How to Reserve a Company Name in Nepal Before Incorporation

If you are planning company incorporation in Nepal, reserving your company name is the very first legal step. Many foreign companies underestimate this stage. A rejected name can delay incorporation by weeks. In some cases, it can derail an entire market-entry timeline.

Nepal has strict naming rules under the Companies Act, 2006. The Office of the Company Registrar (OCR) reviews every proposed name for similarity, meaning, and compliance. This guide explains how foreign companies can reserve a company name in Nepal smoothly, legally, and without unnecessary rejections.

By the end, you will know the exact process, documents, timelines, and common mistakes to avoid.

What is company name reservation in Nepal?

Company name reservation is a pre-incorporation approval issued by the Office of the Company Registrar. It confirms that your proposed business name is:

• Unique
• Legally acceptable
• Not misleading or restricted
• Available for registration

Once approved, the name is temporarily locked for your use during company incorporation Nepal.

Legal basis for reserving a company name in Nepal

The name reservation process is governed by:

• Companies Act, 2006 (Sections 6 and 7)
• Company Registration Rules
• OCR Naming Directives and Circulars

These laws apply equally to:

• Local companies
• Foreign-owned companies
• FDI subsidiaries
• Joint ventures

Foreign companies must comply with the same naming standards as domestic entities.

Why foreign companies must reserve a name before incorporation

For foreign investors, name reservation is more than a formality. It serves three critical purposes.

1. Regulatory clearance

Without an approved name, the OCR will not accept incorporation documents. No exceptions apply.

2. Brand protection

A reserved name prevents competitors from registering a similar name while you prepare incorporation filings.

3. FDI alignment

For foreign companies, the reserved name must match:

• FDI approval documents
• Parent company records
• Investment agreements

Any mismatch can trigger compliance queries later.

Step-by-step process to reserve a company name in Nepal

Below is the exact process foreign companies should follow for company incorporation Nepal.

Step 1: Conduct a preliminary name search

Before applying, search existing company names on the OCR system. This helps avoid obvious conflicts.

Check for:

• Similar spelling
• Similar pronunciation
• Similar meaning

Nepal rejects names that are confusingly close, even if spelled differently.

Step 2: Prepare 2–3 alternative names

Never submit just one name. The OCR allows multiple options, reviewed in order of preference.

Your names should:

• Reflect business activity
• Avoid restricted words
• Match parent company branding, if applicable

Step 3: Submit online name reservation application

Name reservation is filed online through the OCR portal.

You will need to provide:

• Proposed company name(s)
• Nature of business
• Applicant details
• Authorized representative information

Foreign companies usually appoint a local consultant or law firm to submit this.

Step 4: OCR review and decision

The OCR reviews the application for:

• Legal compliance
• Similarity with existing names
• Misleading or prohibited terms

Approval or rejection is issued electronically.

Step 5: Receive name reservation certificate

Once approved, the name is reserved for a limited period. You can now proceed with full company incorporation in Nepal.

Timeline for company name reservation in Nepal

Most foreign companies want clarity on timelines.

• Standard processing: 1–3 working days
• Complex cases: 5–7 working days
• Rejected applications: Requires resubmission

Delays often occur due to poor name selection.

How long is a company name reserved in Nepal?

A reserved name is typically valid for:

• 35 days from approval

If incorporation is not completed within this period, the name expires and becomes available again.

Extensions are not automatic and depend on OCR discretion.

Common reasons company names are rejected in Nepal

Understanding rejection reasons can save time and frustration.

Frequent rejection grounds include:

• Name too similar to an existing company
• Use of restricted or regulated words
• Misleading business description
• Foreign words without clear meaning
• Offensive or culturally sensitive terms

Foreign companies face higher scrutiny if the name implies government affiliation or regulated activity.

Restricted words in Nepal company names

Some words require special approval or are outright prohibited.

Examples of restricted terms:

• Bank
• Insurance
• Finance
• Trust
• Cooperative
• Government
• Authority

Using these without approval leads to immediate rejection.

Company name rules foreign investors must follow

For company incorporation Nepal, foreign investors should note these additional rules.

• English names are allowed
• Nepali language names are optional
• Acronyms must be justified
• Names must reflect actual business activities

Using a global brand name is allowed, but proof of ownership may be required.

Comparison: Good vs poor company names in Nepal

This comparison alone prevents most rejections during company incorporation Nepal.

Can foreign companies reserve a name before FDI approval?

Yes. Name reservation can be done before or after FDI approval.

However, best practice is:

• Align the name with proposed FDI documents
• Ensure consistency across approvals
• Avoid future amendments

Many foreign companies reserve the name first, then finalize FDI filings.

Costs involved in company name reservation Nepal

Name reservation fees are modest.

• Government fee: Nominal
• Professional service fee: Depends on complexity

The real cost is delay. A rejected name can stall incorporation and investment schedules.

Practical tips to get your name approved faster

Follow these proven strategies.

Numbered checklist for foreign companies

1. Choose descriptive names, not generic ones

2. Avoid regulated industry terms

3. Submit multiple alternatives

4. Match name with business scope

5. Use professional review before submission

These steps significantly improve approval chances.

Role of professional advisors in name reservation

While the process is online, foreign companies benefit from local expertise.

Advisors help with:

• Pre-clearance checks
• Regulatory interpretation
• Alignment with FDI and tax filings
• Avoiding future compliance issues

This is especially critical for company incorporation Nepal involving foreign ownership.

FAQs: Company name reservation in Nepal

1. Is company name reservation mandatory in Nepal?

Yes. You cannot complete company incorporation in Nepal without an approved name from the OCR.

2. Can two companies have similar names in Nepal?

No. Even slight similarities in spelling or pronunciation can result in rejection.

3. Can a foreign company use its global brand name in Nepal?

Yes, but proof of ownership or authorization may be required during incorporation.

4. What happens if my reserved name expires?

The name becomes available to others. You must reapply and risk losing it.

5. Can I change the company name after incorporation?

Yes, but it requires shareholder approval and OCR amendment filings.

Final thoughts: Name reservation is the foundation of company incorporation Nepal

For foreign companies, name reservation is not just an administrative step. It sets the legal, branding, and compliance foundation for your Nepal entry.

A well-chosen name speeds up approvals, avoids regulator scrutiny, and supports long-term operations. A poorly chosen name causes delays, rework, and frustration.

If you want your company incorporation in Nepal to move smoothly, start with a compliant and strategic name reservation.

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