Starting Sunday, all unregistered online sellers in Nepal—those using platforms like Facebook, TikTok, or Instagram to sell products or services—are now considered illegal.

This also applies to international e-commerce companies such as Amazon, which have not registered or set up a local office or representative in Nepal, officials said.

The Department of Commerce, Supplies, and Consumer Protection said the rule does not affect newly established online businesses. New sellers created after July 18 can still register with the department.

As of Friday—the final deadline under the new E-commerce Act, 2025—only 950 e-commerce businesses across the country had registered, despite the department expecting hundreds more based on the volume of ongoing digital transactions.

The E-commerce Act, which came into effect on April 15, gave online businesses three months to comply with the mandatory registration requirement.

“According to the new law, all online sellers must register with us. If we find any company selling goods or services online through social media or other platforms without registration, they will face fines,” said Achyut Raj Regmi, director at the department. Unregistered operators can be fined up to Rs200,000.

The law covers all types of online sales, including those made through Facebook, Instagram, TikTok, WhatsApp, and similar platforms. On July 2, the department issued a public notice urging all digital sellers to register by July 18.

Notably, the law also applies to foreign e-commerce platforms. Any international company selling goods to Nepali consumers must establish a local office or appoint an official representative.

However, the department confirmed that no international e-commerce platform had registered by the deadline. This technically renders purchases from Amazon and similar platforms illegal under the new law.

“The law has been introduced to ensure all e-commerce businesses, domestic and international, operate under regulatory oversight,” said Bharat Prasad Acharya, another department director. “Any platform found conducting business without registration will face action.”

If a Nepali consumer places an order from a foreign site that has not registered, authorities say they will investigate if a complaint is filed. “These companies are also subject to Nepali tax laws,” said Acharya.

Nepal’s e-commerce market has seen exponential growth, with transactions estimated in the billions of rupees. Much of this surge is driven by informal sellers using social media platforms. Yet, many continue to operate without registration, beyond the scope of taxation and consumer protection laws.

The new law marks Nepal’s first serious attempt to regulate its digital marketplace, which has been plagued by increasing cases of fraud and unethical conduct due to the lack of formal oversight.

Under the new rules, even individual sellers on social media must register by submitting their business details online. This includes platform name, business registration number, office address, and the name of the registered business entity. Sellers must also clarify whether their model is platform-based or listing-based and designate a contact person to handle consumer complaints.

To operate legally, each e-commerce platform must set up a proper mechanism to receive and resolve customer grievances.

The law defines e-commerce as the buying and selling of goods and services via digital platforms, but it excludes sites that advertise or promote products without conducting transactions.

Intermediary platforms—those that connect buyers and sellers without directly selling—must also sign formal contracts with their vendors. These agreements must be in both written and digital forms.

The act further encourages small-scale and cottage industries to engage in online selling, aiming to broaden digital participation across sectors.

To improve transparency, online businesses are required to update product details such as pricing, availability, or specifications within 24 to 48 hours of any changes.

The law also strengthens consumer refund rights. If the product or service delivered differs from what was advertised—in design, image, weight, warranty terms, or country of origin—the buyer is entitled to a full refund. Sellers cannot deny refunds for defective, delayed, or misrepresented goods or services.