What to Expect When Applying for a Company Name in Nepal

If you are comparing private vs public company in Nepal, the very first legal step is often misunderstood: company name approval.
Before capital, shareholders, or licenses, Nepal requires your proposed name to be reviewed and approved by the regulator.

For foreign companies, this step sets the tone for the entire incorporation journey. A rejected name can delay your market entry by weeks. A well-structured name can smooth approvals across banking, tax, and labor registrations.

This guide explains what to expect when applying for a company name in Nepal, while also helping you decide whether a private limited or public limited structure fits your expansion strategy.

Why company name approval matters in Nepal

In Nepal, a company legally does not exist until its name is approved and registered with the
Office of Company Registrar (OCR).

Unlike some jurisdictions where names are auto-approved online, Nepal applies substantive review criteria, especially for foreign-linked entities.

Name approval directly affects:

• Your ability to open a bank account

• Tax registration (PAN/VAT)

• Labor and Social Security Fund enrollment

• Sectoral licenses and foreign investment approvals

For foreign companies, errors at this stage often cascade into compliance risks later.

Private vs public company in Nepal: legal overview

Before choosing a name, you must decide the company type, because naming rules differ.

Private limited company in Nepal

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

Key features:

• 1–101 shareholders

• Cannot invite the public to subscribe shares

• Faster incorporation and lower compliance burden

• Preferred for subsidiaries, joint ventures, and back-office entities

Public limited company in Nepal

A public company is designed for scale and public fundraising.

Key features:

• Minimum 7 shareholders

• Can issue shares to the public (subject to approvals)

• Higher paid-up capital expectations

• Heavier reporting and governance requirements

Both structures are governed by the
Companies Act 2006, but their naming conventions and scrutiny levels differ.

What the Office of Company Registrar checks in a company name

When you submit a name application, OCR reviews it across several dimensions.

1. Uniqueness and similarity test

Your proposed name must not:

• Be identical to an existing registered company

• Be confusingly similar in spelling, sound, or meaning

For example, adding “Global” or “International” rarely makes a name unique.

2. Restricted and sensitive terms

Certain words trigger automatic rejection or manual scrutiny:

• “Bank”, “Finance”, “Insurance”

• “Government”, “Authority”, “Commission”

• Regulated professions without licenses

Foreign companies often fail here by reusing names already regulated in their home country.

3. Alignment with business objectives

OCR compares your stated objectives with the proposed name.

A mismatch can result in rejection.
For example, a tech consulting firm using “Holdings” or “Capital” in its name raises red flags.

4. Language and transliteration rules

• Names can be in English or Nepali

• English names are transliterated into Nepali for the registry

• Meaning consistency matters across both languages

Step-by-step: how company name application works in Nepal

Here is the practical process foreign companies should expect:

1. Name search and shortlisting
   Informal checks against OCR records and market usage.

2. Prepare multiple name options
   Usually 2–3 alternatives ranked by preference.

3. Online submission to OCR portal
   Includes objectives and company type selection.

4. Registrar review
   Manual review for conflicts, sensitivity, and intent.

5. Approval or rejection notice
   Approval usually valid for a limited period.

6. Proceed to incorporation filings
   Memorandum, Articles, and capital details follow.

Most rejections happen because step 1 is skipped or rushed.

Private vs public company in Nepal: name approval differences

While the technical process is similar, scrutiny levels differ.

Private company name review

• Faster turnaround

• More flexible naming tolerance

• Lower sensitivity unless regulated terms are used

Public company name review

• Higher scrutiny

• Stronger emphasis on public interest

• Stricter checks on misleading or promotional language

If you are unsure, starting as a private company and converting later is often safer.

Common mistakes foreign companies make with Nepal company names

Foreign founders often assume Nepal follows Western naming logic. It does not.

Avoid these frequent errors:

• Reusing a global brand without Nepal clearance

• Assuming “Group” or “Holdings” is neutral

• Using regulated words without approvals

• Mismatch between name and objectives

• Submitting only one name option

Each rejection typically adds 7–14 days to your timeline.

Comparison table: private vs public company in Nepal (name and compliance impact)

This comparison highlights why most foreign companies choose private incorporation.

Strategic naming tips for foreign investors

A strong Nepal company name balances compliance and credibility.

Best practices include:

• Keep the name descriptive but neutral

• Align words clearly with business objectives

• Avoid regulated or sovereign-sounding terms

• Prepare backup names in advance

• Think about banking and tax perception

Remember: the name is not just branding. It is a regulatory signal.

Private vs public company in Nepal: compliance context you should know

Name approval does not exist in isolation.

It connects to:

• Foreign investment approvals

• Bank account KYC reviews

• Tax authority risk profiling

• Labor and social security registration

A clean, compliant name reduces friction across all these stages.

EEAT perspective: legal and regulatory grounding

This guidance is based on:

• The Companies Act 2006

• OCR registration directives and practice notes

• Foreign investment and sectoral compliance norms

• Professional incorporation experience with foreign-owned entities

Nepal’s regulators prioritize clarity, transparency, and intent alignment.

Conclusion: Choosing the right structure and name

When deciding private vs public company in Nepal, the name application stage is your first compliance test.

For most foreign companies, a private limited company with a carefully structured name offers:

• Faster market entry

• Lower regulatory risk

• Easier future expansion

A compliant name saves time, cost, and credibility.
Get this step right, and the rest of the incorporation journey becomes far smoother.

Frequently Asked Questions: Private vs Public Company in Nepal

1. How long does company name approval take in Nepal?

Usually 3–7 working days. Rejections can extend timelines by two weeks or more.

2. Can a foreign company use its global brand name in Nepal?

Yes, but only if it passes uniqueness and regulatory checks. Prior use does not guarantee approval.

3. Is name approval different for private vs public company in Nepal?

Yes. Public companies face stricter scrutiny due to public interest considerations.

4. Can a company change its name later?

Yes, but it requires shareholder approval and OCR filing. Banks and tax offices must also be updated.

5. What happens if my company name is rejected?

You must resubmit with a new name. Fees may apply depending on timing and filings.