The Higher Education Regulatory Authority (HERA) derives its authority from the Khyber Pakhtunkhwa Registration and Functioning of Private Educational Institutions Ordinance, 2001. This ordinance provides the legal basis for registration, monitoring, and regulation of private sector universities, degree awarding institutes, colleges and related institutions in the province.

The ordinance empowers HERA to register private educational institutions, prescribe standards for their functioning, inspect institutions, and take action against those operating without registration or in violation of prescribed norms.

HERA also operates within the framework of the Khyber Pakhtunkhwa Universities Act, 2012 and relevant rules, regulations and policies issued by the Government of Khyber Pakhtunkhwa and the Higher Education Department.