With the significant increase in the hospital industry and people’s growing concern for health, pharmaceutical shops have become a popular choice for aspiring entrepreneurs. Setting up a medical store requires following various steps and complying with a number of legal procedures.
In this article, we are going to discuss everything you need to know before starting a pharma shop.
A stand-alone pharma store is an ideal choice for people who want to go into the medicine business.
Who is eligible to set up a medical store?
To start a pharma shop in India, you need to fulfill at least one of the following criteria:
- The person should be a registered pharmacist.
- They should have at least one year of experience in dealing with drugs professionally.
- They must have passed the SSLC with four years of experience under the department of drug control.
- Only people aged between 25 – 66 can apply for a medical store.
Which documents are required to get a medical shop loan?
The investment required for a medical shop can range from 3 to 11 lakh rupees or more depending on the locality, size of the shop, the products to be sold, and any other factors. To avail of a loan for a medical store, you need the following documents.
- Age proof
- Identity proof
- Proof of residence for a sole proprietorship
- Proof of identity of the sole proprietorship
- Financial documents, including IT returns and bank statements
What are the documents required for a pharma license?
The documents required for setting up a pharma store are to be submitted to the Drug Control Department of the state. Following is a suggestive list that mentions the required documents; these may differ according to states:
- Pharmacy license application form in the prescribed format according to the act
- A signed covering letter with the name and designation of the applicant along with the objective of the application
- Challan of the registration fee deposited
- Declaration form in the format as per the act
- Blueprint and site plan for the premises
- The basis of occupancy of the premises; whether it is rented or owned
- ID proof and photos of owner/partners of a pharma shop
- Proof of ownership of the premise if it’s rented.
- Proof of constitution of the business including incorporation certificate or MOA or AOA or partnership deed.
- Non-conviction affidavit of owners, partners or directors under the Drugs and Cosmetics Act, 1940
- Affidavit of a registered pharmacist or qualified person inclined to work full time
- Appointment letter of a registered pharmacist or competent person or helper, if employed.
Requirements to be fulfilled before the registration of a pharma shop
To get a medical store license, the applicant must have a Bachelor/Diploma of Pharmacy or Master of Sciences of Pharmacy degree. If the applicant doesn’t have the mentioned qualification, they can hire a qualified pharmacist.
The pharmacist’s medical proof is required to acquire the license for the store.
The required land for a wholesale business is at least 10 square meters, and if you wish to operate a combined wholesale and retail business, then at least 15 square meters of land is required. The size of land depends on many factors such as budget, locality, choice of business outlet, etc.
If you plan to buy land for your business, you can get a business loan for the shop or a loan or rent a shop. If you decide to buy the land, then a copy of the sales deed and a copy of loan approval from the bank, if taken, should be submitted to the office. In the case of renting, a copy of the rental agreement might be needed.
Registration of pharmacies
The registration of pharmacies falls under the Indian Pharmacy Act, 1984. The applicant has to submit all the necessary documents to their state’s governing body who inspect these documents. Once the inspection is done, and the registration tribunal is satisfied with all the documents and information provided, registration is granted. .
Registration of business
All the businesses have to decide which type of business model they will follow. Registration of the business as a particular business model is necessary to gain a drug license. An owner can choose from the following options:
- Sole proprietorship
- One person company
Limited Liability Partnerships are very common among people who start a stand-alone medical store.
There are many medicines that require special care in storage. There are specific instructions for storing some medicines regarding temperature. A medical store must have a refrigerator to store the medicines that require a set temperature.
Other than this, if any other equipment is required to store and to discard the expired medicines, a pharmaceutical shop must be equipped with those too.
Establishment registration includes getting the pharma store registered under the local governing body. A business has to comply with all the rules and regulations constituted by the local authorities.
Tax registration refers to the registration under the GST laws. All the businesses have to pay a certain percentage of GST in case their turnover exceeds the limit decided by the government, which is 20 lakh in some states and 40 lakh in others.
Registration for drug licence
Once all the procedures mentioned above are followed, the applicant has to obtain a drug license. Central Drugs Standards Control Organization (CDSCO) and State Drugs Standard Control Organization (SDSCO) are the two authorities that grant the licenses to the applicants.
Drug licenses are classified into two categories depending on the nature of the business, whether it is a retail business or a wholesale business.
Starting a pharma store is not only a big responsibility but also a big investment.
Capital is required to start the business and carry on the day-to-day activities, and the easy way to obtain it is a loan. Ziploan provides you with a secured medical shop loan at flexible interest rates and minimum documentation in just three days! Visit the site to know more.
Pharma Shop – FAQs
Ziploan offers small business loans for medical stores up to Rs. 7.5 lakh. The funds generated through these loans can be used for buying more medicines to serve the requirements of an area.
You can avail a Startup business loan from a bank or a financial body in order to raise funds to start a business of your own or expand your current business. The rate of interest charged by the bank will depend on the loan amount availed by you and the repayment tenure.
Renting out registration certificates to others is illegal and has been bringing a bad name to the industry, but pharmacists say they are left with little choice and have to do it out of desperation for money.