LLP vs Trademark: What's the Difference in Nepal?

An LLP and a trademark do different jobs, and as of October 2026 Nepal has no LLP Act in force. A business is set up as a private firm, a partnership firm or a company. A trademark is the separate right to your brand, registered by the Department of Industry (DoI).

Key takeaways

• As of 17 October 2026, the Law Commission's list of Acts in force includes no limited liability partnership Act.
• The real options are a private firm, a partnership firm or a company.
• None of them gives a brand right. Title to a trademark comes from registration at the DoI (Sec. 16).
• A partnership firm is not a person apart from its partners: write down who holds the mark.
• Each NICE class needs its own trademark application.
• To renew a trademark, the DoI asks for proof that your business registration is renewed too.

Does Nepal have a limited liability partnership (LLP)?

Not yet. On 17 October 2026 we checked the alphabetical index of Acts on the Nepal Law Commission website. It lists the Companies Act 2063, the Private Firm Registration Act 2014 and the Partnership Act 2020, but no LLP Act.

The Partnership Act itself has no limited partner and no cap on a partner's liability. Its only "limited" (सीमित) is a partnership formed for a limited period. So a firm that calls itself an LLP in Nepal is really a partnership firm or a company.

That may change. Press reports of the 2083/84 budget speech, presented on 29 May 2026, say the government will draft an LLP Act to help investment funds. Until one is passed and in force, there is no LLP to register.

What business forms can you register in Nepal?

Three, plus the trademark that sits beside whichever you pick, as their own Acts describe them.

One person can form a company alone (Section 3(1) of the Companies Act). A private company may have up to 101 shareholders and must end its name with "Private Limited" (Sections 9 and 10).

What does a trademark protect that a business registration does not?

Under Sec. 2(c) of the Patent, Design and Trade Mark Act 1965, a trademark is a word, symbol or picture, or a mix of them, used by "any firm, company or individual" to tell its goods or services apart. Sec. 16(1) gives title to it upon registration at the Department.

Sec. 16(2) then bars others from using the mark without a transfer or written permission under Sec. 21D. A firm or company registration only records who the business is; it does not stop a rival selling look-alike goods under your name.

See what a trademark is in Nepal, and a registered company against a registered trademark for the two records side by side.

Who registers what: the OCR, a firm office or the DoI?

A company is registered by the Office of the Company Registrar (OCR). Under Section 4 of the Companies Act, you first apply online for approval of the proposed name, then upload the memorandum and articles.

Firms go elsewhere. The Partnership Act and the Private Firm Registration Act send commercial firms to the Department of Commerce, Supplies and Consumer Protection and industrial firms to the DoI. Commerce and cottage or small industry firms may go to a provincial office, so the desk depends on your business and province.

The trademark always goes to the DoI's Industrial Property Section.

Does a company or firm name check clear your brand?

Only partly. Since a 2017 amendment (2074 BS), Section 6(1)(a) of the Companies Act lets the OCR refuse a company name that matches, or could be confused with, a registered company name or a trademark name. The power is discretionary, and the check is about naming a company, not owning a brand.

A firm name check looks at fewer records. Section 7 of the Partnership Act bars only a name matching a registered firm or a limited company; it does not mention trademarks. Either way, an approved name gives you no trademark.

So search the brand on its own. Start with IP Sewa's search of published trademarks, then test sound-alikes with the trademark conflict checker.

Which entity should own the trademark?

Usually the business that will use and keep the brand. A company is the cleanest holder: a separate person with perpetual succession that can own property and sue in its own name (Section 7 of the Companies Act), so the mark stays when shareholders change.

For a one-owner firm, the owner and the business are effectively the same. The DoI's checklist asks for the registration certificate of the business behind the mark, so file with the firm's certificate attached.

What happens to a partnership's trademark when a partner leaves?

This is where partnerships get into trouble. Section 3(3) of the Partnership Act says a firm is not a person apart from its partners. Section 13 counts the goodwill earned by the business as partnership property, and Section 26 makes each partner answerable for the firm's acts.

Under Section 33, the partnership dissolves at once when a partner dies or becomes insolvent. If nobody wrote down who holds the mark, the remaining partners can face a dispute just when they need the brand most.

Put it in the partnership deed: who holds the mark, and what happens on exit, death or dissolution. Any later transfer needs a joint application at the DoI under Sec. 21D.

What does the register show about who owns Nepal's marks?

IP Sewa has read every DoI bulletin since Volume 1, Number 1 in January 2006: more than 120 issues and 71,500+ published marks. We sorted owners with a Nepal address by the suffix on their printed name; these are published marks, not registrations.

Of 43,161 such marks, about 64% name a "Pvt. Ltd." company, 4% another "Limited" body and 32% carry no company suffix at all. That last group is mostly firms and individuals. The mix has moved towards companies over time.

