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How to start a Pharmacy Business in India

pharmacy business or chemist business setup advisory 9971504105

How to start a Pharmacy Business

Pharmacy business is an evergreen business in India that is not affected by the economic cycles. Further, the increasing popularity of corporate hospitals and multi specialty hospitals in India has brought about tremendous growth to the health care and pharmacy business in India. Requiring minimal capital investment and space, pharmacy business is an ideal for many entrepreneurs across India. In this article, we look at the procedure for starting a pharmacy business in India.

 

pharmacy business or chemist business setup advisory 9971504105
pharmacy business or chemist business setup advisory 9971504105

 

Types of Pharmacy business:

  • Hospital Pharmacy
  • Standalone pharmacy
  • Chain Pharmacy
  • Township Pharmacy
pharmacy business or chemist business setup advisory 9971504105
pharmacy business or chemist business setup advisory 9971504105

to know more or for any assistance contact on 9971504105

In India, majority of the pharmacy businesses fall under the category of standalone pharmacy operating in the unorganized sector. The standalone pharmacies are usually setup under a proprietorship or a partnership. However, standalone pharmacy businesses also be started as LLP or private limited company.

pharmacy business or chemist business setup advisory 9971504105
pharmacy business or chemist business setup advisory 9971504105

Tax Registrations

VAT registration is required in India whenever goods or products are being sold by a business. VAT fall under the purview of the state government and therefore based on the state in which the pharmacy is setup, it would be obtain from the State’s VAT or sales tax department.

 

 

Pharmacy License or Drug license

To start a pharmacy business, a drug license is required. The Central Drugs standard control organization and State Drug standard control organization control the issue of drug license in India. Drug license for setup a pharmacy business is usually under the purview of the state Drug standard control organization.

Normally, Drug control organization issues two types of licenses for operating a pharmacy business. One is the Retail drug license (RDL) for a general chemist shop and the other is for Wholesale drug license (WDL) to persons engaged in wholesale of drugs and medicines. In most states, a license is issued only to a person having a diploma in pharmacy from a recognized institute but this condition is relaxed in case of Wholesale Drug License (WDL).

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Requirements for Obtaining of drug license:

  • Area: The minimum area of 10 meter is required to start a medical shop. In case, the pharmacy business combines retail and wholesale, minimum 15 meters is required.
  • Storage facility: the store must have refrigerator & air conditioner in the premises.
  • Technical Staff

 

pharmacy business or chemist business setup advisory 9971504105
pharmacy business or chemist business setup advisory 9971504105

                          

Documents required for obtaining drug license

The following documents required for obtaining drug license in India:

  • Application form in the prescribed format
  • Covering letter with intent of the application signed with name and designation of the applicant.
  • Challan of fee deposited for obtaining drug license
  • Declaration form in the format prescribed.
  • Key plan for the premises.
  • Site plan for the premises.
  • Basis of possession of the premises.
  • Proof of ownership of the premises, if rented
  • Proof of constitution of the business.
  • Affidavit of non conviction of partner/ directors under drugs and cosmetics act, 1940.
  • Appointment letter of registered pharmacist/competent person, if employed person.

to know more or for any assistance contact on 9971504105

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