Before registering a company in Nepal, reserving a unique and legally compliant company name is mandatory. Company name reservation ensures that the proposed business name does not conflict with existing companies, trademarks, public interest, or legal restrictions.
The process is regulated by the Company Registration Act, 2063 (2006) and administered by the Office of the Company Registrar (OCR). A properly reserved name avoids legal disputes, protects brand identity, and allows smooth company incorporation.
What Is Company Name Reservation in Nepal?
Company name reservation is the official approval of a proposed business name by the Office of the Company Registrar before company registration.
Once approved:
The name is temporarily blocked for others
The applicant gets exclusive right to register the company under that name
Registration must be completed within the validity period
Without name reservation, company registration in Nepal is not allowed.
Legal Basis: Company Registration Act in Nepal
The Company Registration Act, 2063 governs:
Company formation
Name approval and rejection
Name change procedures
Corporate compliance
Under the Act:
Company names must be unique
Names must not mislead the public
Certain words require special approval
Government-restricted terms are prohibited
The OCR has full authority to accept or reject names.
Purpose of Company Name Reservation
The main purposes of name reservation are:
Prevent duplication of company names
Protect public interest and clarity
Avoid misleading or deceptive business names
Enable structured company registration
Provide temporary exclusivity to the applicant
Reduce legal disputes over business identity
Name reservation is a preventive legal safeguard.
Rules for Company Name Reservation in Nepal
A company name must comply with the following rules:
1. Uniqueness
The name must not be identical or confusingly similar to:
Existing registered companies
Foreign companies registered in Nepal
2. Legal & Moral Acceptability
Names must not:
Be offensive or immoral
Promote illegal activities
Harm public sentiment
3. No Misleading Terms
Names must not falsely suggest:
Government ownership
Banking, insurance, or financial authority (without license)
International or diplomatic affiliation
4. Restricted Words Approval
Words like:
Bank
Finance
Insurance
University
Cooperative
Trust
Government-related terms
Require approval from concerned authorities.
5. Proper Use of Legal Suffix
The name must end with:
Private Limited (Pvt. Ltd.)
Limited (Ltd.)
As applicable.
Online Company Name Reservation Process in Nepal
Step 1: OCR Online Portal
Apply through the Office of Company Registrar’s online system.
Step 2: Submit Proposed Names
Usually, applicants submit 2–3 alternative names.
Step 3: OCR Review
OCR examines:
Similarity
Meaning
Legal compliance
Step 4: Name Approval or Rejection
Approved names receive reservation confirmation
Rejected names include reasons
Step 5: Proceed with Company Registration
Company must be registered within the reservation validity period.
Validity Period of Name Reservation
Name reservation is typically valid for 35 days
If registration is not completed within this period, the name expires
A fresh application is required after expiry
Common Rejection Reasons for Company Name in Nepal
Company names are often rejected due to:
- Similarity with existing companies
- Use of restricted or regulated words without approval
- Misleading business nature
- Generic or descriptive names
- Use of famous brand names
- Use of country or city names improperly
- Offensive or culturally sensitive terms
- Mismatch between name and proposed business objectives
Choosing a unique and meaningful name reduces rejection risk.
How Many Days Does It Take to Change a Company Name?
Company name change timeline:
Application review: 3–7 working days
Approval depends on document accuracy
Name change becomes effective after OCR approval
Board resolution and shareholder approval are mandatory.
Difference Between Company Name & Brand Name Registration
Company Name Registration
Done at Office of Company Registrar
Identifies legal entity
Mandatory for incorporation
Brand Name / Trademark Registration
Done at Department of Industry
Protects logos, slogans, and brand identity
Not mandatory but highly recommended
How to Register a Brand Name in Nepal?
Brand name registration involves:
Trademark search
Application at Department of Industry
Publication for opposition
Final registration certificate
Brand registration protects business identity beyond company name.
What Happens If a Name Is Rejected?
If rejected:
OCR provides rejection reason
Applicant may resubmit with modified name
No penalty for rejection
Multiple attempts allowed
Strategic name selection minimizes delays.
Conclusion
Company name reservation is a critical first step in establishing a business in Nepal. Following the Company Registration Act, choosing a legally compliant name, and understanding rejection reasons ensures a smooth registration process.
1. How many days does it take to change a company name?
Usually 3–7 working days, depending on approval and document accuracy.
2. What is the Company Registration Act in Nepal?
It is the primary law regulating company formation, name approval, management, and compliance.
3. How to register a brand name in Nepal?
Brand names are registered as trademarks through the Department of Industry, not the Company Registrar.
4. What is the purpose of a name reservation?
To ensure exclusivity, prevent duplication, and allow lawful company registration.
5. Is name reservation mandatory for company registration?
Yes. Without name reservation approval, company registration cannot proceed.
6. Can two companies have similar names?
No. Names must be clearly distinguishable to avoid confusion.
7. Can a foreign word be used in a company name?
Yes, if it does not violate legal or cultural restrictions.
8. What happens if name reservation expires?
The name becomes available again, and a new application is required.