The latest 12 issues run from July 2025 to October 2026. A suffix is only a clue, since a misprinted name can hide one; the owner search lists every published mark under one owner's name.

How do you register a trademark after setting up the business?

The trademark route is the same for every business form. Our trademark registration service handles each step.

1. Register the business. The DoI asks for the business registration certificate and PAN or VAT proof.
2. Search the brand. Check identical and similar marks, by spelling, sound, meaning and logo.
3. Pick the NICE class. Describe the goods or services you actually sell.
4. File at the DoI. Use the Sec. 17 form with four specimens of the mark.
5. Answer examination. The DoI examines the mark and hears you before deciding (Sec. 18).
6. Watch the opposition window. An accepted mark appears in the Industrial Property Bulletin, and anyone may oppose it within 90 days of publication.
7. Receive the registration certificate. The seven-year term runs from the date of registration (Sec. 18D).

An unopposed application typically takes about 12–14 months from filing to certificate, and 6–8 months only in the smoothest cases; neither is a promise.

Our data puts the filing-to-publication gap at a median of about 3.5 months (9,652 marks in the 12 latest issues), with 64% inside six months. About one in six took over two years, so file early.

What documents does the DoI ask for?

For a Nepali applicant, the checklist on the DoI's Industrial Property Section page lists:

• the completed application form;
• a copy of the registration or permission certificate of the related industry or business, with VAT or PAN proof;
• four specimens of the mark, at most 8 × 8 cm, showing the business name, address and goods or services;
• the receipt for the application fee; and
• a power of attorney if a representative files.

The business certificate is where entity and brand meet; see which company documents overlap with a trademark filing.

Why must the business registration stay renewed?

Because the trademark renewal depends on it. The DoI's renewal checklist asks for the original certificate, the fee receipt, proof that the industry or business registration has been renewed, and proof that the mark is in use.

Firms renew every year. Section 11 of the Partnership Act asks for renewal within 35 days after the fiscal year ends, and Section 11B lets the office cancel a commercial firm that does not renew. A lapsed firm can stall the renewal of the mark.

A trademark is renewable any number of times, seven years at a time (Sec. 23B). File within 35 days after expiry; a late renewal within six months is possible on a fine, after which the registration is cancelled. Our trademark renewal team tracks both dates.

Which NICE classes will your brand need?

The business form does not decide the class; what you sell does. The DoI uses the NICE classification of 45 classes, Classes 1–34 for goods and 35–45 for services, and Sec. 18A(2) needs a separate application for each class.

A clothing label may need Class 25, a packaged-tea brand Class 30 and a café Class 43. The NICE class finder suggests likely classes, and WIPO's Nice Classification page holds the official list.

What if your business is a foreign LLP?

A foreign owner, LLP or not, needs a national filing. Sec. 21B gives a foreign registration no force here until the mark is registered in Nepal, and Nepal is outside the Madrid System.

The DoI's foreign checklist adds a certified copy of the home registration certificate, a priority-date letter if priority is claimed, a power of attorney and a Nepal address. Sec. 21C lets the DoI register a mark already registered abroad without its usual enquiries, with Paris Convention priority. Ask a lawyer how your entity should be named on the form.

Common mistakes

• Registering an "LLP". No such form exists in Nepal's Acts yet; pick a firm or a company.
• Trusting name approval. An approved company or firm name is not a trademark.
• Leaving ownership vague. Partners who never agree who holds the mark invite a dispute.
• Waiting to file. The first-to-file principle generally applies, so an earlier complete application usually wins.
• Using ® too early. Sec. 18B bars presenting a mark as registered before it is, and Sec. 19 adds a fine and confiscation of goods.
• Letting the firm lapse. The DoI wants proof of a renewed business registration before it renews the mark.

What does this look like for a new venture?

Here is an illustration, not a real case. Three friends plan a coffee brand, "Pahad Beans", and ask their accountant to set it up "as an LLP". Learning there is no such form, they choose between a partnership firm and a private company.

They pick a private company, so the brand is not tied to one founder. After registration and PAN, the company files "Pahad Beans" in Class 30 for packaged coffee and Class 43 for its café; if a friend leaves, the mark stays.

Our brand launch package coordinates this order for new businesses.

In short: what is the difference between an LLP and a trademark in Nepal?

An LLP would be a way to organise a business, but Nepal has none yet; a private firm, partnership firm or company fills that role. A trademark is the separate right to your name or logo, registered at the DoI for each class.

Choose the business form for liability and ownership, then file the brand in that entity's name early. Our trademark search and clearance team can check conflicts first.

People also search for

• What can be trademarked in Nepal?
• How does the NICE classification work?
• How to read the Industrial Property Bulletin
• Logo or brand: what are you protecting?

Not sure which entity should hold your mark, or what it will cost? Contact IP Sewa and we will look at your plans.