The E-Commerce Act of Nepal 2025: Regulations, Compliance & Impact

With the rapid expansion of digital transactions in Nepal, a structured legal framework became crucial to regulate and safeguard e-commerce activities. To address this need, the E-Commerce Act, 2081 B.S. (2025) was introduced. This Act provides clear legal guidelines for digital trade, emphasizing consumer protection, business accountability, and compliance with international standards. This article presents an overview of the Act’s key provisions and its implications for stakeholders in Nepal’s evolving digital marketplace.

Objectives and Scope of the Act

The E-Commerce Act is designed to ensure transparency, security, and efficiency in Nepal's digital marketplace. Its major objectives include:

• Promoting employment and entrepreneurship in the digital economy.

• Supporting small and medium enterprises (SMEs) by integrating them into online markets.

• Preventing fraudulent practices and ensuring consumer rights.

• Establishing clear legal responsibilities for online business operators.

Scope:
The Act applies to all individuals, companies, and platforms conducting online buying and selling of goods or services within Nepal.

Conducting E-Commerce: Permissions and Restrictions

Any business registered under Nepal’s existing laws is permitted to engage in e-commerce, provided they comply with the provisions of this Act.

However:

• Businesses must follow all applicable legal and regulatory requirements during electronic transactions.

• Certain goods or services may be restricted from being sold online. If such restrictions are published in the Nepal Gazette, e-commerce businesses must comply.

• Businesses must stay updated on such notifications to avoid violations.

Requirements to Set Up an Online Platform

Businesses intending to sell online must establish their own electronic platforms, except in the case of small businesses or cottage industries, which may use existing e-commerce platforms.

Online platforms must disclose the following details:

• Platform name and business name

• Registration type, address, and certificate number

• Office locations (main office, branches, and outlets)

• Special permits (if selling regulated goods/services)

• Type of operation (direct selling or marketplace)

• Tax registration number (VAT or PAN)

• Contact information (email, phone, social media)

• Consumer complaint contact (name, email, phone, address)

• Registration number from the government’s e-commerce portal

Procedure to Register E-Commerce in Nepal

1. Submission of Application

Businesses must register their platform on the e-commerce portal of the Department of Commerce, Supplies, and Consumer Protection by submitting the required details and documents.

2. Existing E-Commerce Businesses

Businesses already operating before the enactment of this law must register within three months of its commencement.

3. Registration Process

Once the online application is received, the Department issues a platform registration number and related details electronically.

4. Updating Branch or Outlet Details

Businesses must update the e-commerce portal within 7 days of opening or closing any branch or outlet.

Required Documents for Registration

• Business name, address, registration certificate number, and authority

• Ownership details:

  • Proprietor (for private firms)

  • Partners (for partnership firms)

  • Manager/director details (for companies or organizations)

• Description of business activities

• VAT or PAN registration number

• Contact details (phone, email, social media, office address)

• Branch or outlet information

• Any other information as prescribed by the portal

Contracts and Transactions in E-Commerce

Any online sale or purchase between buyers and sellers is considered a contract under prevailing laws. These digital agreements are legally enforceable, and any dispute must be settled as per the agreed contract terms.

Refunds and Returns

Buyers have the right to return goods or services that do not match the description provided at the time of purchase.

Conditions for return and refund:

• The item must not be used or damaged by the buyer.

• The seller may offer a replacement of equal value, subject to buyer consent.

• If the replacement is not accepted, the seller must refund the full amount including applicable taxes.

Offenses and Penalties

The following actions are considered offenses under the Act:

• Conducting e-commerce without an electronic platform

• Operating without proper registration

• Failing to disclose product/service details clearly

• Not fulfilling the seller’s responsibilities after registration

Penalties vary based on severity:

• Fines: NPR 50,000 to NPR 500,000

• Imprisonment: 6 months to 3 years

• Or both, depending on the violation

Conclusion

The E-Commerce Act, 2081 (2025) is a milestone in modernizing Nepal’s digital economy. It ensures consumer protection, mandates transparent online practices, and sets legal expectations for all stakeholders. While it encourages digital innovation and market expansion, it also introduces strict compliance requirements and penalties for non-compliance.

The Act complements existing laws such as:

• Companies Act, 2063 – for business registration and operation

• Consumer Protection Act, 2075 – for safeguarding consumer rights

• Value Added Tax Act, 2052 – for regulating taxation on goods and services

By adhering to the provisions of this Act, businesses can operate confidently in Nepal’s growing digital marketplace, ensuring trust, accountability, and long-term growth.