Introduction

The Government of Nepal has introduced a comprehensive regulatory framework for educational consultancies by approving the Educational Consultancy, Language Teaching and Preparatory Classes (Operation and Management) Regulations, 2026. The new regulations aim to improve transparency, accountability, and service quality while strengthening the protection of Nepali students pursuing higher education abroad.

One of the most significant changes is the requirement for educational consultancies to deposit NPR 2.5 million (25 lakh) as a security deposit before receiving an operating license. The regulations also make consultancies financially responsible if students become stranded abroad due to misleading advice or negligence.

This article explains all the major provisions of the new regulations and what they mean for educational consultancies, students, and investors in Nepal.

Overview of the New Educational Consultancy Regulations in Nepal

The new regulations govern:

• Educational consultancy services

• Language teaching institutions

• Language testing centers

• Preparatory classes

• Educational fairs, exhibitions, and seminars

The Ministry of Education is now the primary authority responsible for licensing, monitoring, grading, and regulating educational consultancy institutions throughout Nepal.

NPR 2.5 Million Security Deposit Required for Educational Consultancies

A major reform introduced by the regulations is the mandatory NPR 2.5 million security deposit.

Educational consultancy firms must deposit this amount before receiving their operating license.

The same NPR 2.5 million security deposit is also required for every additional branch opened by the consultancy.

Purpose of the Security Deposit

The security deposit is intended to:

• Protect students from financial losses

• Ensure accountability of consultancy firms

• Improve service quality

• Provide compensation where students suffer damages due to consultancy negligence

Educational Consultancy License Requirements

Every educational consultancy must obtain an operating license from the Ministry of Education before starting business.

The application process includes:

• Submission of an application

• Verification by authorized officials

• Approval by the Ministry

• Deposit of NPR 2.5 million

• Commencement of operations within three months after approval

Operating without a valid license is prohibited.

Educational Consultancy License Fees

The regulations prescribe the following fees.

Security Deposit for Language Teaching and Preparatory Classes

The regulations also cover language teaching institutions.

Preparatory Classes

• Security Deposit: NPR 100,000

• License Fee: NPR 10,000

• Renewal Fee: NPR 5,000

Language Teaching Services

• Security Deposit: NPR 100,000

• License Fee: NPR 10,000

• Renewal Fee: NPR 5,000

Language Testing Centers

• Security Deposit: NPR 500,000

• License Fee: NPR 15,000

• Renewal Fee: NPR 5,000

Approval Required for Educational Fairs and Seminars

Any organization planning to conduct:

• Educational fairs

• Educational exhibitions

• Educational seminars

• Student representative meetings

must obtain prior approval from the Ministry of Education.

Fee Structure

Events conducted without approval are prohibited.

License Validity and Renewal

Educational consultancy licenses remain valid for one year.

Renewal applications must be submitted at least two months before expiration.

Failure to renew on time may result in:

• NPR 10,000 late renewal penalty

• Automatic cancellation after the grace period expires

Qualification of Educational Counselors

Educational counselors must:

• Hold at least a Bachelor's degree.

• Complete recognized educational counseling training.

• Possess the necessary professional qualifications.

Foreign nationals may work as educational counselors only after obtaining approval under Nepal's prevailing laws.

Student Protection Measures

The regulations significantly strengthen student protection.

Educational consultancies must:

• Maintain records of every student studying abroad.

• Provide online counseling throughout the student's study period.

• Publish all service charges on their website.

• Display service fees through a Citizen Charter.

• Ensure tuition payments are made through banking channels after obtaining the required study permit.

These provisions improve transparency and reduce the risk of financial fraud.

Consultancies Must Compensate Students Stranded Abroad

One of the most important provisions states that educational consultancies will be liable if:

• Students become stranded abroad due to poor advice.

• The recommended foreign institution is later found to be illegal.

• Students suffer financial losses due to consultancy negligence.

In such cases, the consultancy itself must compensate the affected students.

Only Domestic Investment Allowed

Educational consultancy businesses must operate with Nepali investment only.

Any consultancy currently operating with foreign investment must transfer ownership within one year to comply with the regulations.

Approved Foreign Universities Only

Consultancies may only recommend universities that:

• Are legally established.

• Are accredited.

• Have recognized quality assurance.

• Are authorized to admit international students.

This provision aims to prevent students from enrolling in fake or unrecognized institutions.

Infrastructure Standards

Educational consultancy offices must maintain minimum infrastructure standards.

These include:

• Office ownership or a minimum three-year lease.

• Earthquake-resistant buildings.

• Fire safety equipment.

• Accessible facilities for persons with disabilities.

• Separate toilets for men, women, and persons with disabilities.

• Free drinking water.

• Library.

• Internet access.

• Student-friendly classroom furniture.

Reasons for License Cancellation

The Ministry may cancel a consultancy's license if it:

• Operates without renewal.

• Sends students to countries not approved by the Government of Nepal.

• Maintains non-transparent financial records.

• Conducts transactions outside banking channels.

• Accepts commissions, gifts, or donations from foreign institutions.

• Provides misleading educational advice.

• Leaves students stranded abroad.

• Exploits or defrauds students.

• Fails to pay taxes.

The Ministry may also confiscate the security deposit.

Consultancy Grading System

The Ministry may grade consultancies into:

• Grade A

• Grade B

• Grade C

The grading will consider:

• Service quality

• Student success rates

• Overall performance

• Compliance with regulations

High-performing institutions are expected to gain greater public trust.

Ministry Can Ban High-Risk Foreign Universities

The Ministry has also been empowered to identify high-risk foreign universities and prohibit educational consultancies from sending Nepali students to such institutions.

This measure is intended to protect students from fraudulent or low-quality overseas education providers.

Conclusion

The Educational Consultancy, Language Teaching and Preparatory Classes (Operation and Management) Regulations, 2026 represent one of the most significant reforms in Nepal's study abroad sector. From the NPR 2.5 million security deposit requirement to mandatory student compensation and stricter licensing standards, the regulations prioritize student welfare and enhance accountability across the industry.

Educational consultancies should review the new rules carefully and ensure full compliance, while students and parents can expect greater transparency, stronger consumer protection, and improved confidence when choosing a consultancy for overseas education.

Frequently Asked Questions (FAQs)

How much security deposit is required to open an educational consultancy in Nepal?

Educational consultancies must deposit NPR 2.5 million as a security deposit before obtaining an operating license.

Is the security deposit required for branch offices?

Yes. Every additional branch also requires a separate NPR 2.5 million security deposit.

What happens if a student becomes stranded abroad?

If the student becomes stranded due to the consultancy's negligence or if the recommended institution is found to be illegal, the consultancy is responsible for compensating the student.

Can educational consultancies receive foreign investment?

No. Under the new regulations, educational consultancies must be owned through domestic investment only.

How long is an educational consultancy license valid?

The operating license is valid for one year and must be renewed annually.

Can the Ministry cancel an educational consultancy's license?

Yes. The Ministry may cancel the license for non-compliance, fraud, financial misconduct, misleading students, tax violations, or other breaches of the regulations.