Foreign companies entering Nepal often ask two questions at the same time.
Which company structure should we choose? And how do we protect our brand?
This guide answers both, through the lens of Private vs public company in Nepal, with a sharp focus on legal requirements for trademarks in Nepal in 2026. If you are planning market entry, FDI, licensing, or long-term operations, this article gives you the clearest, regulator-aligned answer available.
We will walk through company structures, trademark ownership rules, compliance risks, and practical decisions foreign founders must make before filing anything.
At first glance, company type and trademark registration seem separate.
In practice, they are deeply linked.
In Nepal, trademarks are registered to a legal person. That legal person’s structure determines:
Choosing the wrong structure can delay registration, block enforcement, or trigger regulatory objections later.
That is why understanding private vs public company in Nepal is essential before you file a trademark.
Nepal’s company law recognizes several legal forms. For foreign investors, two dominate.
A private company is the most common structure for foreign-owned businesses.
Key characteristics:
Private companies are ideal for:
A public company is designed for scale and public participation.
Key characteristics:
Public companies are typically used for:
Before trademarks, let us clearly compare the two.
| Criteria | Private Company | Public Company |
|---|---|---|
| Shareholders | 1 to 101 | Minimum 7, no cap |
| Public share issue | Not allowed | Allowed |
| Foreign ownership | Permitted (sector-based) | Restricted in many sectors |
| Compliance load | Moderate | High |
| Board structure | Flexible | Mandatory formal structure |
| Trademark ownership | Straightforward | Often layered and regulated |
From an IP and branding perspective, private companies are almost always cleaner.
Trademark registration in Nepal is governed primarily by:
Trademarks in Nepal protect:
Registration follows a first-to-file system, not first-to-use. This makes early filing critical.
This is where private vs public company in Nepal becomes decisive.
A trademark applicant can be:
However, practical enforcement and commercial use depend on company structure.
A private company in Nepal can:
This is the preferred structure for foreign brand owners.
A public company can own trademarks, but:
For branding control, public companies introduce friction.
Foreign companies often ask whether they need a local company to register a trademark.
The answer depends on intent.
Foreign companies may:
From a risk and scalability perspective, a private company in Nepal is usually the optimal vehicle.
Regardless of company type, the procedural steps are similar.
Conduct a search at the Department of Industry to check conflicts.
Submit:
Authorities review:
Marks are published for objections.
If unopposed, the trademark is registered.
Registration is valid for 7 years, renewable indefinitely.
Let us connect structure with strategy.
For most foreign investors, private vs public company in Nepal is not a debate when IP matters. Private wins.
Here are issues we see repeatedly.
These mistakes are costly and avoidable.
If you plan to license or franchise your brand, structure matters even more.
A private company:
Public companies complicate licensing due to governance layers.
Trademark ownership affects taxation.
Key points:
Choosing the right structure early avoids restructuring later.
From a brand protection lens:
That is why foreign companies almost always separate:
If you are a foreign company entering Nepal in 2026:
This structure aligns with law, practice, and enforcement reality.
Yes. A private company offers simpler ownership, faster enforcement, and fewer regulatory hurdles for trademark registration and licensing.
Yes, but enforcement and commercial use are easier when trademarks are held by a Nepali private company.
Typically 6 to 12 months, depending on objections and administrative review.
Yes, but approvals and disclosures are required, making the process slower and more complex.
A trademark is valid for 7 years and can be renewed indefinitely.
When comparing private vs public company in Nepal, trademarks tip the balance strongly.
For foreign companies focused on:
A private company is the clear winner.
Make the structural decision first.
Then protect your brand correctly.
That is how successful foreign investors win in Nepal.