Establishing a foreign K-12 school in India

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foreign exchange laws in India. A Section 8 company can receive foreign investments, as contributions or donations from overseas entities, subject to compliance with provisions of Foreign Contribution (Regulation) Act, 2010 (“FCRA"). However, the FCRA nod is not always forthcoming and getting it is a rather cumbersome task.

Recently, the government has also revoked a number of permissions granted to charitable entities. Repatriation of funds from a not-for-profit entity is complex and will require prior approvals from the Reserve Bank of India. To set up a school, several local level permissions are required, including permission from the local state education department to open a school, meeting minimum land and infrastructure commitment, obtaining safety permits relating to school premises, etc.

Meeting the regular compliance requirements (such as no-objection certificates from fire department, etc.) is not for the faint hearted. Once a school is set up, there are several compliances that need to be met on an ongoing basis. Many states in India now have state-specific fee regulation laws (which set out the process to determine school fee), among other obligations under other applicable laws.

Such laws may have an impact on pricing of schools. A lot of time and energy will have to be invested in ensuring that compliance requirements are taken care of as any slip-up can have serious consequences. Therefore, a partnership with an Indian operator should be the preferred route to set up foreign schools in India.

At least till Indian laws specifically facilitate foreign schools to set up campuses in the country. India is relaxing its laws to allow foreign universities to set up campuses in the country. If more foreign