How to Reserve a Company Name in Nepal Online & Offline Methods

Company registration in Nepal starts with one critical step that many foreign founders underestimate: reserving the company name. A rejected or poorly chosen name can delay incorporation by weeks. In some cases, it can force a complete rebranding before you even enter the market.

The good news is that Nepal offers both online and offline company name reservation options. When done correctly, the process is straightforward, affordable, and fast. This guide explains everything foreign companies need to know, from legal rules to practical tips that prevent rejection.

Why Company Name Reservation Matters in Company Registration in Nepal

Under Nepal’s Companies Act, 2006, no company can be incorporated unless its proposed name is approved by the Office of the Company Registrar (OCR).

Name reservation ensures:

• Legal uniqueness across Nepal

• Protection from trademark conflicts

• Alignment with permitted business activities

• Faster approval during company registration in Nepal

For foreign investors, this step also signals regulatory seriousness and compliance readiness.

Who Can Reserve a Company Name in Nepal

Foreign companies can reserve a name if they plan to register as:

• Private Limited Company

• Public Limited Company

• Branch Office

• Liaison Office

• Subsidiary under Foreign Direct Investment (FDI)

The reservation process is the same, although FDI-linked entities require additional scrutiny on sector alignment.

Legal Framework Governing Company Name Reservation

Company name approval in Nepal is governed by:

• Companies Act, 2006

• Company Registration Regulation, 2007

• OCR Naming Directives and Circulars

• Industrial Enterprises Act, 2020 (for sector relevance)

The OCR has full discretion to accept or reject a name.

Online Method: How to Reserve a Company Name in Nepal via OCR Portal

Step-by-Step Online Name Reservation Process

1. Visit the OCR online company registration portal

2. Create a user account

3. Select “Name Reservation”

4. Enter proposed company name

5. Choose company type

6. Define business objectives

7. Upload supporting documents (if required)

8. Pay the prescribed fee

9. Submit for review

Most approvals are issued within 1–3 working days.

Documents Required for Online Name Reservation

• Proposed company name

• Business objective description

• Passport copy (foreign promoter)

• Board resolution (for corporate shareholders)

• Power of attorney (if applying through a consultant)

Common Reasons Online Name Reservations Get Rejected

• Name resembles an existing company

• Use of restricted or regulated words

• Vague or misleading business objectives

• Sector mismatch with FDI rules

• Improper suffix usage (Pvt. Ltd., Limited)

Offline Method: How to Reserve a Company Name in Nepal Physically

While less common today, offline reservation is still permitted.

Offline Name Reservation Process

1. Visit the Office of the Company Registrar

2. Fill the physical name reservation application

3. Submit supporting documents

4. Pay the fee at the counter

5. Collect acknowledgment slip

6. Receive approval or rejection notice

Processing time is usually 3–5 working days.

When Does Offline Reservation Make Sense

Offline filing may be useful when:

• OCR portal is down

• Complex foreign ownership structures exist

• Regulated sector clarification is needed

• Urgent in-person clarification is required

Online vs Offline Name Reservation Comparison

Rules for Choosing a Company Name in Nepal

Mandatory Naming Rules

• Must be unique

• Must not mislead the public

• Must align with business objectives

• Must include proper legal suffix

• Must not violate public morality or sovereignty

Restricted Words That Need Special Approval

Some examples include:

• Bank

• Finance

• Insurance

• Cooperative

• University

• Government

• National

Using these words requires approvals from relevant regulators like Nepal Rastra Bank or line ministries.

Tips to Get Your Company Name Approved on the First Attempt

• Prepare three alternative names

• Avoid generic terms like “Global” or “International” unless justified

• Clearly define your business scope

• Match name tone with sector

• Check existing OCR records before submission

These steps significantly increase approval success during company registration in Nepal.

How Long Is a Reserved Company Name Valid in Nepal

A reserved company name is valid for:

• 35 days from approval date

If incorporation documents are not filed within this period, the name expires and must be re-applied.

Cost of Company Name Reservation in Nepal

Name reservation fees are nominal and regulated by the OCR.

Professional advisory fees may apply if you use consultants.

Role of Consultants in Name Reservation for Foreign Companies

Foreign companies often appoint local advisors to:

• Conduct name availability checks

• Align naming with FDI rules

• Draft compliant business objectives

• Handle OCR correspondence

This reduces rejection risk and speeds up company registration in Nepal.

Common Mistakes Foreign Companies Should Avoid

• Assuming trademark registration equals name approval

• Copying parent company names without localization

• Ignoring sector restrictions

• Missing the 35-day validity deadline

• Filing incomplete objectives

Avoiding these errors saves time and cost.

How Name Reservation Fits Into the Full Company Registration in Nepal Process

Name reservation is followed by:

• MOA and AOA drafting

• FDI approval (if applicable)

• Capital injection

• Tax and VAT registration

• Bank account opening

A rejected name delays all downstream steps.

Frequently Asked Questions (People Also Ask)

Can foreigners reserve a company name in Nepal?

Yes. Foreign individuals and companies can reserve names through the OCR, subject to sector and FDI compliance.

How long does OCR take to approve a company name?

Online applications usually take 1–3 working days. Offline applications take slightly longer.

Can I reserve more than one company name?

Yes. Multiple applications can be submitted, but each requires a separate fee.

What happens if my reserved name expires?

The name becomes publicly available again. You must reapply.

Is company name reservation mandatory for company registration in Nepal?

Yes. Without name approval, OCR will not process incorporation documents.

Conclusion

Company registration in Nepal begins with a compliant, well-thought-out company name reservation. For foreign companies, this step sets the tone for regulatory success. Choosing the right name, following OCR rules, and using the correct filing method can save weeks of delay and unnecessary rejections.

With proper guidance, name reservation becomes a smooth and predictable process that accelerates your Nepal market entry.

Call to Action

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Sources referenced:

• Companies Act, 2006 (Nepal)

• Office of the Company Registrar (OCR) Guidelines

• Industrial Enterprises Act, 2020