Yes, if you sell goods or services online in Nepal via a website, app, or social media shop, you must register and publish your business on the government's e-commerce portal. This rule is derived from the Electronic Commerce Act, 2081 (2025), and it has been extensively implemented by the Department of Commerce, Supplies, and Consumer Protection (DoCSCP), including a new enforcement campaign in August 2026 that placed unregistered vendors on notice.
If you run an Instagram shop, a Facebook page that accepts orders, or a full online store, this article will explain what constitutes e-commerce, what you must register and disclose, and what happens if you do not. Need help with registration or compliance? Our Corporate lawyers in Nepal can assist with the full process.
What Is E-Commerce Under Nepal's 2025 Law?
The Electronic Commerce Act defines e-commerce as the purchase or sale of goods or services using an electronic platform, a website, mobile app, software system, or a social media marketplace accessed via computer or phone where an actual transaction occurs.
That final aspect is important: simply advertising a product on social media without any electronic ordering or payment system does not constitute "e-commerce" under the Act. However, taking orders, payments, or bookings electronically whether through Instagram DMs, a Facebook shop tab, WhatsApp ordering, or TikTok Shop – constitutes e-commerce under the law.
The Act defines "services" broadly. It includes IT services, healthcare, education, consulting, transportation, tourism, entertainment, banking, insurance, legal services, auditing, medical services, and engineering, among others. So, this isn't just a restriction for online apparel stores; it applies to a wide range of Nepali service firms that accept bookings or payments online.
Who Must Register for the Government E-Commerce Portal?
Every e-commerce business entity in Nepal is obliged to register on the DoCSCP's e-commerce platform. This is a different step from conventional business registration; simply registering a corporation or firm with the Office of corporation Registrar does not meet this criterion.
A few groups deserve specific mention:
- Individuals and freelancers selling online - If you run a one-person Instagram store, you need still register as a sole proprietor and receive a platform listing number, rather than just using your personal profile.
- Micro and small entrepreneurs - Some very small sellers may be able to operate through already-licensed platforms (such as an established, compliant marketplace) rather than obtaining their own separate listing, but this is dependent on your specific situation and should be confirmed with a lawyer rather than assumed.
- Foreign sellers - The Act applies to individuals outside of Nepal who provide products or services into Nepal via electronic commerce. This rule also applies to international companies that sell into the Nepali market, even if they do not have a physical presence in the country.
Step-by-Step: How to Register Your E-Commerce Business in Nepal (2026)
- Choose a business structure and register your entity. A sole proprietorship, partnership, or private limited company must be registered with the right authority.
- Obtain a PAN and register for VAT if your turnover requires it.
- Obtain a ward/municipal business operating license, where applicable to your business type and location.
- Prepare your documentation: business registration certificate, PAN certificate, citizenship documentation for owners and directors, company MOA/AOA (for businesses), bank account information, and links to your website, app, or social media store.
- Apply on the DoCSCP e-commerce portal. The application requires your business name and address, registering authority and registration certificate number, proprietor/partner/director details, a description of your business, your PAN/VAT number, phone and email contact information, social media address, and any branches or outlets.
- Receive your e-commerce portal listing number and display it on your platform.
- Keep your details current. Any changes to your registered information must be updated as soon as possible; don't let your listing go stale due to a change in address, contact information, or business structure.
Documents typically required:
- Business/company registration certificate
- PAN (and VAT certificate, if registered)
- Citizenship certificate(s) of owner, partners, or directors
- MOA/AOA (companies only)
- Bank account details
- Website, app, or social media store link(s)
Need help pulling this together? Our team can manage the registration and portal listing process for you, Speak to a corporate lawyer in Nepal.
What Your Website or Social Store Must Display (Legal Checklist)
Once registered, your platform itself must carry certain information, visibly, for customers to see:
- Business name and address, including registered office and any branches
- Registering authority and registration number
- Business license details, where applicable
- PAN/VAT number
- General contact information
- A dedicated customer-service contact
- A grievance-handling contact
- Your e-commerce portal listing number
If any of these details change, such as a new address, phone number, or grievance contact, you must swiftly update your platform rather than leaving outdated information online.
