Registering a trade name is a crucial step for anyone planning to operate a business in Nepal. A trade name is the official name under which a company is recognized legally. It provides legal recognition to your business but does not automatically protect your brand identity in commerce that requires a separate trademark registration.
Understanding the costs associated with trade name registration in Nepal is essential for startups, small businesses, and established companies planning to formalize their operations.
This article explains every cost element and the steps to successfully register your trade name.
1. What is Trade Name Registration
A trade name, sometimes referred to as a business name, is the official registered name of your business entity. It is recognized by the Government of Nepal under the Company Act, 2063, and is required to legally conduct business.
Key points:
Trade name registration ensures your business can operate legally.
It does not automatically provide exclusive rights to use the brand in commerce.
A separate trademark registration is required to protect logos, slogans, or product names. Read more.
2. Why Registering a Trade Name Matters
Registering a trade name has both legal and practical benefits:
It avoids conflicts with existing registered business names.
It allows you to open bank accounts, enter contracts, and legally sign documents as a company.
It lays the foundation for future trademark registration or brand protection.
For example, a startup planning to open a chain of cafés in Kathmandu must first register its trade name. Without registration, it cannot legally lease property or sign supplier contracts under the business name.
3. Government Fees for Trade Name Registration
Government fees are the base cost for registering a trade name in Nepal. They are fixed by law and vary slightly depending on the type of company (Private Limited, Limited, or Partnership).
| Fee Component | Approximate Cost (NPR) |
|---|---|
| Name approval fee | 1,000 – 2,000 |
| Company registration fee | 5,000 – 20,000 (varies by company type) |
| Amendment of trade name (if required) | 500 – 1,000 |
| Certified copy of registration | 500 – 1,000 |
Total estimated government fees: NPR 6,500 – 23,000
These fees cover statutory processing and issuance of official documents. They do not include professional or advisory costs.
4. Legal and Professional Fees
While it is possible to register a trade name independently, most businesses opt for professional assistance to ensure accuracy, compliance, and proper documentation.
a. Legal Assistance and Documentation
Professional services may include:
Drafting and filing the application
Reviewing company type and compliance requirements
Advising on name availability and uniqueness
| Service | Typical Cost Range (NPR) |
|---|---|
| Legal consultation | 3,000 – 8,000 |
| Filing support and documentation | 2,000 – 7,000 |
b. Combined Cost
When including professional fees, the total cost of trade name registration in Nepal is typically NPR 12,000 – 42,000, depending on complexity and professional support used.
5. Hidden and Additional Costs
Beyond official fees and professional charges, some additional costs may arise:
Documentation and notarization: If company documents require notarization or translation, additional costs of NPR 1,000 – 5,000 may apply.
Future amendments: Changing a registered trade name later incurs extra government fees and professional charges.
Licenses and permits: Depending on business activity, additional registration or licensing fees may be required.
6. Step-by-Step Trade Name Registration Process in Nepal
Understanding the process helps plan both time and cost effectively.
Preliminary Name Check:
Verify that the desired trade name is available and not already registered by another company.Application for Name Approval:
Submit an application to the Office of the Company Registrar for approval.Government fee applies (1,000 – 2,000 NPR)
Typically processed in a few days to one week.
Preparation of Company Documents:
Draft company documents such as the Memorandum of Association (MOA) and Articles of Association (AOA) or partnership agreements.
Professional assistance recommended.Submission of Registration Application:
Submit documents along with registration fees to the Office of the Company Registrar.Issuance of Trade Name Certificate:
Once approved, the company receives the official registration certificate, which enables legal operations under the registered trade name.Additional Compliance:
Businesses may need to register for PAN, VAT, or sector-specific licenses depending on their activities.
7. Practical Example
Consider a small business opening a clothing store in Pokhara:
Trade name: “Himal Apparel Pvt. Ltd.”
Name approval fee: NPR 1,500
Registration fee for Pvt. Ltd.: NPR 10,000
Legal documentation support: NPR 7,000
Total Cost: NPR 18,500
This enables the business to operate legally, open bank accounts, sign contracts, and apply for a trademark to protect its brand in the future.
8. Difference Between Trade Name and Trademark Costs
Trade Name Registration: NPR 12,000 – 42,000 (covers legal name registration and professional support)
Trademark Registration: NPR 40,000 – 120,000+ (includes brand protection, legal drafting, government fees, and examination costs)
Trade name registration is therefore more affordable but does not provide commercial brand protection.
9. Role of Axcel Law Associates
At Axcel Law Associates, we provide end-to-end support for business registration and trade name approval:
Trade name availability search and legal advice
Filing and documentation support
Guidance on linking trade name with future trademark registration and corporate compliance
Our professional guidance ensures that clients avoid delays, legal conflicts, and hidden costs while completing registration efficiently. Further details on our services are available at axcellaw.com.np.
10. Conclusion
Trade name registration in Nepal is an essential step for legally establishing your business.
Government fees are modest and standardized.
Professional assistance improves efficiency, accuracy, and compliance.
Hidden costs such as notarization and amendments should be planned for.
Registering a trade name establishes a legal foundation for your business and paves the way for trademark registration and long-term brand protection.
References
Company Act, 2063 (Nepal)
Department of Industry, Nepal – Office of Company Registrar
Axcel Law Associates, Business and Intellectual Property Advisory (axcellaw.com.np)
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