Nepal

Nepal Plans Rs 25 Lakh Deposit Rule for Education Consultancy — Here Is What You Need to Know

4 min read
Nepal Plans Rs 25 Lakh Deposit Rule for Education Consultancy — Here Is What You Need to Know

The Nepal government is preparing strict new rules for educational consultancies — the agencies that help students go abroad for study. The new regulation has already passed through both the Finance Ministry and the Law Ministry. It is now waiting for Cabinet approval, which could happen as early as next week.

The rule is still in draft form and has not been officially passed yet. But sources inside the ministry say it is very likely to be approved without major changes.

The Biggest Change — Rs 25 Lakh Deposit

The most talked-about part of the draft is the mandatory deposit. Any consultancy that wants to legally operate must deposit Rs 25 lakh with the government just to open its main office. If the same consultancy wants to open a branch anywhere in Nepal, it must deposit another Rs 25 lakh for each branch. This money sits as a security deposit, not a fee — but it still locks up a huge amount of capital that small businesses simply may not have.

Registration and Renewal Fees

On top of the deposit, the draft sets clear fees for getting and renewing a license. A consultancy must pay Rs 50,000 to get its registration certificate. Each branch costs an additional Rs 20,000. Renewal must be done every year and costs the same — Rs 50,000 for the main office and Rs 20,000 per branch. However, sources say the renewal fee may still be corrected in the final draft, since the original version was written for three-year renewals and the fee was never updated when it was changed to annual.

Rules for Language Test Centers

Centers that run language tests like IELTS, PTE, Duolingo, Japanese language tests, or Korean language tests fall under a separate category. They must deposit Rs 5 lakh, pay Rs 15,000 to register, and pay Rs 5,000 each year to renew.

Rules for Preparation Classes and Language Schools

Institutes that run test preparation classes or general language teaching courses — such as English speaking classes or IELTS coaching — must deposit Rs 1 lakh. Registration costs Rs 10,000 and annual renewal costs Rs 5,000.

Rules for Education Fairs and Seminars

The draft also covers education fairs and university expos. A Nepali organizer must pay Rs 25,000 per day if the event is held in a municipality area, and Rs 10,000 per day in a rural area. Foreign organizations that hold fairs, put up stalls at someone else’s fair, or run seminars in Nepal must pay USD 1,500 per day.

How Consultancies Must Deal With Students

The draft includes rules about how consultancies handle student money and information. Every consultancy must sign a written agreement with each student before providing any service. No cash can be collected from students — all payments must go through a bank. The consultancy must also keep a student tracking system so students can be monitored after they go abroad.

Foreign Investment Is Banned

The draft completely bans foreign investment in the educational consultancy sector. Any consultancy that currently has foreign ownership must transfer to full Nepali ownership within one year of the rule being passed.

What Happens to Existing Consultancies

Around 924 consultancies had applied for renewal but were kept on hold because there were no clear rules. Once the Cabinet passes this regulation, those renewals will be processed. New applications will also open for consultancies that want to register fresh.

Fee TypeAmount
Consultancy main office depositRs 25,00,000
Each branch depositRs 25,00,000
Consultancy registration feeRs 50,000
Each branch registration feeRs 20,000
Annual renewal feeRs 50,000
Each branch renewal feeRs 20,000
Language test center depositRs 5,00,000
Language test center registrationRs 15,000
Language test center renewalRs 5,000
Prep class / language school depositRs 1,00,000
Prep class / language school registrationRs 10,000
Prep class / language school renewalRs 5,000
Education fair (municipality, per day)Rs 25,000
Education fair (rural area, per day)Rs 10,000
Foreign organizer fair/seminar (per day)USD 1,500
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