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.
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.
Protection of existing registered companies
Prevention of misleading or regulated terminology
Alignment with company type and permitted activities
The private vs public company in Nepal distinction directly affects name approval.
Limited to up to 101 shareholders
Cannot invite public subscriptions
Name scrutiny is strict but faster
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.
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.
OCR applies legal and regulatory filters.
Government or state terms
Banking, insurance, or finance terms without approvals
Words implying public authority or monopoly
Descriptive industry terms
Invented or coined words
Geographical references (non-misleading)
OCR allows multiple submissions, but order matters.
The first option receives priority review.
Best practice:
Unique coined name
Semi-descriptive name
Descriptive fallback
Avoid generic names. They have the highest rejection rates.
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.
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.
OCR evaluates:
Legal compliance
Similarity with existing entities
Alignment with stated objectives
Private company: 2–5 working days
Public company: 5–10 working days
Approved names are reserved for a limited period.
| Aspect | Private Company | Public Company |
|---|---|---|
| Legal suffix | Private Limited | Limited |
| Review strictness | Moderate | High |
| Public sensitivity | Low | Very high |
| Approval timeline | Faster | Slower |
| Capital signaling | Restricted | Regulated |
This distinction is critical for foreign companies planning future fundraising.
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.
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.
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.
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.
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.
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.
Yes. Foreign promoters can reserve names through OCR before completing incorporation formalities.
Approved names are typically reserved for a limited period, after which revalidation may be required.
Yes. Public companies face stricter scrutiny due to public interest and capital market exposure.
No. OCR rejects names that are identical or confusingly similar.
No. It only allows you to proceed. Full registration requires document and compliance approvals.