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.
Nepal’s intellectual property framework covers:
For commercial businesses, trademarks are the most relevant. They protect:
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.
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:
For foreign companies entering Nepal, private companies are typically preferred for:
The governing law is the Patent, Design and Trademark Act 1965 (amended).
Key provisions include:
Unlike some jurisdictions, Nepal follows a first-to-register principle. Early filing is essential.
Here is the simplified process foreign companies should follow:
Conduct a clearance search at DOI records.
Submit:
The DOI examines for:
The mark is published in the Industrial Property Bulletin.
If no opposition arises, a certificate is issued.
Processing time ranges from 6–18 months depending on backlog.
The structure affects:
Below is a strategic comparison.
| Factor | Private Company | Public Company |
|---|---|---|
| IP Control | Highly centralized | More dispersed ownership |
| Disclosure | Limited | Greater regulatory disclosure |
| Transfer of Shares | Restricted | Freely transferable |
| FDI Suitability | Strong | Less common for initial entry |
| Brand Risk | Lower exposure | Higher public scrutiny |
For most foreign subsidiaries, a private company offers tighter control.
Foreign investors must comply with:
When registering a trademark:
Each structure has tax and control implications.
Here are risks we regularly see:
Mitigation requires structured entry planning.
Follow this checklist:
In Nepal, renewal must occur every 7 years.
If infringement occurs, remedies include:
Enforcement can be pursued via District Court jurisdiction.
However, proactive registration remains far more effective than litigation.
For foreign companies in:
A private limited company is typically optimal in early stages.
It offers:
Public companies are suitable for:
Key bodies include:
Each plays a role in structure, FDI approval, and capital repatriation.
Estimated trademark costs (subject to official fee schedule updates):
Timeline: 6–18 months.
Private company incorporation: approx. 1–3 weeks (subject to documentation readiness).
No, but without registration, enforcement becomes extremely difficult. Nepal follows a first-to-register system.
Yes. However, many choose to register through their Nepal subsidiary for operational simplicity.
Seven years from registrtion. It is renewable indefinitely in seven-year intervals.
Most foreign investors choose private companies due to governance simplicity and risk containment.
No. Separate local filing is required through the Department of Industry.
When evaluating Private vs public company in Nepal, intellectual property must guide your structure decision.
A private limited company generally offers:
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.