How to Open a Medical Shop or Pharmacy in India? Rules, Documents and Eligibility

Medical Shop: In today’s world, the demand for medicines is constant and necessary, particularly in the wake of the COVID-19 pandemic. People all over the world search for nearby medical stores to meet their healthcare needs.

Have you ever considered the potential profitability of owning such a business or even starting a medical store of your own? It is likely that many of us have pondered the idea but have not conducted proper research.

Compared to other business startups, setting up a medical store requires relatively less financial investment. Additionally, there is a high demand for pharmaceutical aid in India due to the prevalence of various health issues among the population.

Fortunately, we can explore the process of starting a medical store in India step-by-step. By doing so, we can better understand the requirements and opportunities associated with this business venture.

Rules For Medical Shop In India

1. Pharmacy License application form in the designated format.
2. An Affidavit stating that proprietor/partners/directors have not been convicted under the Drugs and Cosmetics Act, 1940.
3. Proof of depositing Drug License fees or Challan invoices.
4. Government-based or official Identity Proof and passport-size photographs of the owner/partners of the medical store.
5. Proof of the company’s constitution (Partnership Deed/MOA/AOA/Incorporation Certificate).
6. Ownership proof of the premises (if the space is rented).
7. Declaration form in the prescribed format.
8. Key Plan or Blueprint for the premises.
9. Site Plan Blueprint for the premises.
10. A Covering Letter with the intent of the application, along with the name, signature, and designation of the applicant.
11. The basis of possession of the premises.
12. Appointment letters of registered and employed pharmacists or competent personnel.
13. Affidavit of the full-time working competent person or the registered pharmacist.

Types of Medical Store 

1. Hospital medical store: A medical store located within a hospital that caters to the needs of patients who visit the hospital.
2. Standalone medical store: The most common type of medical store, usually small or medium-sized and located in residential areas. Residents visit these stores to purchase essential medicines.
3. Chain pharmacy or franchise outlets: Medical stores that are part of a chain or franchise with branches in different areas. These stores are typically located in malls or shopping complexes and are usually larger in size.
4. Township medical stores: Medical stores located within a township that caters to the needs of the residents in the town or village.
5. Stores in government premises: Medical stores that are opened under various government policies and schemes and are directly under government control. These stores are usually located inside government offices and buildings.

Requirements for Opening a Medical Store

1. Area specifications: The area of the medical store must be a minimum of 10 square metres for a retail business and 15 square metres for a wholesale business.
2. Storage facility: Medical stores must be equipped with an air conditioner or refrigerator, as some drugs such as insulin injections, vaccines, and sera, require storage in a controlled environment.
3. Technical staff: Medical stores require technical staff as follows:

• For wholesale business: The sale of medicines must be made only in the presence of a registered pharmacist with at least one year of experience or a person with four years of experience as approved by the Department of Drug Control.
• For retail: The sale of medicines must be made in the presence of a registered pharmacist during working hours.

1. Pharmacy Licence: Obtaining a Pharmacy License is a major requirement for opening a medical store. To be eligible for the license, the individual must hold a degree in B.Pharm or M.Pharm and be a qualified pharmacist.

Documents List Required for Registration of a Medical Store

1. Pharmacy licence application.
2. Deposited fee or challan invoices for drug licence.
3. Key plan or blueprint for the premises.
4. Proof of possession of the premises.
5. Identity and address proof of owners or partners.
6. Ownership proof of premises.
7. Appointment letters of registered and employed pharmacists or competent personnel.
8. Affidavit of the full-time working registered pharmacist or competent person.
9. Non-conviction affidavit of proprietor, partners, or directors under the Drugs and Cosmetics Act, 1940.

Eligibility For Retail Drugstores

1. You need to have at least 10 square meters of space.
2. If you want to open a wholesale pharmacy, you’ll need a minimum of 15 square meters of space.
3. Your drugstore must also have an air conditioner and a refrigerator. This is important to keep the medicines in good condition.
4. Both wholesale and retail pharmacies must have someone who knows about the pharmacy present at the store to sell medicines.

This person must meet one of the following qualifications:

• A pharmacy graduate with at least 1 year of experience in dealing with drugs.
• A registered pharmacist approved by the state pharmacy council.
• A Secondary School Leaving Certificate (SSLC) graduate with a minimum of 4 years of experience in dealing with drugs, approved by the Department of Drug Control.

Drug Licences Type

Before opening a medical shop, you need to fulfill the last legal requirement, which is registering for a drug license. Regardless of the turnover or size of the pharmacy, you must obtain a drug license from both the Central Drugs Standards Control Organization and the State Drugs Standard Control Organization. The two primary licenses they issue are:

1. Retail Drug License: This license is required to operate a general chemist shop and requires a minimal fee to start operations. However, it’s important to note that only individuals who have obtained a degree or diploma in pharmacy from a university or institute listed with the authorities can carry out the registration process.
2. Wholesale Drug License: If you plan to sell medicines in wholesale, you must obtain a license for the same. Unlike the Retail Drug License, the applicant for this license does not have to follow a specific set of rules and regulations. However, there are certain restrictions associated with obtaining this license.

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