When does this law start?

On March 16, 2025, the Government of Nepal enacted the E‑Commerce Act, 2025, and it becomes effective 31 days after that date (i.e., around mid‑April). If you’ve been selling online before it started, you now have three months from mid‑April to register your business on the government’s e‑commerce portal.

What does the law mean for your business?

1. Who must follow the law?

Anyone who sells goods or services online to customers in Nepal must comply. This includes:

• Sellers with their own website or app,

• Those selling through marketplaces like Daraz, SastoDeal, Foodmandu,

• People selling via social media (Instagram, Facebook Shops, TikTok Live), if they take orders and deliver goods/services.

Posting catalogues or ads without conducting sales online does not count as e‑commerce under the law.

2. Do you need your own website?

Not always. The law distinguishes between:

• Micro‑ or cottage businesses: small, home‑based operations with low annual turnover and fewer than nine employees—these may sell through others’ existing platforms (social media or marketplaces) and are not required to build a dedicated site.

• Larger businesses or those not classified as micro/cottage must have their own online platform (website or app) and display standard business information online.

Meet Rina – a real‑life example

Rina runs a small baking business from home. Her Instagram page is her only online presence, where customers place pre‑orders. When the law came into force, she panicked: “Do I really need a website? What if I get fined?”

Here’s what she discovered:

• Rina’s yearly sales and setup qualify her as a micro entrepreneur, so she is exempted from building a full platform.

• However, she must register her Instagram shop with the Department of Commerce, since she delivers to customers online.

• She needs to list her business name, PAN number, contact details, and a way for customers to complain (like a WhatsApp number or email) on her page.

• She also crafted a plain‑language return policy and a quick way to respond to customer issues.

Instead of extra red tape, Rina found that these changes actually helped her appear more trustworthy, and customers responded positively.

3. Registering your business — what to do

1240. Get a PAN or VAT number from the Inland Revenue Department.

1241. If not yet registered, complete business registration via the Office of the Company Registrar (OCR).

1242. Then, register your online platform (or even your Instagram/Facebook/TikTok shop) on the Department of Commerce, Supplies & Consumer Protection’s e‑commerce portal.

1243. For businesses operating before mid‑April, complete this registration within three months to avoid fines.

1244. You will receive a platform listing number—you must display this online where customers can see it.

Penalty if you don’t register: NPR 20,000–100,000 depending on the violation.

4. What information must you display online?

By law, every product/service listing must clearly show:

• Name of product or service

• Brand, image, weight or size (if applicable)

• Final price and any delivery charge

• Expected delivery date

• Payment methods available

• Warranty or guarantee terms (if any)

• Country of origin (for imported goods)

• Return or cancellation conditions and timing

• Seller/manufacturer name and PAN/VAT number

• Complaint‑handling contact (person, email, phone)

• Manufacturing and expiry dates—though enforcement of this remains unclear for resellers and small sellers rewasoft.com.np

If any of this information changes, you must update it within 48 hours online. Failing to display or update any of these can trigger fines of NPR 20,000–100,000.

5. Returns, refunds and clarity

If buyers receive a product or service that doesn’t match the details listed—be it in appearance, size, country of origin, warranty, or delivery time—they can return it unused and undamaged for a full refund, including tax.

But not everything can be returned. Exceptions include:

• Perishable products (like food or fresh flowers),

• Personalized orders,

• Hygiene-sensitive items (like undergarments or makeup),

• Event tickets or service bookings once they expire or begin.

6. Protecting customer data

Your business must:

• Keep personal information (names, addresses, phone numbers) secure

• Use customer data only for honest purposes—billing, delivery, or refunds

• Allow customers to correct or delete their own data

• Avoid selling or sharing customer data without consent.

Think of it as keeping your digital shop safe, just as you’d keep the keys to your shop counter.

7. A simple complaints system

You must offer customers an easy way to complain—via email, phone, WhatsApp, or website form.

When a complaint arrives:

• Acknowledge it immediately

• Commit to investigating and responding within 15 days

• Track it with a simple record so both sides know it’s logged.
  These steps help the government see your transparency and customers feel heard.

8. What if you don’t comply?

There are different penalties depending on the level of violation:

Type of Violation	Penalty
Failing to register, missing product details, not updating info	NPR 20,000–100,000
Major violations (fake/misleading, refusing valid returns, impersonation, unfair trade)	NPR 50,000–500,000 & possible jail (up to 3 years)

These serious violations cover things like fake customer reviews, selling sub-standard or counterfeit goods, discriminating between sellers, or denying refunds in bad faith.

👍 Quick Checklist for Small Sellers

✅ Must Do	💡 Why It Matters
Get PAN / VAT	You can’t register without it, and tax laws require accounting
Register on the gov portal within 3 months	To avoid penalties
Display all required details clearly online	Builds trust and legal compliance
Have a simple return policy and a way to handle complaints	Required by law—makes customers happy
Update your online info within 48 hours of changes	Required to stay legal
Keep customer data safe and private	To meet data protection norms

Frequently Asked Questions (FAQs)

Q1: Do I need a website if I sell via Facebook or Instagram?
If you qualify as a micro or cottage entrepreneur—small setup, low turnover—you can sell through those platforms without your own site. Otherwise, yes, you need your own platform and must register it.

Q2: What’s the difference between PAN and VAT?
PAN is mandatory for all traders; VAT is needed only if your annual sales exceed NPR 2 million (subject to current tax rules). Even without VAT, you still need to register.

Q3: Can I still sell if I’m late to register?
Yes, you may continue selling up to the 3‑month deadline. But after that, doing business online without registration can lead to fines—and repeated violations may lead to worse consequences.

Q4: Is showing manufacturing and expiry date mandatory on my listings?
Legally yes—but the government hasn’t yet clarified how this applies to resellers using multiple brands. Until they issue guidance, it’s best to explain transparently or consult an advisor.

Q5: Do foreign sellers (outside Nepal) need to register too?
Yes. If they sell to customers in Nepal via an electronic platform—such as digital goods, subscriptions, or imported products—they must register just like Nepali sellers under the law.

Q6: Is this law the same as the Electronic Transactions Act or Consumer Protection Act?
No. Those laws already exist. This Act specifically governs e‑commerce—how you register, display product info, refund, store data and handle customer issues. But those laws still apply too.

This law doesn’t intend to muzzle small enterprises. It’s about building confidence, clarity, and consistency in online markets. For home‑based sellers and micro businesses, the rules are more relaxed and offer flexibility. Once you register, display details clearly, and respond to customers fairly, you – and your customers – reap the benefits: trust, accuracy, and reduced risk.