Licenses for Pharmacy Business in India

The pharmacy market in India significantly holds large business opportunities with space for multiple players and different business model types. With the growing market of pharmaceutical goods, entrepreneurs are penetrating their business funds in the drug industry. Also, in the E-Commerce space, multiple players have jumped into the pharmacy business, where within a short capital expenditure these entities are winning the trust of millions.

This is the most crucial sector where the existence of business depends on the expertise of the person managing it. Entry to Pharmacy business is also not too easy when it comes to the licensing requirement. It is easier to find cashier, mechanic, or a marketing agent to work without a license but to work in the pharmacy sector; the prime condition is to obtain the necessary licenses from the government.

If you are too thinking to build up your own pharmacy shop or start your own drug business in India, scroll down below to know what all licenses you will be requiring to do that legally.

  1. Business Registration / Company registration / Firm Registration

There is no specific requirement from the government to choose a particular entity type among Partnership / Company / LLP or Sole proprietorship to start a pharmacy business. But it is mandatory on the part of the government, that before initiating any drug business in India you obtain a legal registration of your business which can either be done by-

Registration of business to any of the above entity type is mandatory even if the business is about opening a small pharmacy shop in any locality or a huge pharmacy manufacturing business. Firm registration would be required to obtain other licenses as well, as prescribed by the medical council and other government authorities, which will be further required in opening a pharmacy business in India.

  1. Drug license in India

A Drug license is a permission of the concerned State or Central Authority for initiating a manufacturing / retailing/ wholesale/ distribution of pharmaceuticals. To start pharmacy business in India, a drug license issued under the Drugs And Cosmetics Act, 1940 is to be obtained. For distribution/ wholesale of drugs / medical goods license can be obtained from Central Drugs Standard Control Organisation (CDSCO) or State Drugs Standard Control Organisation (SDSCO), both organizations grants license after confirming the business resources and to certain parameters like the minimum business area, infrastructure, minimum qualification of the competent person managing the business, etc.

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  1. Trademark registration

Trademark registration cannot be ignored if you are working in a sector which has the most intellectual infringement cases. In the pharmaceutical industry, as it is about health and well being of people, a small misunderstanding can pose big harm to the health of people. Thus protect intellectual on of the brand, product name, or resources used in its wake of a medical / drug product should be protected through security. Also, to obtain Trademark registration for Pharmacy business is nowhere mandatory, but it is required and cannot be ignored due to increasing infringement cases in the Pharmaceutical sector. To obtain a Trademark registration for the pharmacy business, you have to file a Trademark registration form with the trademarking authorities. The trademark registration for pharmacy business can be obtained for logo, label, packaging, goods, devices, letter marks, number marks, etc.  For consultation on Trademark registration for pharmacy business, write to our Trademark expert at

  1. FSSAI Registration / FSSAI Licence

For businesses engaged in retail/wholesale/storage/processing/transportation of food products whether inclusive of certain drugs or chemicals, all have to obtain a food license or registration under FSSAI authority. It is mandatory for pharmacy business owners to obtain a food license under FSSAI for dealing in drugs and consumer medicines. FSSAI keeps control of all food business operators and ensures regular inspection of their products or goods circulated by them to consumers. For maintenance of discipline of health standards, FSSAI registration or FSSAI license has to be obtained in the name of Pharmacy business. Know how you can obtain an FSSAI license in India.

  1. Shop & Establishment Licence Certificate

For opening a Pharmacy shop in any locality or in anywhere in India, you will be requiring a State Shop & Establishment Licence Certificate under the Shop and Establishment Act applicable in your state. The license can be obtained from State Shop Registering Authority by providing them details of the commercial establishment formed. For pharmacy space, Shop& Establishment Licence also works as a recognizable seller certificate for medical shop owners. Know more about how to apply Shop And Establishment Licence for your business.

  1. GST Registration

GST is a sole model of taxation for or all types of goods. For entrepreneurs engaged in the business of manufacturing, selling, wholesale, trading, storage, marketing, or distribution of pharmaceutical products, application for GST registration is essential. GST is usually charged on all medical goods and drugs @ 18% and has to be paid to the government either on a reverse charge basis or by the recipient of goods. In case, registration is not obtained the recipient of goods making payment of GST is not permitted to receive ITC (Input Tax Credit). Thus, to avail ITC on pharmaceutical goods, GST registration is mandatory.

  1. Factory Act License

For entrepreneurs who want to start their own drug manufacturing business, a Factory Licence under the Factories Act, 1948 is to be obtained. The registration of license under the act can be applied to the State authorities. Know how to apply a factory license for your establishment. Talk to our licensing expert at +91 90-1535-1535.

The pharmacy sector offers you an ending list of opportunities to start your own business. You can place your own pharmaceutical marketing, trading, manufacturing, consultancy, pharmacy machinery production business, raw material supply business, or work as a medical shop owner, chemist, stockist, distributor of medical goods. Once you obtain all the necessary licenses stated above you are ready to go with a legally compliant pharmacy business in India.

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