Pharmacy business is an evergreen business in India that is not affected by economic cycles. So, if one has minimal capital investment and space, the pharmacy business is ideal for many businessmen across India. You can either go for a stand-alone medical store or a pharmacy franchise like Apollo pharmacy franchise, Netmeds franchise, etc which is expensive compared to your own medical store.
Requirements to get the license for your stand-alone pharmacy business or a medical store:
1. A Pharmacist
Firstly, are you a B Pharm / M Pharm?
If not, you might have to find a pharmacist willing to lend you his/her name against goodwill payment for registration purpose.
This is because you’ll need qualifications proof of a minimum of one Pharmacist (either owner or an Employee) to obtain a Pharmacy License for your medical store.
2. Sufficient Store Space
You’ll need a rental agreement or/and Ownership proof of premises with a minimum area of 10 square meters to start a medical shop or pharmacy or wholesale outlet.
In case, the pharmacy business combines retail and wholesale, a minimum of 15 square meters is required.
Again, your basic need will be a shop (rental or own) if you are targeting a local area. Just make sure you do your maths for a shop (buy/rent) + inventory to be bought initially. The rent for a place can be as small as Rs 10,000 to Rs 10 lac depending upon the city, location and size of your medical store.
4. Hiring Pharmacist
Importantly, at the time of the sale of the drugs, the presence of a competent person on the counter throughout the working hours is a must! Typically, you might have to set aside Rs 5,000 to Rs 30,000/month to maintain a pharmacist in your medical store.
In any case, this competent person can either be:
- A registered pharmacist approved by the pharmacy department or
- A graduate with 1 yr experience in dealing in drugs or
- A person who has passed S.S.L.C with 4 years of experience in dealing in drugs, specially approved by the department of drug control for the purpose.
5. Cold Storage Facility:
Most importantly, the store must have a refrigerator on the premises.
This is because, according to the labeling specifications of certain drugs like vaccines, Sera, Insulin Injections, etc., are required to be stored in the refrigerator.
6. Be Digital Ready
- Do not stick to the old and inefficient method of operating business. Do business in a smarter way. Managing business accounting like billing, inventory, bookkeeping single-handedly or with a bunch of people is challenging and can result in a lot of manual work without the use of technology.
- Business Accounting App like Vyapar to help you run business, manage inventory and ease up accounting stuff. Most of the businessman out there use it to ease up their life.
7. Documents Requirement:
The documents required for starting a pharmacy business varies from state to state. However, the following is a suggestive list of documents required for obtaining drug license in India.
- Pharmacy License application form in the prescribed format.
- Covering Letter with the intent of the application signed with the name and designation of the applicant.
- Challan of fee deposited for obtaining drug license.
- Declaration form in the format prescribed.
- Key plan(Blueprint) for the premises.
- Site plan (Blueprint) for the premises.
- The basis of possession of the premises.
- Identity proof and photos of owner/partners of a medical store.
- Proof of ownership of the premises, if rented
- Proof of constitution of the business (Incorporation Certificate / MOA / AOA / Partnership Deed)
- Affidavit of non-conviction of proprietor/partners/directors under the Drugs and Cosmetics Act, 1940
- Affidavit of a registered pharmacist or competent person working full time
- Appointment letter of registered pharmacist/competent person, if employed person.
After completing all requirements, one has to visit drug inspector office and has to file the application for granting medical store and drug store.
- Firstly, avoid renting/owning the shop where there are already Multiple medical stores to avoid unnecessary competition.
- Informally, you can always network with a Doctor / Hospital so that you can “tie-up” with them, this is the easiest way to access customer base (again not ethical but most follow this route).
- However, IndiaFilings can help you start a pharmacy business in India. For more information, visit IndiaFilings.com
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