How to Register an E-Commerce Business in Nepal (2026)
last updated: 3/10/2026
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Nepal's digital economy has undergone a fundamental transformation. The Electronic Commerce Act 2081, now in full enforcement by the Department of Commerce, Supplies, and Consumer Protection (DoCSCP), has moved the country from an informal era of social-media selling into a structured, regulated digital marketplace.
Whether you sell on Instagram, Facebook Marketplace, TikTok, Daraz, or your own website — legal registration is no longer optional. It is a survival requirement. DoCSCP is actively shutting down unregistered shops and imposing fines of up to NPR 500,000. This guide gives you the exact steps, documents, timelines, and compliance rules to stay protected.
Section 1: Understanding Nepal's E-Commerce Legal Framework
What Is the Electronic Commerce Act 2081?
The Electronic Commerce Act 2081 (B.S.) — corresponding to approximately 2024–2025 in the Gregorian calendar — is Nepal's primary legislation governing online trade. Enforced by the DoCSCP under the Ministry of Commerce and Supplies, this Act establishes binding rules for all businesses that buy or sell goods and services through digital platforms.
Under this Act, "e-commerce" is defined broadly as any transaction involving the ordering, payment, or delivery of goods and services through an electronic platform. This includes:
- Dedicated e-commerce websites and mobile applications
- Social media shops on Instagram, Facebook, TikTok, Snapchat, or YouTube
- Marketplace listings on Daraz, Sastodeal, HamroBazaar, and other platforms
- WhatsApp and Viber-based order-taking businesses
- Any hybrid model combining offline and online sales
Key Definitions You Must Know
| Term | Definition Under the Act |
|---|---|
| Electronic Platform | Any website, application, or digital channel used for commercial transactions. |
| Digital Marketplace | A platform that facilitates buying and selling between multiple buyers and sellers. |
| Grievance Officer | A designated person within your business responsible for handling customer complaints — legally required to be publicly named. |
| Platform Listing Number | Unique identifier issued by DoCSCP that must be displayed on all your digital sales channels. |
| Consumer Protection | Set of legally guaranteed rights ensuring buyers receive accurate product info, fair pricing, and access to refunds. |
Section 2: Who Is Required to Register?
One of the most misunderstood aspects of the Act is its scope. Registration is not limited to large companies with polished websites. It applies widely across all seller types:
| Business Type | Registration Requirement |
|---|---|
| Individual / Freelance Seller | Must register as a sole proprietor and obtain a Platform Listing Number — even for WhatsApp or TikTok sales. |
| Micro & Cottage Industry | Exempt from building a dedicated website, but must register and operate through a licensed marketplace or registered social media account. |
| Small & Medium Business | Full registration required: OCR + PAN/VAT + Ward License + DoCSCP E-Commerce Listing. |
| Established Company (New Online Channel) | Must update existing registration to include e-commerce activities and obtain a listing number. |
| Foreign Business Operating in Nepal | Must register a local entity or appoint a local representative and comply with Foreign Investment rules + full e-commerce registration. |
| Marketplace Operators (Daraz, Sastodeal, etc.) | Must maintain their own platform listing and ensure all vendors on their platform are also individually registered. |
Section 3: The Step-by-Step Registration Process
Registering for e-commerce in Nepal is a sequential, multi-tier process. Each step must be completed in order. Plan for 10 to 15 working days in total.
Step 1: Legal Entity Incorporation — Office of the Company Registrar (OCR)
Before anything else, your business must exist as a legal entity. Visit the Office of the Company Registrar (OCR) or the relevant Department of Commerce office. Choose your structure:
- Private Limited Company: Best for startups and scalable ventures. Requires minimum 2 shareholders and a memorandum of association.
- Sole Proprietorship (Ekauta Byapar): For individual-run shops and freelance sellers. Simpler, faster, and lower cost.
- Partnership Firm: For two or more individuals co-owning a business.
Registration fee: NPR 5,000 to 20,000+ depending on authorized capital. Processing time: 3–5 working days.
Step 2: Tax Registration — Inland Revenue Office (PAN / VAT)
Once you have your company certificate, visit your local Inland Revenue Office (IRO) to obtain a Permanent Account Number (PAN).
- PAN (Permanent Account Number): Required for every registered business. Free to obtain. Needed for all financial transactions and tax filing.
