Gopinath Varahamurthi
Mindhour Partner, Ass.professor/adm. Officer,
Korgaonkar K A
+2 Others

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I have just opened a preschool as a Franchisee.. I have my own company under sole proprietorship. As I found out from local authorities, I am not required to register my firm not get a license to rum the school. I am required to open a Current account and most banks are refusing because I do not hv a firm registration nor a license. They are asking me to shell out around 5000/- to 6000/- to obtain a Labour License and only after I get that, they will initiate procedures of CurrentAccount. Please help... Are they correct? Why do I need to apply for a labour license? PS: At the moment, I have only 1 teacher employed.
Please do help... I am in a fix and don't want to get conned...

From India, Bangalore
Dear ArmaanAryaan ji,
Let me first congratulate you for opening preschool. You are in noble profession. Eventhough today's preschools, schools, high school, colleges and all educational institutes are more in business, still I consider this profession as noble one.
Coming to give answer to your query, you need to obtain a registation under the Shops & Establishment Act. It is mandatory for you. With the help of it you can open your current bank account. In your state whether any other permission / registration / licence is required by you from education department or any other authority, that you need to findout locally. Even the institute of which you have taken franchisee can guide you. But, certainly no labour licence is applicable to you.
When you grow PF, ESI and other labour Laws will be applicable to you. If all branches of your institutes are clubbed, you may fall under PF, ESI & other labour laws.
Wish you all the best.

From India, Mumbai
Hello Mr. Keshav, Thank u for your wishes and encouragement. I encountered an issue - the offices of the shop and establishment registration are adamant that any school that educateSs children below 5th standard (i.e., from playgroup till 4th std.) does not and cannot be registered. Like I said, I am a franchisee and i checked with other franchisees - none hv registered under shop & establishment act. I have come to a standstill - don't know how to go forward...
Please help

From India, Bangalore
I am sailing under the same boat and would appreciate if someone can help answer the question of how to open a current account for a sole proprietorship firm (preschool in this case) given that registration is not a mandate.
From India, Bangalore
Dear Armaan Ayaan,
It is really a good thing to open a pre school, in general a school comes under a Charitable Trust registered under Society Act, of Trust registered under the Registered under non profit organisation.. you can after registering the trust with a suitable name with the registraring authorities, under the trust a school can be opened, current account opened in a bank rest follows... when registering you give the complete details like commencing old age home, educational institutions, medical institutions etc., under the trust..

From India, Arcot

Attached Files
File Type: docx Deed of Trust.docx (26.0 KB, 376 views)

Dear Mr.Gopinath Varahamurthi,
You reply is useful and valid, thanks!
I have registered a trust to start new play school (montessori method). Few questions on which I need your advice:
- How to bring the school under the trust? Any documentation required?
- I have obtained PAN card from trust to open bank a/c. Is this sufficient or I need a separate bank a/c for school?
- What is the tax liability for school as well as trust - GST/VAT/Service tax etc?
Kindly provide some details on the above questions.

From India, Chennai
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