How to register a training institute in India

This article highlights the licenses and formalities that need to be fulfilled if you are planning to register a training institute in India for providing students the perfect guidance for improving their skills in their individual field of liking.

With the ever growing population, there are various issues faced by students while looking for a job after they complete their graduation. The main concern that lies with an average parent is whether their child would be able to get a job in their interested field or not.

With the growing competition between the students, the companies 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 only recruited in for the job positions in their company.

According to a latest study, only 34 per cent of the total India’s 5 million graduates are employable each year in any industry.

The challenge that arises in such a case is to provide vocational training to the entire 5 million people so that each one can easily get employed.

According to research done by the Department of Industrial Policy and Promotion (DIPP), the overall amount of Foreign Direct Investments (FDI) inflows into the education sector in India was round US$ 1.42 billion from 2000 to  2017.

The Government of India has allocated nearly a large amount of Rs 17,000 crore (US$ 2.55 billion) towards skilling and employment generation to millions of youth in order to achieve the target of Skill India Mission.

This has left an entire room for training institutes to grow. To start a skill training company is not a piece of cake, money alone won’t solve the requirements but strong determination and complying with all the registration and other norms will.

But what does ‘register a training institute in India’ exactly means? Let us go through this topic now in detail.

Meaning

Registration of a training institute refers to the process of establishing the competence of training institutions in order to deliver the important elements of training ensure its ability for carrying out the evaluation of competence acquired by the students. The salient features of this includes-

• To access the training institutes and their program that meets the quality standards.
• To facilitate the development of professional competency among students.
• To establish a framework for continuous improvement to the training institutes and provide them an opportunity to benchmark with the other training institutes of the respective field.
• To provide basis for determining the eligibility regarding assistance and investment of public funds by respective affiliating or regulatory authorities.

Tips for people aspiring to register a training institute in India

A few tips for the aspiring edupreneurs and businessmen who are interested in equipping young India with the required professional competency are listed below.

1.Credentials

It focuses on the concept of ‘Practice before you Preach.’

If you are going to equip an entire generation with the much needed professional skills, you must possess the knowledge, education and other essential validations yourself. This will prove that you are an expert on the knowledge you are going to pass on to the generations.

Moreover if the people are aware about your credentials, they will self advertise and encourage other people to join your training institute.

Even if you think you are about to hire the best teachers in your training institute, yet it is important that you must be educated enough to find out or evaluate the right candidate for teaching the students.

2. Commitment and Smart-attitude

If one does not have strong will to face all failures that might occur in the course of running a training institute, money won’t fix any problem for him/her. It mostly takes some time for establishment of your institute after you register a training institute in India but one has to be a little more smart and not spend all the money in building the infrastructure.

Most training start-ups struggle to last long enough due to the losses suffered. Start step by step. Even a training institute (that is small) will work just fine if it continues to deliver quality content once the brand is made. The groundwork needs to be dealt with first and the walls can be expanded as the institute grows!

3.  Be More Expressive

People believe more on what they hear from others, see and perceive. Thus you must put on big banners, advertisements to convey your institute name to more and more people after you register a training institute in India.

A time to time reminder with a touch of creativity is always helpful in keeping people engaged. Let them know about your institute through appropriate advertisements, articles, blogs, press releases etc.

Try to get in connection with the masses or the potential population by spreading messages in the layman language that they understand and can relate to. Do not pester them with your corporate, professional or industrial language which always sounds alien to them!

Prerequisites to register a training institute in India

The National Skill Development Certification agency has classified the training institutes into following:

1.VTP/STP/STI scheme

2.SKILL SCHOOL scheme

3.COMMUNITY COLLEGE scheme

Eligibility

Following applicants are eligible to register a training institute in India-

1. Institutes which are owned or promoted by Companies or Proprietorship.
2. Institutes managed or run by Companies or Proprietorship.

If any of the above mentioned company/ firm/ society/ trust fulfills any of the following criteria, it is considered eligible to register a training institute in India:

•  An organisation providing training under the Apprentices Act, 1961 since the last one year from the date of submission of the application in their own or rented premises.
• An organisation registered in India whose conducting business in the domain of Skill Development & Training. It must have a Permanent Income Tax Account Number (PAN) and a Service Tax Registration Number and audited accounts of statements for at least the last one year.

There are some hardware requirements as well to register a training institute in India that are needed to be complied with-

• Printer
• Scanner
• Internet connection
• Electricity
• AC/fan

There are some manpower requirements to be fulfilled as well to register a training institute in India-

1. Administrator- The administrator must have full knowledge related to the respective field training, experience of work in the domain and must possess good management skills.
2. Faculty- Also known as the trainer. He/She must have thorough knowledge of the subject, must be disciplined and have student’s problem solving capacity.
3. Counselor or Receptionist- He/She must have a pleasant personality with good communication skills, knowledge of the field and must be disciplined.

Fee structure

1.VTP/STP/STI

Amount of around Rs. 5000 is required to be submitted along with the application form. Affiliation fee of around Rs.15, 000 for single Skill Section is to be submitted or Rs.25,000 for Skill Section after review and acceptance of application by NSCDA.

The certificate is valid for a period of 1 year from its issued date. The institute is eligible to run all certificate and diploma courses from the selected skill section after the registration process is completed.

2. SKILL SCHOOL

Application fee of approximately Rs.5000 is to be submitted along with the completed application form. Affiliation fee of Rs.25,000 for single Skill Section is to be submitted or Rs.35,000 for Skill Section after reviewa acceptance of application by NSCDA is to be submitted.