- VAT (Value Added Tax): Mandatory if your annual turnover exceeds NPR 5,000,000 (5 million). You must collect 13% VAT on sales and file regular returns.
Processing time: 1–2 working days for PAN. VAT may take 3–5 days for verification.
Step 3: Local Business License — Ward Office Registration
Register your business address at your respective Ward Office or Rural Municipality to receive a Business Operating License (Byapar Anumati Patra).
- Even "online-only" businesses need a registered physical address — this can legally be your home.
- You will need your OCR certificate, citizenship copy, and a rent agreement or land ownership document (Lalpurja).
- Annual renewal required. Fee typically ranges from NPR 1,000 to 5,000.
Processing time: 2–4 working days.
Step 4: E-Commerce Portal Listing — DoCSCP (The Final Step)
With your company certificate, PAN/VAT, and ward license in hand, apply for your official Platform Listing Number on the DoCSCP E-Commerce Portal.
- Sign Up: Create a verified account at the official DoCSCP e-commerce portal.
- Submit Documents: Upload all required scanned documents.
- Application Review: The Department reviews your application within 7 working days.
- Receive Listing Number: Upon approval, you receive a unique Platform Listing Number.
- Display Prominently: This number must be shown in your website footer and all social media bios.
Government fee: Currently free or nominal. Processing time: 5–7 working days.
Total Timeline Estimate
Step 1 — OCR Registration: 3–5 working days
Step 2 — PAN/VAT Registration: 1–3 working days
Step 3 — Ward Office License: 2–4 working days
Step 4 — DoCSCP E-Commerce Listing: 5–7 working days
Total (approximate): 10–15 working days
Note: Delays can occur if documents are incomplete or if the IRO requires site verification.
Section 4: Complete Document Checklist
Prepare all documents before beginning your online applications. All files must be scanned in clear, legible PDF or JPEG format. Incomplete submissions are the most common cause of delays and rejections.
| Document Category | Required Documents & Details |
|---|---|
| Business Proof | Certificate of Incorporation (from OCR) or Firm Registration Certificate. Must be valid and show current business status. |
| Tax Proof | PAN Certificate (mandatory for all). VAT Registration Certificate (required if annual turnover exceeds NPR 5 million). |
| Owner / Director Identity | Citizenship copies (front and back) of all directors, proprietors, or partners. Foreign nationals: passport copy + valid Nepal visa. |
| Business Address Proof | Rent Agreement (signed and current) AND a copy of the land ownership document (Lalpurja) for the registered office or home address. |
| Digital Platform Proof | Domain ownership certificate or hosting agreement showing your website URL. For social-media-only sellers: screenshots of your verified business account. |
| Legal Compliance Documents | Publicly published Privacy Policy, Return & Refund Policy, and Terms of Service — these must be live on your website or accessible via a link in your social bio. |
| Bank Account Proof | Company bank account statement or account opening letter showing the business name and account number. |
| Photograph | Recent passport-size photographs of the proprietor or authorized signatory. |
📋 Document Preparation Tips
✓ Scan all documents at minimum 300 DPI in PDF or JPEG format
✓ Keep file sizes under 2 MB each (compress if needed)
✓ Check all expiry dates — no expired documents
✓ Include both front AND back pages of citizenship copies
✓ Rent agreement must be signed by both landlord and tenant
✓ Privacy Policy and Terms of Service must be LIVE online, not just drafted
✓ All company names must match exactly across all documents
Section 5: Mandatory Compliance Rules for 2026
Getting your Platform Listing Number is just the beginning. The Act imposes ongoing operational compliance requirements. DoCSCP conducts surprise market inspections and monitors digital platforms. Violations — even minor ones — can result in warnings, fines, or shutdowns.
5.1 Pricing Transparency — No Hidden Charges
Every product or service listed on your platform must clearly show the final, all-inclusive price. This means:
- The displayed price must include all applicable taxes (VAT, customs duties, etc.)
- Delivery charges must be separately and clearly stated before checkout — not added as a surprise at payment
- Promotional or discounted prices must show the original price alongside the discounted price
- Currency must be in Nepali Rupees (NPR) for all domestic transactions
5.2 The 48-Hour Update Rule
Any change in the price or stock availability of a product must be updated on your platform within 48 hours of that change. This rule applies to your website, app, AND all social media platforms where you sell. Failure to update is treated as "misleading the consumer" and carries financial penalties.
