Trademark Registration Process in Nepal: A Step-by-Step Guide

If you are evaluating a Private vs public company in Nepal, trademark protection must be part of your entry strategy. Your company structure affects governance, fundraising, disclosure obligations, and even brand positioning. But your trademark protects the asset that customers actually remember.

Foreign companies entering Nepal often focus on incorporation under the Companies Act 2006. They compare private and public company structures. They assess FDI approvals under Foreign Investment and Technology Transfer Act 2019.

Yet many overlook trademark registration until it is too late.

This guide explains the Trademark Registration Process in Nepal step by step. It also clarifies how trademark protection aligns with the private vs public company in Nepal decision for foreign investors.

Why Trademark Protection Matters When Choosing Private vs Public Company in Nepal

When comparing a private vs public company in Nepal, foreign investors typically evaluate:

• Minimum shareholders
• Capital requirements
• Public fundraising ability
• Compliance and disclosure obligations
• Listing possibilities

However, brand protection applies equally to both structures.

Whether you incorporate as a private limited company or a public limited company under the Office of the Company Registrar, your trademark rights arise under the Patent, Design and Trademark Act 1965.

Key Insight

Company registration protects your legal entity name.
Trademark registration protects your brand in commerce.

These are separate legal regimes.

Legal Framework Governing Trademarks in Nepal

Trademark registration in Nepal is governed primarily by:

• Patent, Design and Trademark Act 1965
• Industrial Property Administration rules
• Administrative practice of the Department of Industry

Nepal follows a first-to-file system.

This means the first party to file a valid trademark application generally has priority, regardless of prior use.

For foreign companies entering Nepal, this is critical.

Private vs Public Company in Nepal: Does Structure Affect Trademark Rights?

Legally, no.

Both a private and public company can:

• Own trademarks
• License trademarks
• Assign trademarks
• Enforce trademark rights

However, from a strategic standpoint, the structure affects:

Strategic Consideration

For public companies, trademarks often become disclosed intangible assets in financial statements.

For private companies, trademark strategy may remain confidential.

If you are choosing between a private vs public company in Nepal for long-term capital raising, trademark portfolio strength directly impacts valuation.

What Can Be Registered as a Trademark in Nepal?

Under the Patent, Design and Trademark Act 1965, the following may be registered:

• Word marks
• Logos
• Symbols
• Labels
• Devices
• Combination marks

Nepal primarily recognizes traditional marks. Non-traditional marks such as sound or smell are not commonly registered.

What Cannot Be Registered

• Generic terms
• Descriptive marks without distinctiveness
• Deceptive or misleading marks
• Marks similar to existing registered trademarks

Step-by-Step Trademark Registration Process in Nepal

Here is the complete step-by-step breakdown.

Step 1: Conduct a Trademark Search

Before filing, conduct a clearance search at the Department of Industry.

This helps determine:

• Existing similar marks
• Risk of objection
• Potential conflicts

Although not mandatory, it is strongly recommended.

Step 2: Prepare Required Documents

Foreign companies must prepare:

• Applicant details
• Trademark representation
• Description of goods/services
• Power of Attorney (if filing via local agent)
• Company registration documents

If you are a foreign entity entering Nepal via FDI under Foreign Investment and Technology Transfer Act 2019, additional legalization or notarization may be required.

Step 3: File Application at Department of Industry

Applications are filed with the Department of Industry.

The filing includes:

1. Submission of application form
2. Payment of official fee
3. Submission of mark representation
4. Submission of Power of Attorney

Nepal follows the Nice Classification system for goods and services.

Step 4: Examination by Authority

The Department conducts substantive examination.

They review:

• Distinctiveness
• Similarity with existing marks
• Legal compliance

If objections arise, the applicant may respond with written clarification.

Step 5: Publication

Once accepted, the mark is published in the Industrial Property Bulletin.

Third parties may file opposition within the prescribed period.

Step 6: Registration Certificate Issued

If no opposition is filed, or if opposition is resolved, a Registration Certificate is issued.

The trademark is typically valid for 7 years from registration.

Step 7: Renewal

Trademarks can be renewed indefinitely in 7-year cycles.

Renewal must be filed before expiration.

Timeline for Trademark Registration in Nepal

The process usually takes:

• 6 to 18 months
• Longer if objections arise

Administrative backlog can extend timelines.

Cost of Trademark Registration in Nepal

Costs vary depending on:

• Number of classes
• Professional fees
• Objection proceedings

Approximate breakdown:

For foreign investors deciding between a private vs public company in Nepal, trademark costs are minor compared to incorporation and compliance costs.

Trademark Ownership: Private vs Public Company in Nepal

When incorporating under the Companies Act 2006, ensure:

• Trademark is registered in company name
• Not in individual promoter name
• Not in distributor name

This prevents future disputes.

Public companies especially must maintain clear ownership for audit transparency.

Enforcement of Trademark Rights in Nepal

Trademark owners can:

• Issue cease-and-desist notices
• File infringement claims
• Seek damages
• Request seizure of counterfeit goods

Enforcement may involve:

• District Courts
• Customs authorities

While Nepal is not yet a fully digitized IP enforcement regime, legal remedies are available.

Common Mistakes Foreign Companies Make

• Assuming company name equals trademark protection
• Failing to conduct clearance search
• Registering under wrong class
• Not renewing on time
• Allowing local partners to register mark in their name

These errors can derail market entry.

Trademark Strategy and Corporate Structure: An Integrated Approach

If you are evaluating private vs public company in Nepal, align trademark planning with:

• FDI approval
• Tax planning under Income Tax Act 2002
• Licensing agreements
• Franchise agreements
• Royalty repatriation compliance

Brand ownership affects royalty taxation and repatriation under Nepal Rastra Bank directives.

Comparison: Trademark Strategy for Private vs Public Company in Nepal

If long-term public listing is a goal, trademark portfolio strength becomes critical.

Frequently Asked Questions (FAQ)

1. Is trademark registration mandatory in Nepal?

No. However, without registration, enforcement rights are weak. Registration provides statutory protection under Nepal law.

2. How long does trademark registration take?

Typically 6–18 months. Delays may occur due to objections or administrative backlog.

3. Can a foreign company register a trademark in Nepal?

Yes. Foreign companies may file directly or through a registered agent. Proper documentation is required.

4. Does choosing private vs public company in Nepal affect trademark rights?

No. Both structures can own trademarks. The difference lies in disclosure and governance obligations.

5. How long is a trademark valid in Nepal?

Seven years from registration. It can be renewed indefinitely in seven-year cycles.

Final Thoughts: Protect Your Brand Before You Scale

Choosing a Private vs public company in Nepal is a structural decision.

Trademark registration is a strategic decision.

One determines how you operate.
The other determines how you compete.

Foreign investors who integrate corporate structuring, FDI approval, tax planning, and trademark protection from day one reduce risk significantly.

If you are entering Nepal, protect your brand early.