Introduction to E-Commerce Business
With Nepal’s digital economy growing at an unprecedented pace, e-commerce is no longer a niche sector. It is the future of business. Whether you’re running an online store, a digital marketplace, or a mobile app offering services, it is now mandatory to register your e-commerce business in Nepal. This mandate stems from the E-Commerce Act, 2025, which sets forth legal obligations, consumer protections, and penalties for non-compliance.
In this article, Onesphere Law Associates, Nepal’s trusted name in corporate and digital law provides a detailed and updated guide to registering an e-commerce business in Nepal. We’ll walk you through the laws, step-by-step procedures, documents, and compliance requirements essential to launching your online venture legally.
What Qualifies as an E-Commerce Business?
According to the E-Commerce Act, 2025, any business that sells goods or services online using electronic platforms—including websites, mobile apps, or social media—is considered an e-commerce business. This includes:
- Online retail stores (e.g., clothing, electronics)
- Food delivery platforms
- Online ticketing services
- Freelancing and digital service platforms
- Subscription-based e-learning or streaming services
- B2B and B2C e-marketplaces
Regardless of the size or revenue, registration is compulsory for all such businesses.
Why You Must Register Your E-Commerce Business
Failing to register your online business can lead to:
- Monetary penalties under the E-Commerce Act
- Suspension or takedown of your platform
- Ineligibility for payment gateway integration
- Consumer trust issues due to lack of legal recognition
- Difficulty securing financing or entering contracts
Registration not only ensures compliance but adds credibility, improves customer trust, and makes your business eligible for government programs and financial services.
Key Laws Governing E-Commerce in Nepal
Before registering, it’s vital to understand the legal landscape:
- E-Commerce Act, 2025: The primary law governing online business activities, licensing, privacy, consumer protection, and dispute resolution.
- Electronic Transactions Act, 2063 (2008): Covers digital communication, contracts, electronic signatures, and cybercrime.
- Companies Act, 2063: Regulates company incorporation and operations.
- Consumer Protection Act, 2075 (2018): Provides rights to online buyers and mandates transparency in online transactions.
- Income Tax Act & VAT Act: Governs business taxation.
- Nepal Rastra Bank Directives: Regulate online financial transactions and digital wallets.
Authorities Involved in Registration
Several government entities are involved:
- Office of the Company Registrar (OCR) – For company formation.
- Inland Revenue Department (IRD) – For PAN and VAT registration.
- Department of Commerce, Supplies, and Consumer Protection (DOCSCP) – For e-commerce certification.
- Local Ward Office – For municipal registration.
- Nepal Rastra Bank (NRB) – For digital payment gateway approvals.
Step-by-Step Process to Register an E-Commerce Business in Nepal
Step 1: Choose Your Business Structure
Decide on the legal form:
- Sole Proprietorship – Easier to register but limited liability protection.
- Partnership – Suitable for joint ventures.
- Private Limited Company – Most preferred due to scalability and investor confidence.
Step 2: Reserve Company Name
Visit OCR’s online portal and submit a name reservation request. You will receive approval if the name is available and appropriate.
Fee: NPR 100
Step 3: Prepare Necessary Documents
You’ll need:
- Citizenship copies of promoters
- Passport-sized photos
- MoA and AoA
- Office space agreement
- Power of attorney (if applicable)
Step 4: Register Your Company
Submit all required documents and fees to OCR. Once verified, your company will receive a Company Registration Certificate.
Fee Example: NPR 9,500 (for capital up to NPR 1 million)
Step 5: Register for PAN and VAT
Visit IRD to apply for:
- PAN – Mandatory for all businesses
- VAT – Required if your annual turnover exceeds NPR 5 million
PAN Fee: NPR 500
VAT Registration: Free
Step 6: Apply for E-Commerce Registration
You must submit an application to the DOCSCP, which includes:
- Business and contact details
- Website/app URL
- Terms and conditions, privacy policy
- Description of goods/services
- Return/refund policy
- Digital payment integration plan
After review, you will receive an E-Commerce Business Certificate.
Step 7: Register with Local Government
Your ward office may require additional registration. Submit:
- Lease or rental agreement
- PAN and company certificates
- Local tax details (if applicable)
Step 8: Secure a Domain and Hosting
- For Nepali entities, you can register a
.com.npdomain free at Mercantile Communications. - Domain name must match your registered company name.
Step 9: Payment Gateway Integration
Apply with NRB-approved gateways such as:
- eSewa
- Khalti
- IMEPay
- FonePay
You must ensure:
- PCI-DSS compliance
- Secure transaction handling
- SSL certificate for your website
Step 10: Ensure Legal Compliance
Adopt cybersecurity and consumer protection protocols:
- Include detailed privacy and return policies
- Enable user authentication and encryption
- Protect customer data and comply with the Electronic Transactions Act
List of Required Documents
| Document | Purpose |
|---|---|
| MOA and AOA | Legal foundation of your business |
| PAN Certificate | Tax compliance |
| VAT Certificate (if applicable) | Tax compliance |
| Citizenship/Passport | Identity verification |
| Passport Photos | Registration requirement |
| Lease Agreement | Proof of business address |
| Domain Registration | For online presence |
| E-Commerce Registration Certificate | DOCSCP approval |
| Digital Payment Integration Documents | Payment processing |
| Industry-specific licenses | E.g., Food or medical sales |
Estimated Costs (2025)
| Item | Estimated Cost (NPR) |
|---|---|
| Name Reservation | NA |
| Company Registration | 9,500 |
| PAN Registration | NA |
| Domain Registration (.com.np) | Free |
| Digital Signature (if required) | 3,000–5,000 |
| Legal Fees | 15,000–30,000 |
| Miscellaneous | 2,000–5,000 |
Total Estimated Cost: NPR 30,000 to NPR 50,000
Timeframe for Registration
With all documents ready and proper legal support, you can complete the process in 5–15 working days, depending on:
- Government processing speed
- Complexity of the business
- Availability of promoters for verification
- Accuracy of documentation
Common Mistakes to Avoid
- Launching operations before legal registration
- Using unapproved payment gateways
- Ignoring data privacy laws
- Not displaying policies (returns, refunds, privacy)
- Failing to renew annual licenses or update DOCSCP records
Why Choose Onesphere Law Associates?
As a leading law firm in Nepal, we offer full-service support for e-commerce entrepreneurs:
- Business structuring and company registration
- Drafting and notarizing MoA/AoA
- E-commerce licensing and DOCSCP filing
- Tax registration and compliance
- Online platform review for legal issues
- Cybersecurity compliance consultation
Our team ensures that your online business is not only legally compliant but built on a strong legal foundation for long-term success.
Conclusion
The rise of e-commerce in Nepal opens exciting opportunities, but these must be seized responsibly. Proper registration under the E-Commerce Act, 2025 is not optional—it is mandatory. Ensuring full legal compliance from the beginning prevents future complications and builds consumer trust.
Whether you’re starting a new online business or formalizing an existing one, the experts at Onesphere Law Associates are here to help. Let us handle the legal complexities while you focus on growing your brand.
Contact us today to schedule a consultation or begin your e-commerce registration journey.