How to Reserve a Company Name Before Registration in Nepal

If you are researching how to register a company in Nepal, the very first legal step is reserving your company name. Before incorporation documents, capital injection, or foreign investment approvals, Nepalese law requires your proposed business name to be approved by the authorities.

For foreign companies, this step is often underestimated. A rejected name can delay registration by weeks. A poorly chosen name can restrict future licensing or branding. Getting name reservation right saves time, cost, and compliance risk.

This guide explains how to reserve a company name before registration in Nepal, with a foreign investor focus. You will learn the legal rules, online process, timelines, common mistakes, and strategic tips used by professional advisors.

Understanding Company Name Reservation in Nepal

What Is Company Name Reservation?

Company name reservation is the formal approval of your proposed business name by Nepal’s company regulator. Once approved, the name is temporarily blocked for your use during incorporation.

In Nepal, company names are regulated by the Office of Company Registrar under the Companies Act, 2006.

Without name approval, company registration cannot proceed.

Why Name Reservation Matters for Foreign Companies

Foreign companies face additional scrutiny. Regulators assess names for:

• National interest and public policy

• Restricted or regulated business sectors

• Misleading use of words like “international,” “bank,” or “government”

• Similarity with existing Nepalese or foreign brands

A compliant name reduces the risk of rejection during later FDI or licensing stages.

Legal Framework Governing Company Names in Nepal

Company name approval is governed primarily by:

• Companies Act, 2006 (Nepal)

• Company Registration Rules

• Sectoral laws for regulated industries like banking, insurance, and telecom

Key legal principles include:

• The name must be distinctive

• The name must not be deceptive or misleading

• The name must not infringe trademarks

• The name must align with the declared business objectives

How to Register a Company in Nepal: Name Reservation Step Explained

Step-by-Step Process to Reserve a Company Name

Below is the standard process used by both local and foreign investors.

1. Create an OCR Online Account

Name reservation is done online through the OCR portal. An account is required using basic identification details.

2. Search Existing Company Names

Before applying, conduct a manual search of existing names to avoid similarity issues.

3. Submit Name Reservation Application

You will submit:

• Proposed company name

• Alternative names (recommended)

• Nature of business

• Company type (Private Limited, Public Limited, etc.)

4. Pay Government Fee

A nominal government fee applies. Fees vary slightly depending on company type.

5. Review by Registrar

The registrar reviews your application for legal and policy compliance.

6. Approval or Rejection

Approved names are reserved for a limited period. Rejected names must be revised and resubmitted.

Timeline for Company Name Reservation in Nepal

Most name reservations are processed quickly, but foreign-linked names may take longer.

Typical timeline:

1 to 3 working days for standard cases
3 to 7 working days for foreign or sensitive names

Delays usually occur due to similarity conflicts or restricted words.

Validity Period of Reserved Company Names

Once approved, a company name is typically reserved for:

• 35 days from approval date

If incorporation documents are not filed within this window, the name expires and becomes available to others.

Extensions are discretionary and not guaranteed.

Common Reasons Company Names Are Rejected

Foreign companies often face rejections for avoidable reasons.

Most Frequent Rejection Triggers

• Name is too similar to an existing company

• Use of restricted words without approval

• Mismatch between name and business objectives

• Use of geographic or government terms

• Trademark conflicts

Restricted and Sensitive Words in Nepal Company Names

Certain words require special approvals or are prohibited altogether.

Examples of Restricted Words

• Bank

• Finance

• Insurance

• Trust

• Government

• Authority

• University

• International (in some cases)

Using these words without sectoral approval almost guarantees rejection.

How to Choose a Strong, Compliant Company Name

A strategic name balances branding with legal compliance.

Best Practices for Foreign Investors

• Keep the name unique and descriptive

• Avoid regulated terms unless licensed

• Align the name with future expansion plans

• Include “Private Limited” or “Pvt. Ltd.” where applicable

• Prepare 2 to 3 alternative names

Company Name Reservation vs Trademark Protection

Many foreign companies assume name reservation equals trademark protection. It does not.

For serious market entry, both are recommended.

Name Reservation for Different Company Types in Nepal

Private Limited Company

Most common for foreign investors. Requires at least one shareholder and director.

Public Limited Company

Stricter naming rules. Often requires regulatory clearance.

Branch or Liaison Office

Names usually mirror the parent company but require additional approvals.

How Name Reservation Fits into the Full Registration Process

Understanding how to register a company in Nepal requires seeing name reservation in context.

Typical Registration Flow

1. Company name reservation

2. Preparation of incorporation documents

3. Capital structure approval

4. Foreign investment approval (if applicable)

5. Company registration certificate

6. PAN and tax registration

Name approval is the gatekeeper step.

Practical Tips from Industry Specialists

Based on real-world cases, here are expert insights:

• Avoid copying foreign parent names verbatim if they include restricted words

• Localize spelling to improve approval chances

• Match business objectives tightly with the name

• Submit applications early in the week to reduce backlog delays

Compliance Risks of Poor Name Selection

A non-compliant name can lead to:

• Forced name changes after incorporation

• Licensing rejection

• Banking delays

• Brand confusion in Nepal

Fixing name issues post-registration is costly and time-consuming.

Frequently Asked Questions (People Also Ask)

How long does it take to reserve a company name in Nepal?

Most name reservations are approved within 1 to 3 working days. Foreign-linked or sensitive names may take up to a week.

Can a foreign company reserve a name in Nepal?

Yes. Foreign companies can reserve names directly or through authorized representatives during company registration.

Is name reservation mandatory in Nepal?

Yes. Company registration cannot proceed without an approved and reserved name.

Can I reserve multiple company names?

You can submit alternative names in one application, but only one name will be approved and reserved.

What happens if my reserved name expires?

If the validity period lapses, the name becomes available to others. You must reapply if still interested.

How to Register a Company in Nepal Successfully: Final Thoughts

If you want to understand how to register a company in Nepal, mastering the name reservation stage is essential. A compliant, strategic name sets the foundation for smooth incorporation, licensing, and long-term operations.

Foreign companies that approach this step casually often face delays and rejections. Those who plan carefully move faster and with fewer compliance risks.

Call to Action: Get Expert Support

Planning to expand into Nepal? Our legal and corporate specialists assist foreign companies with name reservation, incorporation, FDI approvals, and ongoing compliance.

👉 Book a free consultation to reserve your company name in Nepal correctly the first time.