Coaching Centre: Licensing And Registration Norms in India

With the ever growing population there are various hitches that are faced by Indians on a day to day basis. The main concern that lies with an average parent is whether their child would be able to crack the entrance exam of their interested stream. With the growing competition between the students, the examination boards have no other option but to raise the bar with respect to the difficulty level of the test to ensure that the top students are selected for enrollment in their colleges.

Every student has the ambition to do his best and obtain the highest possible score. However, this is not an easy task and, in most cases, not achievable without support and guidance of an experienced and knowledgeable mentor.

This article highlights the licenses and registrations that are required to be fulfilled if you believe that you have the right tutoring skills and have the intention to set up a coaching centre to show students the perfect route to take while preparing for the examinations.

Coaching Centre Registration Essentials

Coaching Centre has become an integral part of the education system in India. The popularity of coaching institutes has seen an increase of 35% over the past five years.

It is estimated that about 95% of the high school students take up coaching classes for most of the subjects.

It must be noted that if your intention is to conduct a small scale coaching centre, there are no licenses that’re required to be obtained.

But, if your coaching centre  intends to be the size of an institution, you would need to get a trade license and pay tax for the revenue generated through the centre.

If the income exceeds 9 lakhs per annum, registration of the business becomes compulsory and service tax becomes payable within 30 days.

Registration of your business would depend on the structure you would like to employ. The 3 main option that would be available are:

  • Sole proprietorship
  • Partnership
  • Company

Must Read: Things to consider while setting up a Coaching Institute

Shops And Establishment License For Coaching Centre

Each of these business structures have their own form of registration requirements but an aspect that remains common to all three forms is the Shop and establishment license which is given by the inspector of that area.

All businesses are required to be registered under the Shops and Establishments Act with the inspectorate of that area. This must be done within a month’s time of setting up the business- subsequent to which a statement is to be issued to inspector.
This statement that you send to the inspector will contain-

  • Name of the employer,
  • The name and address of the business including the Postal Address,
  • Category of business,
  • Number of employees employed,
  • Date on which the establishment commenced business.

Documents for registration under this act are-

  • Commercial Address Proof,
  • Identity Proof,
  • Pan Card,
  • Fee payment Challan.

The processing fee for this license is usually between 125 rupees  to 12,500 rupees-depending upon the number of employees and manpower you are employing for the business.

A license shall be issued immediately if all the details in the application are accepted.

Obtaining A Trade License For Coaching Centre

A trade license or a business license is a permit that is issued by government authorities which enables individuals or companies to conduct their business within the government’s territorial jurisdiction.

Basically, it allows the person who intends to start a business to do so legally.  Every geographical location or jurisdiction often requires its own localized license with respect to the various taxes imposed in the said jurisdiction, which explains why trade licenses vary between countries, states, and local municipalities.

  • An application must be filed with the local municipal corporation of the area for obtaining a trade license.
  • The license must be produced before the commencement of the business.
  • The application must be received from the business establishment 3 months before the commencement of activity. Moreover, once a license is issued, it has to be renewed periodically to ensure that the business is being carried out in accordance with the local laws.

There are various documents that’re required to be provided and this depends on the place of the operation of the said business.

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The place of business:

  • If owned by petitioner, the tax bill to be produced.
  • If a tenant, the rent bill to be produced.
  • If a lessee, the lease-deed to be produced.
  • If relative/person granted rent free accommodation by the premises owner, consent letter from the owner to be produced.
  • If a person is granted rent free accommodation by any bonafide tenant, consent letter- along with the current CE of the tenant to be produces.
  • If a sub-tenant, the consent of the owner of the premises will also be needed to be produced along with documents viz. rent bill, current CE etc. of original tenant.

In case of Companies/Private Limited Companies, the following documents are to be produced along with the application:

  • Memorandum/Articles of Association,
  • Declaration in Form No. 32 which speaks of the number of managing directors of the company,
  • Form No. 18 which speaks of the registered office of the company,
  • Proof of occupancy.

In case of a Partnership Firm, the Partnership deed to be produced.

Along with the form and the documents, one has to provide an affidavit/declaration which certifies that in case of any discrepancies or any illegal activity on the behalf of the person or company who want to start a business, the certificate of enlistment will be revoked.

The Municipal Commissioner, after making necessary enquiries within thirty days of the receipt of the application, shall, if satisfied, grant the certificate of enlistment if the application is in order, or shall reject the application if it is not in order.

Opening A Current Account

Another step which remains common is to have a current account in your name or the name of your coaching centre in any nationalized banks.

Procedure:

  • A service tax registration number and a VAT/CST number along with a letter from a CA stating- the nature of your business- letterhead having the firm’s name and address and stamp in the name of the proprietor.
  • After you submit all these documents and registration copies to the bank, you can obtain a current account for your business.

You are required to have a minimum bale ranging from give to twenty five thousand in this account.

Service Tax Registration

The Indian government requires us to pay service tax if it is expected that the turnover would be more than 9 lakhs.

