Registration of Preschool or Daycare
As we are opening new Preschool/Daycare centers in Bengaluru (both company owned as well as Franchise owned), we wanted to understand what all legal items that we should take care of, Few things that we could think of: MCD approval? Is there a need? Registration under shop and establishment act Labor department? ESI/PF? What are the Min Wages etc Any specific Pre-School/Daycare registrations? Can we do Pre-school in normal partnership/LLP entity or do we need to do it in Trust etc only. Anything else?
Day care centres and pre schools and not under the purview of Karnataka Shops and Establishment Act 1961 and therefore does not need to be registered under this Act. The Government of India has cleared the Early Childhood Care and Education (ECCE) policy under which certain conditions are to be followed. As per the policy, a maximum of 30 children may be accommodated in a classroom measuring 35 sq m. Besides, outdoor space of 30 sq m and separate section for cooking nutritional meals should be provided at all private and government-run preschools. As of now, there are no particular guidelines to check the standards of daycare centres. However the policy will lay down specific guidelines. Therefore it is advisable that you go through the policy once. The link to the document is here:
Some of the norms, as reported by Hindu, are:
All crèches and day-care centres must be registered with jurisdictional local bodies or gram panchayats
The crèche should be set up for children aged 90 days to 4 years
Each unit should have 10 children
Caretaker and children ratio should be 1:10
Creche should have a minimum of 4 to 6 sq ft. per child
Need to be well lit, have adequate ventilation
Clean toilets and sanitation a must
Small cooking area away from children’s activity area
Adequate play area and facility for children to sleep
Caregivers need to have a two-year qualification in Child Care or Montessori, degree in early childhood education, or degree or diploma in Home Science
Ayahs or assistants should be trained or have prior experience
Background check to be done on staff before recruitment; training to be given in child protection legislation. 
The Karnataka State Government has made separate guidelines for day care centres’ registration. There was a circular issued by Department of Public Instruction on January 18, 2016. Earlier the registration fee was Rs 25,000 with an additional Rs 10,000 as processing fee. Under the new norms, for a school in Bengaluru, Rs 10,000 has to be paid. For a school outside Bengaluru another Rs 5,000 has to be paid and for a school in rural areas, Rs 2,000 has to be paid.
The Karnataka Educational Institutions (Classification, Regulation and Prescription of Curricula, etc.) Rules, 1995 regulates the pre primary education and is formulated by the State Government in pursuance of the powers vested with the State government under section 145 of the Karnataka Education Act. Thus the guidelines laid down in those rules have to be followed.
When it comes to registering, if it is meant as a non- profit organization you can register it as a Trust or under Section 8 of the new Companies Act 2013. However an LLP cannot be registered as a non-profit organization. Therefore you can register the daycare centre as an LLP also.
The Minimum wages Act will be applicable to the peons and other such workers. This principle was upheld in the case of Chacha Nehru Vidyapith vs Authority Under Minimum Wages. Thus Minimum wages Act will be applicable.
 2001 (49) BLJR 1066
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