What is the Registration Procedure to Start a Retail Pharmacy Business in India?

  • RetailerShakti
  • June 21, 2023

The healthcare sector is rapidly growing in India. People spend thousands of rupees on drugs each year to maintain their health and treat ailments. The pharmaceutical industry has been least affected by the recession. The medical supply sector is an enduring one. After initially using technology primarily for medicinal research and development, we have now reached a point where it is as important for sales. Today, you may schedule a doctor's visit online, establish a treatment plan, and even order prescriptions to be delivered directly to your door.


Different types of pharmacies


Stand-alone Pharmacy:This retail medical establishment is generally established in a neighbourhood. The majority of small- and medium-sized business owners set up their pharmacies in this manner.

This is how the majority of small- and medium-sized business owners set up their pharmacies.

Hospital Pharmacy: To fulfil the requirements of the patients, someone may open a pharmacy next to the hospital.

Franchise Pharmacy: Some pharmacies run as chains, opening numerous locations in various cities under the same brand name. Except for their greater market recognition and reach, they are not distinguishable from independent pharmacies.

Online Pharmacy: Numerous pharmacies are implementing this most recent business strategy. Through a web portal or web application, they only conduct business online. They need to maintain a physical location for walk-in consumers in addition to a warehouse or go down to store the supply of medicines.


Registration procedure to start a retail pharmacy business in India:

Starting a retail pharmacy business in India requires several registrations and licence from various government authorities. The process may vary depending on the state in which the business is being set up, but the following are the general steps involved:


Choose the type of business entity: The first step is to decide what kind of business entity, such as a sole proprietorship, partnership, or private limited company, you want to operate under.

Obtain a Trade Licence: A trade licence must be obtained from the Panchayat or local municipal body in the region where the pharmacy will be situated.

Register your Business: Registrar of Companies (ROC) registration is required if you are forming a private limited company. If you're starting a partnership or a sole proprietorship, you can also register your business with the Registrar of Firms.

Obtain Tax Registration: This applies to practically all types of firms, not just those in the pharmaceutical sector. The business should complete all tax registrations as soon as the formal incorporation procedures are complete. Obtaining a PAN, TAN, and GST number is part of this.

Obtain a Drug Licence: You will need to obtain a drug licence from the State Drug Control Authority to sell medicines in India. This licence is issued under the Drugs and Cosmetics Act, 1940, and the rules made thereunder. The applicant should have a degree or diploma in pharmacy from a recognized institute or university. The application form can be obtained from the website of the State Drug Control Authority.


The paperwork needed for a medical shop licence:


  • Properly completed application form.
  • Cover letter with the applicant's signature, explaining the applicant's intentions.
  • Evidence of payment.
  • Application form with applicant's signature on it.
  • The property's blueprint.
  • Documents proving ownership of the property.
  • A copy of the owners' identity documents and some current photos.



Hire a Registered Pharmacist: You will need to hire a registered pharmacist who holds a degree or diploma in pharmacy to operate your retail pharmacy business. The pharmacist must be registered with the State Pharmacy Council.


Obtain Fire Safety Certificate: Obtain a Fire Safety Certificate from the Fire Department in the neighbourhood where the pharmacy is situated. After a property inspection, the certificate is given out.


Obtain a Shop and Establishment Act License: According to the state's Shop and Establishment Act, this licence is necessary. It is issued by the Panchayat or the neighbourhood municipal corporation.


Obtain NOC from Pollution Control Board: You must get a No Objection Certificate (NOC) from the State Pollution Control Board if you want to dispose of any hazardous or pharmaceutical waste.


It is advisable to consult a legal professional or a business consultant for detailed guidance on the registration process and compliance requirements for starting a retail pharmacy business in India.