5.3 Grievance Officer — Mandatory Customer Support Designation
Every registered e-commerce business must formally designate a Grievance Officer. Requirements:
- Full name and contact details (phone and email) must be publicly displayed on your website or social media bio
- Must acknowledge complaints within 48 hours of receipt
- Complaints must be resolved within a reasonable timeframe (typically 15–30 days)
- A log of all complaints and their resolutions must be maintained for potential regulatory inspection
For solo operators, the proprietor may serve as their own Grievance Officer — but contact information must still be publicly and prominently displayed.
5.4 Consumer Rights — Refund, Return & Replacement Policy
Customers have legally guaranteed rights under the Act. Your Return & Refund Policy must comply with these minimum protections:
- Defective Products: Customer is entitled to a full refund or replacement if the product is defective upon arrival
- Mismatch: If the product delivered does not match the description or image listed online, the customer may return it at no cost
- Late Delivery: If delivery exceeds the stated timeframe without prior notification, the customer may claim compensation or cancellation
- The refund timeline must be clearly stated — typically 7–14 working days
Any policy that attempts to eliminate mandatory consumer rights is void under the Act.
5.5 Product Information Requirements
All product listings — whether on your website or social media — must include:
- Product name and accurate description
- Clear photographs that represent the actual product (no deceptive editing)
- Country of origin or manufacture
- Expiry date or shelf life for food, medicine, or perishable goods
- Warranty information where applicable
- Ingredient list for cosmetics, food, and health products
5.6 Payment Security and Digital Transaction Rules
All online payments must be processed through authorized, licensed payment gateways. Acceptable methods in Nepal include:
- eSewa, Khalti, IME Pay, ConnectIPS, and other licensed payment service providers
- Bank transfers to a registered company account (not a personal savings account)
- Cash on Delivery (COD) — widely accepted, but receipts must be issued
Businesses must use accounts registered in the company name and maintain transaction records for a minimum of 5 years.
Section 6: Penalties, Fines & Enforcement
The DoCSCP has been given substantial enforcement powers. Understanding the penalty structure is essential for every online business owner in Nepal.
| Violation | Penalty Under Electronic Commerce Act 2081 |
|---|---|
| Operating without a Platform Listing Number | Fine: NPR 50,000 – 500,000. Repeat offense: Business shutdown + potential criminal charges. |
| Displaying false or misleading product information | Fine: NPR 25,000 – 200,000 + mandatory correction order. |
| Failing to honor consumer refund rights | Fine based on transaction value, plus compensation order to the consumer. |
| Violating the 48-Hour Price/Stock Update Rule | Warning (first offense). Fine: NPR 10,000 – 50,000 (subsequent offenses). |
| Not displaying Grievance Officer contact information | Fine: NPR 10,000 – 25,000 + compliance order within 7 days. |
| Processing payments through unauthorized channels | Fine: NPR 50,000 + referral to Nepal Rastra Bank for further action. |
| Severe fraud or deliberate consumer deception | Imprisonment up to 3 years + fines + permanent business deregistration. |
⚠️ Warning: Enforcement Is Active in 2026
DoCSCP has deployed dedicated e-commerce monitoring teams conducting: surprise digital platform audits, consumer complaint-triggered investigations, collaboration with social media platforms to identify unregistered sellers, and periodic marketplace sweeps targeting high-traffic online sellers.
Ignorance of the law is not accepted as a defense. Even first-time violators face fines.
