If you are evaluating Private vs public company in Nepal, trademark protection should be part of your entry strategy from day one. Nepal follows a strict “first to file” principle under its trademark regime. That means the first applicant to file a mark usually wins, even over prior users.
For foreign companies entering Nepal, this changes everything.
Structure, timing, and compliance matter. In this guide, we explain:
Let’s break it down clearly and practically.
Before discussing trademarks, we need to understand how company structure works in Nepal.
Company formation in Nepal is governed primarily by the Companies Act 2006. Foreign investment considerations are governed by the Foreign Investment and Technology Transfer Act 2019 (FITTA 2019).
A private company in Nepal:
This is the most common structure for foreign investors.
It offers flexibility, control, and lower regulatory burden.
A public company:
Public companies are regulated by the Securities Board of Nepal (SEBON).
For most foreign companies entering Nepal, a public structure is unnecessary unless planning a listing or capital market raise.
| Criteria | Private Company | Public Company |
|---|---|---|
| Minimum shareholders | 1 | 7 |
| Public share offering | Not allowed | Allowed |
| Compliance burden | Moderate | High |
| Ideal for | FDI, subsidiaries, branch operations | Large capital markets projects |
| Typical foreign investor choice | Yes | Rare |
Insight: 90%+ of foreign investors entering Nepal choose a private limited company structure for operational efficiency and control.
Nepal follows a strict “first to file” trademark system.
Trademark protection is governed by the Patent, Design and Trademark Act 1965.
Under this framework:
The party that files first generally obtains legal ownership — regardless of who used the mark first.
This surprises many foreign businesses.
If a local party registers your brand name before you:
Unlike common law jurisdictions, prior use alone does not guarantee protection.
This is where Private vs public company in Nepal becomes strategically important.
Trademark applications must be filed in the name of:
Choosing the wrong entity creates ownership and repatriation issues later.
Pros:
Cons:
Pros:
Cons:
For foreign investors setting up a private limited company, we typically recommend structured IP flow documentation.
Here is the typical process:
The key risk window is between your decision to enter Nepal and your filing date.
Delay creates vulnerability.
These mistakes often arise from poor coordination between legal and market entry teams.
For foreign companies comparing private vs public company in Nepal, the ideal order is:
This sequencing protects your brand before public exposure.
Nepal follows the Nice Classification system.
However, foreign companies often under-file.
For example:
A proper class strategy prevents later conflicts.
Nepal’s IP enforcement has strengthened over the last decade.
However:
Early filing significantly improves your legal position.
From a risk architecture perspective:
Private companies:
Public companies:
For foreign investors, simplicity reduces IP risk.
| Risk Factor | Private Company | Public Company |
|---|---|---|
| IP control | High | Diluted |
| Disclosure risk | Lower | Higher |
| Regulatory oversight | Moderate | High |
| Brand protection agility | Faster | Slower |
| Recommended for FDI | Yes | Rare |
Strategic Insight: Private structures provide faster brand protection alignment under Nepal’s first-to-file regime.
Under the Patent, Design and Trademark Act 1965:
Foreign investment structuring must align with FITTA 2019 and Companies Act 2006 to ensure lawful ownership.
Foreign companies should:
Do not wait for product launch.
Yes. Nepal follows a first-to-file system under the Patent, Design and Trademark Act 1965. The first applicant generally gains legal ownership, even over prior users.
Yes. Filing early protects your brand from third-party registration. Many foreign companies file trademarks before completing incorporation.
A private company is usually better. It offers lower compliance burden, more control, and better alignment with FDI structures.
Yes. Foreign entities can register trademarks directly or through authorized representatives in Nepal.
Typically 8–18 months, depending on objections or opposition. Filing date protection begins once application is accepted.
If you are evaluating Private vs public company in Nepal, do not treat trademark protection as secondary.
It is foundational.
A clean entry model includes:
Foreign companies that plan early avoid litigation later.
Cross-border filings are increasing.
Local opportunistic filings are rising.
Digital brands are particularly vulnerable.
Nepal’s market is growing, but IP awareness is uneven.
This creates risk.
And opportunity.