Table of Contents
E-commerce, or electronic commerce, refers to the buying and selling of goods and services through the internet and digital platforms. With Nepal's rapidly expanding digital marketplace, the government enacted the E-commerce Act 2081 (2025) to establish a structured legal framework for online businesses. Understanding e-commerce law in Nepal is essential for businesses operating digital platforms, online sellers, intermediaries, and consumers to ensure compliance with regulations and protect their rights. This guide covers the legal framework, registration requirements, compliance obligations, consumer protection provisions, and penalties under current Nepali e-commerce legislation.
Legal Framework
The E-commerce Act 2081 (2025) was certified on March 16, 2025, and came into effect thirty-one days after certification. This landmark legislation marks a significant step for Nepal's e-commerce sector, which had long operated without specific regulatory oversight.
| Legislation | Year | Purpose |
|---|---|---|
| E-commerce Act | 2081 (2025) | Primary law governing e-commerce businesses |
| Consumer Protection Act | 2075 (2018) | Consumer rights, returns, dispute resolution |
| Electronic Transactions Act | 2063 (2008) | Digital signatures and electronic records |
| Companies Act | 2063 (2006) | Business registration and corporate governance |
Regulatory Authority
The Department of Commerce, Supplies and Consumer Protection ("Department") is responsible for the investigation and supervision of e-commerce in Nepal. However, where specific goods or services fall under the regulatory purview of a separate authority, supervision and enforcement responsibilities are exercised by the relevant regulatory authority.
Key Definitions
The E-commerce Act provides important definitions that determine the scope of regulation.
| Term | Definition |
|---|---|
| E-commerce | The process of buying and selling goods and services through electronic platforms. Using electronic platforms solely for promotion or information does not constitute e-commerce. |
| Electronic Platform | A system created for transacting goods or services through websites, applications, software, internet, intranets, and social media marketplaces using computers, mobile phones, or similar devices. |
| Goods | Substance produced from single or combined goods for consumption without causing harm, including raw materials, colors, fragrances, or chemicals used in manufacturing. |
| Services | Includes electricity, water, telephone, IT, health, education, transportation, tourism, banking, insurance, legal, auditing, medical, and engineering services. |
Applicability of the Act
The E-commerce Act applies to any person within Nepal or residing anywhere outside Nepal offering goods and services in Nepal through e-commerce. This broad applicability ensures that both domestic and foreign e-commerce operators serving Nepali consumers are subject to the law.
Note: Micro-entrepreneurs and cottage entrepreneurs are exempted from certain requirements such as establishing their own electronic platform. Reference may be taken from the Industrial Enterprises Act 2020 for definitions of these categories.
Parties Involved in E-commerce
The Act categorizes various parties involved in e-commerce transactions and outlines their respective duties.
| Party | Definition |
|---|---|
| Consumer | A person who consumes or uses any goods or services under the Act |
| Buyer | Any person who purchases goods or services, including their representative |
| Seller | Any person, firm, company, or institution making goods or services available for sale to an intermediary business |
| Intermediary Business | Entity that facilitates the sale of a seller's goods or services to buyers through an electronic platform |
| List-based E-commerce Business | Entity that prepares a list of goods or services under its ownership and directly sells them to consumers via electronic platform |
Establishment of Electronic Platform
E-commerce businesses, except micro and cottage entrepreneurs, must establish their own electronic platform and clearly disclose business details to enable buyers to make informed decisions.
Mandatory Information on Platform
- Name of the electronic platform
- Name, address, registering authority, and registration number
- Details of registered office, principal office, branches, and outlets
- Separate license details (if applicable)
- PAN or VAT registration number
- Contact information (email, telephone, mobile, social media links)
- Customer service contact details
- Grievance handling person's contact information
- Enlistment number
Any change in business details must be updated on the platform within 48 hours of making such changes.
