Nepal's House of Representatives unanimously passed the E-commerce policy. The bill was passed on February 19, 2025. It has significantly shifted the country's digital marketplace regulation.
This comprehensive legislation introduces mandatory registration requirements for all e-commerce businesses. The bill includes strict monitoring measures to protect consumers. These rules aim to prevent fraudulent activities in online businesses.
The new policy represents a major transformation for Nepalese e-commerce. The bill has specifically targeted social media-based transactions with taxation requirements. Furthermore, the legislation implements substantial penalties for non-compliance. The E-commerce bill has also mentioned imprisonment terms. The imprisonment could range from 6 months to 3 years, and fines could be from NPR 50,000 to NPR 500,000.
Nepal is advancing in the digital world. The new rules aim to make online businesses more organized and responsible. However, many business leaders want changes. They hope the rules will better support growth and innovation.
Key Provisions of Nepal E-commerce Bill 2081
The E-commerce Policy Nepal 2081 sets clear legal rules for running online businesses. It came into effect 31 days after receiving presidential approval. The policy addresses important topics like business registration and consumer rights. It also outlines penalties for those who do not follow the rules.
Mandatory Registration Requirements for Online Businesses
The new bill requires all online businesses to register under Nepali law. They must also get proper approval to sell goods or services via online platforms. All e-commerce platforms are required to register with the government. Specifically, they must register with the Department of Commerce, Supplies, and Consumer Protection.
Small and home-based entrepreneurs can sell on social media platforms. But, they must register their business with the Nepal government. These entrepreneurs can sell via platforms like Instagram, Facebook, and TikTok.
Businesses without an online platform are still allowed to sell through social media. However, they must register as small or micro-enterprises to do so legally.
Developing a customized e-commerce platform that follows all regulations is essential. Especially for furniture businesses operating online. Rewa Soft helps businesses create online stores for businesses. We build platforms that work well and follow the required new rules. We ensure your platform meets all legal requirements, including proper grievance redressal systems. We also help with all the important documents to make your business safe and reliable.
Consumer Protection Measures and Rights
Consumer protection forms a cornerstone of the new legislation. When purchasing goods, buyers must be provided with detailed information about products. The details must include the final sale price, delivery charges, and payment methods. Also, the delivery time and delivery date should be mentioned clearly. All of these requirements can be met with a well-designed website, specifically for your business.
The bill establishes a strong refund policy, allowing buyers to return goods if they:
❌ Do not match the listed details (design, trademark, shape, picture, weight)
⚠️ Differ from the provided information (warranty periods, country of production)
📦 Are delivered late, or are defective
Businesses must accept returns without setting any conditions. They are required to give a full refund, including any taxes the buyer paid.
Most importantly, online platforms must keep consumer information private. They can only use this data in ways allowed by the law. As a business owner, you must know that implementing the new rules is much easier with a customized e-commerce website.
Taxation Framework for Digital Transactions
The new law introduces important changes to digital taxes in Nepal. Non-resident providers must pay a 2% tax on online services sold to Nepali customers. This tax is charged when their annual turnover goes above Rs 2 million. Once this limit is crossed, these providers must get a permanent account number. The providers must secure the permanent account number within 30 days.
Intermediary platforms must keep transaction records secure for the time needed. The transactions are inspected usually in six years. Unlike direct taxes, the digital service tax should not be added to the service price.
Penalties and Enforcement Mechanisms
The new law sets penalties based on how serious the violation is. Businesses that operate without an electronic platform will be fined. Also, businesses that fail to register or don’t provide enough product details can be fined as well. These fines range from Rs 20,000 to Rs 100,000.
Violations, like doing electronic transactions without following the law, can lead to:
💰 Fines between Rs 50,000 to Rs 500,000
⏳ Imprisonment for six months to three years
⚠️ Or both penalties combined, depending on the offense's severity
The amended bill increases the maximum jail term from two years to three years. T for platform operators who don’t follow legal rules. If tax audits find non-resident providers underreporting their earnings, they can be fined. These penalties may be 50% of the tax amount they tried to hide.
Impact on Different Business Models in Nepal's Digital Age
The E-commerce Policy Nepal 2081 brings major changes for online businesses. It is the first full law focused on online commerce in Nepal. This new policy introduces key rules that will change how online businesses run. The changes will affect all businesses, no matter their size or the platform they use.
Traditional E-commerce Platforms (B2C)
The new e-commerce law increases accountability for popular B2C platforms. These are the big players in the B2C business, like Daraz and SastoDeal. These businesses must register on the Department of Commerce’s online portal. They have to complete this registration within three months after the law starts. Once registered, they will receive a unique listing number. This number must be clearly shown on their online platforms.
