Online Business Registration in Nepal

Since Covid’s entry into the international market in 2019, online shopping has grown in popularity in Nepal. As a result, companies and business owners can now serve more customers while also ensuring security.

 Accepting payments online is now simpler for both customers and business owners. Amazon, Alibaba, Best Buy, and eBay are some of the global online stores; Daaraz and Gyapu are online stores in Nepal; and Flipkart, Myntra, Ajio, Pepperfry, and Lenskart are online stores in India.

Online sales are expanding quickly. No longer are these services accessible to those without internet access. Consumers and businesses are now required to use paperless payments because of COVID.

Why do businesses use online marketing?

Simple Platform

Customers have many options to explore the market and secure the products of their choice because it brings all the retailers under one roof.

Paperless Transaction

Online sales have increased in popularity in Nepal ever since Covid entered the global market in 2019. This has allowed businesses to serve more clients while still maintaining security. Nowadays, both customers and business owners can easily accept payments online.

South Asian online retailers include Amazon, Alibaba, Best Buy, eBay, Daaraz, and Gyapu; Indian retailers include Flipkart, Myntra, Ajio, Pepperfry, and Lenskart. Online commerce is rapidly growing.

For those without internet access, these services are no longer available. COVID has made paperless payments a requirement for both consumers and businesses.

Simple Payment

Customers do not need to carry cash, and the transaction is quick and secure.

Simple Delivery: Once a customer books a product, they do not need to go to the store to pick it up. Their products can be delivered right to their door.

Saves Time:

The delivery service is provided so that customers do not need to visit the stores to pick up their purchases.

Accessible Marketplace
Online markets have made it possible for vendors to simultaneously display their goods at a global market through digital payment.

What advantages do online companies offer when COVID-19 is an issue?

The benefits of an online business are even more important during market disruptions like a pandemic. Customers are even more in need of ways to research your company and its offerings when they are unable to leave their homes.

The number of people using the internet to make purchases is rising.

What advantages does online commerce offer consumers?

The benefits of doing business online are numerous for clients. Any time, day or night, they can find out about your company. If your website has e-commerce capabilities, customers can place orders whenever it’s convenient for them and troubleshoot issues more quickly by reading content about potential issues or by quickly emailing your company.

• incredibly low startup costs
• improved customer service
• Live and/or work anywhere
• Operating Costs Are Lower
• Enhanced Response
• vastly larger market
• Internet Use Is Designed for Business
• There are no restrictions, no ceilings on income, and limitless opportunity.
• A business centered on your interests will make you happier.
• absolute independence

What steps do I need to take to launch an online business in Nepal?

Like any other business, an online business needs to be registered in order to operate. It is always preferable to finish the paperwork and registration first, whether it is a small home-based online store or a multivendor platform, so that all transactions and expenses can be recorded in the business’s records. Let’s first gain a general understanding of eCommerce businesses in general and how they function before diving into the registration process for online stores in Nepal.

The typical accounting process is as follows:

• You choose wisely when you buy.
• Add it to your social media accounts and online store.
• Make a profit while selling the products.
• Get the product to the customer.
• Create your own shopping list.
• Sales price less sales expenses equals profit.
• Taxes must be paid on your PROFIT.
•  Providing a marketplace where suppliers can list their goods and customers can buy them.

In this model, you’ll offer a platform or marketplace so that vendors can list their goods and consumers can browse, decide, and buy them. The platform provider typically takes care of the delivery.

Additionally to product packaging, payment processing As an alternative, you could just offer a platform (like HamroBazaar) where buyers and sellers can converse and make money from paid listings, advertisements, and other means. The key is that you have complete freedom in how you set up your marketplace.

Standard accounting and business practices

• A platform is created by you.
• Joining the marketplace, the vendor lists her goods.
• The product is purchased by the client.
• Bring the item back from the supplier and give it to the client.
• You present the client with the vendor’s bill
• You assess the vendor a commission (typically 1%–5%).
• Profit from you = Commission

The commission you receive will be taxed .The third choice is a hybrid business model where you both sell your own goods and give others a platform to do the same. For the purpose of figuring out your overall profit and vendor commissions, you must maintain separate accounts for your own sales.

How do I start a business online in Nepal?

When registering a regular supermarket (case A) or an IT company, everything is the same (case B). If you select a mixed model, your business must have both IT and grocery store objectives. Running an online store does not require a specific license.

You must affiliate (register) your business with the Cottage and Small Industries Department after you have registered it (at cottage and small industries). A company that wants to be affiliated with cottage and small industries must pay revenue of NPR 100. Consequently, there are two ways to register an online store: Register at the Cottage along Route 1 and

(Cottage and Small Industries), Register with the department of commerce, get an IRD PAN (Inland Revenue Department), and start the store.

Option 2: Establish a business, register it at Cottage and Small Industries, get a PAN certificate from IRD, and start a store. Don’t forget that you need to register with the Department of Customs and obtain an EXIM code if you want to import or export services under the name of your own business.

Through an online store, I want to sell my goods. Where and how do I register it?

You must register with the Department of Cottage and Small Industries if you want to start a production . Alternatively, you can create a company and register it with cottage and small industries. The company structure is always the best choice if you plan to grow your company or bring on more partners in the future.

However, registering at cottage and small industries is sufficient if this is your personal business and you only want to run it on a small scale.

Can I start a business or firm in my hometown and sell my goods across the nation?

Yes, you can sell your goods anywhere, but the central office is where your accounts and registers must be kept.
Your local government (soda office) may require you to open multiple physical locations if your business wants to do so.

The plan calls for the involvement of numerous governmental organizations in the creation and upkeep of e-commerce law.

A new draft of the overall strategy, which is based on a national e-commerce strategy, is being prepared for immediate implementation, he added. After finishing the draft, the department will submit it for approval to the Ministry of Industry, Commerce, and Supplies after which it will take effect right away. As soon as the government releases the new online shopping regulations, we will update this section.
Which bizsewa services are available for my online store?

What steps do I need to take to launch an online business in Nepal?

Like any other business, an online business needs to be registered in order to operate. It is always preferable to finish the paperwork and registration first, whether it is a small home-based online store or a multivendor platform, so that all transactions and expenses can be recorded in the business’s records.

Let’s first gain a general understanding of eCommerce businesses in general and how they function before diving into the registration process for online stores in Nepal.

In order to register the branch and pay any associated fees, your local government (soda office) may require you to do so if your business plans to open multiple physical locations.

Who oversees or controls online businesses or those connected to eCommerce in Nepal? Does Nepal have a specific law or regulation that governs eCommerce?

As of today, Nepal has no specific laws governing the operation of eCommerce businesses (19 July 2020). Additionally, the eCommerce market is not regulated by a specific entity. But the Nepali government has promised to enact legislation regulating online commerce and shopping there.

Netra Prasad Subedi, the department’s director general, said on the show “Digital Sambaad” that there is a pressing need to establish appropriate standards to safeguard consumers given the boom in e-commerce during the lockdown.

We can assist you with all registration procedures, offer accounting guidance, and give you suggestions on how to comply with tax laws when operating an online store.

We can also regularly send part-time or visiting accountants to your office so you can concentrate solely on generating more sales rather than worrying about statutory, legal, and accounting concerns.

A new draft of the overall strategy, which is based on a national e-commerce strategy, is being prepared for immediate implementation, he added. After finishing the draft, the department will submit it for approval to the Ministry of Industry, Commerce, and Supplies after which it will take effect right away.

Should you have any questions, please do not hesitate to contact us at +977-9849517735 or by email: info@corporatelawyernepal.com