Trademark Registration in Nepal: A Comprehensive Guide for 2026

Private vs public company in Nepal is one of the first decisions foreign companies must make when entering the Nepali market. That choice affects ownership, compliance, fundraising, and even trademark registration in Nepal. In 2026, regulators expect clearer governance, stronger IP protection, and better disclosure from foreign-backed entities. This guide breaks down the differences, explains how trademarks fit into each structure, and shows you the safest path to market entry. If you want clarity without legal jargon, you are in the right place.

Why Company Structure Matters for Foreign Companies in Nepal

Choosing between a private and a public company in Nepal shapes your entire operating model.

It affects how you raise capital.
It controls how many shareholders you can have.
It determines your disclosure burden.
It impacts how smoothly you can register and enforce trademarks.

Foreign companies often underestimate this decision. That mistake slows approvals and creates IP risks later.

Overview of Company Types in Nepal

Nepal’s Companies Act recognizes two main company structures relevant to foreign investors.

Private Limited Company in Nepal

A private limited company is the most common entry vehicle for foreign companies.

Key features include:

• Limited to a maximum of 101 shareholders.
• Share transfer is restricted.
• Cannot invite the public to subscribe for shares.
• Faster registration and lower compliance costs.

This structure is ideal for wholly owned subsidiaries and joint ventures.

Public Limited Company in Nepal

A public limited company is designed for scale.

Key features include:

• Minimum of seven shareholders.
• Can issue shares to the public.
• Subject to strict disclosure and governance rules.
• Suitable for large infrastructure, banking, or capital-heavy projects.

Private vs Public Company in Nepal at a Glance

This comparison alone explains why most foreign companies start private.

Trademark Registration in Nepal Explained

Before operating, your brand must be protected.

What Is a Trademark in Nepal

A trademark can be:

• A brand name.
• A logo.
• A slogan.
• A combination of words and symbols.

Trademark registration in Nepal grants exclusive rights to use and enforce your brand.

How Company Structure Affects Trademark Registration

This is where private vs public company in Nepal becomes crucial.

Trademark Registration for Private Companies

Private companies enjoy simplicity.

Advantages include:

• Faster filing.
• Fewer internal approvals.
• Clear ownership structure.
• Easier enforcement.

For foreign companies, trademarks are usually registered in the Nepali subsidiary’s name.

Trademark Registration for Public Companies

Public companies face additional layers.

Challenges include:

• Board approvals.
• Disclosure of IP as material assets.
• More scrutiny during transfer or licensing.

This structure suits companies with long-term public market plans.

Trademark Registration Process in Nepal (2026)

The core process remains stable, but scrutiny has increased.

Step-by-Step Trademark Registration

1. Trademark search to check availability.
2. Application filing at the Department of Industry.
3. Formal examination by authorities.
4. Publication for public opposition.
5. Registration certificate issuance.

The process typically takes 12 to 18 months.

Documents Required for Trademark Registration

Foreign companies must prepare:

• Certificate of incorporation.
• Memorandum and Articles of Association.
• Power of attorney.
• Passport copies of directors.
• Clear trademark representation.

Public companies may need additional board resolutions.

Costs of Trademark Registration in Nepal

Costs vary based on structure.

Private companies usually pay less due to:

• Fewer legal steps.
• Lower professional fees.

Public companies incur higher costs due to:

• Compliance documentation.
• Internal governance approvals.

Common Mistakes Foreign Companies Make

Avoid these errors early.

• Registering a trademark before finalizing company structure.
• Using a foreign trademark without Nepali registration.
• Assuming brand protection is automatic.
• Ignoring renewal deadlines.

These mistakes weaken enforcement rights.

Private vs Public Company in Nepal for Foreign Investors

When a Private Company Is Best

Choose a private company if:

• You want full ownership.
• You are testing the market.
• You need operational speed.
• You plan to protect trademarks quickly.

When a Public Company Makes Sense

Choose a public company if:

• You plan public fundraising.
• You require local market credibility.
• You expect large capital inflows.
• You operate in regulated sectors.

Tax and Compliance Considerations

Company structure also affects tax treatment.

Private companies enjoy:

• Simpler filings.
• Easier profit repatriation planning.

Public companies face:

• Enhanced audit requirements.
• Mandatory disclosures.
• Investor reporting obligations.

Trademark expenses are deductible in both structures.

Enforcement of Trademark Rights in Nepal

Trademark enforcement is improving.

Rights holders can:

• File civil actions.
• Request customs seizure.
• Seek administrative remedies.

Private companies usually enforce faster due to streamlined decision-making.

Strategic Insight for 2026

In 2026, regulators emphasize transparency and IP protection.

Foreign companies that align company structure with trademark strategy gain:

• Faster approvals.
• Stronger brand protection.
• Lower compliance risk.

Most successful entrants start private, secure trademarks, then scale.

Why Professional Guidance Matters

Nepal’s regulatory environment is precise.

Professional advisors help:

• Choose the right structure.
• Avoid trademark conflicts.
• Align FDI approvals with IP strategy.
• Prepare future public conversion.

This reduces costly restructuring later.

Conclusion

Choosing between private vs public company in Nepal is more than a legal formality. It shapes your investment strategy, compliance burden, and trademark protection. For most foreign companies in 2026, a private company offers speed, control, and efficient trademark registration in Nepal. Public companies remain powerful tools for large-scale expansion. The right choice today protects your brand tomorrow.

If you are planning market entry, structure it right from day one.

Frequently Asked Questions

Is trademark registration mandatory in Nepal for foreign companies

Trademark registration is not mandatory but strongly recommended. Without registration, enforcement rights are limited.

Can a foreign company register a trademark without a local company

Yes. However, enforcement and licensing are easier through a Nepali entity.

How long does trademark registration take in Nepal

The process usually takes 12 to 18 months, depending on objections.

Can a private company convert into a public company later

Yes. Conversion is allowed but requires regulatory approvals and restructuring.

Does company structure affect trademark renewal

No. Renewal rules are the same for private and public companies.