How To Start A Pharmacy Business

Pharmacy business can be divided into four types based on the store format as follows:
In India, majority of the pharmacy businesses fall under the category of standalone pharmacy
operating in the unorganized sector.
1)Business Registration
The standalone pharmacies are usually setup under a proprietorship or a partnership. However, as
LLP registration can now be obtained for just Rs.8000/- through IndiaFilings.com, it is advisable that
standalone pharmacy businesses also be started as LLP or Private Limited Company. Setting up a
standalone pharmacy business in a LLP or Private Limited Company constitution will ensure that the
business is transferable, scalable and limits the promoters personal liability.
2) Maharashtra VAT Registration

The Maharashtra Value Added Tax Act, 2002 governs VAT / TIN Registration in Maharashtra, VAT Tax
Rates, Return Filing and all aspects of Value Added Tax in Maharashtra. In Maharashtra, VAT
Registration is mandatory for anyone with annual sales turnover of over Rs.5 lakhs. In case, of
Importers, VAT Registration is mandatory if the annual turnover crosses Rs.1 lakh. In addition, those
persons wishing to commence commerce in the state of Maharashtra may get voluntary VAT
Registration under Section 16 of the Maharashtra Value Added Tax, 2002 by paying a security deposit
of Rs.25000 to the Government Treasury. Once the application for VAT Registration is made, the
registering authority will allot a TIN Number (Tax Identification Number). There is no difference
between VAT, TIN and CST, so the Maharashtra VAT Registration will also serve as the dealers
Maharashtra TIN Number or Maharashtra CST Registration.
3)
Pharmacy License or Drug License
The Central Drugs Standard Control Organization and State Drugs Standard Control Organization
control the issue of drug license in India. Drug license for setting up a pharmacy business is usually
under the purview of the State Drugs Standard Control Organization
Sh. Dhanraj
Kamathkar
Commissioner,
Food and Drugs
Admn.,
341, Bandra
Kulra Complex,
Opp. RBI
Building,
Bandra (East)
Mumbai- 400
051
022-26590548
(CONTACT NO.)
fdahq@vsnl.com
,
Comm.fdamah@nic.in
022-26591959
(FAX NO.)
https://arogya.
maharashtra.gov
.in/1035/Home
Normally, the Drug Control Organization issues two types of licences for operating a pharmacy
business. One is the Retail Drug License (RDL) issued to run a general chemist shop. The other is the
Wholesale Drug License (WDL) issued to persons or agencies engaged in wholesale of drugs and
medicines. In most states, a retail drug license is only issued to persons who possess a degree or diploma
in pharmacy from a recognised institute or university after depositing the requisite fee on account of
the fact that it is a specialised job and only qualified persons can handle it. But the above conditions are
relaxed in case of procuring a Wholesale Drug license (WDL)
Requirement for obtaining Drug License

The following are minimum requirements for obtaining drug license or starting a pharmacy in
India:
Area: The minimum area of 10 square meter is required to start a medical shop or pharmacy
or wholesale outlet. In case, the pharmacy business combines retail and wholesale, a
minimum of 15 square meter is required.
Storage Facility: The store must have refrigerator & air conditioner in the premises. According
to the labeling specifications certain drugs like vaccines, Sera, Insulin Injections etc., are
required to be stored in the refrigerator.
Technical Staff:
o Wholesale The sale of drug by wholesale shall be made either in the presence of
registered pharmacist or in the presence of a competent person who shall be a
graduate with 1 yr experience in dealing in drugs or a person who has passed S.S.L.C
with 4y ears experience in dealing in drugs, specially approved by the department of
drug control for the purpose.
o Retail The sale of drug by retail must be made in the presence of registered
pharmacist approved by the department, Registered pharmacist is required
throughout the working hours.
Documents required for obtaining Drug License

The documents required for starting a pharmacy business varies from state to state. However,
the following is an indicative list of documents required for obtaining drug license in India.
1. Application form in the prescribed format
2. Covering Letter with the intent of the application signed with name and designation of the
applicant
3. Challan of fee deposited for obtaining drug license
4. Declaration form in the format prescribed
5. Key plan(Blue print) for the premises
6. Site plan (Blue print) for the premises
7. Basis of possession of the premises
8. Proof of ownership of the premises, if rented
9. Proof of constitution of the business (Incorporation Certificate / MOA / AOA / Partnership
Deed)
10. Affidavit of non conviction of proprietor / partners/ directors under Drugs and Cosmetics
Act, 1940
11. Affidavit of registered pharmacist or competent person working full time
12. Appointment letter of registered pharmacist/competent person, if employed person.

How To Start A Pharmacy Business

Uploaded by

Copyright:

Available Formats

How To Start A Pharmacy Business

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

How To Start A Pharmacy Business

Uploaded by

Copyright:

Available Formats

Pharmacy business can be divided into four types based on the store format as follows:

2) Maharashtra VAT Registration

Pharmacy License or Drug License

Requirement for obtaining Drug License

Documents required for obtaining Drug License

You might also like

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.