The application for such registration has to be filled through ST-1 form which can be submitted online after creating an account on the following page :

https://www.aces.gov.in/STASE/ui/jsp/common/registerWithACES.do

This’s all about Coaching Centre: Licensing and Registration norms for now. Did you find this post useful?  Let us know in the comments section below. Don’t forget to Share!

 

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43 COMMENTS

  1. it is a wonderful blog i really like this. it is provides us useful information. it is a unique blog. after read this blog I find that this is a useful information for me.

  2. your blog is very good. we provide best coaching insstitute in jaipur for education. if you want join so visit our website.

  3. It is a nice article. This article share such a great information about coaching center licensing and registration norms. We are the best ielts institute in jaipur.

  4. Hai I’m jai I’m doing abacus program in different schools with my team…did I need to register my academy and I need open current account on academy name what to do for that…..

  5. Hi, I m running a play school as well as daycare in small Flat. In evening small kids tuition classes n dance classes too. Does it need any trade license for any of above or all of above in combined or separately. Plzzz guide me.

  6. Hello all,
    This is Ankita and I am taking designing and horticulture courses at my home, I would like to ask what kind of registration required for provide a valid certificate for the course. Please help me out. Also I have registered my business in udyog aadhar, so i have that certificate.

    Thanks.

  7. I want to open English speaking class in my own shop and i have License of shop act under food category.
    The students will be not more then 10 per month and expected income not more then 5 Lacs per annum. I am in confusion now what kind of Lic. need to start this business.

  8. You can register for Udyog Aadhaar, which is free.
    For a annual income of less than 5 lacs no need of tax registration.
    Please inform others also

  9. Hi,
    This is really helpful information!
    As such I want to Open a Learning Institute for Art n Craft and Dance…..
    Is there any registration required for the same?
    I am Hobby Ideas Fevicryl Expert Teacher. Now I want to do all things on a big scale.
    So, what kind of registrations / licenses required, so that I can provide certificates to my students. Offcourse at present my earning is less than my expenses of raw material and it is in within 50,000/- per annum.
    Pls advice….

  10. Hi, I am planning to start a coaching center for SSLC students in Bangalore.
    I am the only person who will teach and depending on the budget, I will hire the teachers.
    Could you please help me with the registration or any tips.

    Thank you

  11. I would be happy to know the rules and regulations who makes an obligation on coaching institute to obtain a trade license. As per my knowledge I couldn’t found any law which makes it mandatory.
    Further I would like to add that such information shall not be passed until there is a sourced regarding the information

  12. Sir
    I’m Rahul, I am an artist of Mithila Madhubani painting. I want to start mithila Painting classes.I want to know that what is the legal process for start mithila painting classes.

    Regard With
    Rahul Jha

    • Hello Rahul JHA first of all you will have to register your coaching centre under shope act. for that you will have to take rent paper from your honour or you can take it from your parents if you are going to start your coaching institute. there are some other important information please contact me by mail. I will be happy

  13. Hi everyone,
    I am Manish and running an online website for a computer course, I would like to ask you whether or what kind of registration required in order to provide students a valid certificate for the course. Please guide me.

    Thanks

  14. i want to open a typing and computer coaching center in loni ghaziabad so tell me that procedure of registration to open a institute.

  15. Hi Team,

    I am running a coaching center in up for class 10 th . Count of students are not more than 15.

    Kindly guide me whether i need to register my coaching center as i am running it from my home only.

    • Hello Umesh Pandey if you want to get registration then first of all you will have to register your coaching centre under shope act. for that you will have to take rent paper from your honour or you can take it from your parents if you are going to start your coaching institute. there are some other important information please contact me by mail me. I will be happy

  16. sir, i want to start a small computer coaching center in rural areas, and i want supply certificates to them pls guide me to solve this problem?

  17. Hi I want to open computer centre. What type of registration is reguired so that i provide valid certificate to trainee students. Is society? trust or msme or any other. plz guide me

  18. I want to open online coaching and provide certificate to my student. Do I need to register my online coaching and If yes then let me know the complete process

  19. Hi I want to open computer centre. What type of registration is reguired so that i provide valid certificate to trainee students. Is society? trust or msme or any other. plz guide me

  20. Hi Team,

    I am running a coaching center FOR competition preparation in UP. Count of students are not more than 40.

    Kindly guide me whether i need to register my coaching center as i am running it from my home only.

  21. Hye am need traning certificate for woman and gril she work go to abord like singapur house maid visa i only traned she cooking cleanup baby care job if possiable this trade certificate plz email [email protected]

  22. Hi Team,

    I am running a coaching center IELTS preparation in punjab. Count of students are not more than 15.

    Kindly guide me whether i need to register my coaching center as i am running it from my home only.

  23. i want to open coaching class for class 5 to 12 at taluka place. is it compulsory to take permission/register from nagar panchayat to open coaching center. income of the class may be 2 to 3 lakh per year.

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