With growing disposable incomes and employment among women, playschools for toddlers are becoming a lucrative business opportunity, especially for young women. Before you startup, you may need to keep a few things in mind about the legal regulations that need to be complied with.
In most of the states across the country, a registration under shops and establishment act is not necessary, however this aspect for NOIDA (UP) may be verified locally.
Provident Fund payments if you have more than 20 employees details of this can be read from http://epfindia.nic.in/Applicability.htm);
Minimum wages need to be paid. The minimum wages for primary schools is ~ Rs. 80 per day, although this will vary from State to State. As long as you pay more than this amount, you will not face any problem;
You can either run the playschool as a franchise of a larger entity or start your own institution.
If you are starting your own institution, it can be done either as a partnership or as a company. It is usually easier to form a partnership, and cheaper and quick to register. Forming a company can take up to 4 weeks, and costs around Rs. 35000.
Most playschools tend to be run from residential areas. If that is the case with you, please make sure that your rental agreement permits it. Also make sure that if you live in an apartment, the bye-laws of the apartment association permit you to run a playschool. This is only to avoid problems in the future. Legally, there seems to be no problem with running a playschool in residential premises.
It seems the Noida authority has a law in place where they ban play schools in residential areas. The authority allows play schools to open only in commercial areas and comes out with specific plots earmarked for this purpose. On the face of it this would seem very logical to all. After all the authority is very sensible to allow specific areas for play schools.