The internet is changing the way we do our business. Online businesses are thriving day by day. Almost every individual has smartphones and access to the internet. In Nepal, the rise of the internet is very recent. So, you might wonder, how does e-commerce registration work in Nepal?
Users are gradually switching towards digital payments and online shopping. Likewise, investors are also actively investing in online businesses. E-commerce is in limelight among the investors in Nepal. Youths are busy developing e-commerce sites or are busy trying to figure how to register an e-commerce business in Nepal.
Is the registration process for an e-commerce business similar to other companies? In this article, we will walk you through the process of registering an e-commerce business in Nepal. Registering an e-commerce business is similar to other businesses. However, you will also be regulated by electronic transaction acts.
The Companies Act of 2006 will govern everything on registeration process to disolving of the company in Nepal. Whatever the nature of the business, it has to be registered under the Office of Company Registrar as its the Authority.
What type of Company Do You Want to Register as an E-commerce Business?
The Company Acts states the three type of business natures that can be registered under.
a) Private Limited Company;
b) Public Limited Company; and
c) Non-profit Distribution Company
Notably, the main point of difference is that Public Limited companies can raise fund from public, while Private Limited will be limited to the number of shareholders that you want to collborate with or solely.
For this purpose, you need to choose the nature of business and register acoordingly. The procedures of registeration is simple and easy.
- First of all, reserve the company name that you are willing to register the business.
- Provide a hardcopy of the necessary documents to OCR
- After OCR certification, visit the Inland Revenue Department and register as per the rules.
You need to pay a specific fee on registration according to the amount of investment available to the e-commerce business.
For a Private Limited Company:
| S.N. | Capital Amount ( in NPR) | Registration Fee Charges ( in NPR) |
| 1. | Up to 1,00,000 | 1,000 |
| 2. | 1,00,001 to 5,00,000 | 4,500 |
| 3. | 5,00,001 to 25,00,000 | 9,500 |
| 4. | 25,00,001 to 1,00,00,000 | 16,000 |
| 5. | 1,00,00,001 to 2,00,00,000 | 19,000 |
| 6. | 2,00,00,001 to 3,00,00,000 | 22,000 |
| 7. | 3,00,00,001 to 4,00,00,000 | 25,000 |
| 8. | 4,00,00,001 to 5,00,00,000 | 28,000 |
| 9. | 5,00,00,001 to 6,00,00,000 | 31,000 |
| 10. | 6,00,00,001 to 7,00,00,000 | 34,000 |
| 11. | 7,00,00,001 to 8,00,00,000 | 37,000 |
| 12. | 8,00,00,001 to 9,00,00,000 | 40,000 |
| 13. | 9,00,00,001 to 10,00,00,000 | 43,000 |
| 14. | 10,00,00,000 | 30 for each 1,00,000 |
For Public Limited Company:
| S.N. | Capital Amount Injected (in NPR) | Registration fee charges( in NPR) |
| 1. | Up to 1,00,00,000 | 15,000 |
| 2. | 1,00,00,001 to 10,00,00,000 | 40,000 |
| 3. | 10,00,00,001 to 20,00,00,000 | 70,000 |
| 4. | 20,00,00,001 to 30,00,00,000 | 1,00,000 |
| 5. | 30,00,00,001 to 40,00,00,000 | 1,30,000 |
| 6. | 40,00,00,001 to 50,00,00,000 | 1,60,000 |
| 7. | Above 50,00,00,000 | 3000 for each 1,00,000 |
Provisions for E-commerce Registration in Nepal
However, the recent Electronic Policies and Company Act has added more provisions specifically for e-commerce business registration.
- You can register your company at the office of the company registrar bound by the Company Act 2063.
- Unlike food companies, it does not need to have a quality assurance check so it has no regulation for the quality.
- Department of Industry and Commerce has to be consulted for further documents or permissions required for operation.
- During company registration, you need to get approval for mentioned objectives in your documents from the Department of Industry and Commerce. Otherwise, you will be punishable for fraud.
- E-commerce can only be registered under the Department of Commerce.
- The nature of the business has to be trading.
- If it is involved in operation, its business must occur by promoting trade activities through e-commerce.
- There should be involvement in import and export of goods and deals with importing, exporting and direct sales.
- E-commerce can be registered under the Department of Industry if a company sells goods, customize the sales of goods, and is involved in packaging.
- If the Memorandum of Association includes import and export, then it has to be registered under the Department of Industry.
- It is not compulsory to register under e-commerce in the Department of the Company unless necessary licence is the requirement.
Useful Information for E-commerce Registration in Nepal
In conclusion, digital economy is thriving in the country. The number of registration for e-commerce and other digital business requiring internet is increasing. Moreover, questions related to data privacy is rising even though Privacy Act 2075 is formulated by the constitution.
In addition, an e-commerce company has to protect users data as a prority. If a company violates the privacy act, they are punishable by law. The privacy act includes details about the usage of data, personal information and other provisions that may hinder your business later on if not considered. It will be good if you go through this act and make decisions accordingly.
Furthermore, if you need perissions to operate your business activity from other sources then you need to register there too. For example; if you are doing online e-commerce for medicinal sector then you may need permission from drugs department regulatory bodies. Catch a good law firm to make the right decision for the best of your entity or an idea.
