How to Start an Online Business in Nepal (2026): Costs, Registration & Payments

Quick answer: To start an online business in Nepal, register a firm or company, get a free PAN from the Inland Revenue Department, list your shop on the Department of Commerce's e-commerce portal, and set up eSewa, Khalti or Fonepay payments. A small shop can start legally for about Rs 5,000 to Rs 30,000 in the first year, before stock and marketing.

Since the Electronic Commerce Act, 2081 came into force in April 2025, selling online without registering is no longer an option. That applies even to a Facebook or Instagram page. This guide covers the real costs, the legal steps in order, and how to get paid.

How much does it cost to start an online business in Nepal?

These are the main first-year costs for a small online shop. Government fees come from our cost to start a business in Nepal guide, which lists each source.

Cost item	Typical cost	Notes
Sole proprietorship registration (capital up to Rs 1,00,000)	Rs 600 – 1,000	Higher capital means a higher fee
Private company registration at OCR (capital up to Rs 1,00,000)	Rs 1,000	Rs 4,500 for capital up to Rs 5,00,000
PAN registration	Free	From the Inland Revenue Department
Ward / municipal business registration	Rs 1,500 – 10,000 a year	Set by your municipality
Presumptive tax, first year	Rs 2,500 – 7,500	Rs 7,500 in metropolitan areas, Rs 4,000 in municipalities, Rs 2,500 elsewhere
.com.np domain	Free	Must match your name or registered business name
.com domain (optional)	About Rs 1,500 – 2,500 a year	Paid in foreign currency to most registrars
Shared web hosting	About Rs 2,000 – 8,000 a year	Check the renewal price, not just year one
eSewa / Khalti merchant payments	A percentage of each sale	Rate is set in your merchant agreement
Parcel delivery inside Kathmandu Valley	From about Rs 79 per parcel	Pathao's published rate; outside the valley costs more

Selling only through social media? You can skip the domain and hosting. The Act lets micro and small sellers use social media or marketplaces instead of their own website (Section 4). That brings your start-up cost down to registration, the ward fee and tax.

Do I need to register an online business in Nepal?

Yes. Section 3 of the Electronic Commerce Act, 2081 says only a firm, company or institution registered under Nepal's laws may sell online. That includes selling from a Facebook page, an Instagram account or Daraz.

You then need to:

1. Register the business. A sole proprietorship or partnership firm suits most small shops. A private limited company suits you if you plan to raise money or bring in partners. Our company registration guide covers the OCR steps and documents.
2. Get a PAN, or VAT registration if you have to. PAN registration is free, and you need it to open a business bank account and get a payment gateway.
3. Get listed on the e-commerce portal. Apply online to the Department of Commerce, Supplies and Consumer Protection. The Department must send your listing number within 7 days. It issued an urgent notice on mandatory listing in Bhadra 2083, so do this early.
4. Show your business details on your store. That means your registered name, PAN, listing number, contact details, final prices and return conditions.

Selling without being listed, or without the required product details, can bring a fine of Rs 20,000 to Rs 1,00,000 (Section 22). Check your shop in two minutes with our free E-Commerce Act Checker. The full rules are in our E-Commerce Act 2081 guide.

Which online business models work best in Nepal?

Model	Start-up cost	Best for
IT and digital services (web development, SEO, design, video)	Low: a laptop and skills	Freelancers and agencies with foreign or local clients
Social commerce (Instagram, TikTok, Facebook shop)	Low	Fashion, gifts, cosmetics, home decor
Own e-commerce website	Medium	Brands that want repeat customers and control over their data
Marketplace seller (Daraz)	Low to medium	Testing products without building a site
Hyperlocal and on-demand services	Medium	Cloud kitchens, home repair and delivery in Kathmandu, Lalitpur, Pokhara
Handmade and craft products	Low	Makers. See our guide to selling handmade products online

Start with one model and test demand with a small first batch before you spend on stock or software. For more ideas, browse our list of 270 business ideas for Nepal.

How do I accept online payments in Nepal?

Most Nepali shoppers pay with eSewa, Khalti, Fonepay QR or mobile banking. Cash on delivery is still allowed under the Act, and payment to your delivery partner counts as payment to you (Section 8).

