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How to start a medicine store in India ?

Guide & Tips Jan, 2023

A business that is largely unaffected by ever-changing economic cycles is the business of medicine stores. Regardless of the situation, health is the most important part of a person's life because "Health is wealth".

In India, the pharmaceutical and healthcare sector has grown significantly due to the increase in corporate and multi-speciality hospitals. Credit to corporate and multi-speciality hospitals, start-ups and individuals who have invested in the healthcare sector. Although there is competition, it is still a vital sector for investment.

Setting up medicine stores is a good option for entrepreneurs who have less capital and want to invest in the healthcare sector.

Opening medicine stores requires numerous registrations and legal procedures before selling drugs. This article tells you how to start a medical store in India.

Types of Medicine Stores:

The type of medicine stores that an individual can establish are:

  • Hospital medicine stores: It is a medical store opened in a hospital to cater to the needs of patients who come to the hospital.

  • Standalone medicine stores: This is the most common form of medication. It is the small and medium-sized shops opened in residential areas that residents visit to purchase the necessary medicines.

  • Chain pharmacy or franchise outlets: These are medical stores in shopping centres and complexes and part of a chain of pharmacies with branches in different areas. As a rule, these are large medical warehouses.

  • Township medicine stores: These types of medical shops are opened in the township to cater to the needs of the people in the city or village.

  • Stores in government premises: These pharmacies are opened under government policies and schemes and under direct government control. They are usually opened in government institutions and buildings.

Requirements for Opening a Medicine Stores

1. Pharmacy License

In order to register the land, one must first decide whether he wants to own a shop or rent a shop depending on the budget. A lease or sale agreement is important and you may opt for legal assistance for the same.

2. Land Registration

In order to register for the land, one must first decide whether he wants to own a shop or rent a shop depending upon the budget. A rent or sale deed agreement is important & you may choose legal assistance for the same.

3. Registration of Medical Store Business

In India, medical shops are registered under the Indian Pharmacy Act, of 1948. This act states that all medical shops and pharmacies must register with all the documentation with the state government. After submitting the documents, the officials will decide on the registration according to the norms.

The composition of the medical storage is important. An independent medical store is preferably established as a private company or as a partnership firm, while hospitals, chains and urban medical stores prefer to form a private limited company. Recently, Limited Liability Partnerships (LLPs) are also the preferred form of company incorporation among owners of medicine stores. This change is mainly due to the promotion of the rights of partners, which are provided in the LLP form of the constitution.

4. Company Registration

Depending on how you want to run your business, it is very important to register your business as a partnership, a sole proprietorship or a fully-fledged company from day one. The following options are available:

  • Proprietorship Registration

  • Partnership Registration

  • One-person Company Registration

  • Private Limited Company

  • Limited Liability Partnership

5. Tax Registration

If your aggregate turnover exceeds the threshold limit, you must register your business for Goods and Services Tax (GST). The limit set by the GST Council is INR 20 lakh for all states except the North Eastern Hill States where the limit is INR 10 lakh.

6. Registering for Drug License

Regardless of the size of the business, every medical store requires a drug license from the Central Drug Standards Control Organization and the State Drug Standards Control Organization.

These organizations majorly issue two drug licenses:

  1. Retail Drug License

  2. Wholesale Drug License

What are the documents required for obtaining a Drug License?

Below is the list of documents required for procuring a drug license in India. It may vary across different states:

  • Application form in the prescribed format.

  • Signed cover letter with the application with the details of the name and designation of the applicant.

  • Fee receipt submitted for registration.

  • Blueprint of the premises.

  • Affidavit of a registered pharmacist 

  • Declaration form.

  • Proof of ownership of the premises.

  • Proof of business constitution and registration.

  • Affidavit of non-conviction of proprietor or partners or directors under the Drug and Cosmetics Act, 1940.

    Read also:  Development Of Ayurveda–Tradition To Trend

    Author: Aaliya Sheikh

    MBDH Wellness has more than 60 years of knowledge, and research on Ayurvedic Health Products. We strictly follow the principles of Ayurvedic philosophy and have helped thousands of customers who are looking for traditional Ayurvedic medicines for ailments and treatments. 

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