How to Open Pre-School in Bihar ? | How to start a play school without franchise ?

Gone are the days when children used to dread about their first day in school. They used to cry hard for leaving their parents. Today, pre-schools, play schools, Kindergarten and Montessori have changed the entire presumption. The atmosphere of pre-nursery schools is so friendly that children tend to forget about all their worries and simply love to stay in their school, which ultimately becomes their second home. Parents are equally satisfied with sending their children to pre-schools/play schools, Kindergartens and Montessori, because such institutions prepare small children for higher grades. Not only parents and children, entrepreneurs are also finding it lucrative to start such educational institutions. Therefore, opening pre-school, Kindergarten, Montessori etc. will be a fruitful venture. In case you want to know how to open a pre-school in your locality in Bihar, then the points given below will be helpful.

What Are The Legal Requirements For Opening A Playschool In India

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.

Procedure to Starting a PreSchool in Bihar

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. 20000.

• 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 Call us +91-6203090078.

Business Plan

If you are planning to start a preschool or playschool, it is first recommended that a business plan be prepared. The business plan for a preschool should comprise of the details:

• How many children you will cater to
• Business Mode: Daycare, preschool, playschool with afterschool activities, crèche etc
• How many teaching, admin and support staff you need to hire
• Funds required for renting, leasing, vehicles, salaries, equipment etc
• Location and space
• Infrastructure
• The indoor and outdoor area
• If the business will be full time or part-time

Loan for Starting Preschool

Arranging for funds to invest in your preschool business is crucial. Depending on how big or small your preschool is going to be you will need to arrange for funds accordingly. Banks are favourable for lending to establish a preschool, with Banks such as Bharatiya Mahila Bank operating a special scheme for funding of Day Care Centers.

Bharatiya Mahila Bank: Parvarish – Loan For Day Care Centre:

• To assist women to establish Child daycare centre, for purchase of utensils, equipment etc
• Collateral Free to be covered under CGTMSE
• Loan repayment in 5 years
• Age of applicant min 21 years and max 55 years
• 12% Rate of Interest

Banks would typically provide loans for creations of items such as building, interior, furniture or equipment. Banks cannot fund operational expenditure such as staff salary, maintenance, rental, utility bill, etc., Therefore, it is important that the promoters draw out a cash flow statement for at least one year and syndicate bank loan for investment in long-term assets (building, furniture, etc.,), which can be funded by the Bank. Any shortfall in operational expenditure would have to be supported by equity funds of the promoters.

Choosing the Right Location & Infrastructure

It is very important to invest time in looking out for the right location and adequate space to set up the preschool business. The preschool should be located in a child-friendly area and space should be adequate to set up infrastructure accordingly. For a school, cleanliness and hygiene are very important, so ensure that the location is well maintained and does not possess any health risk.

Also, in case the location where the preschool is setup is not an own premise, enter into a long-term lease or rental with the landlord to ensure that the investment in terms of infrastructure and business development is not jeopardized.