Rules & Regulation Governing The Registration of Ecommerce Businesses in Nepal

1
236

Ecommerce now plays a vital role in our daily lives. It is redefining commercial activities around the world. Over the years, actually over a few months with Nepal in lockdown due to COVID-19, it has seen immense growth and evolution in ECommerce. With the help of the internet, people can now buy and sell virtually everything, like books, electronics, apparel, software, furniture and even groceries. A number of new Ecommerce platform like Gyapu Marketplace, Odokan.com, NOMA, Sastodeal, Daraz, Sikable are in operation and it is quite obvious that many more Ecommerce platforms will enter the market in near future.

With Ecommerce in rise, there are certain questions, especially legal, that every Ecommerce enthusiast or someone wanting to start an Ecommerce platform may want to know. So, we have done a bit of research and have compiled the rules and regulations governing Ecommerce in Nepal.

  • E-commerce business in Nepal is registered at the Office of Company Registrar as per Company Act 2063.
  • There is no law governing E-commerce in Nepal so it is a completely new concept in Nepal.
  • It is always wise to consult the concerned Department of Industry and Department of Commerce after registering the business.
  • E-commerce companies,by law, should not involve in manufacturing or production of products. However, if you plan to do so you will need to get approval from the Department of Industry and Commerce.
  • An Ecommerce can be registered in Department of Commerce if:
        1. Nature of business is Trading
        2. Company operates its business by promoting trade through its ecommerce platform
        3. Company imports and exports goods and deals with importing, exporting and direct sales.
  • An Ecommerce can be registered in Department of Industry if:
        1. Company sells goods, customizes them and is involved in packaging
        2. If written in Memorandum of Association
        3. Company involved in import and export
  • It is not necessary to register an Ecommerce business in any department  but registration in either the Department of Industry or Department of Commerce provides Approval/Licensing if necessary.

These are the legal rules guiding the registration of Ecommerce in Nepal. But there are no separate and specific laws governing Ecommerce as of now.

What are your thoughts on this? Do share it with us!!

This article has been prepared in reference to the document published by Mero Adda. You can find the document here (E-commerce Business in Nepal_Registration and More). 

1 COMMENT