Procedure to Starting a Preschool
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 organization 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