The pharmaceutical industry or Medical Store is one of the most economically inert industries because corporate hospitals and multi-specialty hospitals are becoming more and more popular, the healthcare and pharmaceutical industries in India are experiencing great growth. The ideal alternative for business owners who wish to invest in the healthcare industry but have limited resources and space is to open a medical supply store. Despite their exceptional value, every Medical Store owes them a huge debt of gratitude. A minor error on their side could have devastating consequences for clients. This is the reason why Medical stores frequently have to meet numerous legal requirements before they can begin selling medications. In this article, we will discuss how to open a Medical Store in India.

Types of Medical Store

The following are the different types of Medical Stores:

• Medical supply store in the hospital: Designed to meet the needs of patients primarily within the hospital.
• Independent medical facility: This type is especially prevalent in residential areas.
• Chain pharmacies and franchise stores: There are medical stores in the malls that are connected to a network of pharmacies.
• Township health supply stores: In order to serve the requirements of the populace, it is situated in a township.
• Medical Stores inside government buildings.

Requirement

The following are the minimum requirement for Medical Store:

Area Requirement

The minimum space needed to open a medical store in India is 10 square meters, and a regular retail and wholesale pharmacy needs 15 square meters;

Storage Building

Both a refrigerator and an air conditioner are necessities in a pharmacy. The labeling requirements must be met in the same way that they are for medications that must be kept in a refrigerator or freezer, such as vaccines, insulin injections, sera, etc.

Professional Staff

The following categories of pharmacies need technical staff:

Wholesale Pharmacy

Only when one of the following is present in person can someone engage in the drug’s wholesale sale:

A person who has successfully completed the S.S.L.C. and has 4 years of experience dealing with medications that have been specifically approved for the purpose by the department of drugs control;

Retail pharmacy

Only when a registered pharmacist is physically present and has the department of drugs control’s approval can someone sell medicine on the retail market. Additionally, it should be noted that the Registered Pharmacist must be present during all working hours.

Types of Drug Licenses needed before opening Medical Store

Retail Drug License

In India, a Retail Drug License must be obtained from the government after paying the required cost whenever a person opens a medical store.

Furthermore, the candidate must hold a degree or diploma from a reputable institution or institute in order to meet the basic requirements for this kind of drug license.

License for wholesale drugs

In India, a wholesale drug license must be obtained from the authorities in order to start a pharmacy. Furthermore, it would be polite to note that, in contrast to a Retail Drug License, this license is not subject to the same strict regulations and requirements.

Documents needed to Open Medical Store in India

The following are the documents needed to Open Medical Store in India:

• A registration application form in the format required;
• Covering Letter indicating the purpose of the registration application form, which is officially signed with the applicant’s name and designation;
• Challan of the fee paid to obtain an Indian drug license;
• Form of declaration in the required Performa;
• Blueprint for the building’s main plan;
• Blueprint for the property’s site plan;
• The basis for premises possession;
• Rent agreement or lease contract in the case of rented property;
• Proof of premises ownership in the case of owned property;
• The Incorporation Certificate, the Memorandum of Association, the Articles of Association, or the Partnership Deed, as evidence of the legal status of the business;
• A declaration of innocence signed by the sole proprietor, partners, or directors required by the 1940 Drugs and Cosmetics Act^[1];
• An affidavit from a licensed pharmacist or another competent individual who is employed full-time;
• Appointment letter from a licensed pharmacist or another qualified individual if the applicant is a self-employed individual;

Different licenses are needed for Medical Store

The following are the Licenses needed for Medical Store:

Company Registration

The many business structures from which one might create a medical store in India include the following:

• Registration for a sole proprietorship;
• Registration for a partnership firm;
• Single Person Company Formation;
• Limited Liability Company;
• Registration of Limited Liability Partnerships;

Registering for GST

Any commercial organization, including a pharmacy or medical supply store, is required by law to register for GST if its combined annual revenue exceeds Rs 40 lakhs in a given fiscal year.

Additionally, the GST Council has lowered the cap for all of the North-Eastern hilly states to Rs 20 lakhs.

License for Stores & Establishments or Gumasta Registration

To open a medical store in India, one must first obtain a shop and establishment license from the authorities, per the municipal rules of the relevant municipal corporation.

Drug License

Every medical store, regardless of size, must get a drug license from the Central Drugs Standards Control Organization (CDSCO) and State Drugs Standard Control Organization before operations can begin (SDSCO).

Conclusion 

To put it briefly, every budding entrepreneur needs to comprehend the ideas and standards listed above in order to stand out in the pharmaceutical industry or Medical Stores in India. Additionally, a well-written business plan explains how an entrepreneur will succeed and will enable him or her to remain committed to their goals even in the most trying circumstances. Our professionals at Bizadvisors.io will help you with the steps involved in obtaining a drug license and in setting up a Medical Store in India.

Read our article:How to Apply for a Wholesale Drug License in India – A Complete Process