Intellectual Property Rights in Nepal: Focusing on the Trademark Act

If you are evaluating Private vs public company in Nepal, intellectual property protection must be part of your decision. Your brand, logo, and trade name are assets. In Nepal, they are primarily protected under the Patent, Design and Trademark Act 1965.

Foreign companies often focus on tax, FDI approval, and capital structure. But IP risk can quietly undermine expansion. This guide explains how Nepal’s trademark regime works, how company structure affects protection, and what foreign investors must know in 2026.

Understanding Intellectual Property Rights in Nepal

Nepal’s intellectual property framework covers:

• Trademarks
• Patents
• Industrial designs
• Copyright (separate legislation)

For commercial businesses, trademarks are the most relevant. They protect:

• Brand names
• Logos
• Symbols
• Trade slogans
• Product marks

Trademarks are registered through the Department of Industry Nepal (DOI).

Nepal is a member of the World Intellectual Property Organization (WIPO). However, Nepal is not yet a member of the Madrid Protocol. This means foreign companies must file locally.

Why Company Structure Matters: Private vs Public Company in Nepal

When foreign investors assess Private vs public company in Nepal, they usually compare capital flexibility and compliance. But IP ownership structure is equally critical.

Under the Companies Act 2006, companies are incorporated as:

• Private Limited Company
• Public Limited Company

Private Company (Pvt. Ltd.)

• Minimum 1 director
• Maximum 101 shareholders
• No public share offering
• Simpler governance
• Ideal for FDI subsidiaries

Public Company (Ltd.)

• Minimum 3 directors
• Minimum 7 shareholders
• Can issue shares to public
• Subject to stricter reporting

For foreign companies entering Nepal, private companies are typically preferred for:

• Controlled IP ownership
• Risk ring-fencing
• Reduced disclosure burden
• Faster setup

The Trademark Act in Nepal: Legal Foundation

The governing law is the Patent, Design and Trademark Act 1965 (amended).

Key provisions include:

1. Exclusive right to use registered marks
2. Ability to initiate infringement proceedings
3. Protection against identical or deceptively similar marks
4. Registration validity of 7 years (renewable)

Unlike some jurisdictions, Nepal follows a first-to-register principle. Early filing is essential.

Trademark Registration Process in Nepal

Here is the simplified process foreign companies should follow:

1. Trademark Search

Conduct a clearance search at DOI records.

2. Application Filing

Submit:

• Application form
• Logo (if applicable)
• Power of Attorney
• Company registration documents
• Applicable government fee

3. Examination

The DOI examines for:

• Similarity conflicts
• Distinctiveness
• Prohibited marks

4. Publication

The mark is published in the Industrial Property Bulletin.

5. Registration Certificate

If no opposition arises, a certificate is issued.

Processing time ranges from 6–18 months depending on backlog.

How Private vs Public Company in Nepal Impacts Trademark Ownership

The structure affects:

• Who legally owns the mark
• Licensing flexibility
• IP transfer processes
• Due diligence exposure

Below is a strategic comparison.

Comparison: Private vs Public Company in Nepal for IP Protection

For most foreign subsidiaries, a private company offers tighter control.

Foreign Direct Investment and Trademark Protection

Foreign investors must comply with:

• Foreign Investment and Technology Transfer Act 2019 (FITTA)
• Sectoral approvals (if required)
• Capital repatriation rules

When registering a trademark:

• The Nepal entity must be the legal applicant
• Alternatively, the foreign parent may register and license

Each structure has tax and control implications.

Common Trademark Risks for Foreign Companies

Here are risks we regularly see:

• Local distributors registering your mark first
• Similar marks blocking entry
• Weak classification strategy
• Delayed renewals
• Improper Power of Attorney filings

Mitigation requires structured entry planning.

Best Practices for Trademark Protection in Nepal

Follow this checklist:

1. File before announcing market entry
2. Register both word mark and logo
3. Secure domain names simultaneously
4. Ensure corporate name aligns with trademark
5. Monitor renewals

In Nepal, renewal must occur every 7 years.

Enforcement of Trademark Rights

If infringement occurs, remedies include:

• Civil injunction
• Seizure of counterfeit goods
• Damages claims
• Customs intervention

Enforcement can be pursued via District Court jurisdiction.

However, proactive registration remains far more effective than litigation.

Private vs Public Company in Nepal: Which Is Better for Brand-Driven Businesses?

For foreign companies in:

• FMCG
• Technology
• Education
• Financial services
• Manufacturing

A private limited company is typically optimal in early stages.

It offers:

• Controlled equity
• Easier IP licensing
• Reduced compliance complexity
• Stronger governance alignment

Public companies are suitable for:

• Large capital raises
• Domestic IPO strategies
• Wide shareholder base

Regulatory Authorities Involved

Key bodies include:

• Department of Industry Nepal
• Office of the Company Registrar Nepal
• Nepal Rastra Bank

Each plays a role in structure, FDI approval, and capital repatriation.

Costs and Timeline Overview

Estimated trademark costs (subject to official fee schedule updates):

• Government filing fees
• Professional fees
• Publication costs

Timeline: 6–18 months.

Private company incorporation: approx. 1–3 weeks (subject to documentation readiness).

Frequently Asked Questions (People Also Ask)

1. Is trademark registration mandatory in Nepal?

No, but without registration, enforcement becomes extremely difficult. Nepal follows a first-to-register system.

2. Can a foreign company register a trademark directly?

Yes. However, many choose to register through their Nepal subsidiary for operational simplicity.

3. How long does trademark protection last in Nepal?

Seven years from registrtion. It is renewable indefinitely in seven-year intervals.

4. What is better: private vs public company in Nepal for FDI?

Most foreign investors choose private companies due to governance simplicity and risk containment.

5. Is Nepal part of the Madrid Protocol?

No. Separate local filing is required through the Department of Industry.

Conclusion: Private vs Public Company in Nepal -Strategic IP Considerations

When evaluating Private vs public company in Nepal, intellectual property must guide your structure decision.

A private limited company generally offers:

• Stronger IP control
• Simplified governance
• Lower disclosure burden
• Better alignment with FDI strategy

For foreign companies entering Nepal, trademark registration under the Patent, Design and Trademark Act 1965 is non-negotiable.

If you are planning market entry, structure and IP strategy must be aligned from day one.