Listing Requirement
E-commerce businesses must list their platform in the portal created by the Department of Commerce, Supplies and Consumer Protection. An application must be submitted with required documents for listing.
| Aspect | Details |
|---|---|
| Processing Time | Within 7 days of submission |
| Existing Businesses | Must comply within 3 months from Act commencement |
| Non-compliance Penalty | NPR 20,000 to NPR 100,000 |
Product and Service Information Requirements
E-commerce platforms must display comprehensive information about goods and services offered for sale.
| Category | Required Information |
|---|---|
| Product Details | Name, design, trademark, image, weight, manufacturer details |
| Pricing | Final price including taxes, additional delivery costs |
| Delivery | Date and time of delivery, service delivery location and conditions |
| Payment | Mode or process of payment |
| Warranty | Guarantee or warranty period and conditions |
| Origin | Country of manufacture/processing for imported goods |
| Returns | Return policy, whether goods are returnable, conditions and duration |
| Cancellation | Cancellation option details |
| Dates | Date of manufacture and expiry |
| Terms | Main terms and conditions in understandable language |
| Feedback | Review, rating, and feedback mechanism |
Validity of Electronic Contracts
The Act recognizes the validity of electronic contracts between buyers and businesses or sellers and businesses. This recognition broadens the legal validity of digital signatures beyond the Electronic Transactions Act 2063.
Contract Requirements
- Necessary notice and clear terms
- Delivery provisions
- Cancellation terms
- Return and exchange policies
- Warranty and guarantee conditions
- Refund procedures
This provision formally validates "click-wrap" agreements where users actively click "I agree" to terms, making them binding and enforceable subject to proper notice and consent.
Duties of Parties
Duties of Intermediary Business
- Present goods and services details clearly and accessibly
- Maintain secure transaction records as per tax laws
- Enter into agreements with sellers before listing products
- Adhere to guarantee or warranty terms
- Not discriminate between sellers of same category goods
- Clearly disclose any preferential treatment to sellers
- Implement return, exchange, or refund measures for non-conforming goods
Duties of List-based E-commerce Business
- Present goods and services details clearly for buyers
- Display all legally required information on platform
- Maintain secure transaction records
- Deliver goods/services without delay except for force majeure
- Not post fake reviews or impersonate consumers
- Not present misleading advertisements
- Honor warranties and guarantees
- Bear liability for authenticity questions on sold goods
Duties of Sellers
- Enter into written or electronic contract with intermediary before listing
- Provide business registration, PAN/VAT details, and complaint handling procedures
- Provide product/service details as per the Act
- Deliver goods/services without delay
- Avoid unfair trade practices
- Not post fake reviews or impersonate consumers
- Implement return, exchange, or refund measures for defective products
Duties of Buyers
- Fulfill responsibilities as per the contract
- Not perform acts with intention to harass anyone
- Verify goods/services match the contract upon receipt
- File complaints promptly if issues arise
Return and Refund Policy
If goods or services purchased do not conform to the details provided by the business, buyers may return them without using or damaging them. The business must accept returns and provide full reimbursement including taxes paid, without conditions, unless exchange is agreed upon by the buyer.
Important: The Consumer Protection Act lists circumstances where goods may not be returned, including altered quality/quantity, expired use deadline, perishable or used goods, and broken seals.
Privacy of Personal Information
E-commerce businesses must ensure privacy of personal data and personally identifiable information. Such data may only be transferred or used in accordance with law, with exceptions for transaction-related data transfers.
Privacy Requirements
- Protect personal data collected through e-commerce
- Allow users to enter or modify personal details
- Enable users to disable identification sources
- Use or transfer data only as permitted by law
Grievance Redressal Mechanism
The Act mandates businesses to provide accessible complaint channels for consumers.
| Requirement | Details |
|---|---|
| Complaint Channels | Electronic, written, and in-person options |
| Registration | Immediate acknowledgment to buyer/consumer |
| Resolution Timeline | Within 15 days of complaint receipt |
| Online System | Must implement online grievance redressal mechanism |
Offences and Penalties
The Act prescribes penalties for various violations related to e-commerce operations.
| Offence | Penalty |
|---|---|
| Operating without electronic platform | NPR 20,000 to NPR 100,000 |
| Conducting business without enlistment | NPR 20,000 to NPR 100,000 |
| Not disclosing goods/services details | NPR 20,000 to NPR 100,000 |
| Failure to update information within 48 hours | NPR 20,000 to NPR 100,000 |
| Violating guarantee/warranty conditions | NPR 50,000 to NPR 500,000 and/or 6 months to 3 years imprisonment |
| Discrimination between same-category sellers | NPR 50,000 to NPR 500,000 and/or 6 months to 3 years imprisonment |
| Not accepting returns as per law | NPR 50,000 to NPR 500,000 and/or 6 months to 3 years imprisonment |
| Misleading product specifications | NPR 50,000 to NPR 500,000 and/or 6 months to 3 years imprisonment |
| Posting fake reviews/impersonation | NPR 50,000 to NPR 500,000 and/or 6 months to 3 years imprisonment |
| Other offences under the Act | NPR 20,000 to NPR 100,000 |
Note: Severe offences are considered state-party offences where the Government of Nepal acts as plaintiff. Appeals can be made to the Director General within 7 days. Prosecution takes place in the Consumer Court.