Product, Price, Delivery, and Contract Disclosures
Nepal's e-commerce rules consider every online transaction as a contract and thus require more transparency on your product pages than many small merchants now supply.
What your product pages should show:
- A clear description and characteristics of the goods or services
- The final selling price, including tax, plus any delivery charges
- Expected delivery date or timeframe
- Accepted payment methods
- Warranty or guarantee information, and the producer/provider's details
- Return conditions and return period
- Cancellation terms
- Manufacturing and expiry dates, where relevant to the product
- A working mechanism for customer reviews, ratings, and complaints
Because e-transactions are recognized as contracts, your terms should explicitly state the delivery, cancelation, return, exchange, and warranty conditions, rather than leaving customers to guess or chase you down after the fact.
Returns, Refunds, and "Not as Described" Claims
Customers have the right to return goods or services that do not match what was advertised on your platform, if the item is unused and undamaged. This is an important safeguard: if your listing stated one thing but the customer received another, they have the right to act based on the disparity.
If you cannot provide a comparable substitute that the client approves, you must return the amount paid, including VAT. A vague "no refunds" policy, or one that just provides store credit regardless of the circumstances, conflicts with these criteria.
Practical takeaway: Instead of using a generic template from a foreign e-commerce platform, create a return and refund policy that explicitly states these rights. It should specify the return window, the condition of the items, and how refunds are processed.
Customer Data and Privacy: What Online Sellers Must Do
If you gather client information (names, phone numbers, addresses, payment information), you are required to keep it confidential and not divulge or use it beyond what is permitted by law.
Practical steps worth taking:
- Collect only the customer data you actually need to fulfil an order
- Store it securely, rather than in an open spreadsheet or shared inbox
- Share it with delivery partners only to the extent needed to complete delivery
- Don't repurpose customer contact details for unrelated marketing without consent
Does E-Commerce Registration Replace Other Licenses?
No. This is one of the most frequently misunderstood topics, and it's worth emphasizing: listing on the e-commerce platform is an additional requirement, not a replacement for any sector-specific licenses you may already hold.
If your product or service requires separate approval under other Nepali laws, you still need that approval. Examples include:
- Health products or supplements, which may need health-authority clearance
- Financial services, which fall under separate regulatory oversight
- Travel and tourism services, which typically require tourism-sector licensing
- Food products, which need food-safety approval
- Pharmaceuticals, which are separately and heavily regulated
E-commerce listing sits on top of these requirements; it doesn't excuse you from them.
Unsure whether your online store is fully compliant? Get a legal review from our corporate team- contact us.
Penalties, Enforcement, and the August 2026 Crackdown
The registration requirement is not new; it has been in place since the Act went into effect in 2025. What changed in 2026 was enforcement.
On August 18, 2026, the Department of Commerce, Supplies, and Consumer Protection issued a directive enforcing mandatory portal listing and threatening legal action against non-compliant vendors. This was not new legislation; rather, it was a stronger push to enforce an existing one, prompted by increased complaints about false product claims, online fraud, poor items, and digital payment issues.
According to media sources, businesses that fail to register could face fines of up to Rs 200,000, as well as further legal action or being asked to shut down an unregistered platform. Given that information on actual penalty figures varies and enforcement practice evolves, treat this as a strong signal to become compliant rather than a set, guaranteed quantity and consult with a lawyer if you've received any notices.
Bottom line: if your internet business or social media shop has not yet registered, 2026 is not the time to wait and watch.
Practical Compliance Checklist for Nepali Online Sellers
☐ Valid business entity registration (sole proprietorship, firm, or company)
☐ PAN obtained, VAT registered if applicable
☐ Ward/municipal business operating license, where required
☐ DoCSCP e-commerce portal listing completed, with listing number in hand
☐ Platform displays business name, address, registration number, PAN/VAT, and contact details
☐ Grievance-handling contact clearly published
☐ Prices shown inclusive of tax, with delivery charges disclosed
☐ Delivery timeframes, payment methods, and warranty terms published
☐ Return, exchange, and refund policy that reflects the Act's requirements
☐ Customer data handled and stored securely, shared only where necessary
☐ Any sector-specific license (health, food, tourism, finance, etc.) obtained separately
Frequently Asked Questions
Q. Do Instagram and Facebook sellers need e-commerce registration in Nepal?
Yes, if you accept orders or payments through the platform, even informally via DMs or comments. Simply uploading photographs to advertise products without an electronic transaction method does not constitute e-commerce under the Act; nevertheless, once an order is processed electronically, the registration requirement applies.
