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.
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.
The company registration process in Nepal typically follows this order:
Company name reservation at OCR
Preparation of constitutional documents
Company incorporation approval
Tax registration (PAN/VAT)
FDI approval (if foreign investment applies)
Capital injection and bank compliance
Post-registration licenses and labor compliance
Name reservation is Step 1, and everything else depends on it.
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.
Your proposed name must not be:
Identical to an existing registered company
Confusingly similar in spelling or pronunciation
Even minor variations may be rejected.
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.
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.
Foreign investors often assume name reservation is a simple administrative step.
It is not.
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.
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
OCR officers manually review applications.
Clear explanations significantly improve approval chances.
While the system may allow a single submission, best practice is to submit:
Primary preferred name
First alternative
Second alternative
This reduces turnaround time dramatically.
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.
| Scenario | Typical Timeline |
|---|---|
| Clean, compliant name | 1–3 working days |
| Name with restricted terms | 5–10 working days |
| Rejected and resubmitted | 7–14+ working days |
Delays here impact the entire company registration process in Nepal.
Many foreign companies confuse these two concepts.
| Aspect | Name Reservation | Trademark Registration |
|---|---|---|
| Authority | Office of Company Registrar | Department of Industry |
| Purpose | Legal incorporation | Brand protection |
| Mandatory | Yes | Optional but recommended |
| Validity | Until incorporation | Renewable intellectual property right |
Name reservation does not grant trademark rights.
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.
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.
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.
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.
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.
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.
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.
Yes. Company name reservation is mandatory and is the first formal step in the company registration process in Nepal.
Typically, a reserved name remains valid until incorporation is completed, subject to OCR timelines and compliance.
Yes, but OCR may require clarification and supporting documents to avoid confusion or trademark conflicts.
You must resubmit a new name. Rejection delays the overall company registration process in Nepal.
No. Name reservation only allows incorporation. Trademark registration is required for brand protection.