How much does it cost to set up a school in India?

A primary school will require an investment of about ₹8-10 lakhs. For setting up a 10+2 school, the cost can go up to ₹2 crores. Plan your budget distribution in building the school, making furniture, recruiting the staff, advertisement charges etc.

How much money is required for opening a school?

You will need some operating capital money for the initial few years, perhaps. So, keep about 50 lakhs rupees. So, if you don’t have 1 crore rupees cash in your account, please don’t open a 10+2 school.

Do private schools make profit?

Private schools are generally set up in one of two ways: as for-profit entities or not-for-profit (nonprofit) entities. Not-for-profit status is what most private schools chose to organize under so that they may make money but also receive contributions that are tax-deductible to the extent provided by law.

Are private schools a business?

A private school is a private business or nonprofit entity and most issues are controlled by the private school unless regulated by law (such as health or safety laws) or regulated by private contract.

Is it profitable to run a school?

A key reason for that is schools are a not-for-profit pursuit by law. And with reason — education needs to be inclusive. So, schools in India are required to be set up by charitable public trusts which cannot take out surplus money out of the institution.

How to determine the school fees for private school?

Based on the per capita income in the region you can determine the school fees. Private schools in metropolitan cities charge whooping sum of money per month. Determine the fees after taking advice from learned management graduates. If you are planning to start a pre-nursery school then cost will be quite less.

How much does it cost to set up a school?

Take at least 2 crores a minimum sum to start your school and it can go further based on the place of operation, living standard, etc. Setting up a standard school will have its own implications like money spent in arranging furniture, gadgets, electronics, computer, maintenance, and other requirements.

How much time does it take to start a private school?

It will take at least 2-3 years to build a school and start it. At least 4-5 years will be needed to get NOC and affiliation from the day of foundation ceremony. The capital investment being huge also pushes the return on investment time further. Only after few years of operation one can accept any profit.

Is it legal to start a private school in India?

A private entity willing to set up a school in India can also set up a company as prescribed by Section 25 of the Companies Act 1956. All these legislation ensure that a school is set up as a non profit making body . Making profit from private school in India is illegal.