Legal formalities involved in starting a preschool

Posted by rohit sharma on August 6th, 2019

A flourishing business like preschool needs lots of patience and extensive research. India is becoming a hub for preschool and daycare. As this business promises a great deal of profit to the investors it has become one of the remunerative options. Easy to establish, lucrative and burgeoning as it may seem, preschool business demands lots of energy and time. Some of the laws must be taken care of in case one is planning to open one.

Guidelines for license

There are no restrictions on starting a preschool in India but there are laws have been regulated by the Government for the smooth operation of the school. One such law is ‘Private School Education Acts’. It is very important to know all the laws and regulations prior to starting an establishment.


Right location plays an important role in gaining momentum for the preschool. If one can look at the best play school in Janakpuri they would know the essence of investing energy and time to find a perfect place. Infrastructure should be maintained with hygiene and proper resources. One should take great care about leasing a place or getting into a rental for long- term so that, no problems arise to jeopardize the business mid-way.


Taking the size and type of preschool into account, one will surely need to follow insurance policies that can be a liability, worker’s compensation, business or even property insurance. One must always be insured for infrastructure and property as that will ensure the safety of one’s business.

Procedures and legal requirements

If one is planning to take up a franchise then they must know that it is of contractual nature and so, must be thorough with the Indian Contract Act 1872. These are followed by Labour laws, Property laws, Insurance Laws and such others. But if one is planning to set their own preschool then they may have to get it registered under the Companies Act 2013 with the Ministry of Corporate Affairs. If at all it is done in partnership, then they may have to go through the Partnership Act 1932. There are many other legal formalities involved in the opening of preschool so, a detailed study of those is a must.

Income and service tax

Income tax is always calculated on the profit generated by the preschool and is also applicable based on the entity it is which means if it is a for- profit or not for- profit establishment. Fortunately, schools are exempt from service tax and are included as the negative list.

Concluding it up

There are various consultancies that can guide any aspirants willing to open best play school in Janakpuri. These constancies will help to go through all the legal formalities to avoid issues from arising in the future. As the Government is also taking initiative to create circular laws it is becoming easy to start a preschool in India.

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rohit sharma

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rohit sharma
Joined: April 12th, 2019
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