Nepal's digital economy is rapidly growing, with more businesses shifting to online platforms, and individuals using social media to reach customers. In response to this transformation, the Government of Nepal has introduced the E-Commerce Bill, which brings legal structure, consumer protection, and accountability to the online business space. Whether you're selling through Facebook, Instagram, TikTok, your own website, or an app, this comprehensive blog will guide you through everything you need to know to start and run an online business legally and safely in Nepal.

Key Provisions of the E-Commerce Bill

• Mandatory registration of all online businesses, including those using social media platforms.
• Consumer rights protection, including the right to return, refund, warranty, and accurate product information.
• Prohibition of false advertisements and misleading promotions.
• Accountability for payment collection, including cases where payment is made to delivery agents.
• Provision for dispute resolution and investigation of consumer complaints.
• Enforcement and penalties, including fines, imprisonment, and suspension for non-compliance.

What Happens to Sellers Who Are Already Selling Online?

You Must Register Your Business

Whether you sell on:

• Facebook, TikTok, Instagram, WhatsApp, or Viber
• Your own website or mobile app
• Marketplaces like Daraz, HamroBazar, SastoDeal, etc.

You must register with the Department of Commerce, Supplies, and Consumer Protection (DoCSCP) as an e-commerce business.

Deadline to Register

Once the law is certified by the President, you will have 31 days to comply and register your business.

Non-Compliance Consequences

• ₨ 10,000 to ₨ 50,000 for not registering
• Up to ₨ 500,000 fine or 6 months to 3 years jail for fraud or non-compliance
• Criminal charges for selling defective or misrepresented products

What About Small or Home-Based Sellers?

You are still covered under this law even if you:

• Operate from home
• Sell only through social media
• Do not have a website or app

But don’t worry, you don’t need a fancy website—you just need to register and follow some basic legal practices.

Do I Need a Website or App to Sell Online?

No. Creating a website or app is not mandatory.

• Do not need a website or app
• Must register your business and online selling activity with DoCSCP
• Must follow consumer protection rules

What You Must Show Online

• Your business name & contact info
• Clear product descriptions and prices
• Return and refund policies
• Delivery timelines

I Have a Registered Physical Shop — What Else Do I Need?

Register with DoCSCP for E-Commerce

The E-Commerce Bill requires a separate registration for your online activity.

Make Sure Your Online Presence is Transparent

• Display your PAN/VAT number
• List product details, prices, delivery fees, and policies
• Share your contact info clearly

Follow Consumer Protection Rules

• Allow returns and refunds for defective or misrepresented items
• Provide warranties if applicable
• Issue receipts or confirmations for every sale

Maintain Accurate Tax and Billing Records

• Use proper invoices (physical or digital)
• Track payments received via eSewa, Khalti, etc.
• Declare e-commerce income in tax filings

Precautions You Should Take While Selling Online

• Register Properly: OCR or ward office, PAN/VAT, DoCSCP registration
• Be Transparent: Descriptions, pricing, return terms, warranties
• Clear Return & Refund Policy: Include conditions, timelines, shipping responsibility
• Handle Payments Safely: Confirm before delivery, keep records
• Save Order & Customer Records: Store chat/order history
• Avoid Red Flags: Don’t hide prices or skip return policies
• Be Ready for Complaints or Inspections: Stay compliant

Implementation Timeline

• Passed by Parliament: Awaiting presidential certification
• Activation: Effective after publication in Nepal Gazette
• Business compliance window: Within 31 days of activation
• Monitoring and enforcement: Begins after the compliance window ends

Challenges and Concerns

• Awareness Gap: Many sellers are unaware of the requirements
• Technical Literacy: Documentation and compliance may be difficult for some
• Implementation Burden: Systems and clarity are lacking
• Privacy & Enforcement: Risk of surveillance or harsh penalties

To help address this, the government should provide:

• Clear online registration portals
• Sample templates and help desks
• Grace periods and education campaigns

Conclusion

Nepal's E-Commerce Bill is a big step toward formalizing and securing online trade. It aims to protect consumers while encouraging ethical and transparent online business practices. If you're a social media seller, a marketplace vendor, or a physical shop owner expanding online, now is the time to register and align your practices with the new law.