• eSewa and Khalti merchant accounts: you need your business registration certificate, PAN/VAT certificate, citizenship of the proprietor or directors, and a business bank account. A tax clearance certificate may also be asked for. eSewa lists the full set by business type on its merchant documents page. Approval takes from a few days to a few weeks.
• Fonepay QR: ask the bank that holds your business account. A printed QR code is the fastest way to start taking digital payments.
• Always give an invoice and receipt straight away and keep a record. The Act requires this.

Can I use PayPal in Nepal?

Not for receiving money. Nepal-registered PayPal accounts are treated as send-only, so you can't use one to collect payments from foreign clients. Use one of these instead:

• Payoneer: works with Upwork, Fiverr and many other marketplaces, and pays out to your Nepali bank account.
• Wise: a client abroad can send rupees straight to your Nepali bank account (personal transfers only).
• Khalti–Stripe payment links: your client pays by card, Apple Pay or Google Pay, and the money settles in rupees in your Khalti wallet.
• SWIFT bank transfer: best for large invoices, but fees are high for small amounts.

Limits, fees and tax rules for each one are in our guide to receiving international payments in Nepal.

How do I deliver orders?

Agree a rate with a delivery company before you launch. Pathao, for example, has published parcel rates from about Rs 79 inside Kathmandu Valley. Outside the valley, compare a few courier companies, because rates vary by weight and district.

The Act gives the buyer the right to return goods that arrive late or that don't match your description, and to get a full refund including tax (Sections 9, 10, 15 and 16). Write a clear return policy and use delivery partners you can rely on.

Step-by-step checklist

1. Choose your model and test demand with a small first offer.
2. Budget your first-year costs using the table above.
3. Register a firm or company.
4. Get your PAN (and VAT registration if required).
5. Apply for listing on the Department of Commerce e-commerce portal.
6. Open a business bank account, then apply for eSewa, Khalti or Fonepay.
7. Set up your store: a website (check your host with our Hosting Checker) or a social media shop.
8. Publish your business details, prices and return policy on the store.
9. Agree delivery rates with a courier.
10. Plan your marketing. See what it really costs in our digital marketing cost guide.

Frequently asked questions

Can I sell on Facebook or Instagram without registering?

No. Under Section 3 of the Electronic Commerce Act, 2081, only registered firms, companies or institutions may sell online, and that includes social media pages. You must also get listed on the Department of Commerce's e-commerce portal.

What is the cheapest way to start an online business in Nepal?

Register a sole proprietorship, get a free PAN, and sell through a social media page with a Fonepay QR or an eSewa or Khalti account. Your main costs are then the registration fee, the ward fee and first-year tax, which come to about Rs 4,600 to Rs 18,500 depending on where you live.

Is a .com.np domain really free?

Yes. A .com.np domain is free for Nepali citizens and registered Nepali businesses. The name must match your personal name or your registered business name, and you apply at register.com.np.

Do I need a website to sell online in Nepal?

Not always. The Act lets micro and small entrepreneurs sell through other platforms, such as social media or marketplaces, instead of building their own website.

What documents do I need for an eSewa merchant account?

Usually your business registration certificate, PAN/VAT certificate, the proprietor's or directors' citizenship, and a business bank account. Companies also need their MOA/AOA and a board decision. The exact list depends on your business type.

How do freelancers in Nepal get paid without PayPal?

Most use Payoneer through their marketplace, Wise for direct transfers to a Nepali bank, Khalti–Stripe payment links, or a SWIFT bank transfer for large invoices.

What happens if I sell online without listing my business?

You can be fined between Rs 20,000 and Rs 1,00,000 under Section 22 of the Electronic Commerce Act, 2081.

Sources

• Electronic Commerce Act, 2081 — Nepal Law Commission
• Department of Commerce, Supplies and Consumer Protection
• Urgent notice on mandatory e-commerce listing (2 Bhadra 2083)
• eSewa: documents required for merchant integration
• .com.np domain registration
• Pathao parcel delivery rates — ICT Frame

This guide is general information, not legal or tax advice. Fees and rules change, so check with the relevant office before you file.