151 days ago

How To Open A Medical Store In India: From Vision To Reality

author Ankita Content Writer

Join Whatsapp Channel & Get Instant Deal Alert

Medicines are called the need of an hour. You may need medicines at any point in time.

The most evergreen business, unaffected by the economic cycles, is the medicine business, that is why today I will tell you about How to open a medical store in India.

Below, I will mention the types of medical stores, the documents required for opening a medical store, the Medical Registrations Required, and how to get a loan for opening a medical store.

Even though medical stores are incredibly important, they also bear a great deal of responsibility because, before they can begin selling medications, they frequently have to go through numerous legal requirements.

Additionally, if you want to know about the Best Online Instant Medicine Delivery Apps in India, then I suggest you read our dedicated article on the same.

Table of Contents

[ Show ]

1.Types Of Medical Stores
2.How To Open A Medical Store: Requirements To Meet
- How To Open A Medical Store: Documents Required
3.Medical Store Registration
4.Other Registrations Required For A Medical Store
5.How Can I Get A Loan For A Medical Shop?
- Documents Required To Apply For A Medical Store Business Loan
6.Final Words
- Questions You May Have

Types of Medical Stores

The following are the various types of medical stores that people can open:

Hospital Medical Store: Designed to meet the needs of hospital visitors, this medical store is located inside the hospital.
Standalone Medical Store: The most typical type of medical store is the standalone type. Residents go to small or medium-sized stores that have been opened in residential areas to buy necessary medications.
Chain Pharmacy Or Franchise Outlets: Chain pharmacies, also known as franchise outlets, are medical establishments found in shopping centres and malls that are a part of a larger chain of pharmacies with locations across the country. Usually, they are sizable pharmacies.
Township Medical Stores: These are the kinds of medical stores that are established in a township to serve the needs of the community at large.
Stores On Government Property: These pharmacies are directly under the authority of the government and are opened in accordance with a variety of policies and programs. Usually, they are opened inside government buildings and offices.

A larger corporate hospital or organisation typically owns township medical stores, hospital medical stores, and chain pharmacies. Owners or business partners open standalone and township medical stores. Before opening a medical store, an individual must choose the kind of store they want to open and submit an application for the store's registration and other licenses.

How To Open A Medical Store: Requirements To Meet

Specification of Area: For a retail business, the medical store's space must be at least 10 square meters, and for a wholesale business, it must be at least 15 square meters.

Storage Facility: Since certain drugs, such as insulin injections, vaccines, sera, etc., must be stored in a refrigerator according to label specifications, medical stores must have air conditioning or a refrigerator.

Technical Staff: Technical personnel are needed in medical stores. These personnel include the following:

For Wholesale: In the wholesale market, sales of pharmaceuticals must only take place in the presence of a Department of Drug Control-approved individual with four years of experience or a registered pharmacist with one year of experience.
For Retail: During business hours, sales of medications must take place in front of a licensed pharmacist.

How To Open A Medical Store: Documents Required

Following the new guidelines for the medical store, the following list of suggested documents can help you start a pharmacy in India:

Apply for a Pharmacy License in the prescribed format.
Deposit fees for drug licenses or Challan invoices.
Declaration form using the format that is specified.
The premises' key plan or blueprint.
Blueprint for the premises' site plan.
A cover letter that includes the applicant's name, signature, and designation, as well as the purpose of the application.
The reason for owning the property.
All official identification documents issued by the government, passport-sized photos of the owners and partners of the aforementioned medical store.
The company's constitution (in the form of an incorporation certificate, partnership deed, MOA, or AOA)
Proof of ownership of the property (if the space is rented).
Appointment letters from licensed and working pharmacists or other qualified individuals.
Affidavit of a registered pharmacist or a full-time, competent employee.
Owners, partners, and directors are not guilty under the Drugs and Cosmetics Act, 1940 Affidavit.

Medical Store Registration

Chain pharmacies, township medical stores, and hospital medical stores are typically founded as corporations or limited liability partnerships. Typically, townships and standalone medical stores are organised as sole proprietorships or partnerships. The proprietor of the medical store should choose the business structure for the store and submit an application for registration in line with that decision. The business structures listed below are the options available to medical store owners looking to open their location:

1. Proprietorship Registration

The owner of the medical supply store will only be one person in a sole proprietorship. The medical store is owned and operated by one person. Establishing a sole proprietorship does not require obtaining any special registration. To manage the business, the owner or sole proprietor should open a bank account and obtain a PAN card.

2. Partnership Registration

A medical store that is owned and operated by two or more partners is referred to as a partnership firm. All partners execute the partnership deed, which governs the operation of the business. The Registrar of Firms is where it should be registered.

