E-Commerce Act Nepal 2081 (2025): Registration, Compliance & Penalties

Nepal's first dedicated e-commerce law, the E-Commerce Act 2081 (2025), was certified on 16 March 2025 and came into force thirty-one days later. After years of e-commerce growth without a dedicated statute — Daraz, SastoDeal, marketplaces, food-delivery apps, and thousands of social-commerce sellers operating under a patchwork of consumer-protection, electronic-transactions, and tax statutes — the Act consolidates the rulebook. Every business selling goods or services through digital means in Nepal must now register on the Department of Commerce, Supplies and Consumer Protection (DCSCP) electronic commerce portal, maintain a grievance-redressal mechanism, and observe consumer return-and-refund rights. Penalties for non-compliance run up to NPR 500,000 in fines and three years' imprisonment.

This guide is the 2026 (2083 BS) practitioner's view of the E-Commerce Act Nepal 2025 (2081): the scope and application, the DCSCP registration requirement, the obligations on platforms, sellers, and intermediaries, the consumer rights that the Act creates, the dispute-resolution mechanism, the penalty schedule, and how Alpine Law Associates handles compliance and dispute matters for online businesses. Whether you operate a marketplace, sell through social media, run an aggregator, or act as a platform intermediary, this is the document your compliance team will work from.

Alpine Law Associates — Nepal Bar Council-registered corporate-law team handling e-commerce registration, platform compliance, marketplace agreements, and consumer disputes for online businesses across Nepal.

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What is the E-Commerce Act Nepal 2081 (2025)?

The E-Commerce Act 2081 (2025) is Nepal's first dedicated statute regulating electronic commerce. Certified on 16 March 2025 (2081/12/3 BS) and effective from the thirty-first day after certification, the Act consolidates obligations that were previously spread across the Consumer Protection Act 2075, the Electronic Transactions Act 2063, the Companies Act 2063, sectoral tax statutes, and case-by-case guidance. The 2026 reality is that any business selling goods or services through digital means in Nepal — whether a domestic Nepali platform, a foreign platform serving Nepali customers, a social-commerce seller, or an aggregator — must comply with the Act.

The Act has five working objectives: regulating all forms of digital trade, enhancing consumer protection through structured grievance mechanisms, fostering transparency in online transactions, supporting small and cottage industries transitioning to digital platforms, and clarifying the legal responsibilities of each party involved in e-commerce. The implementing authority is the Department of Commerce, Supplies and Consumer Protection (DCSCP), which operates the electronic commerce portal where every e-commerce business must register before operating.

Who must comply with the E-Commerce Act?

The Act applies broadly. Section-level reading and DCSCP guidance covers:

• Marketplaces and platforms. Daraz, SastoDeal, MeroShopping, and similar multi-seller marketplaces — both as platform operators and as facilitators of seller transactions.
• Direct online sellers. Businesses operating their own e-commerce websites or apps and selling directly to consumers.
• Social-commerce sellers. Businesses selling through Facebook, Instagram, TikTok, WhatsApp Business and similar platforms — even where the platform itself is foreign-based.
• Aggregators. Food delivery (Foodmandu, Pathao Food), ride-hailing (Pathao, Tootle), grocery delivery, and similar service aggregators.
• Foreign platforms serving Nepali consumers. Even if the platform is registered abroad, if it sells goods or services delivered in Nepal, it falls within the Act's scope.
• Intermediaries. Payment gateways, logistics partners, and other intermediaries that facilitate e-commerce transactions have specific obligations under the Act.
• Cottage and small industries. Even small artisans selling through Instagram or WhatsApp must register and comply, with simplified procedures for low-volume operations.

The DCSCP electronic commerce portal — registration requirement

Every business that conducts e-commerce in Nepal must establish an electronic platform and list it on the DCSCP electronic commerce portal. Registration is the first compliance event under the Act and the gateway for everything else — without portal registration, the business operates illegally and is exposed to the full penalty range.

Registration on the DCSCP portal requires:

• Company / firm registration documents (OCR certificate, PAN, VAT if applicable) — see our company registration guide.
• Authorised representative's citizenship and contact details.
• Description of the e-commerce platform — URL, mobile app, social-media presence.
• Categories of goods or services sold.
• Geographical service area.
• Return / refund policy.
• Grievance-redressal mechanism details (contact person, response timelines, escalation path).
• Tax compliance disclosure (PAN/VAT registration status).

For platforms hosting third-party sellers, the platform must register first and the sellers register through the platform with their own disclosures. For foreign platforms, registration is mandatory if the business serves Nepali consumers — the lack of physical presence is not an exemption.

Mandatory disclosures every online platform must make

The Act prescribes minimum disclosures that must be displayed clearly on the e-commerce platform — typically in the website footer, product page, or designated "About / Legal" page. Missing or hidden disclosures attract administrative penalties at first instance and can ground prosecution for repeated or material violations.

