E-commerce Business Registration in Nepal
There is no separate 'e-commerce license' in Nepal. You simply register a Private Limited Company at OCR with online retail or digital commerce objectives, obtain your PAN from IRD, and comply with relevant tax and consumer protection laws.
What Legal Framework Applies to E-commerce?
Nepal does not have a dedicated e-commerce law yet. However, the following laws and regulations currently apply to online businesses:
Electronic Transactions Act, 2063 (2006 AD)
This is the primary law governing digital transactions in Nepal. It gives legal validity to digital signatures, electronic records, and online contracts. Any transaction done electronically is binding under this Act.
Consumer Protection Act, 2075 (2018 AD)
Protects buyers from unfair trade practices. As an online seller, you must provide accurate product information, honor return/refund requests, and not use deceptive advertising.
Income Tax Act, 2058 and VAT Act, 2052
All income earned by your e-commerce business is taxable. VAT must be charged on goods and services once your annual turnover crosses the threshold.
Nepal Rastra Bank Regulations
If you want to accept online payments from customers (domestic or international), you need to use a payment gateway approved by NRB.
Step-by-Step Process
- 1
Register Your E-commerce Company at OCR
Go to camis.ocr.gov.np and register a Private Limited Company. In the objectives section, include activities like 'e-commerce', 'online retail and trading', 'digital marketplace operation', 'online product and services sales', or 'internet-based commerce'. The broader your objectives, the more flexibility you have to expand your business later.
- 2
Get Business PAN from IRD
Register for a Business Permanent Account Number (PAN) at the Inland Revenue Department. This is your company's tax ID and is needed before you can collect VAT, file taxes, or open a corporate bank account.
- 3
Complete Ward Registration
Register at the local ward office where your business operates. Even if your business is primarily online, you must have a physical registered address. This is required by IRD, banks, and payment gateway providers.
- 4
Open a Corporate Bank Account
Open a company bank account at a reputable bank. This account will receive payments from customers and payment gateways. Choose a bank that offers integration with popular Nepali payment gateways like eSewa, Khalti, or Connect IPS.
- 5
Integrate a Nepal Rastra Bank-Approved Payment Gateway
To accept digital payments in Nepal, you must use an NRB-approved payment system. Popular options include eSewa, Khalti, IME Pay, Connect IPS, and Fonepay. Contact these providers directly — they will guide you through their merchant onboarding process, which requires your company documents.
- 6
Register for VAT (When Required)
If your annual turnover exceeds NPR 50 lakhs (for goods) or NPR 30 lakhs (for services or mixed), you must register for VAT with IRD within 30 days of crossing the threshold. After VAT registration, you must issue VAT invoices to customers and file quarterly VAT returns.
Required Documents
- Company Registration Certificate from OCR
- Business PAN Certificate from IRD
- Ward Registration Certificate
- Corporate bank account details
- Citizenship certificates of all directors
- Website domain registration details and URL
- Screenshot or description of the e-commerce platform
- VAT Registration Certificate (if applicable)
- Documents required by payment gateway providers (varies)
VAT Thresholds for E-commerce Businesses
| Business Type | VAT Registration Threshold |
|---|---|
| Goods only (online retail) | NPR 50 Lakhs annual turnover |
| Services only (SaaS, digital services) | NPR 30 Lakhs annual turnover |
| Mixed (goods + services) | NPR 30 Lakhs annual turnover |
Need help with this process? Chartered Corporate Business Consulting handles it all for you — from start to finish.