E-Commerce Law in Nepal: Electronic Commerce Act 2081 Guide

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Business Law

Updated: March 14, 2026
Nepal Divorce Services

E-commerce in Nepal is now governed by the Electronic Commerce Act, 2081 (2025), enacted on March 16, 2025 (Falgun 3, 2081). This is Nepal's first dedicated e-commerce law, replacing the previous patchwork of regulations that governed online transactions. The Act establishes a comprehensive legal framework for buying and selling goods or services through electronic platforms, covering consumer protection, platform obligations, contract formation, data privacy, and penalties for non-compliance. The Act applies throughout Nepal and extends to any person outside Nepal who provides goods or services within Nepal through e-commerce.

Legal Framework Governing E-Commerce in Nepal

Before the Electronic Commerce Act, Nepal relied on a fragmented set of laws to regulate online transactions. The new Act now sits alongside these existing laws:

Law	Year	Role in E-Commerce
Electronic Commerce Act, 2081	2025	Primary e-commerce law — platform registration, contracts, consumer rights, penalties
Electronic Transactions Act, 2063	2008	Digital signatures, electronic records, cybercrime provisions
Consumer Protection Act, 2075	2018	Product quality, labeling, returns, pricing, dispute resolution
Nepal Rastra Bank Act, 2058	2002	Payment gateways, digital wallets, financial transaction regulation
Privacy Act, 2075	2018	Personal data protection and consent requirements

What Qualifies as E-Commerce Under the Act?

The Act defines e-commerce as the process of buying or selling any goods or services through an electronic platform. An "electronic platform" means a system developed for transacting goods or services through websites, applications, software, internet, intranet, or social media marketplaces using computers, mobile phones, or similar devices. Importantly, merely using an electronic platform to provide information about or promote goods or services does not constitute e-commerce under the Act.

Who Can Operate E-Commerce in Nepal?

Any firm, company, or institution that is duly registered and authorized to conduct trade in goods or services under prevailing law may engage in e-commerce. However, goods or services prohibited from electronic trade by the government cannot be sold online. Businesses already operating e-commerce at the time the Act commenced must comply with the listing requirement within three months from the date of commencement.

Parties Involved in E-Commerce Transactions

Party	Definition Under the Act
Intermediary Business Entity	A person, firm, company, or institution that facilitates the sale of a seller's goods or services to a buyer through an electronic platform (e.g., marketplace platforms like Daraz)
List-Based E-Commerce Business	A firm, company, or institution that lists its own goods or services and sells them directly to consumers through an electronic platform
Seller	A person, firm, or company that makes goods or services available for sale to an intermediary business entity; includes list-based e-commerce businesses
Buyer	Any person or institution that purchases goods or services under the Act; includes their representative
Consumer	Any person or institution that consumes or uses goods or services under the Act
Delivery Service Provider	A person, firm, or company employed by a business to transport goods; includes their representative

Platform Registration and Listing Requirements

Every business entity conducting e-commerce must establish an electronic platform and register it with the Department of Commerce, Supplies and Consumer Protection. Micro-entrepreneurs and cottage-scale entrepreneurs are exempt from the platform requirement and may operate through other electronic platforms. After establishing a platform, the business must submit an application to be listed on the Department's electronic commerce portal. The Department issues a listing number within seven days of receiving the application.

The platform must clearly display the business name and address, registration authority and certificate number, details of registered office and branches, PAN or VAT registration number, contact details for customer service and grievance handling, and the listing number obtained from the Department.

Product and Service Disclosure Requirements

The Act requires comprehensive disclosure of information for all goods and services sold online. Business entities must display the following details on their electronic platform:

Requirement	Details
Product information	Name, nature, design, trademark, image, weight
Pricing	Final selling price including all taxes
Delivery charges	Any additional fees for transport or transfer
Delivery timeline	Date and time for delivery of goods or services
Payment methods	Accepted modes of payment
Warranty/guarantee	Duration and conditions
Return policy	Whether returnable, conditions, and duration
Cancellation policy	Whether orders can be cancelled before dispatch
Manufacturer details	Producer name; country of origin for imports
Expiry information	Date of manufacture and expiry date
Feedback mechanism	System for customer reviews, ratings, and complaints

Electronic Contracts

The Act formally recognizes the validity of electronic contracts. Any transaction of goods or services conducted between a buyer and a business entity through electronic means is deemed a valid contract under prevailing laws. This extends legal validity beyond the Electronic Transactions Act, 2063, which only recognized digital signatures certified by an authority. Under the new Act, click-wrap agreements where users click "I agree" are now formally binding and enforceable. Contracts must stipulate terms relating to delivery, cancellation, return, exchange, warranty, guarantee, and refund.

