How to start an educational institution/school in India?

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Over the years, the government has taken various initiatives to make educational institutions accessible to the society at large in a bid to ensure education for all. Although government schools are the largest provider of elementary education in our country with over 80% of all recognised schools being run or supported by the government, but still the demand for private schools is on the rise. We need more and more good quality competent schools to spread the social cause of education and to increase the literacy rate in India.

What is an Educational Institution?

Educational institutions mean a preschool, a public or private elementary or secondary school, an institution of undergraduate higher education; moreover, an institution of graduate higher education, or an institution of professional education, or an institution of vocational education, that operates a program of scholarly research.

Investing your money in an educational enterprise is a promising proposal as it is a prospering sector with an extending demand for schools. With 99% of the children not being enrolled in an organised preschool, there is a huge untapped potential in the education sector. If you are exploring the idea of opening your own school but are daunted by the whole procedure, here we are with a step by step guide to ease out the process for you:

How to start an Educational Institution/School?

  • To start an Educational Institution ( Schools/ Colleges) can be a long, tiring, expensive, and gruesome process in India. There are a number of licenses, permissions, and registrations one needs to take care of before venturing into this domain. The process usually takes a couple of years under normal circumstances keeping aside the period taken for the construction of the building and forming the governing body.
  • The time taken on infrastructure depends on the size of the project and investment made to expedite the process. It may range from 6-9 months for the construction following which the administration can start accepting the applications. Till Class V, the approval provided by the municipality is sufficient but, for classes VI-VIII the Department of Education provides the required consent, which also provides recognition for the higher classes. Application for recognition with respect to the latter stages must be made within 2 years.
  • School authorities can also get approval from CISCE or CBSE but they will have to follow the guidelines laid down by these boards with respect to curricula, textbooks, and salaries.
start an educational school/institution

Documents requirement for opening a school in India

  • Memorandum of Association,
  • Affidavit regarding relationship of society members,
  • Copy of Reserve Fund for Rs. 2 lakhs from the bank,
  • Affidavit from management regarding proper operation of school, as per Delhi School Education Rules, 1973,
  • Undertaking regarding fees and other charges,
  • List of members of society with full particulars,
  • Details of land and building,
  • Project report of proposed school,
  • Experience of society/members in the field of education,
  • Scheme of Management,
  • Documents regarding ownership of land allotted to school,
  • Auditor’s statement of account(s),
  • Staff statement as Performa,
  • Rates of fee and other fund charges,
  • Enrollment of students.

Licenses to be obtained for starting an school/educational institution:

  • Registration Certificate of Society – Societies Recognition Act, 1860,
  • Essentiality Certificate DoE,
  • Further, Certificate of Recognition MCD/ DoE,
  • Moreover, Certificate of Upgradation DoE,
  • Further, Certificate of Affiliation CBSE,
  • Certificate of MCD
  • Similarly, Certificate from UGC
  • Likewise, an affidavit regarding the proper purchase of land and no violation of master plan in the land used,
  • Further, the MCD/Development Authority of the Concerned State,
  • Similarly, Site Plan of the Building/Sanctioned Building Plan approved by MCD/DDA,
  • Additionally, building Fitness Certificate MCD,
  • Additionally, Health Certificate MCD,
  • Further, water Testing Report The water board of the concerned state,
  • Additionally, completion Certificate DDA,
  • Similarly, duly approved Scheme of Management DoE,
  • Further, no Loan Certificate against FD issued by the bank Bank,
  • Hence, Land Use Permitted Certificate (in case of rented land) Landlord.

Step by step process to open a school in India

Here is the step by step process of opening a school in India

  1. Prepare a blue print: The very first step to start a school is to plan everything in advance. Develop a business plan on how your school is going to operate over its first five years. Plan the location, faculty, teaching subjects etc. This plan will act as a blue print, on the basis of which your school will operate in future.
  2. Develop a budget: After making the blue print, the next important step is to arrange your finances. To open a play school anywhere in India is going to fetch a minimum of Rs 6-8 lakhs from your account. A primary school will require an investment of about Rs 8-10 lakhs. For setting up a 10+2 school, the cost can go up to Rs 2 crores. Plan your budget distribution in building the school, making furniture, recruiting the staff, advertisement charges etc.
  3. Associate with a trust or society: In most areas any school with classes up till kindergarten can be opened as a proprietorship/private limited company/trust/society/LLP etc. However, schools running from classes 1 onwards needs to be run under a registered trust or society.
  4. Finding a suitable land: The next step is to acquire land for your school. You will require a 2000 sq.ft of area on the ground floor for a play school. The selected land for opening a primary school should be around 6000 sq ft to 7000 sq ft, while a senior school will need an area of upto 2 acres. After getting an NOC from the Department of Education, you can buy the land from land owing agencies. Instead of buying a land, you can also take it on lease but with rental agreement for at least 30 years.
  5. Start early: Once you finalise the land, start planning its construction without delay. Appoint a contractor or an architect to design your school’s building and its office. When opening a school, it is important to take care that you have students’ safety measures in place, big playgrounds, colourful classes, proper ventilation and sanitation etc.
  6. Approach the Department of Education for recognition: After your school is ready and all the construction work is finished, the next step is to get the recognition. Apply to the Department of Education of the State Government for your school’s recognition.
  7. Recruiting qualified staff: Appoint the Head of your school and your business manager. Start interviewing candidates and select qualified and experienced staff for office, subject experts as teachers, full time maids etc.
  8. Promotional strategies: Promote your school through newspaper advertisements, brochures, hoardings, banners etc. Design a website and set up a mailing list to keep interested parents in touch with your progress.
  9. Pre-launch: After promoting your school, open the school office and begin admission interviews. Ask your appointed teachers to plan curriculum, teaching strategies, learning environment, buy teaching aids etc.
  10. Opening ceremony: You can schedule a formal opening ceremony, which will be a festive occasion, before or after one week from the beginning of your school’s session. Prepare a welcome speech addressing students and their parents about your goals and how your school is going to benefit the society. Arrange a feast for the guests.

Conclusion

The educational sector is the most promising and growing industry in the Indian market. The Indian education sector is the biggest and fast-growing business model. However, running an educational institution is a task and has been a challenge in itself. Additionally, the sector which was considered largely to be charitable trust has now turned into an industry. Moreover, starting a new venture in this sector can be a profitable one if a systematic procedure is followed.  

CA Pulkit Goyal, is a fellow member of the Institute of Chartered Accountants of India (ICAI) having 10 years of experience in the profession of Chartered Accountancy and thorough understanding of the corporate as well as non-corporate entities taxation system. His core area of practice is foreign company taxation which has given him an edge in analytical thinking & executing assignments with a unique perspective. He has worked as a consultant with professionally managed corporates. He has experience of writing in different areas and keep at pace with the latest changes and analyze the different implications of various provisions of the act.

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