Education Consultancy Registration in Nepal

-By Gandhi and Associates

Operating an education consultancy in Nepal requires more than incorporation of a company or registration of a firm. The Educational Counselling, Language Teaching and Preparatory Classes (Operation and Management) Rules, 2083 (2026) (“the Rules”) establish a separate operating-permit regime and impose requirements relating to permitted services, domestic ownership, financial security, office infrastructure, qualified counsellors, student agreements, foreign educational institutions, financial transactions, reporting and student protection. This Legal Briefing explains the registration process and the continuing compliance obligations applicable to education consultancy institutions in Nepal.

Introduction

Opening an education consultancy in Nepal now requires more than registering a company or firm. A separate operating permit is required before the institution may provide educational counselling. The applicant must also meet the financial, staffing, office, record-keeping and student-protection standards prescribed by law.

The principal law is the Educational Counselling, Language Teaching and Preparatory Classes (Operation and Management) Rules. Rules were made under Section 19 of the Education Act, 2028 and came into force immediately upon publication in the Nepal Gazette on 2083/03/25.

This article explains the registration process for an education consultancy, the continuing duties after registration and the way the new Rules interact with company, foreign-investment, tax, consumer, privacy and foreign-exchange laws.

Company registration and the Ministry permit are separate requirements

Rule 3 states that no person may operate a regulated service without an operating permit. The Rules define an institution as a company or registered firm established under prevailing law.

Accordingly, the operator must first create the legal entity. A company may be incorporated under the Companies Act, 2063, while a firm may be registered under the applicable firm-registration law. Its constitutional documents should clearly include educational counselling and any other intended service.

Entity registration is only the first step. A company certificate, PAN or office lease does not itself authorize the business to counsel students. The sector permit must be obtained from the Ministry before services begin.

The exact service must be identified before applying

The Rules treat educational counselling, language teaching, language testing and preparatory classes as separate services. Permission for one category does not automatically cover another.

For example, a consultancy licensed only for educational counselling should not begin IELTS or PTE preparation, language teaching or language testing without obtaining the relevant permission. The applicant should therefore decide its actual services before finalizing the company objects, office layout, staffing plan and application.

Education consultancy is administered by the Ministry. Rule 6 allows provincial or local authorities to regulate the other service categories under the applicable provincial or local law. An institution operating in more than one category may therefore have to deal with more than one authority.

Existing provincial or local permits must be regularized

An education consultancy that received a permit from a provincial or local authority before the Rules commenced cannot assume that the old permit will continue indefinitely.

Rule 6 required such an institution to apply to the Ministry within three months after commencement of the Rules. The Ministry may continue the permission after monitoring and confirming compliance. The institution must also inform the provincial or local authority that issued the earlier permit and may operate only within the area stated in the permit.

An existing operator should keep proof of the earlier permit, the Ministry application and all communications with the provincial or local authority. This is important if the institution is later inspected or asked to explain the legal basis of its operation.

Foreign investment requires particular care

Rule 12 requires an institution licensed under the Rules to have domestic investment only. An existing institution with foreign investment must convert its ownership to domestic investment within one year.

This requirement is stricter than the general position under the Foreign Investment and Technology Transfer Act, 2075. The Schedule to that Act generally restricts consultancy services only where foreign investment exceeds fifty-one percent. The Act, however, also preserves the need to obtain licenses and permissions required by other prevailing laws.

The two instruments therefore do not use the same ownership threshold. For Ministry licensing, an applicant should proceed on the basis that one hundred percent domestic investment is required under Rule 12. An existing foreign-invested consultancy should not rely only on an earlier foreign-investment approval. 

A foreign national may work as a counsellor only after obtaining the approval required under prevailing law. That employment permission does not permit foreign ownership of the consultancy.

Application and supporting documents

The application is submitted to the Ministry in the form prescribed in Schedule 1. The form asks for the institution’s name and address, the proposed service location, the service categories, promoter or partner details, counsellor or trainer details, foreign educational-institution representatives and the available office and classroom facilities.

Schedule 1 expressly requires a certified copy of the applicant’s Nepali citizenship certificate, the institution’s registration certificate and constitutional document, the tax-clearance certificate, the partnership deed where relevant, and the approval of another authority where such approval is necessary.

The Ministry may arrange an inspection before issuing the permit. Applicants should therefore also keep the office ownership or lease document, staff appointment letters, academic and training certificates, website and communication details, fire-safety evidence and other documents needed to prove compliance with Schedule 7.

The application form should be completed consistently with the company or firm records. Differences in the name, address, shareholding, business objects or proposed service may delay the application or create problems during inspection.

Office and infrastructure standards

Schedule 7 requires the institution to have its own office building or a lease agreement for at least three years. It must maintain an official email address, website and telephone number.

The office must be located where emergency vehicles, including a fire engine and ambulance, can reach it. Rooms must have sufficient light and cross-ventilation or air-conditioning. The building must be earthquake-resistant and must have fire-prevention arrangements and installed firefighting equipment.

