If you want to start an education consultancy business in Nepal, you must follow specific legal steps to get proper registration and licensing. The government has strict rules for education consultancies, and running one without proper licenses can get you in serious legal trouble.
Education consultancies help Nepali students find opportunities to study abroad. They assist with university applications, visa processes, scholarship searches, and test preparation. With more students wanting to study overseas, this business can be very profitable if you do it legally.
The registration process takes time and money, but it’s necessary to operate legally. Recent changes have made the Ministry of Social Development in Hetauda the main authority for licensing education consultancies in Bagmati Province, not the Ministry of Education as before.
Steps for Registering Education Consultancy
- Company Registration at OCR
- Registration at Tax and Ward Office
- Verification of Consultancy at MoSD
- Preparation of Required Documents
- Inspection from the Ministry
- Issuance of Education Consultancy License
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What Does an Education Consultancy Do?
Education consultancies provide services to students who want to study abroad or find better educational opportunities in Nepal. These companies help students choose the right courses and universities, fill out application forms correctly, get student visas, find scholarships, prepare for tests like IELTS and TOEFL, and get ready for life in a foreign country.
Most consultancies focus on helping students go to countries like Australia, Canada, the USA, the UK, and European nations. They work directly with foreign universities and have agreements to represent them in Nepal.
Why Legal Registration Matters
The government requires all education consultancies to have proper licenses because these businesses handle students’ futures and large amounts of money. Without proper registration, you risk getting shut down, paying heavy fines, or facing criminal charges.
Students and their families trust consultancies with their dreams and savings. The government wants to make sure only qualified, properly trained people run these businesses.
Laws That Control Education Consultancies
Several laws govern education consultancies in Nepal. The main ones are the Companies Act from 2006, the Education Act from 1971, the Foreign Employment Act from 2007, and the Education Consultancy Service Directive from 2016. These laws set standards for how consultancies must operate and what services they can provide.
The Complete Registration Process
Getting your education consultancy registered involves seven main steps. Each step has specific requirements and costs money. The whole process usually takes one to four months if you have all documents ready.
Step 1: Register Your Company
Start by registering your business as a private limited company at the Office of Company Registrar. First, choose a unique name for your company and reserve it online at camis.ocr.gov.np. Then prepare legal documents including your company’s Memorandum of Association and Articles of Association.
You need to decide on your company’s location and share capital. The government recommends at least NPR 5 lakhs as both authorized and paid-up capital. All shareholders must provide their citizenship certificates and National Identity Cards.
Step 2: Get Tax Registration
After company registration, register for taxes at the Inland Revenue Department. You can choose PAN or VAT registration. If you expect to handle more than NPR 30 lakhs per year, register for VAT instead of just PAN.
Bring copies of your company registration certificate, Articles of Association, Memorandum of Association, house rent agreement, and citizenship of the house owner. You also need your company stamp and PAN numbers of all shareholders.
Step 3: Register at Your Local Ward Office
Register your business address with your local ward office. They charge a business registration tax, but you don’t have to go there in person. You need the same documents as tax registration plus a house tax clearance certificate from your house owner.
This step makes your business legal in your local area and allows you to operate from your chosen location.
Opening Your Company Bank Account
Set up a corporate bank account at any Nepali bank and deposit your required investment amount. Get your share registry from the Office of Company Registrar within three months of company registration. This proves your company has the financial backing it claims.
Licensing Requirements from Ministry of Social Development
After completing basic company registration, apply for your education consultancy license from the Ministry of Social Development in Hetauda. This is the most important step because you cannot legally operate without this license.
Required Documents for Licensing
The ministry requires many specific documents. You need a completed application form with a NPR 5,000 non-refundable fee, copies of your company registration certificate, Articles of Association, Memorandum of Association, and PAN/VAT certificate.
Property documents include your house rent agreement (minimum 2 years), house owner’s citizenship certificate, and proof of property ownership like Lalpurja. If your company is over one year old, provide tax clearance certificates, audit reports, and annual compliance letters.
Staff and Partnership Requirements
Every education consultancy must have at least two qualified education counselors. These counselors need Bachelor’s degrees or higher, citizenship certificates, offer and acceptance letters, and training certificates from TITI (Technical and Vocational Education Training Institute).