Consumer Rights Under the Act

The Act provides strong consumer protections for online transactions. If goods or services do not conform to the description provided by the business, the buyer may return them without using or damaging them, and the business must accept the return unconditionally. Upon return, the business must either provide replacement goods of equivalent value (if the buyer agrees) or issue a full refund including applicable taxes. Orders can be cancelled before dispatch if the contract allows, and businesses must provide clear mechanisms for returns, exchanges, and grievance handling.

Payment Provisions

The Act permits flexible payment arrangements — buyers may pay before, during, or after the purchase or transfer of goods or services. Payment instruments compliant with prevailing federal laws on payment and settlement may be used. Payment made to a delivery service provider on behalf of the business is deemed payment to the business. Electronic or physical invoices with payment receipts must be provided immediately upon payment.

Data Privacy and Personal Information

Business entities must maintain the confidentiality of personal information related to e-commerce transactions. Personal data cannot be disclosed or used except as permitted by law, with an exception for transaction-related data sharing between buyer, business, and delivery provider. Users must retain the ability to access, modify their personal information, and deactivate identity-related sources on the platform. Violations are punishable under prevailing law.

Liabilities of Each Party

The Act defines specific obligations for intermediary businesses, list-based businesses, sellers, buyers, and delivery service providers. Key obligations include maintaining accurate product descriptions, honoring warranties, not discriminating between sellers of the same category, not posting fake reviews or ratings, accepting returns for defective or non-conforming goods, and delivering within agreed timeframes. The intermediary business entity cannot be exempted from addressing complaints merely because the goods were not manufactured by them.

Offences and Penalties

Offence	Penalty
Operating e-commerce without establishing a platform	Fine: NPR 20,000 to NPR 100,000
Operating without listing on the Department's portal	Fine: NPR 20,000 to NPR 100,000
Failing to disclose required product/service details	Fine: NPR 20,000 to NPR 100,000
Failing to honor warranty/guarantee obligations	Fine: NPR 50,000 to NPR 500,000, or imprisonment 6 months to 3 years, or both
Discriminating between sellers of same-category goods	Fine: NPR 50,000 to NPR 500,000, or imprisonment 6 months to 3 years, or both
Posting fake reviews or misleading product information	Fine: NPR 50,000 to NPR 500,000, or imprisonment 6 months to 3 years, or both
Refusing to accept returns for non-conforming goods	Fine: NPR 50,000 to NPR 500,000, or imprisonment 6 months to 3 years, or both

Serious offences are treated as state-party cases where the Government of Nepal acts as plaintiff. Cases are filed in the relevant consumer court or district court and follow summary procedure.

Grievance Redressal Mechanism

The Act mandates that every business entity establish a grievance handling mechanism. Buyers and consumers can lodge complaints through electronic means, in writing, or in person. Upon receiving a complaint, the business must register it, provide immediate acknowledgment, and investigate and decide within 15 days. Businesses must also develop and implement an online redressal mechanism. If a business fails to resolve a complaint, the buyer may escalate to the Department's Director General or an inspection officer.

Cross-Border E-Commerce

The Act addresses both imports and exports through e-commerce. Individuals and businesses may purchase and import goods or services from foreign e-commerce entities, subject to prevailing laws. Similarly, businesses operating platforms within Nepal may export goods or services to foreign buyers, provided payment is received through the banking system in accordance with the contract. All foreign currency transactions are subject to Nepal Rastra Bank regulations.

Monitoring and Enforcement

The Department of Commerce, Supplies and Consumer Protection is responsible for monitoring and inspection of e-commerce activities. The Department coordinates with the government's information technology regulatory authority and subject matter experts. If defects are found in electronic platforms during inspection, the Department may issue binding instructions that businesses must comply with. Any person may file a complaint about violations to the Director General or an inspection officer, including through electronic means.

For legal guidance on e-commerce compliance, platform registration, or consumer disputes in Nepal, contact Nepal Divorce Services at +977 9841114443. For related topics, see our guides on startup registration in Nepal and income tax in Nepal.

