Understanding the Trademark Act of Nepal: A 2026 Overview

If you are evaluating private vs public company in Nepal, trademark protection should be part of your first strategic decision.

Many foreign companies focus on incorporation first. That is a mistake. Your company structure determines ownership flexibility. Your trademark registration determines long-term brand control.

In 2026, Nepal’s legal framework combines the Companies Act 2006 and the Trademark Act 1965 (as amended). Together, they define how foreign companies establish legal presence and protect intellectual property.

This guide gives you a clear, practical, investor-focused breakdown. No theory. No generic advice. Just what foreign companies need to know before entering Nepal.

Why Private vs Public Company in Nepal Matters for Trademark Protection

Before discussing trademark law, we must address structure.

Foreign investors usually choose between:

• A Private Limited Company
• A Public Limited Company

Under the Companies Act 2006, these structures differ significantly in:

• Shareholding limits
• Public fundraising rights
• Disclosure requirements
• Corporate governance obligations

But here is what many miss:

Your company type affects how your trademark is owned, assigned, licensed, and protected.

If the structure is wrong, your IP strategy becomes expensive to fix later.

Overview of the Trademark Act of Nepal (2026 Context)

Nepal’s trademark regime is governed by the Trademark Act 1965 and administered through the Department of Industry.

Although enacted in 1965, the Act has evolved through amendments and regulatory practice. Nepal is also a member of the World Intellectual Property Organization, aligning its procedures with global IP norms.

What Can Be Registered?

Under Nepalese law, a trademark may include:

• Word marks
• Logos
• Symbols
• Device marks
• Combination marks
• Labels

It must be distinctive and non-deceptive.

It cannot:

• Conflict with prior registered marks
• Violate public morality
• Mislead consumers

Private vs Public Company in Nepal: Structural Comparison

Below is a strategic comparison tailored for foreign companies.

Insight for Foreign Investors

Most foreign investors entering Nepal choose a private limited company for:

1. Simpler governance
2. Faster registration
3. Lower compliance cost
4. Controlled IP ownership

Public companies make sense only if you intend to raise capital locally or list shares.

Trademark Registration Process in Nepal

The registration process under the Trademark Act 1965 follows a structured procedure.

Step-by-Step Process

1. Conduct trademark availability search
2. File application at Department of Industry
3. Examination by authorities
4. Publication for opposition
5. Registration certificate issuance

Required Documents

• Application form
• Power of attorney (if foreign applicant)
• Copy of incorporation certificate
• Logo specimen
• Payment receipt

Foreign companies must appoint a local authorized representative.

Timeline and Cost Expectations (2026)

Typical timeline:

• Filing to publication: 4–6 months
• Opposition period: 90 days
• Registration issuance: 2–4 months

Total: 8–12 months average.

Costs vary depending on classes and representation fees.

Private vs Public Company in Nepal: Impact on Trademark Ownership

This is where strategy matters.

Scenario 1: Private Company

• Trademark usually owned by the company
• Easier to assign or license
• Cleaner ownership documentation
• Minimal shareholder approval complexity

Scenario 2: Public Company

• IP transfers may require board resolution
• Disclosure obligations increase
• Minority shareholder considerations apply

For foreign investors, private companies reduce friction.

Foreign Direct Investment and Trademark Considerations

Foreign investors entering Nepal under FDI rules must comply with:

• Foreign Investment and Technology Transfer Act 2019
• Approval from Department of Industry

Trademark ownership must align with:

• Capital injection structure
• Shareholding ratio
• Royalty repatriation rules

Royalty payments require compliance with Nepal Rastra Bank directives.

Common Trademark Mistakes Foreign Companies Make

Let’s be direct.

Here are the most common errors:

• Registering trademark under an individual instead of company
• Failing to conduct clearance search
• Not filing in correct class
• Delaying renewal
• Ignoring opposition deadlines

These mistakes delay market expansion.

They also create costly litigation.

Trademark Duration and Renewal

In Nepal:

• Initial registration validity: 7 years
• Renewable every 7 years

Failure to renew results in cancellation.

Renewal requires:

• Application filing
• Fee payment
• No opposition

Enforcement and Legal Protection

Trademark infringement cases may be handled through:

• Department of Industry complaints
• District Courts
• Customs enforcement

Remedies include:

• Injunction
• Damages
• Seizure of counterfeit goods

Nepal’s enforcement framework continues to modernize.

When Should You Register Your Trademark?

Immediately after:

• Company name approval
• Before commercial launch
• Before public marketing

Waiting increases risk of:

• Brand hijacking
• Third-party registration
• Expensive rebranding

Choosing the Right Structure: A Strategic Decision Matrix

Here’s a practical way to think about private vs public company in Nepal.

Choose Private Company If:

• You are a foreign SME
• You want control
• You are not raising public capital
• You want simplified compliance

Choose Public Company If:

• You plan to raise funds publicly
• You want long-term IPO strategy
• You require broad capital access

For 90% of foreign entrants, private company works best.

Compliance Checklist for 2026

Corporate Compliance

• Annual general meeting
• Audit report submission
• Tax filing under Income Tax Act 2002
• Share register maintenance

Trademark Compliance

• Renewal tracking
• Monitoring for infringement
• Proper licensing documentation

EEAT: Why This Guidance Is Reliable

This analysis is based on:

• Companies Act 2006
• Trademark Act 1965
• Foreign Investment and Technology Transfer Act 2019
• Department of Industry procedural guidelines

We specialize in foreign company registration and IP structuring in Nepal.

This is not generic commentary. It reflects real regulatory practice.

Frequently Asked Questions (FAQ)

1. What is the main difference between private and public company in Nepal?

A private company limits shareholders to 101 and cannot issue shares publicly. A public company can issue shares to the public and requires at least seven shareholders.

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

Yes. Foreign companies can register trademarks through a local representative under the Trademark Act 1965.

3. How long does trademark registration take in Nepal?

Typically 8–12 months, including examination and opposition period.

4. Is trademark registration mandatory before operating?

Not legally mandatory, but strongly recommended before launching products or services.

5. How long is a trademark valid in Nepal?

Seven years from registration, renewable every seven years.

Final Thoughts: Private vs Public Company in Nepal

Choosing between private vs public company in Nepal is not just about capital structure.

It shapes governance.
It influences compliance burden.
It affects trademark ownership and IP strategy.

For most foreign companies entering Nepal in 2026, a private company combined with early trademark registration offers the strongest balance of control, protection, and flexibility.

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