If you are evaluating private vs public company in Nepal, you are already thinking like a serious investor. Structure comes first. Everything else follows.
For foreign companies entering Nepal in 2026, the choice between a private limited company and a public limited company determines control, compliance, fundraising ability, and even brand strategy. It also shapes how you protect intellectual property under Nepal’s trademark framework.
This guide breaks it down clearly. No jargon. No guesswork. Just what you need to know to expand safely and confidently.
When foreign investors compare a private vs public company in Nepal, they often focus only on share capital or shareholder numbers.
That is a mistake.
The structure determines:
Under the Companies Act 2006, Nepal recognizes primarily:
Foreign Direct Investment (FDI) structures are governed alongside the Foreign Investment and Technology Transfer Act 2019 (FITTA).
Understanding how these interact is essential for foreign promoters.
A private company in Nepal:
Minimum shareholders: 1
Minimum directors: 1
This structure is most common for foreign subsidiaries.
A public company in Nepal:
Public companies face stricter reporting obligations.
They are suitable for large-scale capital-intensive operations.
| Criteria | Private Limited Company | Public Limited Company |
|---|---|---|
| Minimum Shareholders | 1 | 7 |
| Maximum Shareholders | 101 | Unlimited |
| Public Share Issue | Not allowed | Allowed |
| Listing on NEPSE | No | Yes |
| Compliance Burden | Moderate | High |
| Ideal For | FDI subsidiaries, SMEs | Large infrastructure, banks, IPO plans |
| Control Structure | Promoter-driven | Board & shareholder-driven |
Insight:
For 90% of foreign investors entering Nepal, a private limited company is more efficient. Public companies are strategic only if IPO or large-scale public capital is required.
Here is where many investors overlook risk.
Trademark registration in Nepal is governed by the Patent, Design and Trademark Act 1965.
The applicant must be the correct legal entity.
If you restructure later from private to public, ownership must be formally assigned.
Public companies must additionally:
Public companies are heavily scrutinized.
Private companies offer operational flexibility.
Corporate tax is governed by the Income Tax Act 2002.
Standard corporate tax rate: 25%
Banking & special sectors may vary.
The choice between private vs public company does not change the base corporate tax rate.
However:
A public company makes sense if:
Otherwise, a private limited structure is usually more efficient.
| Factor | Private Company | Public Company |
|---|---|---|
| Promoter Control | High | Diluted |
| Capital Raising | Limited | Strong |
| Regulatory Burden | Moderate | Heavy |
| Speed of Decision Making | Fast | Slower |
| IPO Eligibility | No | Yes |
Strategic takeaway:
Choose private for control and agility.
Choose public for scale and capital access.
Structure determines long-term flexibility.
Before filing:
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Private vs public company in Nepal structure and trademark filing comparison chart
A private company limits shareholders and cannot invite public investment. A public company can raise funds from the public and list on NEPSE.
Yes, subject to sector restrictions under FITTA 2019 and regulatory approval.
Not always. Only capital-intensive projects requiring public investment typically need a public structure.
Typically 5–10 working days if documentation is complete.
It is safer to finalize company structure first, then register the trademark under the company name.
The decision between private vs public company in Nepal is not administrative. It is strategic.
It affects:
For most foreign companies entering Nepal in 2026, a private limited company provides flexibility and control.
If your long-term vision includes public fundraising or IPO, then a public structure may be justified.
The key is alignment between structure, trademark ownership, tax planning, and growth strategy.
If you are evaluating private vs public company in Nepal and need structured guidance on:
Speak with our advisory team.
We help foreign investors enter Nepal with clarity, compliance, and confidence.