-day formation
- Visa-free for many nationalities
Trade-offs
- Stripe not available
- PayPal Business not available
- Banking strict on non-residents
Individual Entrepreneur status with Small Business Status pays 1% on revenue up to GEL 500k.
Decision framework
- Want the cheapest setup? Compare year-1 totals: Estonia $290 vs Georgia $35.
- Want the lowest tax? Look at effective rate, not headline. 22% in Estonia vs 15% in Georgia; check both effective-tax notes above for exemptions.
- Need Stripe + Wise + Mercury? Estonia payments stack: Stripe ✅, Wise ✅. Georgia: Stripe ❌, Wise ✅.
- Privacy is critical? Estonia (5/10, UBO public) vs Georgia (6/10, UBO private).
- Forming remotely? Estonia: fully remote. Georgia: fully remote.
Frequently asked questions
Which is cheaper to form, Estonia or Georgia?
Georgia is cheaper: ~$35 year-1 vs ~$290 for Estonia.
Which has lower corporate tax, Estonia or Georgia?
Georgia has the lower headline rate at 15% vs 22% in Estonia. Estonian-style: 0% on retained profits, 15% on distributions. Small Business Status = 1% on revenue < GEL 500k.
Can I open a Stripe account in both Estonia and Georgia?
Stripe in Estonia: ✅ supported. Stripe in Georgia: ❌ not supported.
Is remote formation possible?
Estonia: Yes, fully remote. Georgia: Yes, fully remote.
What about privacy of beneficial owners?
Estonia's UBO register is public and privacy scored 5/10. Georgia's UBO register is private and privacy scored 6/10.