Starting A School: Some Key Considerations

A brief look at legal and regulatory aspects for anyone who wants to enter greenfield primary education in India…

“Education is an ornament in prosperity and a refuge in adversity”

- Aristotle

There is no doubt that in a country as diverse as India, the need for education is paramount – it needs to act as an ornament as well as a refuge. It is part of the critical social sector that needs greater focus from private players.

Private studies indicate that the Indian education sector (at present pegged at USD 100 billion or higher) is expected to grow to USD 180 billion by 2020. This statistic itself, along with the sector’s proverbial recession-proof nature, makes it lucrative. Therefore, we discuss in this series some of the key legal and regulatory considerations for anyone who wishes to set up or invest in primary or higher education in India.

Setting up a School

In this piece, we restrict the discussion to recognized, regulated, and brick and mortar schools that carry a student at least till the tenth standard, to the exclusion of the many schools that either end by the eighth standard (for lack of affiliation with a board) or continue without affiliation.

Before establishing a legal entity or a vehicle that would carry out the activities, it is advisable to first determine what affiliation the proposed school would seek. Hereunder, we will illustratively look at certain features of three nationally prominent boards:

(i) Council for Indian School Certificate Examinations (“CISCE”);

(ii) Central Board of Secondary Education (“CBSE”); and

(iii) International Baccalaureate (“IB”).

All the above have their own independent guidelines that an applicant school has to comply with to receive affiliation, and thereafter, retain affiliation. Some of the key features of each are provided below, with a clear noting that even the CISCE and CBSE, though closer in intent, are not identical.

CISCE