In Nepal, businesses often assume that registering a company name automatically protects their brand. However, company registration and trademark registration serve different legal purposes, and understanding the distinction is critical for entrepreneurs, startups, and established businesses aiming to secure their brand identity and commercial reputation.
This article explores the differences between company names and trademarks in Nepal, legal protection offered by each, real-world examples, registration processes, costs, timelines, and practical strategies for businesses to maximize protection.
Company Name Registration in Nepal: Scope and Protection
A company name is the official legal designation of a business entity registered with the Office of the Company Register (OCR). In Nepal, company registration is governed primarily by the Companies Act, 2006 (and subsequent amendments).
What Company Name Registration Protects
Legal Entity Identity
Registering a company name ensures that no other company can register under the same name. It protects the legal identity of your business within the OCR system.Official Documentation
Only the registered name can be used in official contracts, invoices, bank accounts, and government filings.
Limitations of Company Name Protection
No protection outside company registry: A company name does not prevent others from using the same or similar brand in commerce unless it also conflicts with trademark law.
No brand enforcement: Competitors can use similar logos, slogans, or marks in products/services without violating company law.
Limited to company registration category: It only applies to businesses registered under the same entity type (Private Limited, Public Limited, etc.).
Example:
A company named “Himalayan Naturals Pvt. Ltd.” is protected as a registered company. However, another business could market a product as “Himalayan Naturals Tea” without legal consequences unless a trademark is registered.
Trademark Registration in Nepal: Scope and Protection
A trademark is a distinctive sign, word, logo, or combination used to identify goods or services and distinguish them from competitors. Trademarks are regulated under the Patent, Design and Trade Mark Act, 2022 (1965) and administered by the Department of Industry (DOI).
What Trademark Registration Protects
Exclusive Rights to Use
A registered trademark gives the owner exclusive rights to use the mark for specified goods/services, preventing others from confusingly similar usage.Cross-Class Enforcement (Optional)
Well-known trademarks may enjoy protection across unrelated product categories, extending rights beyond registration classes.Legal Remedies
Trademark owners can enforce their rights through cease-and-desist notices, opposition proceedings, and litigation if unauthorized use occurs.
Limitations of Trademark Protection
Geographic limitation: Nepalese trademarks protect usage within Nepal. International protection requires separate filings or treaties.
Use-based enforcement: Trademarks not used in commerce for a reasonable period may be cancelled by DOI.
Example:
A company can register “Himalayan Naturals Tea” as a trademark. If another competitor attempts to sell tea under the same name, the trademark owner can legally prevent misuse, regardless of company registration.
Key Differences Between Company Name and Trademark
| Aspect | Company Name | Trademark |
|---|---|---|
| Legal Basis | Companies Act, 2006 | Patent, Design and Trade Mark Act, 2022 |
| Protection Scope | Only within company registry | Market use, brand identity, and enforcement across products/services |
| Exclusive Rights | Only prevents duplicate company registration | Prevents confusingly similar use by any business |
| Duration | Valid as long as company exists | Renewable indefinitely (7-year term per registration, with renewals) |
| Enforcement | Limited to OCR disputes | Civil remedies, administrative objections, and court enforcement |
Conclusion:
A company name protects your legal entity, but a trademark protects your brand identity and commercial value. For businesses, a trademark is essential for long-term brand security, while company registration ensures legal compliance and entity recognition.
Practical Examples in Nepal
Local Startups
Small Nepalese startups often register a company but fail to secure a trademark. Later, they encounter disputes when competitors adopt similar branding, resulting in costly legal battles.Well-Known Brands
Brands like Himalayan, Dabur, and Coca-Cola operate with both registered company entities and trademarks. The trademark protects commercial use, logos, slogans, and packaging, while the company registration only formalizes the entity.Foreign Companies
International brands entering Nepal must register both a local company (for legal operations) and a trademark (to prevent misuse). For example, Apple or Samsung have local entities, but their trademarks are the key protective tool.
Steps to Secure Both Company Name and Trademark in Nepal
1. Company Name Registration
Reserve the proposed company name with the Office of Company Register
Submit incorporation documents and articles of association
Pay prescribed government fees (~Rs. 15,000–50,000 depending on entity type)
Approval typically takes 7–15 business days
2. Trademark Registration
Conduct a comprehensive trademark search to avoid conflicts
Prepare application with mark, class details, and specifications
File at the Department of Industry (DOI)
Pay government fees: Application ~Rs 2,000, Registration ~Rs 5,000, Renewal ~Rs 500 per 7-year term
Typical registration timeline: 6–12 months if no objections
Pro Tip:
Foreign companies can appoint a Nepalese agent or law firm via Power of Attorney to handle filings. Axcel Law Associates specializes in company incorporation and trademark registrations, helping streamline both processes.
Costs Comparison: Company vs Trademark
| Item | Company Name Registration | Trademark Registration |
|---|---|---|
| Government Fees | Rs 15,000–50,000 | Rs 2,000 (application) + Rs 5,000 (registration) |
| Professional Fees | Rs 5,000–20,000 | Rs 10,000–50,000 (depending on complexity) |
| Renewal / Maintenance | Annual filing fees ~Rs 2,000–5,000 | Every 7 years, Rs 500 government fee + professional fee |
| Risk of Loss | Only duplicate company names | High if not registered or not enforced |
Practical Tips for Businesses
Register both company name and trademark to maximize protection
Choose a distinctive name for both entity and mark to minimize objections
Conduct trademark searches in Nepal before incorporation to avoid future conflicts
Plan for long-term renewal: Trademarks require ongoing use and renewal every 7 years
Seek professional guidance: Firms like Axcel Law Associates can assist with filings, IP strategy, enforcement, and compliance
When Company Name Alone May Be Misleading
Relying solely on company registration exposes businesses to risks:
Competitors using similar brand names in the same market
No ability to stop others from using identical logos or slogans
Weak legal grounds for enforcement in disputes
Loss of commercial goodwill if brand confusion occurs
Conclusion
In Nepal, a company name and a trademark serve complementary but distinct purposes:
Company name: Protects legal entity, required for operations, limited to registry
Trademark: Protects brand identity, market use, and commercial value, essential for enforcement
For businesses serious about building a long-term brand, trademark registration provides stronger protection than company registration alone. The optimal strategy is to register your company name while simultaneously securing a trademark for your products and services.
Professional support from IP law firms like Axcel Law Associates ensures both steps are completed correctly, reducing risks, minimizing disputes, and safeguarding your brand in Nepal.
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