PCPS

Government Tightens Regulations on Educational Consultancies

New Rules Aim to Curb Fraud and Ensure Transparency
July 08, 2026
Himalayan WhiteHouse
Stamford College
Ismt london

KATHMANDU, July 9, 2026: Government of Nepal has approved the Educational Consultancy, Language Teaching, and Preparation Class (Operation and Management) Regulations, 2083. The new directive aims to bring systemic discipline, transparency, and accountability to the educational consultancy sector, safeguarding students from exploitation and ensuring high-quality service delivery.

The Ministry of Education, Science, and Technology emphasized that these regulations were crafted to protect the interests of students, enforce transparency in service provision, and establish effective oversight of consultancy institutions.

Key Regulatory Changes

The new regulations introduce several mandatory requirements for institutions operating in Nepal:

  • Financial & Licensing Requirements: Consultancies must now deposit a security amount of NPR 2.5 million and pay a licensing fee of NPR 50,000. Licenses will be valid for one year and must be renewed annually.
  • Infrastructure & Staffing: Institutions are required to operate from their own buildings or premises with a minimum three-year lease agreement. Furthermore, consultancies must hire qualified counselors who hold at least a bachelor’s degree and have completed relevant professional training.
  • Mandatory Digital Transactions: To ensure financial transparency, all fee payments must be processed through banks or digital platforms; cash transactions are strictly prohibited. Consultancies must provide formal receipts for all payments and publicly disclose their service fees on their official websites.
  • Student Protection: In the event that a student is stranded abroad or the foreign institution they were placed in is found to be illegal, the consultancy firm will be held liable for compensation. Additionally, students must obtain a 'No Objection Letter' (NOL) before remitting tuition fees through banking channels.
  • Investment & Operations: The regulation mandates 100% domestic investment in educational consultancies, requiring existing firms with foreign investment to transition to local ownership within one year. Furthermore, organizing educational fairs or exhibitions aimed at promoting foreign studies is now prohibited. Other types of educational fairs will require prior approval from the Ministry.

Grading and Enforcement

The Ministry will implement a tiered grading system ('A', 'B', and 'C') for consultancies based on their service quality, performance, and student success rates. The government has also reserved the right to blacklist high-risk foreign universities and prohibit agencies from sending students to such institutions.

Failure to comply with these mandates—including failure to renew licenses, engaging in financial exploitation or fraud, providing misleading information, or tax evasion—will result in severe consequences. The Ministry holds the authority to revoke licenses and confiscate the security deposits of non-compliant institutions.

Stay updated with Edusanjal for further developments in Nepal’s education sector.

Kathmandu Model College