PreSchool in India : How to Start and Register

Do you know about How to Start and Register a PreSchool in India. A preschool is for children below the age of 5 years and aims at imparting quality education to these kids. While seeing the recent development in India, India has been successful in achieving the landmark in social development. The increasing level of development is leading to higher demand for quality education for all aged children. Even the right to education act enacted in 2009 talks about preschool education i.e. sec 11 of the act states that “the appropriate government may make necessary arrangement for providing free pre-school education.”

India’s population is 2nd largest in India and children in age group 0-6 is about 158.7 million i.e. 16% of total Indian population. So there is a rising demand and importance of education at preschool. India is becoming a place for great opportunities for business and investment. One such profitable investment is starting a pre-school. Preschool education in India is worth Rs 8,000 Cr. as an industry and growing at a rate of 35% on a yearly basis .  Thus playschool is a growing and very profitable investment opportunity.

How to Start PreSchool in India

Procedure to Starting a PreSchool in India

Step 1 : Create a Business plan for PreSchool :

The first step is to create a business plan which should take into account all the important aspect of the preschool. This plan should be as a blueprint to control and manage the future activities. It should include the following details:

  • A number of children to cater and serve.
  • Mode of business: preschool, playschool, day-care etc.
  • The location and the area for preschool which is well maintained and safe for the kids. (Residential area can also be the location for pre-school if fulfils the conditions.)
  • Infrastructure of preschool
  • Indoor and outdoor area of the preschool.
  • Full time or part time business.
  • The budget as to the investment, supplies equipment, marketing, advertising etc.
  • The loan is required or not.
  • The staff and teachers required to hire (As per National council for Teacher Education (NCTE) guidelines, a preschool teacher must have the qualification of Secondary School certificate or its equivalent and preferably a Diploma/Certificate in Preschool teacher education programme of not less than one year, or B.Ed.)
  • The curriculum is to be decided and followed in the school.

Step 2 : Entity formation for the PreSchool

  • Franchise institution

In this institution, one has to enter into a contract with the main or parent organisation and has to follow the terms and condition of the parent organization. As there is no particular law on its regulation, it is highly contractual in nature so governed by the Indian contract act. The franchising of preschool has increased in the last few years as it involves less risk they are already established and developed

  • Setting Up One’s Own Institution

One can also set up a new institution as a partnership or a company. They are regulated by their respected laws like the companies act 2013, the partnership act 1932 etc as Private Limited Company or Limited Liability Partnership in India.there are greater control and opportunities for investment that the franchise. One can also use the residential place for play school . but here the permission has to be taken from the cooperative housing society. If the area is taken on lease or rent then the object of using it for playschool should be mention in the agreement.

  • Profit organization:

If playschool is a profit making organization, it is more suitable to incorporate it into a private limited company or LLP( limited liability partnership). It is easier and costs less to form a partnership as forming and registering a company can take up to 4 weeks and costs around Rs. 15000.

  • Nonprofit organization

If the playschool is a non-profit organization then it can be Company or a trust registered under the companies act 2013 Sec. 8 which states that a company can be established ‘for promoting commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object, provided the profits, if any, or other income is applied for promoting only the objects of the company, and no dividend is paid to its members.’

Step 3. Legal requirements to Starting a PreSchool

  • Registration of preschool

As stated above there is no specific legislation for establishing a play school in India. However, various laws like the Private School Education Acts which are enacted by the State Government have to be fully considered as they may provide for registration of playschool. Also when setting playschool in the independent premise the requirements provided by the municipal cooperation and education department of the city of the location selected has to be fulfilled and respective application and registration fee has to be paid.

For eg. The Maharashtra Preschool Centres (Regulation of Admission) Act. 1996 states for mandatory registration of preschool in Maharashtra. Same as in Tamil Nadu The District Elementary Educational Officer is having the power to approval as per Draft Code Regulations for Play schools 2015. also proposed in ‘Early Childhood Care and Education (ECCE) Policy’ that registration of preschool to be made compulsory.

  • Complying labour laws
    • If the employees are more than 20 then provident fund payments are to be done.
    • Minimum wages as per the state has to be paid.
    • If you have more than 20 employees then 1-month bonus has to be paid as per Payment of bonus act 1965.
  • Service tax applicability

Playschool is included in the negative list as per sec. 66D of Finance act, 1994. So it is not applicable on preschool to Register under the Service Tax Registration in India.

Helpful Resources –
For the Register a Pre School in India – If you are thinking to start a preschool in India anywhere and want to register a Private Limited Company then Contact to MyOnlineCA.