Company Name Reservation in Nepal: Part of the Registration Process

The company registration process in Nepal begins long before documents are signed or capital is injected.
For foreign companies, the very first legal checkpoint is company name reservation.

Many international investors underestimate this step.
In practice, name reservation errors are one of the top reasons for registration delays at the Office of the Company Registrar (OCR).

This guide explains, in detail, how company name reservation works in Nepal, why it matters legally, and how foreign companies can get it right the first time.

If you are planning market entry, FDI, or a subsidiary setup, this article will save you weeks of back-and-forth.

What Is Company Name Reservation in Nepal?

Company name reservation is the formal approval of a proposed company name by Nepal’s Office of the Company Registrar under the Companies Act, 2006.

Once approved, the name is temporarily locked for your use during the company registration process in Nepal.

Without name approval, no incorporation application can proceed.

Where Name Reservation Fits in the Company Registration Process in Nepal

Step-by-step context

The company registration process in Nepal typically follows this order:

1. Company name reservation at OCR

2. Preparation of constitutional documents

3. Company incorporation approval

4. Tax registration (PAN/VAT)

5. FDI approval (if foreign investment applies)

6. Capital injection and bank compliance

7. Post-registration licenses and labor compliance

Name reservation is Step 1, and everything else depends on it.

Legal Basis for Company Name Reservation

Company name approval is governed by:

• Companies Act, 2006 (Sections 6–10)

• Company Registration Rules, 2007

• Office of the Company Registrar directives and practice notes

The law empowers OCR to reject names that are misleading, identical, or contrary to public interest.

Key Rules for Company Name Reservation in Nepal

1. Uniqueness requirement

Your proposed name must not be:

• Identical to an existing registered company

• Confusingly similar in spelling or pronunciation

Even minor variations may be rejected.

2. Restricted and sensitive words

Certain words require prior approval or are prohibited, including:

• Bank, Finance, Insurance

• Government, National, Authority

• University, Academy, Council

Foreign companies often face rejection here due to brand naming habits.

3. Alignment with business objectives

OCR checks whether the proposed name matches:

• The stated business activities

• Sector-specific regulations

A mismatch can trigger rejection even if the name is unique.

Common Mistakes Foreign Companies Make During Name Reservation

Foreign investors often assume name reservation is a simple administrative step.
It is not.

Frequent issues include:

• Translating a global brand without Nepal-specific checks

• Using restricted words without approval

• Proposing names unrelated to actual activities

• Submitting only one option instead of multiple alternatives

These mistakes cause delays in the company registration process in Nepal.

How to Apply for Company Name Reservation in Nepal

Online application via OCR portal

The Office of the Company Registrar operates an online system where applicants must:

• Create a user profile

• Submit proposed names

• Select company type

• Describe business objectives

Practical insight

OCR officers manually review applications.
Clear explanations significantly improve approval chances.

Number of Names You Should Submit (Best Practice)

While the system may allow a single submission, best practice is to submit:

1. Primary preferred name

2. First alternative

3. Second alternative

This reduces turnaround time dramatically.

Company Name Reservation for Foreign-Owned Companies

Additional scrutiny applies

For foreign companies entering Nepal, OCR often cross-checks:

• Similarity with overseas parent company names

• Trademark concerns

• Consistency with FDI applications

This is especially important if the company is part of a global group.

Name Reservation Timeline in Nepal

Delays here impact the entire company registration process in Nepal.

Name Reservation vs Trademark Protection in Nepal

Many foreign companies confuse these two concepts.

Name reservation does not grant trademark rights.

Strategic Naming Tips for Foreign Companies Entering Nepal

Use these principles to avoid rejection:

• Keep names simple and descriptive

• Avoid regulated sector terminology unless licensed

• Ensure alignment with Articles of Association

• Check OCR database before applying

This approach reduces friction in the company registration process in Nepal.

Impact of Name Rejection on FDI and Compliance

A rejected name can trigger:

• Delayed FDI approval at the Department of Industry

• Resubmission of incorporation documents

• Revised bank compliance paperwork

In multi-jurisdiction projects, this causes unnecessary reputational and operational risk.

How Name Reservation Links to Company Incorporation Documents

Once approved, the reserved name must exactly match:

• Memorandum of Association

• Articles of Association

• Share subscription agreements

• FDI approval letters

Any inconsistency leads to OCR queries.

Compliance Checklist for Name Reservation in Nepal

Before submission, confirm the following:

• Name is unique in OCR records

• No restricted words are used without approval

• Business objectives match the name

• Multiple alternatives are prepared

• Foreign ownership is clearly disclosed

This checklist significantly improves approval success.

Why Professional Support Matters at This Stage

Although name reservation appears simple, it sets the tone for the entire company registration process in Nepal.

Professional advisors help:

• Pre-screen names

• Align naming with FDI strategy

• Avoid OCR rejections

• Coordinate with downstream approvals

For foreign companies, this translates into faster market entry.

Call to Action: Start Your Company Registration Process in Nepal the Right Way

If you are planning to enter Nepal, do not treat name reservation as an afterthought.

Our team supports foreign companies with:

• Name reservation and OCR liaison

• End-to-end company registration process in Nepal

• FDI structuring and compliance

• Post-incorporation tax and labor setup

👉 Book a consultation today and secure your company name without delays.

Conclusion: Name Reservation Is the Foundation of the Company Registration Process in Nepal

The company registration process in Nepal begins with a single decision: your company name.

Get it wrong, and everything slows down.
Get it right, and incorporation becomes smooth, predictable, and compliant.

For foreign companies, a strategic, legally sound approach to name reservation is not optional.
It is essential.

Frequently Asked Questions (People Also Ask)

1. Is company name reservation mandatory in Nepal?

Yes. Company name reservation is mandatory and is the first formal step in the company registration process in Nepal.

2. How long is a reserved company name valid in Nepal?

Typically, a reserved name remains valid until incorporation is completed, subject to OCR timelines and compliance.

3. Can a foreign company reserve a name identical to its parent company?

Yes, but OCR may require clarification and supporting documents to avoid confusion or trademark conflicts.

4. What happens if my proposed company name is rejected?

You must resubmit a new name. Rejection delays the overall company registration process in Nepal.

5. Does name reservation protect my brand in Nepal?

No. Name reservation only allows incorporation. Trademark registration is required for brand protection.