The certificate issued is valid for 1 year from its issue date. The training institute is eligible to run all certificate and diploma from selected skills after the process of registration is completed.

3. COMMUNITY COLLEGE

Rs.5000 is the fee that needs to be submitted along with the completed application form. Fee of Rs.45,000 for single Skill Section or Rs.55,000 for Skill Section after review and acceptance of application by NSCDA has to be submitted.

The certificate issued then is valid for a period of 1 year from the date it is issued. After registration, the training institute is eligible for running all certificate, diploma and integrated courses from the selected skill section.

Registration process

Based on the mode of applying for registration, there are two types of process to- online and offline. But in most cases the centre has to comply with both.

To register a training institute in India, you have to apply online complying with all the requirements or by filling a Hard Copy Of Affiliation Form with required documents and photographs.

Required Documents and Photographs during filling of registration form online-

• Aadhar card.
• PAN card.
• Center HEAD Passport Size Colour Photograph.
• Center Outer Photo ( Entry Gate)
• Reception Room (Waiting Hall) Photographs.
• Training Hall eg: computer lab photograph
• Center HEAD cabin photograph.

Required Documents and Photographs for Hard Copy Of Affiliation Form:- 

• Copy of Address proof ( Attach any one Document)

1. Electricity Bill
2. Telephone Bill
3. Shop Act Licence
4. Licence of LOCAL authority

• Copy of IDENTITY Proof. ( Attach any one of following)

1. Driving Licence /Passport.
2. Bank Pass Book / Election Card
3. Aadhar Card / Pan card
4. Any Certificate of Identity Card provided by the Government of India.

• Copy of Academic Qualification ( Attach any one Document)
• Marksheet or Leaving certificate of Last Educational Qualification.
• Brief Information of CENTER HEAD.
• Resume / CV of Center HEAD.
• Training/Study center Head Computer Certificate (More than 6 Months).
• Registration/ license certification. If they are: Trust, Society, Company, Proprietorship firm. Organisation, Partnership Firm, Public and Private Limited Company.

Shop and establishment license : address proof

Each of the business structures have their own form of requirements for registration but an aspect that remains common to all forms of business is the shop and establishment license that is issued by the inspector of that respective area.

A license is issued immediately if all the details in the application are accepted and found to be true and 100 percent accurate.

Obtaining a Business License For training institute

A business license is a permit that allows both individuals and companies to freely conduct their business within a particular government’s territorial jurisdiction.

It basically allows the person who intends to start a business to do it legally.  Every geographical jurisdiction or area often requires its own localized license with respect to the various taxes imposed in the respective jurisdiction. This explains why business licenses vary between countries, states and local municipalities.

• An application is required to be filed with the local municipal corporation of the area for obtaining a business license.
• The license is to be produced before the commencement of the business.
• An application must be received from the business establishment three months prior to the commencement of activity. Once a license is issued, it needs to be renewed periodically to ensure that the business is being carried out in accordance with the laws of the specified jurisdiction. 

There are various documents that are needed to be provided to obtain such license and this depends on the place of the operation of the said business.

Rules regarding place of business:–

• If it is owned by the petitioner, the tax bill is to be produced.
• If owned by the tenant, the rent bill is to be produced.
• If a lessee, the lease-deed is to be produced.
• If a relative or person granted rent free accommodation by the premises owner, the consent letter from the owner is to be produced.
• If a person is granted rent free accommodation by any bona-fide tenant, then the consent letter along with the current CE of the tenant is to be produced. 
• If a sub-tenant, the consent of the owner of the premises is also needed to be produced along with the documents of rent bill, current CE etc. of original tenant.
•  In case of Private Limited Companies, the following documents are also to be produced along with the application: Memorandum and Articles of Association Declaration in Form No. 32 which speaks about the total number of managing directors of the company, Form No. 18 which speaks about the registered office of the company and the proof of occupancy. In case of a Partnership Firm, the Partnership deed is also required to be produced.

Along with the required form and the documents, one is also expected to provide an affidavit certifying that in case of any discrepancies or an illegal activity on the behalf of the person or company for which the request of business license is made, the certificate of enlistment will be revoked.

After making necessary enquiries and confirming all the validity of the information related to the business, the Municipal Commissioner, if satisfied, grants the certificate of enlistment within a period of 30 days of receipt of the application or else rejects the application if it is not in order.

Process of Payment Deposition

There are four ways for making payment while applying to register a training institute in India-

• NEFT (National Electronics Fund Transfer)
• Demand Draft.
• Cash Credit to Account.
• Credit Card / Debit Card / Paytm

Also read: History of modes of payment in India

Conclusion

Why do graduates from beyond the top 30-50 colleges of India fail to get jobs even after completion of their courses? Because of lack of practical knowledge in their interested field of work. The training institute aims to work for this cause and bridges the gap between theoretical and practical knowledge of each field. This is one valid reason enough to explain the future growing scope of the training institutes in our country.

The process of how to register a training institute in India is not a cumbersome one. It’s just that it takes a minimum of one month time for completion of registration.

After the successful online submission of application form for registration, a provisional ID is granted for reference within 5 Days from Registration and Payment. The District Coordinator then visits the Training center for inspection within 15 days after the ID is granted. After the submission of the inspection report by the Coordinator to the Head office, an registration letter is provided within 10 days (after the inspection visit to the training institute.)

 

The study and other related material is posted to the training Center institute then within 15 days (after getting the registration letter.) Finally, the center login details are provided to the institute- both its Username and Password.That’s all the norms on how to register a training institute in India for now. I hope this was useful.