Legal Aspects of an Online School
Since 2019, with the onset of the COVID-19 pandemic, the demand for online education has sharply increased. This is particularly true in Ukraine, where strict quarantine rules were introduced during this period. Consequently, new educational platforms and individual teachers emerged, many of whom did not pay much attention to the legal aspects of online schools.
Online education does not focus solely on school education. It should be understood that one can teach absolutely anything: from simple professions with minimal responsibility to highly specific ones, such as testers, massage therapists, drone pilots, etc. Therefore, courses and educational programs must be supported by something, such as diplomas or certificates.
An unregistered individual entrepreneur or digital platform is not authorized to carry out or commercialize their activities. This means that even if a student is issued a document confirming completion of a course, they cannot use it for its intended purpose.
This implies that any educational institution must consider the legal nuances of an online school, obtain the appropriate license, and get permission to operate and provide services.
How to Ensure the Legal Operation of Your Online School
Any activity in Ukraine must be official. This also applies to digital education. Therefore, the legal aspects of launching an online school must include registering the platform and its owner in one of the legal forms, specifically:
- LLC – Limited Liability Company. Typically, this is a group of individuals that carry out certain activities within the jurisdiction.
- Individual Entrepreneur (FOP) – A sole entrepreneur who provides services either directly or via digital tools.
Thus, to start operating, you must decide on the format of the activity and prepare for registration in one of the organizational-legal forms.
Organizational-Legal Form
The legal nuances of an online school begin with choosing the type of activity and entrepreneurship. There are only two forms that allow you to work in the digital education segment in Ukraine. Here are their features and differences:
| Parameter/Form | FOP | LLC |
| Registration | Quick registration for entrepreneurs in ACTION. | A complicated and lengthy registration process. |
| Profit | Free disposal of profits. | Owners receive only dividends. |
| Staff | Independent activity with the possibility of hiring staff. | Sole or partnership ownership of the LLC. |
| Investments | Only credit or loans. | Ability to attract investments, even from abroad. |
| Expenses | Only tax payments and salary payments to staff, if hired. | Rent, taxes, salary payments, accounting, and legal services. |
| Responsibility | Personal responsibility. | Distributed among all stakeholders according to their shares. |
| Accounting | Independent accounting and reporting. | In-house or hired accountant with a full accounting package. |
The legal aspects of an online school for Individual Entrepreneurs (FOP) also require operating within the defined KVEDs (National Classification of Economic Activities), specifically:
- 85.59 Other types of education, n.e.c.
- 85.60 Educational support activities.
- 63.99 Providing other information services, n.e.c.
It is important to correctly define the group for this type of activity. Usually, groups II or III are chosen because they have optimal tax rates.
Licensing and Accreditation of an Online School
The legal aspects of launching an online school also include the licensing of the educational center. To be able to operate in Ukraine, several conditions must be met:
- Determining the type of institution. This can be either a private school, a tutoring center, or a course platform. Accordingly, each of these types will have its own requirements.
- Requirements for the institution. These include an educational program that meets state standards, a teaching staff, technical equipment, and the registration of a legal entity.
- Submitting an application to the Ministry of Education and Science of Ukraine (MONU). This also includes documents such as the school’s charter, curriculum, certificates, financial information, etc.
At the same time, accreditation of the institution will be required, which will ultimately allow the issuing of state or international-level certificates. The accreditation process can take up to a year, but it is a necessary condition for conducting specialized activities.
Staff for an Online School in Ukraine
The legal aspects of an online school establish requirements for teachers. Educators must have valid certificates confirming their expertise and documents allowing them to teach.
This applies not only to LLCs, which must have a staff of teachers, but also to Individual Entrepreneurs (FOP), whose knowledge and experience must be documented.
Agreements with Students and Their Rights
Distance education and the related business activities must be carried out in accordance with the law. Therefore, the legal aspects of an online school also include the development of rules and provisions governing the relationships between students and teachers. These will include aspects such as:
- The scope and depth of the material covered.
- The approved number of teaching hours.
- A guarantee of results with the issuance of certificates, etc.
Thus, it is a contract between the parties that formalizes the agreement to provide and receive educational services.
Protection of Personal Data
The legal aspects of launching an online school must ensure the security of students’ confidential information. Even if you use the data to improve the operation of the educational platform or website, you must inform users about this before they register.
Tax Aspects for an Online School
For Individual Entrepreneurs (FOP), standard tax rules apply, which depend on the group. At the same time, for LLCs, the conditions differ due to the staffing of teachers, accounting practices, and so on. Therefore, in the second case, tax contributions will be higher, and the reporting process will be more complex.
Intellectual Property and Copyright
You will need an intellectual property lawyer to ensure that all the legal aspects of the online school are complied with. This includes protecting your educational materials from theft, plagiarism, or misuse for unfair gain.
The lawyer will also help build a quality internet platform and gather the necessary documents for licensing, as well as guide you through the process of establishing a digital education institution. This could be one of the experts from AA Lawrange, whose experience guarantees you the timely receipt of a work permit in the niche.
Document Development for the Website
An educational website or platform has nearly the same requirements as other digital resources. Documents such as a privacy policy, terms of service, etc., must be published.
You must also ensure that your visitors and students understand the rules for using educational materials and the responsibility for their improper use.
Labor Relations with Staff
Whether you are an Individual Entrepreneur (FOP) or an LLC, you must enter into employment contracts with specialists providing various services. This means agreements for hiring or providing specific services, such as outsourcing accounting, teaching, etc.
Why choose Lawrange?
All the mentioned legal aspects of launching an online school can be mitigated and simplified by seeking the help of qualified lawyers, especially those who specialize in the industry and are thoroughly familiar with the specifics of the jurisdiction’s legislation.
Order a consultation
Experts from AA Lawrange will provide you with full support during the establishment of a distance learning institution or the registration of an individual educational entrepreneurship.
Conclusions
The legal aspects of an online school do not differ significantly from other types of individual or collective entrepreneurial activities. However, it is essential to consider the specifics of the sector and the requirements of regulatory bodies. To achieve consensus with these bodies, you will need the help of AO Lawrange experts.
Ready to start working together? Contact the manager for a preliminary consultation!
FAQ
Is a license required for online schools?
Only if your institution provides official general education and issues state-approved documents confirming completion of an educational program. For teaching courses, additional education, etc., a license is not required.
How should student personal data be processed according to Ukrainian legislation?
First, you need to obtain permission from parents or guardians for collecting data, explain how and for what purposes the information will be used, and ensure its protection in compliance with the current Law of Ukraine “On Protection of Personal Data.”
How to minimize legal risks when providing online educational services?
You must comply with legislation and properly register your entrepreneurial activity. For Individual Entrepreneurs (FOP), this includes the KVED codes 85.59 and 85.60, and for LLCs, full registration of the company as one that provides educational services.