Know the Requirements for Starting a Pharmacy Store in India

Did you know that India has the world’s third-largest pharmaceutical market? Furthermore, Pharmacies have grown to be an industry worth $42 billion in 2021 after the occurrence of the Covid-19 epidemic. If you’ve been wanting to open a pharmacy store in India for years, the post-pandemic environment provides an excellent opportunity due to market need. 

You should plan properly and promote efficiently if you want to establish a pharmaceutical business that earns a lot of money quickly. 

Guide to Start a Pharmacy Store in India

Decide the Type of Pharmacy You Want to Open

Before starting a pharmacy store, you must choose what type of pharmacy business you wish to own.  

1. Stand-Alone Pharmacy

This is a retail pharmacy store that has recently been established in a residential area. It is the most frequent type of pharmaceutical business configuration employed by small and medium-sized business owners.

2. Hospital Pharmacy 

You can open a pharmacy within a hospital to meet the needs of the patients. 

3. Pharmacy franchise 

Another handy approach to enter the pharmacy company is to purchase a drugstore franchise in India. The medication franchise in India is gaining popularity because it is low risk and requires little capital. Getting a franchise is wonderful because you can use the brand name to attract more clients.  

4. Township Pharmacy 

This type of pharmacy is established in the township area. 

Obtain a Pharmacy Store Licence

Pharmacy Business Registration

The first step is to secure a drug licence for your pharmacy business. In India, selling drugs requires a pharmacy licence. You can apply for a licence to operate a retail or wholesale medical shop. 

A retail drug licence is required for the establishment of a general pharmacy store in India. You can work as a chemist if you obtain a retail drug licence. A wholesale drug licence. A wholesale drug licence would allow you to operate your wholesale pharmacy.

GST Registration

Any commercial entity, including a pharmacy store, must obtain GST registration if the aggregate turnover in a fiscal year exceeds the threshold level. The GST Council has set a ceiling of INR 20 lakhs for all states except the North-Easter hilly states, where the maximum is INR 10 lakhs. 

Requirements for Obtaining Licences for Pharmacy Business 

Degree in medicine

You need to have a B.Pharm degree in medicine. If you don’t have the necessary degree, look for a pharmacist who will donate his name in exchange for a goodwill payment. This degree would be required for registration.   

Personnel

While selling drugs to customers, a competent person must be present at the counter.  A qualified individual could be any of the following. 

• A graduate with one year of drug-selling experience.
• An individual who is a registered pharmacist
• An individual with an SSLC degree and four years of dealing experience in medicine
   

Documents Required for Obtaining a Licence for a Pharmacy Store

The following documents you need to submit for the pharmacy store in India are:  

• Application form for licence
• Cover letter describing the purpose and signed by the applicant
• Proof of payment of fees
• Declaration form signed by the applicant
• Blueprint for the premises
• Documents stating occupancy of premises
• If the premises are rented, proof of ownership is required
• Owners’ identity documents, as well as recent photographs 
• Proof of Medical store’s Constitution (Partnership deed, MOA, AOA, etc.)
• Proof of owners’ non-conviction under the Drugs and Cosmetics Act of 1940
• Affidavit of a competent individual or qualified pharmacist who works full-time
• Appointment letter from the registered pharmacist or competent person, if employed 

Arrange the Finance Required for Pharmacy Business 

If you want to open a pharmacy store in India for a low cost, you need to undertake thorough research. To start a small pharmacy business, you’ll require a capital of Rs 15 to 20 lakhs. You can gradually grow your company more by reinvesting your income. The initial investment would be determined by the location and size of your pharmacy store. 

Procure Supplies 

To ensure the success of your pharmacy business, you must stock a wide range of medicines to fulfil the needs of your customers. Maintaining a supply of various pharmaceuticals increases sales and generates goodwill for your medical store. 

You should also have a refrigerator in your store to keep medicines such as vaccines, insulin, serum, and so on. A large supply of pharmaceuticals is essential for increasing income sources. You can also collaborate with hospitals and doctors to improve sales.

Hire Staff

Any business needs staff to get started. A committed and determined workforce propels a company to the peak of success. A pharmacy business requires staff who have enough knowledge about the medicines. Experienced employees who have previously worked in a medical store and have a strong knowledge of medicine should be preferred.  

Marketing 

An effective marketing strategy is essential to the success of any firm. In today’s world of strong competition, advertising your business is more crucial than ever. You should market your newly opened medical store efficiently. 

You can market in both traditional and modern ways. Internet marketing for your medical store and acceptance is also a great idea. You can create a website for your medical store and accept online orders.

Conclusion

A medicine business is a profitable business opportunity for entrepreneurs as the demand for medicines never ends. There has been a sharp increase in the number of hospitals and clinics in recent years. This has led to a rise in the demand for medicines. 

Follow the guide above to start your own pharmacy store in India. Moreover, you will be guided by Online Legal India experts in obtaining all the necessary paperwork and registration required to open a Pharmacy store in India.