3. One-Person Company Registration

A One-Person Company (OPC) is a business that has been registered with just one person acting as the sole shareholder. The medical store can only be run by one member of an OPC. A medical store can enjoy all the advantages of a company, including perpetual succession, limited liability to company members, and separate legal entity status, by registering as an OPC company. The Registrar of Companies (ROC) is the place where an OPC should be registered.

4. Private Limited Company Registered

A medical store may also register with the Registrar of Companies as a private limited company. Two directors and a minimum of two members form a private limited company. The business is unable to publish a prospectus, though, asking people to subscribe to its stock.

5. Limited Liability Partnership (LLP) Registration

Limited Liability Partnerships (LLPs) have become more and more common in recent years. Owners of medical supply stores are thinking about forming limited liability companies (LLPs). An LLP is formed by two or more partners under an LLP agreement that every partner signs. An LLP functions similarly to a partnership firm, but it also has the benefits and characteristics of a company. Registration of an LLP with the Registrar of Companies is required.

Other Registrations Required For A Medical Store

A medical store owner needs numerous additional licenses and registrations along with the medical store registration in order to operate their business. After registering the medical store as a sole proprietorship, partnership firm, limited liability partnership (LLP), or company, the owner of the medical store needs to obtain the following other important registrations:

1. Pharmacy Licence

One of the main licenses needed to run a medical store is a pharmacy license. To obtain a pharmacy license, the owner of the medical store or the designated pharmacist must be licensed pharmacist holding a B. Pharm or M. Pharm degree.

2. Shop and Establishment Registration

All medical stores must register under the Shop and Establishment Act in order to conduct business. Every store or shop is required by the local municipal corporation or state's Shop and Establishment Act to register, as per the municipal regulations of that state.

3. GST Registration

Every business, including medical stores, must register for the Goods and Services Tax (GST) if its total revenue in a given fiscal year surpasses the threshold amount specified by the GST Act. As mandated by the GST Act, companies that supply goods and have a yearly turnover that exceeds the threshold of Rs. 40 lakhs for normal category states and Rs. 20 lakhs for special category states need to register with GST.

4. Drug Licence

A medication licence is a prerequisite for opening a medical store. Medical stores must obtain a drug license from the Central Drugs Standards Control Organization (CDSCO) and State Drugs Standard Control Organization (SDSCO) due to their involvement in the procurement and sale of drugs. Depending on the kind of store, a medical supply company must obtain one of two types of drug licenses:

Licensing For Retail Drugs: In order to operate the general chemist shop, you must obtain a license and pay a small upfront fee. It should be mentioned, though, that only a person who has earned a pharmacy degree or diploma from one of the listed universities or institutions may complete the registration process.
License to Sell Wholesale Drugs: It is necessary to obtain a license if you intend to supply or sell medications in bulk. The applicant is not subject to a set of rules and regulations, unlike with a retail drug license. This license is granted subject to certain limitations.

How Can I Get A Loan For A Medical Shop?

Check out these practices to learn about the advantages of a business loan for a pharmacy or medical facility, as well as the regulations that apply to them.

You have to be a citizen of India.
You should be between the ages of 25 and 66.
You have to work for yourself.
You ought to have at least three years of business experience.

Documents Required To Apply For A Medical Store Business Loan

Before acquiring a loan to start a pharmacy business in India, you must have the following requirements met:

Age Proof
Official Identification, Proof
Proof Of Residence For Sole-Proprietorshop
Financial Documents: IT Returns And Bank Statements
Residential Proof
Proof Of Identity Of Sole Proprietorship

Final Words

I hope you have received all the important info regarding how to open a medical store in India after going through this article. Since the medical industry is expanding in India, opening a medical store is a wise decision. A partnership, proprietorship, limited liability company (LLP), or company registration is required in order to operate a medical store. After the store is registered, the owner is required to obtain additional licenses and registrations, such as the pharmacy, shop and establishment, and drug licenses, in order to operate the business efficiently. To run the business of selling medications and pharmaceuticals, the person must also abide by store requirements set forth in the Drugs and Cosmetics Act, as well as CDSCO and SDSCO rules and regulations. If you liked the article, share it with all your loved ones and leave a comment below in case of any queries.

Questions You May Have

Q. How can I start a small medical shop?

A. One needs to register as a partnership, sole proprietorship, limited liability partnership, or company in order to open a medical store. To ensure the smooth operation of the business, the person must obtain additional licenses and registrations after the store is registered, such as the pharmacy, shop, establishment, and drug licenses.

Q. Is opening a medical shop profitable?

A. One of the most successful and satisfying industries is pharmacy ownership. Although it can take some work to start a pharmacy from scratch, doing so is quicker and more profitable than purchasing an existing pharmacy. The market is very competitive today.

Q. How much investment is needed to start a medical store?

A. An investment of Rs. 3 to 8 lakh is typically needed for a small to medium-sized medical store in India, whether it is a retail or wholesale operation. For major towns and cities, the investment amount will be higher.