How to Start a Pre-School in India

Last Updated at: September 28, 2019
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Indian parents are sending their kids to school much earlier than before. First, it was called play school, which was more like a creche, but it’s increasingly becoming more like school. For this reason, there already is a pre-school boom in the wealthier parts of Mumbai, Delhi, Bengaluru and Chennai. This trend is expected to extend to the rest of India and, therefore, the pre-school business is a tremendous opportunity. So, what licenses are required?

State Registration

Education being a state subject, you need to register as a private school under the relevant state education act. This is a relatively straightforward matter, as there is a shortage of educational institutions in most parts of India. If you’re opening a small pre-school, you may choose not to register – at least at first; however, if you do end up registering a private limited company or non-profit organisation, it would make sense to do so.

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Shops & Establishments Act

All operations in India require a Shops & Establishments Act Registration. This Act regulates the working environment and rights of all workers, and would be required for even as something as simple as opening a bank account for the business. You can get a Shops & Establishments Act registration even if you’re operating from home. However, if you’re using a rented accommodation, you would need to provide an No Objection Certificate from your landlord.

Is Service Tax Registration Required?

No, service tax registration is not required, as educational services is one of the items on the Negative List of the Finance Act, 1994.

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