The institution must maintain a separate room for administrative work, disability-friendly access and facilities, and free clean drinking water. It must also have a library with relevant reference materials and sufficient reading space. Where classes are offered, suitable furniture and adequate space must be available. Students must have convenient access to internet facilities.

These are continuing standards, not one-time inspection formalities. Rule 11 gave institutions already operating when the Rules commenced one year to meet Schedule 7 and report compliance to the Ministry. An institution that fails to meet the standards within that period will not have its permit renewed.

How the operating permit is issued

After reviewing the application and any inspection report, the Ministry may require the applicant to deposit the prescribed security amount. If the legal and physical standards are met, the Ministry may issue the operating permit in the form prescribed in Schedule 3.

The institution must begin business within three months after receiving the permit. If it intends to open a branch, a separate application must be made for that branch. The permit is linked to the approved service and place, and the institution should not advertise or operate an unapproved branch.

Under Rule 4, the operating permit is valid for one year. The permit should be displayed at the office, and its conditions should be treated as part of the institution’s daily compliance system.

Security deposits and fees

Schedule 2 prescribes the following security deposits and government fees:

The deposit must remain available

The security amount must be deposited in the Ministry’s deposit account. An institution that was already operating before the Rules commenced must also maintain the amount prescribed in Schedule 2 when renewing its permit.

The deposit is not ordinary working capital. It may be returned only after the institution stops providing the service and the Ministry approves the return. It may be forfeited where the permit is cancelled under Rule 18.

A consultancy planning several branches must therefore account for a further NPR 2,500,000 for each branch. The branch amount is not a smaller top-up. Rule 24 also excludes Schedule 2 from the Ministry’s general power to amend the other Schedules, although the amounts may still be changed through an appropriate formal legal process.

Renewal and annual reporting

The renewal application must be filed in the Schedule 4 form at least two months before expiry. If the application is not filed on time, the institution may apply within three months after expiry by paying an additional penalty of NPR 10,000. The Ministry may inspect the institution before renewing the permit for another year.

If no renewal application is filed within the additional three-month period, the permit is automatically cancelled. Information about the cancellation must be published on the Ministry’s website and in a national daily newspaper.

Rule 5 also requires an annual statement of activities to be submitted within six months after the end of each financial year. Separate from that annual statement, Rule 8 requires quarterly reporting on students counselled for foreign study and on whether the consultancy received income connected with the fees paid to foreign educational institutions.

Tax invoices and financial transactions

The Rules require financial transparency. Transactions must be made through digital or banking channels, service charges must be published on the website and displayed in the citizen charter, and the institution must maintain income, expenditure and audit records.

Rule 12 requires a value-added tax invoice to be issued for service charges. Section 14 of the Value Added Tax Act, 2052 requires a registered person to issue the prescribed invoice. A consultancy should therefore complete the appropriate VAT registration before issuing a VAT invoice or collecting VAT. 

Tax clearance and regular tax filings are also license issues. Failure to submit tax information regularly or obtain tax clearance is a ground for cancellation under Rule 18.

A qualified counsellor must be appointed

Rule 13 requires the institution to appoint a counsellor for providing educational counselling. The counsellor must have completed at least a bachelor’s degree and received educational-counselling training from a university, college, recognized training provider or diplomatic mission.

The institution should keep the counsellor’s academic certificates, training certificate, appointment letter and current contact details. Where the counsellor is a foreign national, the institution must also retain the immigration, labour or other approval required under prevailing law.

Using an unqualified salesperson as the person responsible for counselling creates a direct licensing risk. Marketing staff may assist with communication, but the advice given to students should remain under the control of a qualified counsellor.

The written student agreement is essential

Rule 20 requires the consultancy to enter into a written agreement with every student receiving counselling services. The agreement should state the service fee; the authority, admission conditions and minimum qualifications of the foreign institution; the level, subject and duration of study; scholarships and facilities; the total educational charges and payment method; the qualification to be awarded; equivalence and other prior conditions; and the circumstances in which money will be refunded.

The agreement should reflect the actual service and payment arrangement. A website, advertisement, oral promise or separate letter should not offer a benefit that is omitted from or contradicted by the student agreement.

The Consumer Protection Act, 2075 applies alongside the Rules. A student may therefore have consumer remedies for misleading information, deficient service or financial loss even where the agreement contains a broad disclaimer. The agreement may allocate responsibilities, but it cannot remove statutory duties owed to the student.

No Objection Letter and foreign payments

After a student receives the required foreign-study approval or No Objection Letter, payment to the foreign educational institution must be arranged through a banking channel.

This requirement is consistent with Nepal’s foreign-exchange framework, under which foreign-currency transactions and remittances must be handled through authorized channels and in accordance with Nepal Rastra Bank procedures. The consultancy should not receive or route foreign tuition through informal accounts.