Section 7: Special Cases — Micro Sellers, Marketplaces & Imports
Micro and Cottage Industry Sellers
Businesses officially classified as Micro or Cottage Industries (annual turnover below NPR 1,000,000 and fewer than 10 employees) enjoy some flexibility, but are not exempt from registration entirely:
- ✅ CAN sell exclusively through social media without a dedicated website
- ✅ CAN operate through a licensed marketplace or registered social media account
- ❌ MUST still register at OCR, obtain PAN, and get a Ward Office license
- ❌ MUST still apply for and display the DoCSCP Platform Listing Number
- ❌ CANNOT accept payments directly to a personal bank account
Selling on Marketplaces Like Daraz or Sastodeal
If you sell through an existing registered marketplace, note:
- You still need your own OCR registration, PAN, and Ward License
- The marketplace's listing covers the platform itself — your vendor account requires your own registration
- The marketplace is legally required to verify your registration documents before listing you
- You remain individually liable for product quality, descriptions, and consumer rights violations on your listings
Foreign Goods and Import-Based E-Commerce
Businesses importing goods for resale online must additionally comply with:
- Customs clearance for all imported goods through Nepal Customs
- Importer/Exporter Code (IEC) from the Department of Customs
- Product labeling in Nepali (or English with Nepali translation) for consumer goods
- Standards certification for certain categories: electronics, food, cosmetics, and toys
Section 8: Frequently Asked Questions (FAQs)
Q1: Can I sell on Instagram without a website?
Yes — but only if your business qualifies as a Micro or Cottage Industry (annual revenue under NPR 1 million). All other businesses are legally required to have a dedicated electronic platform such as a website or mobile app. In all cases, you still need a registered business, PAN, and Platform Listing Number.
Q2: How much does the entire registration process cost?
Here is a realistic cost breakdown:
- OCR Registration: NPR 5,000 – 20,000+ (varies by capital amount)
- PAN Registration: Free
- VAT Registration: Free
- Ward Office Business License: NPR 1,000 – 5,000 (annual)
- DoCSCP E-Commerce Listing: Currently free or nominal
- Legal/professional assistance (optional): NPR 5,000 – 25,000
Total estimated cost for a basic sole proprietorship: NPR 10,000 – 30,000.
Q3: How long does the full process take?
Typically 10 to 15 working days if all your documents are correct and complete. Incomplete documents or additional verification requests can extend this to 3–4 weeks.
Q4: I already run an unregistered Instagram shop. What should I do?
Begin the registration process immediately. Stop accepting new orders until you have at least initiated Step 1 at OCR. DoCSCP has been understanding with businesses actively registering, but not with those ignoring the requirement entirely. Do not wait.
Q5: Does my Privacy Policy need to be written by a lawyer?
Not necessarily, but your Privacy Policy and Terms of Service must cover specific legally required elements under the Act and Nepal's Consumer Protection Act. Using a generic template without customizing it to Nepali law is risky. Consulting a Nepali legal professional or a compliance service that specializes in digital business is strongly recommended.
Q6: Can I use PayPal or Stripe for payments?
For domestic transactions within Nepal, you must use licensed Nepali payment gateways (eSewa, Khalti, Fonepay, ConnectIPS, etc.). For international transactions — if you sell to customers outside Nepal — foreign payment gateways may be used, but you must comply with Nepal Rastra Bank's foreign exchange regulations.
Q7: What happens if a customer files a complaint against my business?
Complaints can be filed directly with DoCSCP. The department may contact you for a response within a set timeframe. If the complaint is upheld, you may be required to issue a refund, pay a fine, or face other regulatory action. Maintaining detailed transaction records and communication logs with customers is your best protection.
Q8: Do I need separate registration for multiple online stores?
If all your stores operate under a single registered business entity, one Platform Listing Number may cover multiple platforms — but you must declare all platforms during registration. If you operate stores under different brand names as separate legal entities, each entity needs its own registration and listing number.
Section 9: Final Compliance Checklist
Before going live — or to audit your existing operation — verify every item below:
- Business registered at OCR with valid Certificate of Incorporation
- PAN obtained from the Inland Revenue Office
- VAT registered (if turnover exceeds NPR 5 million)
- Ward Office Business Operating License obtained and renewed annually
- DoCSCP Platform Listing Number received and prominently displayed on all platforms
- Privacy Policy, Terms of Service, and Return/Refund Policy published online and live
- Grievance Officer designated with public name and contact information visible
- All product prices shown with taxes and delivery charges clearly stated
- Payments collected through a licensed payment gateway or registered business bank account
- Transaction records maintained for a minimum of 5 years
- Product listings include all mandatory information: description, origin, expiry, warranty
- Price and stock updates pushed to ALL platforms within 48 hours of any change
This article is provided for informational purposes only and does not constitute legal advice. Laws and regulations may be amended. Always consult a licensed legal or financial professional in Nepal for guidance specific to your business situation.