Frequently Asked Questions

The Electronic Commerce Act, 2081 (2025) is Nepal's first dedicated e-commerce law, enacted on March 16, 2025. It establishes a comprehensive legal framework for buying and selling goods or services through electronic platforms, covering platform registration, consumer protection, electronic contracts, data privacy, and penalties for non-compliance. The Act applies throughout Nepal and to any person outside Nepal providing goods or services within Nepal through e-commerce.

Yes, every business entity conducting e-commerce must establish an electronic platform and list it on the electronic commerce portal maintained by the Department of Commerce, Supplies and Consumer Protection. Existing e-commerce businesses must comply within three months from the Act's commencement date. Micro-entrepreneurs and cottage-scale entrepreneurs are exempt from the platform requirement but may operate through other platforms.

The Act requires e-commerce platforms to display comprehensive product details including name, nature, trademark, image, weight, final selling price including taxes, delivery charges, delivery timeline, payment methods, warranty or guarantee terms, return and cancellation policies, manufacturer details, country of origin for imports, expiry dates, and a mechanism for customer reviews and complaints.

Yes, the Electronic Commerce Act, 2081 formally recognizes online transactions as valid contracts under prevailing law. This includes click-wrap agreements where users click "I agree" to terms. Contracts must include provisions for delivery, cancellation, return, exchange, warranty, guarantee, and refund of goods or services.

Operating without a registered platform, without listing on the Department's portal, or without disclosing required product details carries a fine of NPR 20,000 to NPR 100,000. More serious offences like posting fake reviews, misleading advertising, refusing returns, or not honoring warranties carry a fine of NPR 50,000 to NPR 500,000, or imprisonment of 6 months to 3 years, or both.

Yes, if goods or services do not conform to the description provided by the business on its platform, the buyer may return them without using or damaging them. The business must accept the return unconditionally and either provide a replacement of equivalent value or issue a full refund including applicable taxes.

Yes, the Electronic Commerce Act, 2081 applies to any person residing or staying outside Nepal who provides goods or services within Nepal through electronic commerce. Foreign businesses selling to Nepali consumers must comply with the Act's registration, disclosure, and consumer protection requirements.

An intermediary business entity facilitates the sale of a seller's goods to buyers through its platform (like a marketplace). A list-based e-commerce business lists its own goods or services and sells them directly to consumers. Both have specific obligations under the Act, including accepting returns, honoring warranties, and maintaining transaction records.

Businesses must establish a grievance handling mechanism accessible through electronic, written, or in-person channels. Upon receiving a complaint, the business must register it, provide immediate acknowledgment, and investigate and decide within 15 days. If the business cannot resolve the complaint, the buyer may escalate to the Director General of the Department of Commerce or an inspection officer.

E-commerce businesses must maintain the confidentiality of personal information collected during transactions. Personal data cannot be disclosed or used except as permitted by law. Users must retain the ability to access, modify, and delete their personal information on the platform. Violations are punishable under prevailing law, including the Privacy Act, 2075.

No, the Act explicitly prohibits business entities and sellers from posting or causing to be posted any review, rating, or feedback by impersonating themselves or any other person as a fictitious consumer. This offence carries a fine of NPR 50,000 to NPR 500,000, or imprisonment of 6 months to 3 years, or both.

The Act permits payment before, during, or after the purchase of goods or services. Payment instruments compliant with prevailing federal laws on payment and settlement may be used, including digital wallets, bank transfers, and cash on delivery. Payment made to a delivery service provider on behalf of the business is deemed valid payment. All foreign currency transactions are subject to Nepal Rastra Bank regulations.

The Department of Commerce, Supplies and Consumer Protection is the primary enforcement authority for e-commerce in Nepal. The Department conducts monitoring and inspection, coordinates with the government's IT regulatory authority, and may issue binding instructions to businesses. Inspection officers investigate offences and may impose fines or file cases in consumer or district courts.

Yes, subject to prevailing federal laws, individuals and businesses may purchase and import goods or services from foreign e-commerce entities. Similarly, Nepali businesses may export goods through their platforms, provided payment is received through the banking system. All cross-border e-commerce transactions involving foreign currency are subject to Nepal Rastra Bank regulations.

The Electronic Commerce Act, 2081 was enacted on March 16, 2025 (Falgun 3, 2081) and came into force 31 days after enactment. Existing e-commerce businesses were given a three-month grace period to comply with the listing and registration requirements from the date the Act commenced.

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