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.
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.
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.
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.
This is where many foreign companies stumble.
Private company: Must end with Private Limited
Public company: Must end with Limited
The suffix is not cosmetic. It is legally determinative.
| Aspect | Private Company | Public Company |
|---|---|---|
| Name similarity checks | Strict | Very strict |
| Descriptive word limits | Moderate | High |
| Approval timeline | Faster | Slower |
| Ministry consultation | Rare | Common |
| Public interest review | No | Yes |
Public company names face deeper review because they may invite public investment.
This section is the practical core.
You must lock in whether you are forming a private or public company before proposing names.
Changing later means restarting the process.
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
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.
The OCR checks:
Exact matches
Phonetic similarity
Transliteration conflicts (English vs Nepali)
A name that “sounds similar” can still be rejected.
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
Once approved, the name is reserved for a limited time.
Failure to incorporate within the window means losing the name.
Foreign founders often assume rejection is rare. It is not.
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.
This is where private vs public company in Nepal becomes a strategic decision, not just legal.
Global brand consistency must sometimes yield to local law.
Smart investors design:
A compliant legal name
A flexible trading name
Clear trademark strategy
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.
| Factor | Private Limited Company | Public Limited Company |
|---|---|---|
| Minimum promoters | 1 | 7 |
| Name approval difficulty | Medium | High |
| Use of descriptive terms | Allowed with limits | Highly restricted |
| Public sensitivity review | No | Yes |
| Best for foreign entrants | Yes | Rarely |
This comparison highlights why private companies dominate foreign registrations.
Certain sectors have additional naming filters.
Banking and finance
Insurance
Hydropower
Education
Healthcare
Sector regulators may review names even after OCR approval.
This creates hidden risk if not planned correctly.
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.
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.
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.
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.
Yes. Name reservation can be done before full investment approval. However, it does not guarantee FDI clearance later.
Yes. Private company names face fewer public interest and regulatory scrutiny layers than public companies.
No. Even phonetic or transliteration similarity can lead to rejection by the OCR.
Typically, the reservation is valid for a short statutory window. Delays may require reapplication.
Yes. But it requires shareholder approval, OCR consent, and public notice, making it time-consuming.