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.
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.
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.
For foreign investors, name reservation is more than a formality. It serves three critical purposes.
Without an approved name, the OCR will not accept incorporation documents. No exceptions apply.
A reserved name prevents competitors from registering a similar name while you prepare incorporation filings.
For foreign companies, the reserved name must match:
• FDI approval documents
• Parent company records
• Investment agreements
Any mismatch can trigger compliance queries later.
Below is the exact process foreign companies should follow for company incorporation Nepal.
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.
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
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.
The OCR reviews the application for:
• Legal compliance
• Similarity with existing names
• Misleading or prohibited terms
Approval or rejection is issued electronically.
Once approved, the name is reserved for a limited period. You can now proceed with full company incorporation 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.
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.
Understanding rejection reasons can save time and frustration.
• 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.
Some words require special approval or are outright prohibited.
• Bank
• Insurance
• Finance
• Trust
• Cooperative
• Government
• Authority
Using these without approval leads to immediate rejection.
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.
| Criteria | Strong Name Choice | Weak Name Choice |
|---|---|---|
| Uniqueness | Clearly distinct | Similar to existing firms |
| Business clarity | Matches activity | Vague or misleading |
| Compliance | No restricted terms | Includes regulated words |
| Branding | Consistent with parent | Unrelated to operations |
| Approval likelihood | High | Low |
This comparison alone prevents most rejections during company incorporation Nepal.
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.
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.
Follow these proven strategies.
Choose descriptive names, not generic ones
Avoid regulated industry terms
Submit multiple alternatives
Match name with business scope
Use professional review before submission
These steps significantly improve approval chances.
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.
Yes. You cannot complete company incorporation in Nepal without an approved name from the OCR.
No. Even slight similarities in spelling or pronunciation can result in rejection.
Yes, but proof of ownership or authorization may be required during incorporation.
The name becomes available to others. You must reapply and risk losing it.
Yes, but it requires shareholder approval and OCR amendment filings.
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.
Planning company incorporation in Nepal?
Speak with Digital Consulting Ventures for end-to-end support on name reservation, FDI approvals, and full company registration.
👉 Book a consultation today and avoid costly delays.