Starting an online business in Nepal has become more accessible than ever, thanks to growing internet penetration, digital payments, and e-commerce platforms. However, many entrepreneurs still operate informally—without proper registration—which limits their ability to scale, open business accounts, advertise legally, or partner with logistics and payment providers.

Registering your online business officially not only builds credibility but also keeps you compliant with Nepali laws. Whether you’re selling clothes through Instagram, running a full-fledged e-commerce site, or offering services online, here’s a complete guide to legally registering your online business in Nepal.

 

1. Understand the Legal Framework for Online Businesses

Online businesses in Nepal fall under the same general legal category as traditional businesses. However, because you’re selling or operating digitally, you’ll need to comply with information technology laws, consumer protection policies, and e-commerce regulations where applicable.

Key legal provisions include:

• Companies Act, 2063
   
• Income Tax Act, 2058
   
• Electronic Transactions Act, 2063
   
• Consumer Protection Act, 2075
   

You also need to be aware of Nepal Rastra Bank (NRB) guidelines if you’re handling foreign payments or digital wallets.

 

2. Choose a Business Type

The first step in legal registration is choosing a business structure. Your decision will affect taxation, ownership, and liability.

A. Sole Proprietorship (Byakti Gat Byapar)

• Easiest to register
   
• Suitable for small-scale businesses or freelancers
   
• Owner is personally liable for profits and losses
   

B. Partnership Firm

• For two or more people
   
• Profits and responsibilities are shared
   
• Requires a partnership agreement
   

C. Private Limited Company (Pvt. Ltd.)

• Ideal for scalable e-commerce businesses
   
• Separate legal identity from owners
   
• Requires at least one shareholder and one director
   

For most online startups in Nepal, either a sole proprietorship or private limited company is the best route depending on scale and future goals.

 

3. Register Your Business at the Appropriate Office

For Sole Proprietorship or Partnership:

Register at your local ward office or District Administration Office under the Small and Cottage Industry category.

Required Documents:

• Citizenship certificate copy
   
• Rental or ownership agreement of your business location
   
• Passport-size photographs
   
• Application form with business name and objectives
   
• Tax clearance (if you’re renewing)
   

Fees: Nominal, usually between NPR 500–1500

For Private Limited Company:

You’ll need to register at the Office of the Company Registrar (OCR).

Process:

1. Company name reservation (online via OCR portal)
    
2. Submit documents and fees
    
3. Receive Company Registration Certificate
    

Required Documents:

• Application for company registration
   
• Memorandum and Articles of Association
   
• Citizenship copies of directors/shareholders
   
• Passport-size photographs
   
• Shareholder agreement (if applicable)
   

Fees: Based on capital, starting from NPR 1,000+

 

4. Get PAN/VAT Registration

Once registered, your business needs a Permanent Account Number (PAN) from the Inland Revenue Office (IRO). If your annual turnover exceeds a certain threshold (currently NPR 5 million), you also need to register for VAT.

Required Documents for PAN:

• Business registration certificate
   
• Application form
   
• Rental agreement or proof of location
   
• Citizenship copy
   
• Recent photo
   

Use of PAN:

• File monthly tax returns
   
• Issue invoices
   
• Import goods legally
   

 

5. Open a Business Bank Account

Having a business bank account is important for handling payments, receiving revenues from payment gateways (eSewa, Khalti, FonePay, etc.), and separating personal and business finances.

To open one, most banks will ask for:

• PAN certificate
   
• Business registration certificate
   
• Citizenship and photos of owner(s)
   
• Company stamp
   
• Board decision (for Pvt. Ltd.)
   

Popular banks for startups: Nabil Bank, Global IME, NIC Asia, NMB, and Kumari Bank.

 

6. Set Up Digital Payment Options

Once legal documents and a bank account are in place, you can apply to integrate with digital wallets and payment gateways.

Popular Payment Gateways:

• eSewa – Ideal for small shops and service providers
   
• Khalti – Popular among youth and freelancers
   
• IME Pay – Works well in rural areas
   
• FonePay – QR-based network across multiple banks
   

Documents Required for Merchant Onboarding:

• PAN certificate
   
• Business registration documents
   
• Bank account proof
   
• Logo and website/Instagram/Facebook page link
   

Processing usually takes 3–7 days.

 

7. Get Your Domain and Website Registered (If Applicable)

If you're planning to operate via a website:

• Register a .com.np domain for free via https://register.com.np
   
• You’ll need a scanned copy of your business registration and citizenship
   
• Hosting services are available through Nepali providers like Websurfer, Mercantile, or international ones like Namecheap, Bluehost, or Hostinger
   

Make sure your website includes:

• Privacy policy
   
• Refund/return policy
   
• Terms of service
   
• Contact information
   

8. Comply with E-Commerce and Advertising Guidelines

As a digital business, you should be transparent with your pricing, data usage, and returns.

Ensure:

• Products/services are clearly described
   
• Return/refund policy is published
   
• Prices are inclusive of taxes and shipping
   
• Customer complaints can be addressed through WhatsApp, chat, or phone
   

If you’re advertising on Facebook, TikTok, or Google, having a registered business and PAN also helps avoid ad account restrictions.

 

9. File Taxes and Maintain Records

Being a registered business means you’re legally required to:

• Submit monthly VAT or PAN returns
   
• Maintain basic accounting records (sales, expenses, etc.)
   
• File annual income tax based on your profit
   

You can do this yourself via IRD’s online tax portal or hire an accountant.

Tax Calendar: PAN-based businesses must submit returns by the 25th of each Nepali month.

 

Conclusion: Legally Launch and Grow with Confidence

Registering your online business in Nepal may seem like a long process at first, but it’s a vital step in building a sustainable, trustworthy brand. It opens doors to banking, marketing, logistics, payment integration, and international expansion.

Whether you're selling clothes through Facebook, offering digital marketing services, or running a full-scale e-commerce site, following legal procedures gives your business the structure and legitimacy it needs to thrive.