The bill requires these platforms to keep transaction records for six years. This adds a major compliance responsibility and calls for strong data management systems. B2C platforms must also create a separate section to handle customer complaints. In addition, they must display product information and prices on their websites. They should also show delivery timelines and payment options.
Larger platforms already have strong technology systems. This gives them an advantage in following the new rules. The legal structure also helps these big players in another way.
However, the new rule makes it harder for smaller businesses to enter the market. The businesses with less capital may not afford the cost of compliance.
Rewa Soft helps traditional e-commerce businesses build platforms that meet all legal requirements. We also add features like customer complaint sections and secure data storage systems. Our team ensures the registration process is easy to follow. We design every solution to support transparency and responsibility. We can ensure the implementation of features as required by the new rule.
Social Media-Based Businesses
Social media sellers will likely feel the biggest impact. The bill allows small and home-based entrepreneurs to sell on social media. Some common social media platforms for Nepali entrepreneurs are Facebook, Instagram, and TikTok.
These sellers must register as small or micro-enterprises. This is required to comply with the e-commerce bill 2081.
Social media sellers will need to:
📝 Register their businesses with the appropriate government authorities
📞 Display business details, contact information, and registration numbers
📂 Maintain records of all transactions
🔁 Implement proper refund and return policies
The legislation recognizes changes in how businesses operate today. It allows small industries to use platforms created by others. Small businesses no longer need to create their own electronic platforms. This is a big help for micro-entrepreneurs who used to work without formal rules.
The cost of following the new rules is still a big worry for many. Small sellers fear that expensive compliance might force them out of business.
Moreover, the bill does not fully cover unregulated social media marketplaces. This creates doubts about how the rules will be enforced.
Cross-Border E-commerce Operations
International e-commerce platforms face unique challenges with the new law. The bill requires foreign companies to follow Nepal’s local rules to do business in the country. This means international platforms must register on Nepal’s e-commerce portal. They need to do this if they sell goods or services to customers in Nepal.
Nepal has a small market and fewer international transactions. Because of this, many wonder if big global platforms will implement the extra rules. It can be difficult for companies working across countries. The companies may find difficulties in keeping tax records and handling local complaints. These requirements may add significant challenges for cross-border businesses.
Cross-border transactions face extra rules under the bill. The e-commerce bill's Section 11(1) allows imports from foreign e-commerce platforms. However, this is only allowed if certain conditions are met. Foreign sellers must prove their identity before they can sell through intermediaries. This requirement may make international partnerships more complex.
The bill recognizes many digital business activities as part of e-commerce. These activities include advertising, OTT services, data collection, gaming, and software supply. Foreign digital service providers in these areas must follow Nepal’s registration rules. As a result, Nepali consumers might find it harder to access international services.
Compliance Challenges and Solutions
Implementing the E-commerce Policy Nepal 2081 brings big challenges for businesses. They must adjust to new rules that demand more accountability. These rules create operational difficulties. Moreover, businesses need smart strategies to follow the law without slowing down growth.
Technical Infrastructure Requirements
Businesses must first create their electronic platforms with strong technical features. The law requires these platforms to have special sections for customer complaints. They also need to include secure payment systems.
Platforms must also have strong systems to protect consumer data. They need to follow cybersecurity rules from Nepal's Electronic Transactions Act, 2063 (2008). These steps help keep customer information safe and secure.
Small sellers may face big financial challenges. Building their e-commerce platform can cost between NPR 100,000 and NPR 500,000.
This is a large investment for many, especially micro-entrepreneurs. These small businesses used to sell through social media without formal systems. Now, they must spend more to comply with the new rules.
Documentation and Reporting Obligations
Documentation requirements create another layer of complexity. Businesses must:
📝 Submit detailed registration applications with company particulars
⏱️ Update the electronic portal within 48 hours of any business changes
📆 Maintain transaction records for six years as mandated by tax regulations
🧾 Display registration numbers, contact details, and business information prominently
Correspondingly, failure to maintain proper documentation can result in fines. These fines could range from NPR 10,000 to NPR 50,000. Non-compliance can result in financial penalties. In serious cases, it may also lead to business suspension or deregistration.
E-commerce Platform Development with Rewa Soft
At Rewa Soft, we provide e-commerce development solutions equipped with the latest features. We develop e-commerce platforms considering all the new legal requirements. We have expertise in building custom platforms for Nepali businesses. Our platforms include grievance sections, secure payment gateways, and reliable inventory management systems.
We start our development process with a detailed consultation. We first understand your business needs and all of your requirements. After that, we create platforms that meet all registration and accountability requirements. Our approach turns regulatory challenges into opportunities to grow your business.
Streamlined Registration Process Systems
Registering a business now requires careful planning. The online registration system makes the process easier. More importantly, it saves time for business formalization.
Applicants can check their application status online. They do this through the Office of the Company Registrar (OCR) portal. However, the processing times depend on how complete the documents are and how busy the OCR is.
