---
title: "IPR and company registration in Nepal"
subject: "Engineering Professional Practice"
chapter: 5
key: "semester_8/engineering_professional_practice:ipr-company-registration-nepal"
source: https://www.bctengineer.com/q/semester_8/engineering_professional_practice/ipr-company-registration-nepal
site: BCT Engineering
---

# IPR and company registration in Nepal

Engineering Professional Practice · Chapter 5: Regulatory Environment

- Asked in: 2073 Magh, 4 marks
- Video: [Intellectual Property Rights (IPR), Meaning, Definition, Examples, Benefits of IPR, UPSC, NCERT, Bba](https://www.youtube.com/watch?v=zkWJAvg6_ME) — DWIVEDI GUIDANCE
- Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14
- Page: https://www.bctengineer.com/q/semester_8/engineering_professional_practice/ipr-company-registration-nepal
- Whole chapter: https://www.bctengineer.com/md/semester_8/engineering_professional_practice/chapter-5

## Question

What is an intellectual property right? Write company registration procedure in Nepal.

## Short answer

IPR are legal rights over creations of the mind, including copyright, patents, and trademarks. Company registration in Nepal involves reserving a name, submitting the memorandum and articles to the Office of the Company Registrar, obtaining a certificate of incorporation, and registering for PAN/VAT and other licences.

## Answer

#### Intellectual property right
**IPR** are legal rights that a person gets over the creations of his or her mind, such as inventions, literary and artistic works, designs, names and logos. They let the creator control their use and earn from them for a limited time. Types: copyright (Copyright Act 2059); patent, industrial design and trademark (Patent, Design and Trademark Act 2022); and trade secrets.

#### Company registration procedure in Nepal (Companies Act 2063)
1. **Name approval:** apply online to the **Office of the Company Registrar (OCR)** to reserve a unique company name.
2. **Prepare documents:** Memorandum of Association (name, objectives, capital, address), Articles of Association (internal rules), promoters' citizenship/passport copies, and the consent of the directors.
3. **Submit the application** with the prescribed form and the registration fee, which is based on the authorised capital.
4. **Scrutiny and approval** by the OCR.
5. **Certificate of incorporation** is issued, making the company a separate legal entity with perpetual succession.
6. **Further registrations:** PAN/VAT at the Inland Revenue Office, registration with the local government, the industry/trade licence, and registration with the Social Security Fund and the labour office when employing staff.
7. **Public companies** must also get the approval of the Securities Board of Nepal (SEBON) before issuing shares to the public, and then commence business.

## Check yourself

The answer's key points as multiple-choice questions, with the correct option and why.

1. What is the first step of company registration in Nepal?
   A. Obtain PAN
   B. Apply to the Company Registrar for approval of a unique name
   C. Issue shares to the public
   D. Pay income tax
   Answer: B. The name is first approved by the Office of the Company Registrar. (Key point: First step)

2. Which documents are prepared for registration?
   A. Only a bank statement
   B. Memorandum and Articles of Association with promoters' identity copies
   C. Only building plans
   D. Only a tax clearance
   Answer: B. The MOA, AOA and promoters' citizenship/passport copies are needed. (Key point: Documents)

3. What does the certificate of incorporation make the company?
   A. A branch of the government
   B. A separate legal entity with perpetual succession
   C. A partnership
   D. A sole proprietorship
   Answer: B. Incorporation creates a separate legal entity with perpetual succession. (Key point: Certificate effect)

4. What extra approval does a public company need before issuing shares to the public?
   A. Labour Office
   B. SEBON (Securities Board)
   C. Copyright Registrar
   D. Department of Industry
   Answer: B. Public companies need SEBON approval before a public share issue. (Key point: Public company extra)

## Related in Engineering Professional Practice

- [IPR, working hours, public vs private company](https://www.bctengineer.com/question.md?key=semester_8%2Fengineering_professional_practice%3Aipr-labour-working-hours-companies) — Engineering Professional Practice, chapter 5
- [Short note: Company registration process](https://www.bctengineer.com/question.md?key=semester_8%2Fengineering_professional_practice%3Ashort-note-company-registration) — Engineering Professional Practice, chapter 5
- [IPR types and public private partnership](https://www.bctengineer.com/question.md?key=semester_8%2Fengineering_professional_practice%3Aipr-copyright-trademark-patent-ppp) — Engineering Professional Practice, chapter 5

## Related in other subjects

- [Legal provisions for starting a company in Nepal](https://www.bctengineer.com/question.md?key=semester_7%2Fentrepreneurship_development%3Acompany-registration-legal-provisions-nepal) — Entrepreneurship Development, chapter 8
- [Joint stock company and its formation](https://www.bctengineer.com/question.md?key=semester_7%2Forganization_and_management%3Ajoint-stock-formation) — Organization and Management, chapter 4
- [Proposal to start a company: title, abstract, objectives](https://www.bctengineer.com/question.md?key=semester_5%2Fcommunication_english%3Aproposal-company-big-organization) — Communication English, chapter 6