The government has launched a sweeping regulatory overhaul of educational consultancies and colleges operating under affiliations with foreign universities, introducing a comprehensive set of rules for the first time.

Minister for Education and Sports Sasmit Pokharel, who is also the government spokesperson, announced on Wednesday that the Cabinet had approved the Educational Consultancy, Language and Preparation Classes (Operation and Management) Regulations 2026 and the Educational Programmes under Foreign University Affiliation (Operation) Regulations 2026.

Until now, the two sectors had been governed by ministry-issued guidelines. The new regulations require cash deposits, annual licence renewals, student data reporting, annual and financial disclosures, and compliance with new infrastructure standards.

Educational consultancies must deposit Rs2.5 million to establish an office or open a branch. Existing consultancies will also be required to make the deposit when renewing their licences, replacing the previous system under which no security deposit was required.

Foreign-affiliated colleges must deposit Rs2.5 million for postgraduate programmes and Rs3.5 million for undergraduate programmes. Previously, deposits varied by programme and were capped at around Rs3 million.

“Colleges must deposit Rs2.5 million for postgraduate programmes and Rs3.5 million for undergraduate courses,” the approved regulations state. “To add a new programme at the same level, an additional amount equal to 50 percent of the fixed deposit must be paid.”

The regulations also require foreign-affiliated colleges to partner only with universities ranked among the world’s top 1,000. Although a similar provision existed under previous guidelines, officials say it was never effectively enforced.

To qualify, the parent university must have participated in either the Times Higher Education or QS World University Rankings for five consecutive years and secured a top-1,000 ranking at least once.

The 49 foreign-affiliated colleges currently operating in Nepal have been given three years to comply.

“If any educational institution fails to present proof of global ranking within the stipulated three years, its operating licence will be revoked,” the regulations state.

A previous study by the Ministry of Education found that most foreign-affiliated colleges currently operating in Nepal do not meet the ranking requirement.

The regulations also require colleges to obtain Quality Assurance and Accreditation (QAA) certification from both the relevant authority in the parent university’s home country and Nepal’s University Grants Commission (UGC). Existing institutions have three years to secure accreditation, while newly established colleges have five years. Failure to do so will result in the automatic cancellation of their licences.

The regulations also tighten rules on admissions and class sizes. Colleges may admit students only twice a year, in line with the academic calendar, ending the practice of rolling admissions throughout the year.

Each class section is limited to a maximum of 30 students, or a lower number if prescribed by the parent university. Even where the university allows larger class sizes, no more than 30 students may attend a lecture in a single classroom.

The requirement to provide scholarships has also been retained. Foreign-invested colleges must offer full scholarships to at least 20 percent of students, while domestically owned institutions must provide scholarships to at least 10 percent, in accordance with government criteria. Although the provision existed under previous guidelines, it was rarely enforced.

Despite recommendations from experts that foreign-affiliated colleges be regulated by the University Grants Commission, the new regulations keep them under the Ministry of Education.

The regulations also prohibit a college from operating programmes in affiliation with more than one foreign university. Institutions currently holding multiple affiliations have five years to retain only one.

Although these colleges follow foreign curricula, they will now be required to offer a compulsory Nepal Studies module. The ministry says the provision is intended to ensure students gain an understanding of Nepal’s identity, history and culture.

The regulations also set new infrastructure requirements. Foreign-affiliated colleges must eventually operate from land and buildings they own. Newly licensed institutions have five years to build facilities on their own land, while existing colleges have been given 10 years.

The minimum land requirement has been set at around 1,500 square metres (three ropanis) in Kathmandu Valley, 3,000 square metres (six ropanis) in the hills, and 5,000 square metres (15 katthas) in the Tarai. In addition, students transferring credits to a foreign university may transfer no more than 40 percent of their coursework.

Laxman KC, president of the International Education Providers’ Association of Nepal (IEPAN), welcomed the regulations, saying they provide a stronger legal basis for foreign-affiliated colleges. An amendment to the Education Act through an ordinance paved the way for the new rules.

However, KC said the government had ignored the association’s recommendations to remove the global ranking requirement and set a minimum enrolment of 48 students per intake.

“We do not have major disagreements with the rest of the regulations. The government is trying to regulate the sector, and we see that as a positive step,” he said.

The Educational Consultancy Association of Nepal (ECAN), however, criticised the regulations, saying they were introduced without adequate consultation.

ECAN president Laxman Paudel argues that requiring a Rs2.5 million security deposit would force many consultancies out of business.

“Introducing regulations to oversee the sector is a positive step, but this feels like an attempt to stifle us,” Paudel said.

The new regulations also prohibit foreign educational institutions from organising education fairs in Nepal aimed at recruiting students for overseas study.

“Approval will not be granted to organise educational fairs, exhibitions or seminars targeting Nepali students for study abroad,” the regulations state.

However, events promoting enrolment in domestic universities or attracting international students to Nepal under initiatives such as “Study in Nepal” may be organised with prior approval from the Ministry of Education.

Educational consultancies will also be required to conduct all financial transactions through the banking system, ending the use of cash payments. In addition, they must pay an education equity fee on income earned from students or educational institutions, as determined by the government. The government has already imposed a three percent education service tax, through the national budget, on students attending private educational institutions.

The regulations also bar foreign investment in educational consultancies. Existing firms with foreign ownership must convert to 100 percent domestic ownership within a year.

The Cabinet-approved regulations prescribe minimum qualifications for educational consultants. Consultants must hold at least a bachelor’s degree or have completed recognised educational consultancy training conducted by a diplomatic mission.

Consultancies will also be graded according to the quality of their services. The Ministry of Education will classify agencies into A, B and C categories based on student outcomes, service quality and the number of complaints received.

The regulations also impose greater accountability on consultancies.

“If a student is stranded abroad or an educational institution is found to be fraudulent because of misleading advice provided by a consultancy, the consultancy will be held fully responsible,” the regulations state. “In such cases, the consultancy must provide reasonable compensation based on the student’s financial loss and mental distress.”

Before providing any service, consultancies must sign a written agreement with clients specifying consultancy fees, the agency’s registration details, admission conditions, scholarship provisions and refund policies.

The regulations also require consultancies to operate either from the premises they own or from properties leased for at least three years. Offices must have separate toilets for men and women and be accessible to persons with disabilities.

Consultancies will now be required to pay an annual licence renewal fee of Rs25,000, replacing the previous system under which no renewal fee was charged.

The government has also been given the authority to revoke licences and confiscate security deposits. Deposits may be forfeited and licences cancelled if a consultancy fails to renew its registration, financially exploits or defrauds students, provides misleading information, fails to submit tax returns, or leaves students stranded abroad because of negligent or misleading advice.

Since 2017, educational consultancies have also been able to register with provincial governments. The new regulations allow those firms to transfer to the federal system and renew their licences with the Ministry of Education.

According to the ministry, around 1,500 educational consultancies are currently operating across the country, but only 924 have renewed their licences with the ministry.

The ministry had suspended licence renewals after provinces, including Bagmati, began registering consultancies independently. Renewals resumed in 2024 under the previous guidelines.

While the new regulations allow language training centres and test preparation institutes to register with provincial governments and remain under provincial oversight, educational consultancies must now register and renew their licences exclusively with the federal ministry of education.