How to Start an Educational Institution in India

Starting an educational institution—be it a school, college, or training academy—in India involves a structured, multi-step legal process. The goal is to ensure that education is provided on a non-profit basis, maintaining transparency, infrastructure quality, and curriculum standards. The process can span over 12–24 months, depending on approvals, infrastructure development, and board affiliations.

To operate legally and ethically, an educational institution must be set up through a non-profit entity such as a Society, Trust, or Section 8 Company under the Companies Act, 2013.

Why a Section 8 Company for Starting a School?

A Section 8 Company is a not-for-profit organization registered under the Companies Act, 2013, with objectives that promote education, social welfare, or charity.

Benefits of Using a Section 8 Company Model:

  • Separate legal identity and limited liability

  • More credible than a trust or society

  • Easier compliance for foreign grants or collaborations

  • Recognized by educational boards like CBSE and ICSE

  • Transparent governance structure

Entities Eligible to Open an Educational Institution

According to Indian law, private individuals or companies cannot directly open for-profit schools or colleges. The institution must be registered as one of the following:

  • Registered Society under the Societies Registration Act, 1860

  • Public Charitable Trust under the applicable State Trust Act

  • Section 8 Company under the Companies Act, 2013

These entities are legally bound to operate on a non-profit basis, with all income reinvested for educational development.

Steps to Start an Educational Institution in India

1. Formation of Governing Entity

Register one of the following:

  • Section 8 Company (most preferred now)

  • Society (at least 7 members)

  • Public Charitable Trust

Set up a governing board with a Chairman, Secretary, and Treasurer, and draft a Memorandum of Association (MoA) clearly stating educational objectives.

2. Land Procurement and NOC

Land Options:

  • Owned by governing body

  • Allotted by Development Authorities (like DDA, MCD)

  • Rented land (requires Land Use Certificate)

Required Approvals:

  • No Objection Certificate (NOC) from State Department of Education

  • Essentiality Certificate (EC) – mandatory to obtain land from government authorities

    • Validity: 3 years

    • Must commence construction within this period

  • Letter of Sponsorship – for subsidized land from authorities

Minimum Land Area (as per CBSE norms):

  • Urban: 1–2 acres

  • Rural: Varies by board and state

3. Construction & Infrastructure Readiness

The school must comply with board-specific norms such as:

  • Classrooms with required carpet area

  • Science and computer labs

  • Library, administrative rooms

  • Playground (mandatory)

  • Separate toilets for boys, girls, and staff

  • Safety and accessibility features

Obtain:

  • Building Fitness Certificate

  • Completion Certificate

  • Sanctioned Building Plan

4. Board Affiliation Process (CBSE/CISCE/State Board)

Initial Affiliation:

  • Provisional for Classes I–V or I–VIII

  • Application for recognition from DoE within 2 years

Affiliation Boards:

  • CBSE – Central Board of Secondary Education

  • CISCE – Council for the Indian School Certificate Examinations

  • State Education Boards

Inspections:

  • Conducted after submission of infrastructure and staff details

  • Permanent affiliation is granted only after satisfactory verification

List of Licenses & Certificates Required

Document Name Issuing Authority
Society/Trust Registration Certificate Registrar of Societies/Trust
Section 8 Incorporation Certificate MCA (Ministry of Corporate Affairs)
Essentiality Certificate (EC) State Department of Education
Certificate of Recognition MCD/DoE
Certificate of Upgradation DoE
CBSE/CISCE Affiliation Certificate Concerned Board
Building Fitness Certificate Municipal Authority
Health & Sanitation Certificate Municipal Health Department
Water Testing Report Local Water Board
Land Ownership Documents or Land Use Certificate MCD/DDA/Landlord
Scheme of Management Department of Education
Auditor’s Report & Fund Details (₹2 lakh reserve) Chartered Accountant
Staff Appointment Statement As per Board Guidelines
No Encumbrance/Loan Certificate Bank

Key Documents for Essentiality Certificate (EC) Application

  • Memorandum of Association (MoA)

  • Scheme of Management

  • Reserve Fund Affidavit

  • Land ownership proof or NOC

  • Project report & proposed infrastructure layout

  • Experience of promoters in education

  • List of governing members with KYC details

  • Proposed fee structure

  • Expected enrolment details

Timelines and Estimated Costs

Stage Time Required
Entity Registration (Section 8) 20–30 working days
Land Allotment/NOC 3–6 months
Infrastructure & Construction 6–12 months
Board Affiliation & Licensing 6–9 months post infra

Estimated Cost: ₹1–5 crores depending on land, location, and scale

Conclusion

Starting an educational institution in India is not just about passion—it’s a regulated, multi-layered process requiring legal, financial, and infrastructural planning. Using a Section 8 Company model is the most transparent and compliant way to open a school or college in 2024.

From land procurement to affiliation, building certifications to legal registrations—each step must align with local and central educational norms. Having expert legal and tax advisors by your side is essential to avoid delays or regulatory complications.

Looking to start a school or college?
Get end-to-end support with Section 8 company registration, land approvals, and CBSE affiliation. Consult our expert team today.