Bahrain or Qatar: where should your business be based?
Qatar ranks higher in the index, =03 against 06. Which suits you depends on where the owners live, what the company is for and how it will be run.
Pillar by pillar
Doing business, side by side
Tax
Ordinary companies pay no corporate income tax. Oil and gas profits are taxed at 46%, multinational groups with revenue of EUR 750 million or more pay a 15% top-up tax from 2025, and a draft 10% tax on larger local companies is proposed from 2027.
The 10% rate applies to the foreign-owned share of mainland profits and to QFC locally sourced profits. Companies wholly owned by Qataris and GCC nationals resident in Qatar pay no income tax. Large groups face a 15% minimum top-up tax from 2025. There is no VAT.
Set-up
Registration through Sijilat takes about 5 days, or about 14 working days with the activity licence. The fee is BHD 50 plus BHD 100 for up to three activities, with set-up costs generally under BHD 190.
MoCI commercial registration through the Single Window takes 2 to 3 business days, from QAR 500 a year. A QFC holding company or SPC costs USD 500 to apply and USD 500 a year; a QFC LLC pays USD 5,000 a year.
On the ground
The company needs a business address recorded with the Ministry, usually a lease or a qualifying shared office, and must keep audited accounts. There is no statutory minimum capital for a WLL.
Mainland companies need approved premises. QFC firms need a registered office in the QFC, a Senior Executive Function and a Qatar resident director and secretary, unless a licensed support service provider fills these roles.
Ownership
Companies must record anyone owning or controlling 10% or more with the Ministry through Sijilat and confirm the details at each annual renewal. The register is not open to the public.
Companies declare beneficial owners holding 20% or more to the Ministry of Commerce and Industry with their commercial registration application. QFC companies file an annual UBO report. Neither register is public.
Residence
An owner of a registered Bahraini company can apply for a self sponsored investor residence permit. Golden Residency is open to property owners from BHD 130,000 and to some long serving residents and retirees.
Buying property worth QAR 730,000 brings a renewable residence permit without a sponsor, and QAR 3.65m brings permanent residency privileges. An entrepreneur residency needs endorsement by a local incubator.
Living and working
Currency
Bahraini dinar (BHD), pegged to the US dollar.
Qatari riyal (QAR), pegged to the US dollar at 3.64.
Time zone
UTC+3 all year, with no summer time.
UTC+3 all year, with no daylight saving.
Personal tax
There is no personal income tax. Employers pay social insurance of 3% on expatriate salaries, up to a BHD 4,000 monthly ceiling.
There is no income tax on salaries, wages or allowances. Self-employed people can be taxed on Qatar-source business income.
Flights
Bahrain International Airport has nonstop scheduled flights to 67 destinations, including seasonal routes, across the Gulf, South Asia, Europe and East Asia.
Hamad International Airport says it connects to more than 197 destinations with 55 airline partners, led by Qatar Airways.
Bahrain vs Qatar: common questions
Bahrain: Ordinary companies pay no corporate income tax. Oil and gas profits are taxed at 46%, multinational groups with revenue of EUR 750 million or more pay a 15% top-up tax from 2025, and a draft 10% tax on larger local companies is proposed from 2027. Qatar: The 10% rate applies to the foreign-owned share of mainland profits and to QFC locally sourced profits. Companies wholly owned by Qataris and GCC nationals resident in Qatar pay no income tax. Large groups face a 15% minimum top-up tax from 2025. There is no VAT.
Bahrain: Registration through Sijilat takes about 5 days, or about 14 working days with the activity licence. The fee is BHD 50 plus BHD 100 for up to three activities, with set-up costs generally under BHD 190. Qatar: MoCI commercial registration through the Single Window takes 2 to 3 business days, from QAR 500 a year. A QFC holding company or SPC costs USD 500 to apply and USD 500 a year; a QFC LLC pays USD 5,000 a year.
Bahrain: The company needs a business address recorded with the Ministry, usually a lease or a qualifying shared office, and must keep audited accounts. There is no statutory minimum capital for a WLL. Qatar: Mainland companies need approved premises. QFC firms need a registered office in the QFC, a Senior Executive Function and a Qatar resident director and secretary, unless a licensed support service provider fills these roles.
Bahrain: Companies must record anyone owning or controlling 10% or more with the Ministry through Sijilat and confirm the details at each annual renewal. The register is not open to the public. Qatar: Companies declare beneficial owners holding 20% or more to the Ministry of Commerce and Industry with their commercial registration application. QFC companies file an annual UBO report. Neither register is public.
Bahrain: An owner of a registered Bahraini company can apply for a self sponsored investor residence permit. Golden Residency is open to property owners from BHD 130,000 and to some long serving residents and retirees. Qatar: Buying property worth QAR 730,000 brings a renewable residence permit without a sponsor, and QAR 3.65m brings permanent residency privileges. An entrepreneur residency needs endorsement by a local incubator.
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