How to Secure Your Business Name in Nepal: A Detailed Process

If you are a foreign investor, the private vs public company in Nepal decision starts earlier than most expect.
Before capital, directors, or shareholders, you must secure a compliant business name.

Nepal follows a name-first regulatory system.
Without an approved name, nothing else moves forward.

This guide explains, step by step, how foreign companies secure business names in Nepal.
It also shows how the process differs for private companies vs public companies, and how to avoid the mistakes that cause costly delays.

Why Business Name Approval Matters for Foreign Companies

A business name in Nepal is not branding alone.
It is a legal identifier, reviewed and approved by the state.

The approving authority is the Office of Company Registrar (OCR).
OCR checks names for legality, uniqueness, and regulatory risk.

For foreign companies, name rejection is one of the most common causes of registration delays.

Key reasons OCR scrutinizes names

• Protection of existing registered companies

• Prevention of misleading or regulated terminology

• Alignment with company type and permitted activities

Private vs Public Company in Nepal: Why the Rules Differ

The private vs public company in Nepal distinction directly affects name approval.

Private company

• Limited to up to 101 shareholders

• Cannot invite public subscriptions

• Name scrutiny is strict but faster

Public company

• Minimum 7 shareholders

• Can raise capital from the public

• Name scrutiny is more conservative and detailed

Public company names face higher review standards because they interact with the public and capital markets.

Step-by-Step: How to Secure Your Business Name in Nepal

Step 1: Decide Your Company Type First

Before choosing a name, decide:

• Private limited company

• Public limited company

Your name must reflect the structure.

Example:

• “ABC Technologies Private Limited”

• “ABC Technologies Limited”

OCR rejects names that mismatch the company type.

Step 2: Understand What OCR Allows and Prohibits

OCR applies legal and regulatory filters.

Prohibited or restricted elements

• Government or state terms

• Banking, insurance, or finance terms without approvals

• Words implying public authority or monopoly

Commonly accepted elements

• Descriptive industry terms

• Invented or coined words

• Geographical references (non-misleading)

Step 3: Prepare 3–5 Name Options (Strategically)

OCR allows multiple submissions, but order matters.
The first option receives priority review.

Best practice:

1. Unique coined name

2. Semi-descriptive name

3. Descriptive fallback

Avoid generic names. They have the highest rejection rates.

Step 4: Check Name Availability (Pre-Screening)

Although OCR conducts the final review, professional pre-screening saves time.

Pre-screening checks:

• Exact matches

• Phonetic similarity

• Translation conflicts

This step is crucial for foreign companies using English names.

Step 5: Online Name Application With OCR

Name reservation is filed through OCR’s online system.

Required details include:

• Proposed company name

• Company type (private or public)

• Business objectives

• Promoter details

Once submitted, OCR begins formal review.

Step 6: OCR Review and Decision

OCR evaluates:

• Legal compliance

• Similarity with existing entities

• Alignment with stated objectives

Typical timelines

• Private company: 2–5 working days

• Public company: 5–10 working days

Approved names are reserved for a limited period.

Private vs Public Company in Nepal: Name Structure Comparison

This distinction is critical for foreign companies planning future fundraising.

Common Reasons Business Names Are Rejected

Foreign founders often assume rejection is arbitrary.
It is not.

Most rejections fall into predictable categories:

• Similarity with existing companies

• Misleading industry terms

• Regulated words without licenses

• Public-interest sensitivity

• Conflict with stated objectives

Knowing these patterns reduces rejection risk dramatically.

How Business Objectives Affect Name Approval

OCR reviews names together with objectives.

If your name implies:

• Finance

• Payments

• Insurance

• Education

• Healthcare

Then your objectives must clearly justify the terminology.

Mismatch leads to rejection, even if the name is unique.

Private vs Public Company in Nepal: Strategic Naming Advice for Foreign Investors

Think beyond approval.

A good Nepal entity name should:

• Support future FDI approvals

• Align with banking and tax registration

• Be defensible for trademarks

• Scale across borders

Avoid names that lock you into a narrow scope.

Legal and Regulatory Basis (EEAT Reinforcement)

The name approval process is governed by:

• Companies Act, 2006

• Office of Company Registrar guidelines

• Sector-specific regulatory directives

These frameworks aim to protect market clarity and investor confidence.

Practical Checklist Before Submitting Your Name

Before submission, confirm:

• Company type is finalized

• Objectives match the name

• No restricted terms are used

• Alternatives are prepared

• English wording is unambiguous

This checklist alone prevents most delays.

Conclusion: Private vs Public Company in Nepal Begins With the Right Name

Choosing between a private vs public company in Nepal is a strategic decision.
Securing the right business name is the first legal signal of that decision.

For foreign companies, success lies in preparation, not trial and error.
A compliant, well-structured name accelerates registration, banking, and regulatory approvals.

If you want a smooth market entry, start with the name—and do it right.

Frequently Asked Questions

1. Can foreign companies reserve a business name in Nepal?

Yes. Foreign promoters can reserve names through OCR before completing incorporation formalities.

2. How long is a business name valid after approval?

Approved names are typically reserved for a limited period, after which revalidation may be required.

3. Is the name approval process different for public companies?

Yes. Public companies face stricter scrutiny due to public interest and capital market exposure.

4. Can two companies have similar names in Nepal?

No. OCR rejects names that are identical or confusingly similar.

5. Does name approval guarantee company registration?

No. It only allows you to proceed. Full registration requires document and compliance approvals.