Forming the entity: You can either run the playschool as a franchise of a larger entity or start your own institution.
i. 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.
ii. If you wish to enter into a franchise agreement, you should enter a clause stating that for a certain period of time, the agreement shall not be terminated by the parties unless either party violates the agreement. This will give you some time to establish the playschool in an increasingly crowded market. Be sure to draft the agreement with care.
d. Running it in a residential area: 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.