Key Steps for Successful Company Name Registration in Nepal

If you are evaluating a private vs public company in Nepal, the very first legal checkpoint is company name registration.
It sounds simple. It is not.

For foreign companies, the name you choose directly affects approval timelines, regulatory risk, branding rights, and even future fundraising. Nepal’s regulators apply strict rules, and rejection is common when founders underestimate the process.

This guide is written for foreign investors, holding companies, and international founders. It explains how company name registration fits into the private vs public company in Nepal decision, what regulators look for, and how to get it right the first time.

We combine legal interpretation, regulatory practice, and on-the-ground experience. No fluff. No guesswork.

Understanding Private vs Public Company in Nepal (Quick Context)

Before diving into name registration, you need clarity on entity type.

Under the Companies Act, 2006, Nepal recognizes two primary company structures for commercial operations:

• Private Limited Company

• Public Limited Company

Your company type determines naming rules, suffixes, compliance depth, and scrutiny level.

Why foreign companies usually start private

For most foreign entrants, a private limited company is the default choice. It offers speed, flexibility, and lower compliance.

Public companies are typically used for capital markets, large infrastructure, or future IPO strategies.

Legal Authority Governing Company Name Registration in Nepal

All company name registrations are administered by the Office of Company Registrar (OCR).

The OCR operates under:

• Companies Act, 2006

• Company Registration Directive (latest amendments)

• Industry-specific restrictions from line ministries

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

There is no appeal shortcut.

Private vs Public Company in Nepal: How Naming Rules Differ

This is where many foreign companies stumble.

Mandatory suffix rules

• Private company: Must end with Private Limited

• Public company: Must end with Limited

The suffix is not cosmetic. It is legally determinative.

Regulatory scrutiny level

Public company names face deeper review because they may invite public investment.

Key Steps for Successful Company Name Registration in Nepal

This section is the practical core.

Step 1: Define your company type early

You must lock in whether you are forming a private or public company before proposing names.

Changing later means restarting the process.

Step 2: Shortlist compliant names

Prepare at least three alternative names.

Your name must:

• Be unique

• Avoid restricted or sensitive terms

• Reflect lawful business objectives

• Match your chosen company type

Step 3: Avoid restricted and regulated words

Certain words trigger automatic rejection or ministerial review.

Examples include:

• Bank, Finance, Insurance

• Government, National, Authority

• University, Academy, Council

Foreign companies often fail here by copying global brand structures.

Step 4: Conduct similarity screening

The OCR checks:

• Exact matches

• Phonetic similarity

• Transliteration conflicts (English vs Nepali)

A name that “sounds similar” can still be rejected.

Step 5: Submit name reservation application

Name reservation is done through the OCR’s electronic system, followed by physical verification in practice.

Approval timelines vary:

• Private company: typically 2–5 working days

• Public company: often 7–15 working days

Step 6: Lock the name into incorporation

Once approved, the name is reserved for a limited time.

Failure to incorporate within the window means losing the name.

Common Reasons Company Names Are Rejected in Nepal

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

Top rejection triggers

• Similarity with existing companies

• Use of regulated sector terms

• Misleading geographic references

• Overly generic descriptions

• Conflict with public policy

Even strong global brands face rejection if not localized properly.

Strategic Naming Considerations for Foreign Companies

This is where private vs public company in Nepal becomes a strategic decision, not just legal.

Branding vs compliance trade-off

Global brand consistency must sometimes yield to local law.

Smart investors design:

• A compliant legal name

• A flexible trading name

• Clear trademark strategy

Future-proofing matters

Ask these questions early:

• Will you convert to public later?

• Will you bring in Nepalese shareholders?

• Will you seek regulated licenses?

Your name should survive future milestones.

Private vs Public Company in Nepal: Name Registration Comparison Table

This comparison highlights why private companies dominate foreign registrations.

Industry-Specific Naming Rules You Must Know

Certain sectors have additional naming filters.

Highly regulated sectors

• Banking and finance

• Insurance

• Hydropower

• Education

• Healthcare

Sector regulators may review names even after OCR approval.

This creates hidden risk if not planned correctly.

How Name Registration Connects to FDI Approval

For foreign companies, name registration is only one layer.

If your structure involves foreign direct investment, the name must also align with:

• FITTA regulations

• Department of Industry approvals

• Sectoral licensing bodies

A mismatch can delay the entire investment cycle.

Practical Tips to Get Approved Faster

Here is a simple checklist used by experienced advisors:

• Keep names distinctive but not descriptive-heavy

• Avoid sensitive words unless licensed

• Align name with primary business activity

• Prepare alternates in advance

• Validate transliterations carefully

This reduces rejection risk dramatically.

Why Professional Review Matters More Than Filing Speed

Many foreign founders focus on speed.

Regulators focus on compliance.

A rejected name can delay:

• Bank account opening

• Tax registration

• Employment onboarding

• Contract execution

Upfront diligence always wins.

Conclusion: Choosing the Right Name in the Private vs Public Company in Nepal Decision

The private vs public company in Nepal choice shapes far more than shareholding.
It defines how regulators view your business from day one.

Company name registration is not a formality. It is a strategic, legal, and reputational decision.

Foreign companies that treat it seriously move faster, face fewer objections, and build stronger foundations in Nepal.

If you want certainty, plan your structure and name together.
That is how successful market entry actually works.

Frequently Asked Questions

1. Can a foreign company reserve a name before investment approval in Nepal?

Yes. Name reservation can be done before full investment approval. However, it does not guarantee FDI clearance later.

2. Is a private company name easier to approve than a public company name?

Yes. Private company names face fewer public interest and regulatory scrutiny layers than public companies.

3. Can two companies have similar names in Nepal?

No. Even phonetic or transliteration similarity can lead to rejection by the OCR.

4. How long is a company name reserved in Nepal?

Typically, the reservation is valid for a short statutory window. Delays may require reapplication.

5. Can a company change its name after registration?

Yes. But it requires shareholder approval, OCR consent, and public notice, making it time-consuming.