How to start an edtech platform in India: registrations and licences

Choosing the structure

Edtech businesses raise venture funding, hire teachers and content teams on ESOPs and sign partnerships with institutions. A private limited company is the practical choice. If you plan to run a recognised school or college, that is a different regulatory path, usually through a trust, society or Section 8 company, with state and regulator approvals.

Online test-prep and skilling platforms do not need a sector licence, but awarding degrees or diplomas requires recognition from the relevant authority, so avoid promising qualifications you cannot issue.

Registrations for an edtech platform

Most registrations are corporate and tax. Your intellectual property, meaning course videos, question banks and software, is the core asset, so protecting it is part of setup.

GST on online education

GST law exempts services by an educational institution to its students only where the education is part of a curriculum leading to a qualification recognised by law. Most private online courses, test-prep and upskilling programmes do not meet this, so they attract 18% GST. Selling to learners abroad can qualify as export of services.

Bundled products need care. If you sell a course with printed books or a tablet, decide whether it is a composite supply with a principal service or a mixed supply, because the rate depends on that classification.

Children's data and consumer protection

The DPDP Rules 2025 require verifiable consent of a parent or lawful guardian before processing a child's personal data, along with checks that the person consenting is an adult. These duties start on 13 May 2027. K-12 platforms should redesign onboarding, analytics and marketing flows well before then, and avoid tracking or targeted advertising directed at children.

Consumer law applies to course sales. Publish clear refund and cancellation terms, avoid misleading claims about results or job placements, and handle grievances promptly. Aggressive sales tactics and unclear EMI tie-ups with lenders have attracted consumer complaints in this sector.

Ongoing compliance

Pay instructors correctly: employees through payroll with PF and ESIC where applicable, and freelance tutors with TDS on professional fees. Maintain GST returns, TDS returns and ROC filings.

If you run physical learning centres as well, state coaching regulations may apply to those centres, including registration, minimum infrastructure and fee refund rules under the Ministry of Education's 2024 guidelines and any state law.

Working with instructors and creators

Content created by employees in the course of employment generally belongs to the employer, but content from freelance instructors does not unless there is a written assignment. Use contracts that assign copyright in videos, notes and question banks to the company, with clear terms on revenue share and reuse after the instructor leaves.

If instructors appear on camera, include consent for use of their name and image in marketing. When you license content from publishers, check whether the licence covers online distribution, downloads and translations, since disputes over scope are common.

Pitfalls for edtech founders

Investor due diligence in edtech now looks closely at refund practices, sales conduct and data handling, so clean processes help fundraising as well as compliance.

• Treating private courses as GST-exempt education.
• Collecting children's data without a parental consent design.
• Advertising guaranteed results or placements.
• Using third-party content or music without licences.

Step by step

1. 1Incorporate

   Register a private limited company.

2. 2Register for GST

   Register and set the course rate at 18% unless an exemption clearly applies.

3. 3Protect IP

   File trademarks and secure written assignment of content from creators.

4. 4Draft learner terms

   Refund, cancellation, conduct and privacy terms in plain language.

5. 5Design consent flows

   Build parental consent and age checks for minors ahead of May 2027.

6. 6Set up payroll and TDS

   Handle employee and freelance instructor payments correctly.

7. 7Plan offline centres separately

   Check state coaching rules before opening physical centres.