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.
Before discussing trademark law, we must address structure.
Foreign investors usually choose between:
Under the Companies Act 2006, these structures differ significantly in:
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.
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.
Under Nepalese law, a trademark may include:
It must be distinctive and non-deceptive.
It cannot:
Below is a strategic comparison tailored for foreign companies.
| Feature | Private Company | Public Company |
|---|---|---|
| Minimum Shareholders | 1 | 7 |
| Maximum Shareholders | 101 | Unlimited |
| Public Share Issue | Not allowed | Allowed |
| Compliance Burden | Moderate | High |
| Ideal For | SMEs, FDI vehicles | Large capital raising |
| Trademark Holding Structure | Founder/Company owned | Corporate governance regulated |
| IPO Possibility | No | Yes |
Most foreign investors entering Nepal choose a private limited company for:
Public companies make sense only if you intend to raise capital locally or list shares.
The registration process under the Trademark Act 1965 follows a structured procedure.
Foreign companies must appoint a local authorized representative.
Typical timeline:
Total: 8–12 months average.
Costs vary depending on classes and representation fees.
This is where strategy matters.
For foreign investors, private companies reduce friction.
Foreign investors entering Nepal under FDI rules must comply with:
Trademark ownership must align with:
Royalty payments require compliance with Nepal Rastra Bank directives.
Let’s be direct.
Here are the most common errors:
These mistakes delay market expansion.
They also create costly litigation.
In Nepal:
Failure to renew results in cancellation.
Renewal requires:
Trademark infringement cases may be handled through:
Remedies include:
Nepal’s enforcement framework continues to modernize.
Immediately after:
Waiting increases risk of:
Here’s a practical way to think about private vs public company in Nepal.
For 90% of foreign entrants, private company works best.
Corporate Compliance
Trademark Compliance
This analysis is based on:
We specialize in foreign company registration and IP structuring in Nepal.
This is not generic commentary. It reflects real regulatory practice.
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.
Yes. Foreign companies can register trademarks through a local representative under the Trademark Act 1965.
Typically 8–12 months, including examination and opposition period.
Not legally mandatory, but strongly recommended before launching products or services.
Seven years from registration, renewable every seven years.
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.