1. Seller identity. Legal name of the business, registered address, contact phone and email, key authorised personnel.
2. Tax registration status. PAN number, VAT registration if applicable, and any sectoral licence relevant to the goods or services.
3. Product / service details. Accurate description, price (inclusive or exclusive of tax — clearly stated), quantity, expiry where applicable.
4. Return and refund policy. Conditions under which products / services can be returned, the refund process, the timeline for refund processing, and any restocking or shipping deductions.
5. Delivery information. Expected delivery times, geographic coverage, charges, and what happens if delivery fails.
6. Grievance-redressal mechanism. How a consumer can file a complaint, the contact person, the expected response time, and the escalation path to DCSCP if the complaint is not resolved internally.
7. Privacy and data handling. What customer data is collected, how it is used, and the consumer's rights regarding their data — cross-referenced with the Privacy Act 2075.
8. Dispute-resolution framework. The forum and procedure for disputes — typically internal grievance first, then DCSCP, then District Court.

Consumer rights under the E-Commerce Act 2081

The Act creates specific consumer rights that supplement the broader Consumer Protection Act 2075 framework — see our Consumer Protection Act 2075 guide. The e-commerce-specific rights are:

• Right to accurate information. Consumers are entitled to truthful product descriptions, accurate pricing, and complete tax disclosures before purchase.
• Right to return non-conforming goods or services. Where the delivered product does not match the description, the consumer can return it and obtain a refund — including taxes paid. The window for return is set by the Act and the platform's policy, with the platform's policy permitted only if more generous than the Act's minimum.
• Right to refund including tax. Refunds must be in full, including any tax components, and processed within the timeline disclosed in the platform's refund policy.
• Right to grievance redressal. Consumers can file complaints with the platform's grievance mechanism with defined response timelines.
• Right to escalation to DCSCP. Where the platform's internal mechanism fails to resolve the grievance, consumers can escalate to DCSCP, which can investigate, mediate, and impose penalties under both the E-Commerce Act 2081 and the Consumer Protection Act 2075.
• Right to data protection. Personal data must be handled per the Privacy Act 2075 and any sector-specific data rules; consent for collection and use is required.

Penalties under the E-Commerce Act 2081

The Act prescribes a graduated penalty schedule covering five principal categories of violation:

1. Operating without registration. Platforms or sellers operating without DCSCP portal registration face administrative fines, shutdown orders, and prosecution. Fines start at NPR 100,000 and escalate based on duration of unregistered operation and consumer harm caused.
2. Failure to maintain grievance mechanism. Platforms that fail to provide a working grievance-redressal mechanism face administrative penalties of NPR 50,000 to NPR 200,000 with mandatory remediation orders.
3. Misrepresentation of goods or services. Misleading product descriptions, false advertising, or substantive misrepresentation attracts fines of NPR 200,000 to NPR 400,000 plus consumer compensation orders.
4. Failure to disclose taxes. Hiding tax components from displayed prices, failing to issue compliant invoices, or evading VAT obligations attracts fines and parallel tax-law prosecution.
5. Cyber offences and fraud. Serious offences — using e-commerce platforms for fraud, pyramid schemes, money laundering through purchases, or systemic deception — attract the upper penalty band: fines up to NPR 500,000 plus imprisonment of 6 months to 3 years. The Electronic Transactions Act 2063 provides additional cyber-offence penalties that can run alongside.

The penalty regime is graduated by severity and frequency. First-time minor violations typically result in administrative fines and remediation orders; repeated or serious violations escalate to prosecution. DCSCP also has authority to order temporary or permanent shutdown of non-compliant platforms.

Step-by-step compliance for a new e-commerce business

1. Incorporate the entity. Register a private limited company at OCR through CAMIS — see our company registration guide. Sole proprietorships and partnerships also work for smaller operations.
2. Obtain PAN and VAT. Register at IRD for Permanent Account Number; VAT if turnover crosses threshold or sector requires.
3. Build the platform. Develop the website, mobile app, or social-commerce presence with the mandatory disclosures built in — seller identity, return policy, grievance mechanism, privacy policy.
4. Draft policies. Return / refund policy aligned to the Act, terms of service, privacy policy under the Privacy Act 2075, seller agreement (for marketplaces), grievance handling SOP.
5. Register on the DCSCP electronic commerce portal. Submit the application with all required documents. The portal verifies the file and issues confirmation of listing.
6. Implement the grievance mechanism. Designate a grievance officer, set up the complaint channel (email, web form, phone), define response timelines, and document the SOP.
7. Sectoral licences. Where applicable — DDA for pharma, food licences for food delivery, NRB for fintech / payments, NTA for telecom-related services.
8. Train staff and partners. Customer service, complaint handling, refund processing, return logistics, tax disclosure — all front-line operations need training.
9. Ongoing compliance. Monitor consumer complaints, respond to DCSCP queries, maintain grievance records for inspection, file annual reports as required.

