News 05/07/2025 The long-awaited decision has finally been made. Now licenses will also be issued to private universities

Resolution No. 403 of the Cabinet of Ministers "On Additional Measures to Improve the Quality of Non-State Educational Services in the Republic" has been adopted.

📄 The resolution establishes the following additional conditions for licensing the activities of non-state higher education institutions:

🔹 The concept of the higher education institution being established must be presented;

OBJECTIVE: To obtain answers to questions such as who is entering the field of education, whether they have qualified personnel, what their long-term plans are, and what they intend to do to ensure quality.

🔹 The initial authorized fund (charter capital) of a non-state higher education institution must be formed in an amount equivalent to at least 2 million US dollars (the authorized fund will subsequently be increased in proportion to the growth in the number of students);

OBJECTIVE: To ensure the allocation of initial funds to create adequate conditions for students. In this case, the founders may use the funds from the authorized capital to develop the material and technical base, and purchase necessary equipment and software for educational programs. In fact, opening a small university with all the necessary facilities costs approximately 10-15 million US dollars.

🔹 Funds equivalent to 350 thousand US dollars must be placed in reserve deposits in commercial banks;

OBJECTIVE: To ensure guarantees for the refund of tuition fees to students studying at a private university if it closes for various reasons (such as disagreements between founders, bankruptcy, revocation of license due to non-compliance with regulations, etc.).

🔹 The area of buildings and structures of the newly established higher education institution must be no less than 5 thousand square meters. The building does not have to be owned by the institution; it is also possible to start operations based on a lease (free use) agreement concluded for a period of at least 5 years;

OBJECTIVE: They state that to achieve at least institute status, the building where students study must have sufficient space; they don't want universities to open with just 5-6 rooms like training centers.

🔹 For the first 5 years from the date of establishment of the higher education institution, at least 80 percent of its annual net profit, and in subsequent years at least 50 percent, must be directed towards the development of the main activities of this educational organization.

OBJECTIVE: They state that private universities should not be opened solely for profit-making purposes, but should reinvest their earnings into education. In reality, universities are not profit-generating entities. Universities that operate normally and consistently prioritize quality may not become profitable even after 30-40 years, and often operate at a loss. This is because the education sector requires constant reinvestment. If 1 som is earned, it needs to be reinvested as 2 som back into the university. For example, if 1 billion som is received from student tuition fees, 500 million som cannot be withdrawn to buy a house.

This resolution will come into force 3 months after the date of its official publication.

❗️Business entities that have obtained a license before the resolution comes into force must organize their activities based on the new licensing requirements and conditions by January 1, 2026.

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