Set Up a Private Education Institute (PEI) Business in the United Kingdom
3E Accounting clears the fog on how to set up a private education institute (PEI) business in the UK.
The United Kingdom is the premier destination for studies, with a pedigree of excellence dating back hundreds of years. British education sets the standard the world over and is considered a gateway to excellence. As a business idea, it holds much merit and can help you turn over a tidy profit. Here are a few essentials on how to set up a private education institute (PEI) business in the UK.
A British Education
The terminology for the type of schooling available in the UK can be confusing. Boarding schools, private schools, public schools, independent schools, and prep schools all have different criteria and functions. Most of these are state-funded or controlled. While all independent schools are private schools, they differ in that some private schools are run without a governing board. However, private schools now also receive some state funding.
The confusion becomes compounded as public schools are also private and boarding schools, but very exclusive and expensive ones. Hence, a working definition for private education providers would be educational institutes that are controlled and managed privately. This would be to the exclusion of control by Governmental organisations or public appointed agencies.
All private and independent schools are governed by the Education and Skills Act 2008. This act sets out the regulatory framework for the quality and standard of education. These standards are examined by Ofsted and the Independent Schools Council (ISC). The category of such education providers include:
- Undergraduate and postgraduate colleges and universities
- Generalist and specialist schools and colleges
- Distance learning institutes
- International students and overseas campus
Providing private education is a long-term commitment with a strong focus on high-quality education. It’s best to decide early on whether your business is for-profit or non-profit. Charity status will influence the type of company structure you need to set up to run your business.
A well-written and scalable business plan will indicate whether you should operate as a sole trader or partnership. You may also want to set up as a limited company with limited liability protection. Alternatively, there are quite a few franchise options that you may want to explore. Firms such as 3E Accounting will be able to advise and guide you on the best possible business structure.
You will need to register with HMRC for tax requirements and look into either buying or leasing premises. Staffing is also important as you will need to hire and train educators.
All independent education institutes are required to register with the Department for Education (DfE). The Government website for license application clearly sets out the registration criteria, including the number of pupils and standards. All education providers will have to undergo yearly inspection and licence renewal.
Aside from these, other considerations include setting up a website, bank account and getting your brand out there. If you need more details on how to set up a private education institute (PEI) business in the UK, get in touch with us. 3E Accounting, along with our affiliates and partners, offers innovative and bespoke company formation packages. Our team of experts will help you get started on your dream business without breaking your budget. Contact 3E Accounting today and have a chat with our team about customisable business solutions just for you.