What are the legal requirements for opening a preschool in India?
Starting a playschool is a lucrative business opportunity. Like all businesses, you have to fulfill certain requirements and legal obligations to get started. However, you shouldn’t let that stop you from starting a fantastic venture. Follow our step-by-step guidelines to understand the legal requirements for starting your preschool in India.
Foundation of the entity
Every preschool may seem the same on the surface but you need to follow different legal procedures to start each one of them.
Profit/Non-Profit company
If you want to start your preschool as a business. It needs to be registered as a Private Limited Company or a Limited Liability Partnership.
If the company is a charity, then a trust can be established under Section 8 of the Companies Act, 2013. This applies to companies when they promote welfare, sports, science, education, etc.
Preschool franchise/ Starting your own company
If you want immediate returns, you can start a preschool franchise. The agreement between the franchisor and the franchisee is contractual in nature, and you have to follow the Indian Contract Act of 1872. You give the franchisor representation rights. The franchisor can represent your business as a whole and demand service changes.
Residential playschool
You can also start a playschool from your place of residence. For this, you need the permission of the cooperative housing association.
Legal requirements for opening a preschool in India
There are no specific requirements for opening a preschool in India. However, you should consider laws like Private School Education Acts enacted by the State Government. Such laws may require you to register your playschool.
If you are setting up a play school on an independent premise, you must complete formalities related to the Municipal Corporation and education department of the city.
The laws and regulations required to open a preschool m+ay change according to your state. For example in Tamil Nadu, the District Elementary Educational Officer is the Authority that approves the Draft Code Regulations for play schools.
The ‘Early Childhood Care and Education (ECCE) Policy’ also makes registration of playschools mandatory. This is especially true if you are thinking of opening a preschool franchise.
The Shops and Establishment Act, in general, is technically silent when it comes to opening a preschool in India. However, the rules are different for each state. You should consider the rules of your state before reaching a conclusion.
If your preschool has more than 20 employees, you must consider Employee Provident Fund schemes and the Payment of Bonus Act, of 1965.
ConclusionToday, the demand for quality education is skyrocketing, and that is why opening a preschool in India is not only a lucrative business opportunity but also a social responsibility. That is why you must consider the legal framework that you must follow. Thankfully, you do not have to go through multiple hurdles. You just have to decide the business model. Do you want to open a preschool franchise? Will you be operating it in your place of residence? The laws will change according to your decisions.
