The New Zealand Qualifications Authority has shut down the Aotearoa Tertiary Institute (ATI), an Auckland company that had 200 foreign students enrolled.
The authority's deputy chief executive for quality assurance, Grant Klinkum, said the institute broke rules related to staff competence and to student attendance and achievement.
"Rules haven't been met regarding provision of suitable premises for the number of students enrolled, using sufficiently competent staff, managing student attendance, keeping adequate records of student enrolment and achievement, and implementing their own quality management system."
Dr Klinkum said NZQA deregistered ATI, which had offered diplomas in management and business.
He said NZQA was working with another tertiary education organisation that would provide a full package of learning and support for ATI students.
In 2012, Immigration New Zealand suspended student visa processing at ATI and three other institutions because of problems including misleading or poorly maintained attendance records and fee discrepancies.
Last year, an NZQA investigation found serious problems at another Auckland tertiary institution, IANZ, prompting its sale and the retesting of hundreds of foreign students.