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Founder's Compliance Guide, Mohali, 2026

How to Start a Preschool in Mohali

By Aurobindo Saxena, Founder, RAYSolute Consultants. Published Sep 2026

A comprehensive setup and compliance roadmap for opening a preschool in Mohali: the legal entity, Punjab's play-school registration, the Municipal Corporation and GMADA's civic approvals, fire and child-safety clearances, infrastructure, curriculum, staffing, fees, governance, and the operating SOPs that separate a credible early-years institution from an informal play group, written for a city built on Punjab's strongest IT and professional-employee base, within the Chandigarh tri-city region.

State Registration
Mandatory (2021)
Punjab State Regulatory Guidelines for Play Schools, notified 16 Jul 2021, Dept. of Social Security and Women and Child Development
Legal Vehicle
Trust / Society / Co.
Indian Trusts Act 1882, Punjab's Societies Registration law, or a Section 8 company
Civic Licence
MC Trade Licence
Section 343(1), Punjab Municipal Corporation Act 1976; due before 31 Mar every year
Fire Compliance
Punjab F&ES Act 2024
Repeals the 2012 fire act; aligns with National Building Code 2016
Ratio Floor
1 : 20
Child-to-teacher and child-to-caregiver, under state guidelines
Tuition GST
Exempt
Pre-school tuition; origin Notification 12/2017
The Opportunity

Why Mohali, and why now

Mohali pairs Punjab's strongest IT and professional-employee base with a young, aspirational family base and spillover demand from a land-constrained Chandigarh next door. That combination makes quality early years both deeply valued and a genuine commercial opportunity for a founder who gets the compliance foundations right.

The National Education Policy (NEP) 2020 reframed Early Childhood Care and Education (ECCE) as the foundation of the school system, not a pre-school afterthought. It places the foundational stage at ages 3 to 8 and asks every preschool to deliver structured, play-based, developmentally appropriate learning rather than early formal academics. For a founder, that policy shift matters in two ways: parents now expect a credible pedagogy, and Punjab has run its own dedicated play-school registration regime since 2021 (covered in Step 2).

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Frequently Asked Questions

Mohali preschool setup FAQs

Yes. Under the Punjab State Regulatory Guidelines for Play Schools, notified 16 Jul 2021 by the Department of Social Security and Women and Child Development, any preschool enrolling children aged 3 to 6 must register with the District Women and Child Development Officer (DWCDO). Independent of that registration, you also need the legal entity, a trade licence from the Municipal Corporation, SAS Nagar (Mohali), a fire clearance, and applicable tax registrations. Confirm the current procedure with the SAS Nagar (Mohali) DWCDO's office and the Municipal Corporation before you apply.

No. A standalone preschool can be run by a Society, a Public Charitable Trust, a Section 8 Company, or a for-profit company. Formal recognition as a school later requires a not-for-profit entity, so if you intend to grow the preschool into a K-12 school, incorporate as a Society, Trust, or Section 8 Company from the start.

The Punjab State Regulatory Guidelines for Play Schools set a ratio of 1 teacher to 20 children, and separately, 1 caregiver to 20 children, so every classroom needs both roles staffed within that ceiling. Treat 1:20 as the regulatory floor rather than a target: premium operators competing on quality typically staff meaningfully tighter than the ceiling, since the adult-to-child relationship is a direct driver of parent trust.

Tuition from pre-school up to higher secondary is exempt from Goods and Services Tax; the exemption originates in Notification No. 12/2017-Central Tax (Rate), dated 28 Jun 2017, Serial No. 66. Ancillary supplies such as uniforms, books sold separately, or third-party transport can attract GST unless they form a composite supply. Confirm your specific position with a chartered accountant.

The Punjab State Regulatory Guidelines for Play Schools require fees to be collected monthly or quarterly only, not as a single annual lump sum. Publish a transparent fee break-up, issue official receipts, and avoid arbitrary mid-year hikes; the guidelines also make a Parent-Teacher Association (PTA) mandatory, which gives parents a structured channel to raise fee concerns.

The POCSO Act 2012 applies in full, alongside Punjab's own guidelines. You must adopt a written Child Protection Policy, police-verify every member of staff, install CCTV in classrooms and common areas, prohibit corporal punishment (an explicit state-guideline requirement), constitute the mandatory PTA, and report any concern under Section 19. Establishments with 10 or more employees must also constitute an Internal Complaints Committee under the POSH Act, and children's data must be handled under the Digital Personal Data Protection Act 2023.

Mohali's defining strength is its IT and professional-employee base, anchored by Infosys, Wipro, KPIT and the DLF IT Park, which sustains premium fee tiers, alongside spillover demand from adjacent Chandigarh, whose own school land is constrained. RAYSolute classifies Mohali as a Tier-1 city within Punjab. Preschool chains report operating in sectors such as Aerocity, Sector 110, Sector 115 and Sector 125, along the airport-road belt, but this is directional only. Validate the specific address with a local catchment study rather than relying on general city-level framing.

Fire safety in Mohali is governed by the Punjab Fire and Emergency Service Act 2024, which repealed the earlier Punjab Safety Measures for Prevention and Control of Fire Act, 2012, and which adopts the National Building Code (NBC) 2016's fire and life-safety provisions by reference. Whether a separate clearance is required, and what it requires, turns on your building's height, area, and layout. Confirm the exact requirement for your premises with a licensed fire consultant and the Punjab Fire and Emergency Service before you rely on it.

The Municipal Corporation, SAS Nagar (Mohali), under Section 343(1) of the Punjab Municipal Corporation Act 1976, issues the trade licence. Separately, the Greater Mohali Area Development Authority (GMADA), constituted under the Punjab Regional and Town Planning and Development Act 1995, governs building bylaws, ground coverage, height, setbacks, and parking, for institutional plots in Mohali/SAS Nagar. Confirm both approvals for your specific premises before you commit to a site.