You must also have signed agreements with at least two foreign universities. Provide copies of these agreements, university profiles, and official representation letters proving you can legally represent these universities in Nepal.
Ministry Inspection Process
The Ministry of Social Development conducts mandatory inspections of all education consultancies before granting licenses. During inspection, they check if you have qualified counselors, proper office space, transparent fee structures, and all required documentation.
Inspectors verify that your counselors are properly trained and that you have the necessary infrastructure to serve students effectively. They also check if your partnerships with foreign universities are genuine and legally valid.
Education Consultancy License Process in Nepal
Education Consultancy Company Registration in Nepal
Costs and Timeline for Registration
The total cost of registering an education consultancy ranges from NPR 1,75,000 to NPR 2,50,000. This includes government fees, legal service charges, document preparation, and ministry-level approvals.
Government fees start from NPR 1,000 at the Office of Company Registrar, around NPR 10,000 at the local ward office, and NPR 5,000 as application fee at the Ministry of Social Development. Additional costs include office setup, legal services, and operational expenses.
The timeline varies from 30 to 100 working days depending on how quickly you submit documents and complete each step. Having all documents ready beforehand speeds up the process significantly.
Annual Compliance Requirements
After getting your license, you must renew it every year within three months of the financial year end (before the end of Ashoj). Submit annual operational reports to the Ministry of Social Development, conduct financial audits, and renew your company registration annually.
Failure to complete annual compliance can result in license cancellation and legal penalties.
Foreign Investment in Education Consultancies
Foreign investors can start education consultancies in Nepal but with restrictions. Foreign ownership is limited to 51%, meaning Nepali citizens or companies must own at least 49% of the business.
Foreign investors must invest a minimum of USD 150,000, with USD 25,000 required during company formation and the rest invested over time as the business grows. They must also get approval from the Department of Industry and follow all foreign investment regulations.
The process for foreign investors includes additional steps like getting foreign investment approval, proving the source of investment funds, and meeting higher capital requirements than local investors.
Getting professional legal help makes the registration process much easier and faster. Experienced lawyers know exactly what documents you need, how to prepare them correctly, and how to deal with government offices efficiently. This saves you time, money, and prevents costly mistakes that can delay your license.
How to start a consultancy business in Nepal?
1. Choose a business structure (Private Limited, Partnership, or Sole Proprietorship).
2. Register the company at the Office of Company Registrar (OCR), Nepal.
3. Obtain a PAN/VAT registration from the Inland Revenue Department (IRD).
4. Secure required industry-specific licenses if applicable.
5. Open a business bank account and set up financial records.
Where do I register as a consultant?
Consultants must register their business at the Office of Company Registrar (OCR) if operating as a company or partnership. Additionally, obtaining a Permanent Account Number (PAN) certificate from the Inland Revenue Department (IRD) is mandatory for tax compliance. Some specialized consultancy services may also require sector-specific approvals.
How much money is required to register a company in Nepal?
The government registration fee varies between NPR 1,000 to 15,000, depending on the authorized capital. PAN and VAT registration are free of charge, but professional service fees for legal and consultancy assistance may apply. While Nepal does not have a strict minimum capital requirement, an initial investment of at least NPR 100,000 is recommended to cover business setup costs.
How to register a coaching center in Nepal?
1. Register as a business at the Office of Company Registrar (OCR).
2. Obtain PAN/VAT registration from the Inland Revenue Department (IRD).
3. Get approval from the local municipal office or Education Ministry if needed.
4. Acquire a trade license and comply with tax regulations.
Can a foreigner own an education consultancy in Nepal?
Yes, foreigners can own a company in Nepal, but they must obtain Foreign Direct Investment (FDI) approval from the Department of Industry (DOI). The minimum investment required is NPR 20 million (approximately USD 375,000), and foreign capital inflow must be approved by the Nepal Rastra Bank (NRB). However, some industries have restrictions on foreign ownership.
Can a foreigner open a consultancy in Nepal?
Foreigners can open a consultancy in Nepal through FDI approval from the Department of Industry (DOI). A minimum investment of NPR 20 million is required, along with approvals from the Office of Company Registrar (OCR), Inland Revenue Department (IRD), and Nepal Rastra Bank (NRB). Certain consultancy sectors may have restrictions, so checking industry-specific regulations is crucial.
