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

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

Introduction

With the rapid growth of digital transactions in Nepal, the necessity for a structured regulatory framework to govern e-commerce activities has become essential. The E-Commerce Act-2081 B.S (2025), has been introduced to establish clear guidelines for electronic commerce, ensuring consumer protection, business accountability, and compliance with international standards. This article provides an overview of the key aspects of the Act and its implications for various stakeholders in the digital marketplace.

Objectives and Scope

The primary objective of the Act is to regulate the electronic marketplace by ensuring transparency, security, and efficiency in digital transactions. It aims to promote employment opportunities, facilitate the availability of goods and services, and support small and medium enterprises by integrating them into the digital economy. Additionally, the Act seeks to prevent fraudulent activities, protect consumer rights, and establish legal accountability for online business operators. The Act applies to all e-commerce transactions conducted within Nepal, covering individuals, businesses, and platforms engaged in online buying and selling of goods and services.

Conducting E-commerce

Any business, company, or organization that has received official permission to sell goods and services under the existing laws is allowed to carry out electronic transactions. This means they can buy and sell products or services online, following the rules and guidelines set by this Act. However, they must ensure that their electronic transactions comply with all legal requirements and regulations to operate lawfully. Even if businesses are allowed to trade electronically, they cannot buy or sell certain goods or services online if the existing law or the Government of Nepal specifically bans them. If the government publishes a notice in the Nepal Gazette stating that certain items or services cannot be sold through electronic means, then those transactions will not be allowed.

Requirements to Set Up an Online Platform

  1. Any business that wants to sell products or services online must set up its own electronic platform. However, small businesses or cottage based industry do not need to create their own platform. They can sell their products or services using other existing online platforms.
  2. Businesses that set up an online platform must provide the following details so that customers have all the necessary information before making a purchase:
    • Name of the online platform,
    • Business details, including its name, address, type of registration, and registration certificate number,
    • Office locations, including the main office, branches, and outlets (if any),
    • Special permits, if the business requires separate approval for selling certain products or services,
    • Type of online business, whether it operates as a marketplace for other sellers or sells directly to customers,
    • Tax registration number either VAT or PAN,
    • Contact details, such as email, phone number, mobile number, fax, social media links, and customer support contacts,
    • Customer complaint contact, including the name, email, phone number, and address of the person or department responsible for handling complaints, and
    • Official registration number, assigned after being listed on the government's electronic commerce portal.

Procedure to Register E-Commerce in Nepal

  1. Submission of Application in the Portal of the Department

    After setting up an electronic platform the business must register online on the electronic commerce portal of Department of Commerce, Supplies, and Consumer Protection with the details and documents required

  2. Registration of E-commerce Operating before the Commencement of this Act

    The e-commerce that is already in operating transactions before the commencement of this Act it must be registered in the electronic commerce portal of Department within three months of the commencement of this Act.

  3. Electronic Registration Process and Platform Details for Businesses

    Once the registration application is received on the electronic commerce portal, the Department must provide the registered business with the platform registration number and related details through electronic means.

  4. Updating Business Branch or Outlet Information on the Electronic Portal

    Once registered, if the business adds or removes any branches or outlets, it must update the details on the electronic portal within seven days.

Required Documents for Electronic Registration and Platform Listing

  1. Business name, address, registered authority and registration certificate number,
  2. In the case of a private firm, details of the proprietor; in the case of a partnership firm, details of the partners and in the case of a company or organization, details of the company or organization's manager and its identification,
  3. Clear description of the business's activities,
  4. Value-added tax (VAT) registration number or permanent account number (PAN),
  5. Business's telephone number, email, social media address, and contact address,
  6. Details of the branch or outlet, including its location and address, and
  7. Other details listed on the electronic commerce portal.

Contract

Any transaction related to the sale and purchase of goods or services conducted between the buyer and seller through electronic means will be considered a contract under the prevailing laws. In such a contract, if any disputes arise, they must be resolved according to the terms of the agreement.

Refund for Goods or Services

If the buyer receives a product or service that does not match the details provided by the seller the buyer has the right to return the product or service. In such cases, the buyer without using or causing any loss to the service or good must return to the seller. The seller can provide the good or service of equal amount to the buyer if the buyer accepts so. The seller must refund the amount paid including tax to the concerned buyer if the buyer does not accept the other service or goods of similar nature of equivalent price.

Offense and Penalty

  • If e-commerce is conducted without establishing an electronic platform
  • If business is conducted without registration
  • If details regarding the product or service are not provided during electronic transactions.
  • If the responsibility of a seller engaged in electronic commerce based on registration is not fulfilled or violated.

Depending upon the gravity of the violation of the law a fine from fifty thousand rupees to five lakhs rupees will be imposed or imprisonment from six months to three years or both can be applied

Conclusion

In conclusion, the E-Commerce Act of Nepal provides a comprehensive framework for regulating digital transactions, ensuring consumer protection, and promoting a secure online marketplace. It mandates transparency, legal accountability, and proper registration for businesses engaging in e-commerce. By setting clear guidelines for online platforms and transactions, the Act aims to foster growth in the digital economy while preventing fraud and ensuring fair practices. It is indirectly governed by the Companies Act, 2063 for registration, operation, and other all matters of the company, Consumer Protection Act, 2075 for the welfare of consumers and Value Added Tax Act, 2052 for the collection of VAT on the goods and services. Businesses must adhere to the legal requirements to operate legally and avoid penalties, ensuring a trustworthy e-commerce environment for both consumers and sellers.