The Act came into effect and gave existing e-commerce businesses a deadline. They had three months to apply for their listings.
New e-commerce businesses must also prepare well for registration. Properly structured documents help avoid delays or rejections. You need approval to operate legally in Nepal’s digital marketplace. Without it, your business may not be allowed to run.
Implementation Timeline and Transition Period
The E-commerce Policy Nepal 2081 set a clear timeline when it was passed. Businesses had a specific time to adjust their operations.
In 2082, new businesses can follow the same approach. By understanding and following this timeline, they can comply with the rules. Following the new rules can avoid penalties and run their operations without disruption.
The registration process usually takes 2 to 4 weeks to finish. The time required can change depending on how complete the documents are. To make the process faster, businesses should get all documents ready before applying.
The registration cost includes several parts. Company name reservation costs NPR 100. The registration fee depends on the size of the company’s capital. PAN registration costs NPR 500. A digital signature certificate costs between NPR 3,000 and NPR 5,000.
Phased Enforcement Approach
Throughout the implementation process, enforcement will follow a phased approach. This methodology aligns with Nepal's national e-commerce strategy launched in 2019. A technical intergovernmental committee will oversee the implementation activities. This committee includes all relevant agencies to ensure coordinated enforcement of the legislation.
Rewa Soft offers specialized support during this transition period. Our team can develop e-commerce platforms that follow all the new rules. We ensure these platforms meet all technical requirements.
In order to support you, we aim to deliver a quality platform within 4 weeks. Even with a short timeline, we can speed up the development process. Our team will help and guide you to meet the registration deadlines. Our solutions include key features like customer complaint sections and secure data storage. We also make managing your documents simple. These features are important to follow all registration rules.
After registration, the Department of Commerce sends listing numbers to business owners. The notification can be expected within seven days. They deliver these numbers electronically. Businesses must update their online portal within seven days after any changes occur.
Preparing Your Business for Compliance
Meeting the compliance requirements of the E-commerce Policy Nepal 2081 demands methodical preparation. With clear steps and proper documentation, businesses can navigate registration processes smoothly. Most importantly, businesses can avoid further penalties.
Step-by-Step Registration Guide
To register your e-commerce business in Nepal, follow this systematic approach:
✅ Form a legal entity by registering with the Office of the Company Registrar and obtaining a PAN from the Inland Revenue Department.
✅ Apply to the Department of Commerce, Supplies and Consumer Protection's e-commerce portal. Make sure you have all the required business details.
✅ Await verification - the department will review your application and issue a platform listing number. This process may take up to seven days, and you will be notified electronically.
✅ Update information promptly - any changes to your business must be updated on the electronic portal. The update must be done within 48 hours from the modification date.
Required Documentation Checklist
Prepare these essential documents for a smooth registration process:
📄 Company registration certificate and PAN/VAT registration number
🧾 Business name, address, and contact information (email, phone, business address)
📬 Comprehensive description of business activities
💼 Details of all branches or outlets, if applicable
👤 Identity information of the proprietor (for private firms) or directors (for companies)
Accountability Systems Implementation
Businesses must establish robust accountability mechanisms:
📢 Create a dedicated grievance section on your e-commerce platform for customer complaints
📝 Implement a system to register complaints and provide immediate acknowledgment
🔍 Develop investigation protocols to resolve issues within fifteen days
📂 Retain all transaction records for six years as mandated by law
Technology Solutions for Regulatory Compliance
Rewa Soft provides e-commerce solutions that follow Nepal's new rules. Our platforms incorporate:
💳 Secure payment gateways approved by Nepal Rastra Bank
📢 Built-in grievance redressal mechanisms
🗂️ Automated documentation management systems
🔒 Data protection features that safeguard customer information
🖥️ User-friendly interfaces for updating business information
Altogether, preparing for compliance involves understanding registration requirements. Also, you must gather proper documentation, implement accountability systems, and utilize technology solutions.
How Rewa Soft Can Help You Get a Professional and Secure Website
Nepal's E-commerce Bill 2081 brings big changes to digital marketplace regulation. The law sets clear rules for online businesses. It requires mandatory registration and protects consumers. The bill also introduces strict tax rules for e-commerce.
The bill impacts different business models in different ways. Large e-commerce platforms need to improve their current systems. Social media sellers must complete formal registration and follow the rules. International platforms also have to adjust to local laws. If they don’t, they risk losing access to Nepal’s growing digital market.
Our team at Rewa Soft builds e-commerce platforms that follow all the rules of the new law. Our platforms include features to help businesses stay compliant. We make the registration process simple and manage all necessary documents. These solutions help businesses run legally and efficiently.
Ready to future-proof your online store? Contact Rewa Soft today and build your e-commerce site with confidence.
