If you are evaluating a private vs public company in Nepal, one issue often gets overlooked: trademark protection.
Structure determines ownership and governance. But trademarks protect what customers actually remember your brand.
For foreign companies entering Nepal, trademark registration is not optional. It is a strategic asset.
In this guide, we combine insights on private vs public company in Nepal with the advantages of trademark registration in Nepal, so you can build the right structure and protect your intellectual property from day one.
Before discussing trademarks, it’s important to understand how corporate structure affects brand ownership.
Under the Companies Act 2006, companies in Nepal are generally incorporated as:
| Criteria | Private Company | Public Company |
|---|---|---|
| Minimum Shareholders | 1 | 7 |
| Maximum Shareholders | 101 | Unlimited |
| Share Transfer | Restricted | Freely transferable |
| Public Share Issue | Not allowed | Allowed |
| Compliance Level | Moderate | High |
| Suitable For | SMEs, foreign subsidiaries | Large-scale, capital-intensive businesses |
Most foreign investors choose a private company when entering Nepal.
It offers control, flexibility, and simpler governance.
However, whether you choose private or public, trademark registration is equally critical.
Trademark protection in Nepal is governed by the Patent, Design and Trademark Act 1965.
Registration is handled by the Department of Industry.
Nepal follows a first-to-file system.
This means whoever registers first owns the mark. Not whoever used it first.
For foreign companies, this creates urgency.
Registration grants:
Without registration, enforcement becomes difficult.
In a private vs public company in Nepal decision, ownership clarity is crucial. A trademark registered in the company’s name becomes a valuable corporate asset.
For public companies especially, brand protection affects valuation.
Investors look for:
A registered trademark strengthens due diligence outcomes.
Nepal’s growing consumer market attracts imitation.
If your brand is not registered, a third party may register it before you.
Under the Patent, Design and Trademark Act, legal remedies include:
Registration simplifies enforcement.
Trademarks are intangible assets.
They can be:
In a private vs public company in Nepal, a registered trademark improves enterprise value.
Many foreign companies expand via:
Trademark registration ensures:
Without registration, franchise protection weakens.
Registered marks can be recorded for customs monitoring.
This helps stop counterfeit imports.
For consumer brands entering Nepal, this is critical.
A trademark lasts:
This creates perpetual brand protection.
Here is the standard process:
Timeline: 6–12 months typically.
This is where private vs public company in Nepal intersects with IP strategy.
| Scenario | Trademark Owner | Risk Level |
|---|---|---|
| Registered in Founder’s Name | Individual | High |
| Registered in Foreign Parent | Parent Company | Moderate |
| Registered in Nepal Subsidiary | Local Company | Low |
| Registered in JV Partner’s Name | Third Party | Very High |
Best practice:
Register the trademark in the Nepal-incorporated entity if operating locally.
This ensures:
For most foreign SMEs:
Private Company is Ideal When:
Public Company is Suitable When:
However, trademark strategy remains identical.
Protection must occur before:
Let’s avoid these costly errors:
Nepal does not automatically recognize foreign registrations.
While fees vary, typical costs include:
Compared to litigation costs, registration is minimal.
Imagine this scenario:
A foreign FMCG company enters Nepal as a private limited company.
They delay trademark filing.
A local distributor registers the brand name first.
The foreign company must:
This risk is avoidable.
If you are deciding on private vs public company in Nepal, integrate IP planning into:
Brand protection should be part of your entry blueprint.
No, but it is strongly recommended. Nepal follows a first-to-file system. Registration provides legal protection and enforcement rights.
Initial protection lasts 7 years and can be renewed indefinitely.
Yes. Foreign companies can register directly or through a Nepal-incorporated entity.
No. Both can own trademarks. However, ownership structure impacts enforcement and licensing strategy.
You may face legal disputes or forced rebranding. Early registration is critical.
Choosing between a private vs public company in Nepal determines governance and capital structure.
But trademark registration determines brand survival.
For foreign companies entering Nepal, both decisions must align.
Structure protects operations.
Trademarks protect identity.
If you are planning market entry, incorporate brand protection from day one.