A children day Care institution can be set up either as a proprietary concern or Partnership or as a company. Where a company needs to be registered with the Ministry of Corporate affairs and is governed by The Companies Act 2013, A Partnership deed is governed by The Partnership Act 1932. It is usually easier to form a partnership, as it is cheaper and quick to register.
Also, licence under the The Shops and Establishments Act and well as NOC from municipal corporation and local police station would be required.