Q. Is company or firm registration enough to sell online?
No. Registering a business, firm, or single proprietorship is a separate process from listing on the DoCSCP e-commerce portal. You'll need both legitimate business registration and a portal listing with your own listing number.
Q. Is PAN or VAT registration enough for e-commerce?
No, PAN and VAT are tax registrations that do not meet the e-commerce platform listing criteria. You must have registered with your business entity, paid your taxes, and listed your e-commerce portal.
Q. Where do I apply for e-commerce listing in Nepal?
Applications are submitted electronically using the Department of Commerce, Supplies, and Consumer Protection's approved e-commerce platform. Because portal information can change, please validate the current official application channel before applying, or have a lawyer handle the submission for you.
Q. What information must I show on my website or social store?
Your company name and address, registration authority and number, PAN/VAT number, contact and customer-service information, a complaint contact, and your e-commerce site listing number. This must be updated whenever anything changes.
Q. What are the return and refund rules for online shops?
Customers can return unused and undamaged items or services that do not fit the description. If you cannot provide an adequate equal replacement, you must refund the entire amount paid, including VAT.
Q. What happens if I don't register my online business?
You risk legal action from the Department of Commerce, Supplies, and Consumer Protection, with media reports indicating that unregistered platforms might face fines of up to Rs 200,000, in addition to probable enforcement action against the firm itself.
Q. Does e-commerce registration replace sector-specific licenses?
No. If your goods or services are subject to other Nepali legislation, such as health, food, tourism, finance, or pharmaceuticals, you must still obtain a separate license. E-commerce listing is an additional need, not a replacement.
How Nepal Lawyer Can Help with E-Commerce Compliance
Getting an online business fully compliant in Nepal now requires more moving parts than before, including entity registration, tax registration, local licensing, and a separate e-commerce portal listing, each with its own documentation and disclosure duties. Missing any of them exposes you to the type of enforcement action that the Department has been pursuing since August 2026.
Our corporate and commercial team handles this from start to finish, including selecting the best entity structure for your company, coordinating PAN/VAT and ward licensing, preparing and submitting your e-commerce portal listing, and drafting terms and policies returns, refunds, warranties, privacy, and grievance handling that actually reflect what the Act requires, rather than a generic template. We can also advise you whether your products or services require a distinct sector license, and if you've already received a notification or complaint from the authorities, we can help you respond to it.
How Nepal Lawyer Can Help with E-Commerce Compliance
Getting an online business fully compliant in Nepal now requires more moving parts than it used to, including entity registration, tax registration, local license, and a separate e-commerce portal listing, each with its own set of documentation and disclosure requirements. Missing any of them exposes you to the type of enforcement action that the Department has been pursuing since August 2026.
Our corporate and commercial team handles this from start to finish, including selecting the best entity structure, coordinating PAN/VAT and ward licensing, preparing and submitting your e-commerce portal listing, and drafting terms that reflect what the Act requires returns, refunds, warranties, privacy, and grievance handling rather than a generic template. If your products or services require a separate sector license, we can advise you on that as well. If you have already received a notice from the authorities, we can represent you in responding to it.
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→ Contact Nepal Lawyer directly
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Sources
- Nepal Law Commission - Electronic Commerce Act, 2081 and related legislation
- Kathmandu Post - Nepal's online sellers must register or pay up to Rs 200,000 fine
- Ekantipur - E-commerce bill passed, registration now mandatory for doing online business
- TechPana - Running an online business in Nepal: registration is mandatory, unregistered platforms may face action
Disclaimer: This article provides general legal information about Nepal's e-commerce registration requirements as of publication and is not legal advice. Laws and enforcement practices are evolving, consult a qualified lawyer about your specific business before relying on this guide.