Need Legal Assistance?
Our legal team provides comprehensive e-commerce law services including business registration, compliance advisory, platform setup, and dispute resolution throughout Nepal. Contact us for professional consultation.
Frequently Asked Questions
The E-commerce Act 2081 (2025) is Nepal's first dedicated legislation for regulating online businesses. Key features:
- Certified on March 16, 2025
- Came into effect 31 days after certification
- Establishes framework for online businesses
- Ensures consumer protection and fair trade practices
- Creates compliance requirements for e-commerce entities
E-commerce is defined as the process of buying and selling goods and services through electronic platforms. Important clarifications:
- Must involve actual transactions, not just promotion
- Using electronic platforms solely for information or promotion does not constitute e-commerce
- Covers both goods and services transactions
The Act applies to:
- Any person within Nepal offering goods/services through e-commerce
- Any person outside Nepal offering goods/services in Nepal through e-commerce
- Intermediary businesses
- List-based e-commerce businesses
- Sellers using e-commerce platforms
- Buyers and consumers
Electronic platform means a system for transacting goods or services through:
- Websites
- Applications
- Software
- Internet and intranets
- Social media marketplaces
- Using computers, mobile phones, or similar devices
| Party | Role |
|---|---|
| Consumer | Uses goods or services |
| Buyer | Purchases goods or services |
| Seller | Makes goods/services available for sale |
| Intermediary Business | Facilitates sales between sellers and buyers |
| List-based Business | Directly sells own goods/services to consumers |
Required platform information:
- Business name, address, registration details
- PAN/VAT registration number
- Contact details and customer service information
- Grievance handling contact
- Enlistment number
- Separate license details (if applicable)
| Category | Required Details |
|---|---|
| Product | Name, design, trademark, image, weight, manufacturer |
| Pricing | Final price including taxes, delivery costs |
| Delivery | Date, time, location, conditions |
| Warranty | Period and conditions |
| Returns | Policy, conditions, duration |
| Origin | Country of manufacture for imports |
| Dates | Manufacture and expiry dates |
| Aspect | Details |
|---|---|
| Authority | Department of Commerce |
| Processing | Within 7 days of submission |
| Existing businesses | Must comply within 3 months |
| Non-compliance penalty | NPR 20,000 to NPR 100,000 |
Yes, the E-commerce Act recognizes electronic contracts as valid and enforceable. Requirements:
- Clear terms and conditions
- Proper notice to parties
- Delivery, cancellation, return provisions
- Warranty and refund terms
- "Click-wrap" agreements (clicking "I agree") are formally recognized
Consumer rights for returns:
- Can return goods not conforming to description
- Must be unused and undamaged
- Full refund including taxes paid
- No conditions unless buyer agrees to exchange
- Business must accept returns per law
| Requirement | Details |
|---|---|
| Complaint channels | Electronic, written, in-person |
| Acknowledgment | Immediate upon receipt |
| Resolution | Within 15 days |
| Online system | Mandatory implementation |
| Offence Category | Penalty Range |
|---|---|
| Minor violations | NPR 20,000 to NPR 100,000 |
| Severe violations | NPR 50,000 to NPR 500,000 and/or 6 months to 3 years imprisonment |
Severe violations include warranty breaches, seller discrimination, refusing returns, and misleading advertisements.
Privacy requirements:
- Protect personal data and identifiable information
- Transfer/use data only as permitted by law
- Allow users to enter/modify personal details
- Enable users to disable identification sources
- Exception for transaction-related data transfers
Key duties:
- Present goods/services clearly and accessibly
- Maintain transaction records per tax laws
- Enter agreements with sellers before listing
- Honor warranties and guarantees
- No discrimination between same-category sellers
- Implement return/exchange/refund measures
- Disclose any preferential treatment to sellers
Yes, micro and cottage entrepreneurs are exempted from certain requirements:
- Not required to establish own electronic platform
- Can operate through existing platforms
- Definitions from Industrial Enterprises Act 2020 apply:
- Micro-industry: Fixed capital up to NPR 2 million, max 9 workers
- Cottage industry: Based on traditional skills, labor-oriented