The student agreement and payment record should clearly separate the consultancy’s own fee from tuition or other amounts payable to the foreign institution. This helps prevent disputes, supports tax reporting and shows that the payment was made for the approved purpose.

The consultancy remains responsible after departure

The institution must keep information about students sent abroad and provide online counselling to help resolve problems during their study period. It must also give proper information and assistance concerning accommodation, insurance, tickets, visa services and other relevant matters.

Rule 21 makes the consultancy responsible where its counselling causes a student to become stranded abroad or where the recommended educational institution is found to be operating unlawfully. Reasonable compensation may be determined by considering the student’s mental and financial loss. The consultancy is not responsible where the difficulty resulted from the student’s own conduct.

Monitoring, grading and the digital system

The Ministry may monitor and inspect the institution whenever necessary. Inspection may examine the Schedule 7 standards, transparency of fees and services, student records, financial records, written agreements, complaint handling, tax clearance, audit, student outcomes and arrangements for students abroad.

Rule 22 requires the Ministry to develop a digital system for permits and ongoing reporting. Licensed institutions must enter their basic details, office address, student records, relationships with foreign universities and service-wise fee information. The Ministry may connect the system with the No Objection Letter database and other government systems and may publish a public dashboard.

Institutions should organize their records now in a form that can be transferred to the digital system. The legal duty to keep records already exists even if every feature of the government platform is not yet operational.

Education fairs and seminars

A general operating permit does not automatically authorize every educational fair, exhibition or seminar. A separate application and approval are required under Rule 7.

For a domestic organizer, the fee is NPR 25,000 per day and place in a municipality and NPR 10,000 per day and place in a rural municipality. A foreign organizer requires additional documents and a recommendation from the relevant diplomatic mission, and the prescribed fee is USD 1,500 per day and place.

Rule 7 contains a major restriction: approval will not be granted for an educational fair, exhibition or seminar aimed at Nepali students intending to study abroad. The Rules instead permit, after informing the Ministry, specified programs aimed at attracting foreign students to Nepal or promoting Nepal-related study themes.

An approved organizer must submit a report on the event’s achievements and effects within seven days. Failure to report may affect permission for a later event.

Cancellation, forfeiture and fair procedure

Rule 18 allows the Ministry to cancel a permit and forfeit the security deposit in serious cases. Grounds include operating without renewal, sending students to a closed country, subject or level, non-transparent or non-banking transactions, receiving prohibited benefits, incorrect advice, failure to assist stranded students, financial exploitation, misleading publicity, cancellation of the underlying entity registration and failure to maintain tax compliance.

After cancellation, the Ministry must send the matter to the relevant authority for investigation and action and must publish the cancellation. An institution that wishes to stop business should formally surrender the permit in the prescribed format of Schedule-8 under Rule 19 rather than simply closing the office.

A practical registration sequence

A prospective operator should normally proceed in the following order:

• First, decide the exact services and confirm the domestic ownership structure. 
• Second, register the company or firm with suitable business objects. 
• Third, obtain PAN and the tax registrations needed to issue the invoices required by the Rules. 
• Fourth, secure a compliant office through ownership or a lease of at least three years. 
• Fifth, appoint a qualified counsellor and prepare the required records and systems. 
• Sixth, submit the Schedule 1 application and supporting documents. 
• Seventh, facilitate inspection and correct any deficiency. 
• Eighth, deposit the security amount and pay the government fee when directed. 
• Finally, obtain the permit before advertising or serving students.

Before enrolling the first student, the institution should also finalize its written student agreement, published fee schedule, refund procedure, foreign-institution due-diligence file, banking process, privacy controls, complaint system and online support arrangements.

An existing institution should additionally confirm whether an earlier provincial or local permit was regularized in time, whether the full security deposit has been maintained and whether the one-year Schedule 7 compliance work has been completed.

Conclusion

The Educational Counselling, Language Teaching and Preparatory Classes (Operation and Management) Rules, 2083 introduce a detailed regulatory framework for educational consultancy institutions in Nepal. The Rules strengthen licensing and renewal requirements, increase financial responsibility, prescribe office and infrastructure standards, set minimum qualifications for educational counsellors, require transparent financial transactions, and provide stronger protection for students seeking education abroad.

Educational consultancy institutions should carefully review the Rules before starting operations, opening a branch or applying for renewal. Continuous compliance with licensing, financial, administrative, infrastructure and student-protection requirements is necessary to maintain the operating permit and avoid cancellation, forfeiture of the security deposit or other regulatory action. Institutions that maintain transparent management, qualified personnel, accurate counselling, proper student records and effective internal compliance systems will be better placed to provide reliable services and meet the standards prescribed by the Government of Nepal.

Disclaimer: This article is for general informational purposes only and does not constitute legal advice, advertisement, personal communication, solicitation or inducement. No attorney-client relationship is created through this content. Gandhi & Associates assumes no liability for any consequences resulting from actions taken based on information contained herein.