diff --git a/api/server.go b/api/server.go
index c87138fd..9e5fcbd6 100644
--- a/api/server.go
+++ b/api/server.go
@@ -3152,14 +3152,33 @@ func (s *Server) handleLogout(c *gin.Context) {
 	c.JSON(http.StatusOK, gin.H{"message": "Logged out"})
 }
 
-// handleRegister Handle user registration request
+// handleRegister Handle user registration request.
+// Registration is only open when no users exist yet (first-time setup) OR when
+// explicitly enabled via REGISTRATION_ENABLED=true env var AND within MAX_USERS limit.
 func (s *Server) handleRegister(c *gin.Context) {
-	// Check if registration is allowed
-	if !config.Get().RegistrationEnabled {
-		c.JSON(http.StatusForbidden, gin.H{"error": "Registration is disabled"})
+	userCount, err := s.store.User().Count()
+	if err != nil {
+		c.JSON(http.StatusInternalServerError, gin.H{"error": "Failed to check user count"})
 		return
 	}
 
+	// First-time setup: allow registration when DB is empty, regardless of config.
+	firstTimeSetup := userCount == 0
+
+	if !firstTimeSetup {
+		// After first user exists: require explicit opt-in via REGISTRATION_ENABLED=true.
+		if !config.Get().RegistrationEnabled {
+			c.JSON(http.StatusForbidden, gin.H{"error": "Registration is disabled"})
+			return
+		}
+		// Enforce max users limit.
+		maxUsers := config.Get().MaxUsers
+		if maxUsers > 0 && userCount >= maxUsers {
+			c.JSON(http.StatusForbidden, gin.H{"error": "Maximum number of users reached"})
+			return
+		}
+	}
+
 	var req struct {
 		Email    string `json:"email" binding:"required,email"`
 		Password string `json:"password" binding:"required,min=6"`
@@ -3171,26 +3190,12 @@ func (s *Server) handleRegister(c *gin.Context) {
 	}
 
 	// Check if email already exists
-	_, err := s.store.User().GetByEmail(req.Email)
+	_, err = s.store.User().GetByEmail(req.Email)
 	if err == nil {
 		c.JSON(http.StatusConflict, gin.H{"error": "Email already registered"})
 		return
 	}
 
-	// Check max users limit (only for new users)
-	maxUsers := config.Get().MaxUsers
-	if maxUsers > 0 {
-		userCount, err := s.store.User().Count()
-		if err != nil {
-			c.JSON(http.StatusInternalServerError, gin.H{"error": "Failed to check user count"})
-			return
-		}
-		if userCount >= maxUsers {
-			c.JSON(http.StatusForbidden, gin.H{"error": "Not on whitelist"})
-			return
-		}
-	}
-
 	// Generate password hash
 	passwordHash, err := auth.HashPassword(req.Password)
 	if err != nil {
diff --git a/config/config.go b/config/config.go
index 91127d22..46b9a352 100644
--- a/config/config.go
+++ b/config/config.go
@@ -55,8 +55,8 @@ type Config struct {
 func Init() {
 	cfg := &Config{
 		APIServerPort:         8080,
-		RegistrationEnabled:   true,
-		MaxUsers:              10,   // Default: 10 users allowed
+		RegistrationEnabled:   false, // Default: closed after first user registers (first-time setup always allowed)
+		MaxUsers:              1,     // Default: single-user deployment
 		ExperienceImprovement: true, // Default: enabled to help improve the product
 		// Database defaults
 		DBType:    "sqlite",