Trademark Process in Nepal: A Comprehensive Guide for 2026

If you are a foreign investor planning market entry, private vs public company in Nepal is one of the first strategic decisions you must make. The structure you choose shapes everything. Ownership control. Compliance burden. Capital raising. Even how your trademark is protected and commercialized in Nepal.

Nepal has modernized its corporate and intellectual property frameworks over the last decade. Yet, for foreign companies, the distinction between private and public companies still causes confusion. This guide cuts through that confusion. It connects company structure with the trademark process in Nepal, regulatory exposure, and long-term scalability for 2026 and beyond.

This article is written for decision-makers. Founders. CFOs. Legal heads. Expansion teams. If you want clarity instead of generic explanations, you are in the right place.

Why Company Structure Matters for Trademark Protection in Nepal

Foreign companies often treat trademarks as a standalone filing. In Nepal, that approach creates risk.

Your company structure determines:

• Who owns the trademark locally
• How licensing or assignment works
• How profits linked to the trademark are repatriated
• How regulators interpret commercial activity

Choosing between a private and public company in Nepal is not just corporate law. It is brand strategy and compliance strategy combined.

Understanding Company Types Under Nepalese Law

Nepal’s corporate framework is governed primarily by the Companies Act 2006. Under this law, companies fall broadly into two commercial categories.

What Is a Private Company in Nepal?

A private company in Nepal is the most common structure for foreign investors.

Key legal features:

• Shareholders limited to a maximum threshold
• No public invitation for shares
• Restricted transfer of shares
• Lower disclosure and compliance requirements

For most foreign-owned subsidiaries, this structure is preferred.

What Is a Public Company in Nepal?

A public company is designed for capital markets and large-scale fundraising.

Key legal features:

• Shares offered to the public
• Higher minimum capital
• Mandatory board committees
• Stricter reporting and audits

Public companies are regulated not only by the OCR but also by market regulators.

Private vs Public Company in Nepal: Side-by-Side Comparison

Insight:
Over 90 percent of foreign investors entering Nepal choose a private company. Public companies are usually relevant only for banks, hydropower, telecom, and IPO-driven sectors.

Regulatory Authorities You Must Know

Foreign companies often underestimate the number of regulators involved. These are the key institutions you will interact with.

• Office of Company Registrar
• Department of Industry
• Department of Customs (for branded goods)
• Inland Revenue Department

For trademarks specifically, filings are managed under the Department of Industry.

How Company Structure Impacts the Trademark Process in Nepal

Trademark Ownership Rules

In Nepal, a trademark must be registered in the name of:

• A natural person, or
• A legal entity recognized under Nepalese law

A private or public company both qualify. However, private companies offer faster approvals and fewer questions, especially when shareholders are foreign.

Licensing and Brand Use

Private companies allow:

• Easier intra-group trademark licensing
• Cleaner royalty structures
• Simpler transfer pricing documentation

Public companies face:

• Board approvals
• Disclosure requirements
• Regulatory scrutiny on related-party transactions

Trademark Process in Nepal Explained Step by Step

Here is how the trademark process works in practice, regardless of company type.

Step 1: Trademark Search

A clearance search is conducted to identify similar or conflicting marks. This step is not legally mandatory, but skipping it increases rejection risk.

Step 2: Filing Application

The trademark application is filed with the Department of Industry. The applicant is your Nepal entity or authorized foreign owner.

Step 3: Examination

Authorities review:

• Distinctiveness
• Similarity with existing marks
• Compliance with trademark classification

Step 4: Publication and Opposition

Approved marks are published. Third parties may file objections within the statutory period.

Step 5: Registration and Certification

If no opposition succeeds, the trademark is registered and protected.

Typical Timeline for Trademark Registration in Nepal

• Filing to examination: 2–4 months
• Publication period: 90 days
• Final registration: 8–14 months total

Private companies usually move faster due to fewer ownership queries.

Why Foreign Investors Prefer Private Companies for Trademarks

Foreign brands entering Nepal almost always register trademarks through a private limited company.

Reasons include:

• Faster incorporation
• Lower compliance exposure
• Cleaner brand ownership
• Easier exit or restructuring

Public companies are chosen only when:

• Local IPO is planned
• Large-scale public funding is required
• Sector mandates public structure

Private vs Public Company in Nepal for Market Entry Strategy

Choosing the wrong structure early can lock you into unnecessary cost.

When a Private Company Makes Sense

• Testing the Nepal market
• Setting up a subsidiary or back-office
• Protecting brand and IP
• Long-term controlled growth

When a Public Company Makes Sense

• Infrastructure or energy projects
• Mandatory public participation
• Listing ambitions

Common Mistakes Foreign Companies Make

Here are the most frequent errors we see.

1. Registering trademarks personally instead of through the company
2. Choosing public company structure too early
3. Ignoring royalty and licensing tax treatment
4. Assuming trademark rules mirror India or Australia

Each of these creates avoidable legal friction.

Compliance Obligations by Company Type

Private Company Compliance Snapshot

• Annual filings with OCR
• Tax filings with IRD
• Trademark renewal every 7 years

Public Company Compliance Snapshot

• Mandatory audits
• Public disclosures
• Additional regulator oversight
• Higher penalties for non-compliance

How Nepal’s Laws Protect Foreign Brand Owners

Nepal is a member of major international IP frameworks. Trademark protection aligns with global standards, even though processes are local.

Key legal backing includes:

• Companies Act 2006
• Industrial Enterprises Act 2020
• Trademark Registration Directives

These frameworks provide enforceability for foreign-owned trademarks.

Private vs Public Company in Nepal: Cost Perspective

Cost differences are material.

• Private company incorporation is cost-efficient
• Trademark filing costs are identical
• Ongoing compliance costs diverge sharply

For most foreign companies, private companies deliver better ROI.

Strategic Recommendation for 2026

For foreign companies entering Nepal in 2026:

• Choose a private company unless legally required otherwise
• Register trademarks early, before operations scale
• Align brand ownership with tax and repatriation planning

This approach minimizes risk and maximizes control.

Conclusion: Private vs Public Company in Nepal for Trademark-Led Growth

Choosing between a private vs public company in Nepal is not a paperwork exercise. It is a strategic decision that shapes how your brand is protected, commercialized, and scaled.

For most foreign investors, a private company offers:

• Faster setup
• Lower compliance
• Strong trademark protection
• Flexible exit options

If your goal is controlled growth with strong IP protection, the private company route remains the clear winner for 2026.

Frequently Asked Questions

Is a private company better than a public company in Nepal for foreign investors?

Yes. Private companies offer lower compliance, faster approvals, and simpler trademark ownership for foreign investors.

Can a foreign company register a trademark in Nepal without incorporation?

Yes, but enforcement and licensing are easier when the trademark is held by a Nepal-registered entity.

How long does trademark registration take in Nepal?

Typically 8 to 14 months, depending on objections and examination timelines.

Do public companies get stronger trademark protection?

No. Trademark protection is the same. Public companies simply face more compliance obligations.

Can trademarks be transferred between private and public companies?

Yes. Transfers are allowed but require regulatory filings and tax consideration.