Consumer disputes and the DCSCP escalation path

Consumer disputes follow a structured escalation path under the Act. The first stage is the platform's internal grievance mechanism — the consumer files a complaint, the platform's grievance officer responds within the disclosed timeline, and resolution is attempted. If internal resolution fails, the consumer escalates to DCSCP, which can investigate, mediate, and order remedies. DCSCP orders include directing refunds, ordering corrective action, imposing administrative fines, and in serious cases referring to the District Court for prosecution.

For consumers, the parallel route under the Consumer Protection Act 2075 remains available — see our Consumer Protection Act guide. The two Acts work together: the E-Commerce Act 2081 covers e-commerce-specific obligations and the related penalty band, while the Consumer Protection Act 2075 provides the broader consumer-rights framework with its own penalty schedule. DCSCP enforces both, and a single complaint can ground action under both statutes.

Special compliance notes for marketplaces and intermediaries

Marketplaces hosting third-party sellers face additional obligations under the Act. The marketplace platform must:

• Register itself on the DCSCP portal as the platform operator.
• Onboard sellers correctly. Verify seller identity, ensure seller PAN / VAT registration, and ensure each seller has its own DCSCP listing.
• Maintain seller agreements. Written agreements covering disclosure obligations, return / refund handling, dispute escalation, and platform liability allocation.
• Handle consumer-side grievances. The platform is the front-line interface for consumer complaints, even where the underlying seller is liable. Platform must have a grievance mechanism that triages complaints to the relevant seller.
• Take reasonable steps against fraud. Monitoring for fraudulent listings, removing reported counterfeits, suspending repeat offender sellers.

Payment gateways and logistics intermediaries have their own specific obligations — typically lighter than the platform's but still substantial. Intermediaries that knowingly facilitate fraud or material non-compliance can be charged as accomplices.

Cross-border e-commerce — foreign platforms serving Nepali consumers

The Act applies to foreign platforms that sell to Nepali consumers regardless of the platform's physical location. This is an extra-territorial reach designed to protect Nepali consumers from cross-border fraud and substandard goods. Foreign platforms must register on the DCSCP portal, maintain a grievance mechanism accessible to Nepali consumers, comply with Nepali tax rules where applicable, and observe consumer return-and-refund rights for goods delivered in Nepal.

Enforcement against foreign platforms is operationally challenging but not theoretical. DCSCP can block payment-gateway access for non-compliant foreign platforms, issue customs interdictions on incoming goods, and pursue foreign-jurisdiction recognition of orders where reciprocal arrangements exist. Foreign platforms with substantial Nepal exposure typically choose to register voluntarily to avoid these consequences and to maintain consumer trust.

Common compliance gaps and how to fix them

• Unregistered platform. Operating without DCSCP portal listing is the single largest exposure. Register immediately; back-dating is not permitted but voluntary registration before DCSCP investigation typically reduces penalties.
• Missing or hidden disclosures. Seller identity, return policy, grievance mechanism, tax disclosures buried in deep menus or absent altogether. Fix by displaying prominently in footer and at relevant transaction points.
• No grievance officer or unrealistic response timelines. Designate a real person, set realistic timelines (typically 7–14 days for first response), and document the SOP. DCSCP audits the grievance log on inspection.
• Refund policy more restrictive than the Act. Where the platform's policy is more restrictive than the Act's minimum (e.g., "no returns" for non-conforming goods), the Act overrides. Update the policy or face DCSCP action.
• Tax disclosure gaps. Prices displayed without clear VAT inclusion, invoices missing PAN / VAT — both attract administrative penalties and parallel tax investigation.
• Marketplace liability ambiguity. Where the platform-seller-consumer triangle's liability is unclear, the platform faces consumer-side complaints. Clean seller agreements and clear consumer disclosures fix this.
• Cross-references missed. The E-Commerce Act 2081 works with the Consumer Protection Act 2075, ETA 2063, Privacy Act 2075, Companies Act 2063, and tax statutes. Compliance must address all parallel obligations, not the e-commerce Act alone.

How can Alpine Law Associates help with E-Commerce Act compliance?

Alpine Law Associates handles E-Commerce Act 2081 compliance as a sequenced engagement that ends at audit-readiness, not at portal registration. Our corporate and digital-compliance team covers initial structure advisory (entity choice, marketplace vs single-seller architecture, foreign-platform structuring), policy drafting (return / refund policy aligned to the Act, terms of service, privacy policy under Privacy Act 2075, seller agreement), DCSCP electronic commerce portal registration, grievance mechanism design and SOP drafting, sectoral licensing where applicable, ongoing compliance monitoring, and DCSCP query response.

For consumer-side disputes, we represent platforms defending against complaints — internal mediation, DCSCP investigation response, and District Court defence where prosecution is initiated. For cross-border platforms, we structure the registration, tax, and liability framework that minimises exposure while serving Nepali consumers compliantly. As a full-service law firm in Nepal, we run E-Commerce Act compliance alongside related Consumer Protection Act, electronic transactions, and corporate work in a single counsel relationship.

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Last reviewed: April 2026