Introduction to Reservation Process in Nepal
The company name reservation process in Nepal is the initial administrative step required before formally registering a new business entity. It is mandatory to reserve a proposed company name through the Office of the Company Registrar (OCR) before proceeding with incorporation. This process ensures that the intended name is unique, does not duplicate or closely resemble an existing company, and aligns with Nepal’s legal and regulatory framework. A name reservation request must be submitted online through the OCR portal by filling out the prescribed form and attaching necessary documents. The OCR verifies the name against its existing database, and if approved, the name is reserved for 35 days. This system prevents name conflicts and promotes legal clarity for businesses operating within Nepal.
When to Begin the Name Reservation
Name reservation should be initiated before preparing and filing the application for company registration. This ensures that the chosen name is legally available and prevents unnecessary delays or rejections during registration. According to the Companies Act, 2063 (2006), name reservation must be obtained before submitting other incorporation documents. Delays in this process may result in losing the proposed name to another applicant or encountering duplication issues.
Where the Application Must Be Filed
The name reservation application must be filed with the Office of the Company Registrar (OCR), which operates under the Ministry of Industry, Commerce and Supplies. The OCR’s digital platform facilitates this process online via its official portal: www.ocr.gov.np. For applicants who may not have internet access or technical resources, the OCR office located in Tripureshwor, Kathmandu, provides support through public service counters.
Step-by-Step Name Reservation Procedure
The following steps outline the company name reservation procedure in Nepal:
- Visit the official OCR portal ([ocr.gov.np]).
- Create a user account or log in as an existing user.
- Click on “Apply for Name Reservation.”
- Fill in the proposed company name (up to three alternatives).
- Provide brief objectives of the company.
- Attach the scanned copy of the citizenship certificate (or passport for foreign applicants).
- Submit the form for review.
- OCR will review the application and approve/reject within 1–3 working days.
- If approved, download the name reservation approval letter.
How to Create a Unique Company Name
Creating a distinct company name is essential for securing reservation approval. The name must be unique, not misleading, and should not match or closely resemble an existing registered company. As per Section 6 of the Companies Act, 2063, names implying government ownership, vulgarity, or illegal activity are not allowed. To ensure uniqueness:
- Avoid generic terms (e.g., “Global”, “Nepal”, etc.).
- Do not replicate names already in use or trademarked.
- Reflect the nature or objective of the business.
- Use available tools on OCR’s portal to search for existing company names.
Required Forms for the Application
The primary form required for reserving a company name is the “Application for Reservation of Company Name,” available on the OCR portal. This online form includes:
- Proposed company name (up to three options).
- Nature and objective of the business.
- Type of company (private, public, non-profit, etc.).
- Applicant’s name and contact details.
- Uploaded identification documents.
No separate physical form is necessary unless directed otherwise by OCR.
Government Portal for Online Submission
The official government portal for online name reservation is ocr.gov.np. The portal allows users to:
- Register or log in as a user.
- Apply for name reservation.
- Submit identification documents.
- Track the status of the application.
- Download name approval letter.
Supporting Documents to Be Attached
Applicants must attach the following documents while applying for company name reservation:
- Copy of citizenship certificate (for Nepali applicants).
- Copy of passport (for foreign applicants).
- Brief description of the proposed company objectives.
- Power of Attorney (if applying on behalf of another individual).
Time Taken for the Process Completion
The name reservation process usually takes 1 to 3 working days after submission. The OCR reviews the proposed names against its existing database and checks for compliance with legal naming conventions. If rejected, applicants must submit a new name or edit and reapply. The approved name remains valid for 35 days.
Cost and Government Charges Involved
The government fee for name reservation is NPR 100 (One Hundred Rupees) as per the prevailing regulations. This amount must be paid electronically through available e-payment options on the OCR portal. Currently accepted payment platforms include eSewa, Khalti, and ConnectIPS. The payment receipt must be retained for future reference. No additional tax or VAT is levied on this transaction. If a name is rejected, a new application must be filed with a separate payment.
Laws Governing Name Reservation in Nepal
The Act provides provisions on:
- The requirement to reserve a unique name.
- Conditions for using specific words.
- The validity and consequences of name reservation.
Additional directives and circulars issued by the OCR also apply. Violation of these provisions can result in application rejection or legal consequences.
Authorized Government Bodies in Charge
The Office of the Company Registrar (OCR) is the authorized body for handling name reservations. It operates under the Ministry of Industry, Commerce and Supplies. The OCR is the sole authority to:
- Approve or reject proposed company names.
- Issue name reservation certificates.
- Maintain the official database of company names.
Errors That Delay the Reservation Process
Common errors that delay the company name reservation process include:
- Submitting names already in use.
- Using restricted or prohibited terms.
- Incomplete or incorrect forms.
- Missing identification documents.
- Uploading unclear or unreadable files.
These errors can result in rejections, additional fees, and delays. Applicants should thoroughly check their forms, documents, and proposed names before submission.
Services Offered by Medha Law and Partners
Medha Law and Partners provides end-to-end services for company name reservation in Nepal. Our legal experts assist with:
- Drafting and reviewing proposed names.
- Ensuring compliance with the Companies Act.
- Preparing and filing online applications.
- Handling OCR communications.
- Addressing rejection issues and resubmission.
Clients benefit from our years of corporate law experience and thorough understanding of regulatory frameworks.
What to Do After Getting Name Approval
This involves:
- Preparing the company’s Articles and Memorandum of Association.
- Submitting incorporation documents to the OCR.
- Paying registration and stamp duties.
If the applicant fails to register within the timeframe, the name reservation lapses.
FAQs
Is the process fully online now?
Yes, the name reservation process is fully online through the OCR portal. Applicants can create an account, submit the form, and receive approval digitally without needing to visit the office unless specifically required.
Who approves the name in Nepal?
The Office of the Company Registrar (OCR) is responsible for approving or rejecting company names. It verifies compliance with legal standards under the Companies Act.
Can I reserve a name before visiting?
Yes, you can reserve a name online from anywhere before physically visiting Nepal or submitting incorporation documents.
How do I know if a name’s available?
You can search for existing company names on the OCR portal. This tool helps ensure your proposed name does not conflict with an existing registered entity.
What details should the name include?
The name should reflect the company’s objective, avoid restricted terms, and be distinct from existing names. Using meaningful and compliant terms improves approval chances.