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How To Start A Pharmacy Business In India

Published on Oct 3, 2024Updated on Oct 22, 2024

How To Start A Pharmacy Business In India

Starting a pharmacy business in India can be a lucrative venture due to the consistent demand for healthcare products. However, navigating the process involves careful planning and adherence to regulations. In this article, we’ll explore how to start a pharmacy business along with getting the necessary licences, registrations, and funding options.

How to Open a Pharmacy/Medical Store in India?

Pharmacy business setup requires adherence to several regulations and strategic planning. Here are some essential steps to follow:

  • Choose a suitable location for your pharmacy business to ensure accessibility.
  • Register your store with the relevant authorities.
  • Obtain a drug licence to sell medicines legally.
  • Complete GST registration for tax compliance.
  • Arrange initial capital through savings or business loans.

Type of Pharmacy

Pharmacies can be classified into different categories based on how they operate and serve customers. Each type of pharmacy business caters to specific needs within the healthcare sector:

  • Retail Pharmacy: A physical store that sells medicines and healthcare products directly to consumers.
  • Hospital Pharmacy: Located within hospitals, supplying medications to in-patients and hospital staff.
  • Online Pharmacy: Operates digitally, allowing customers to order medicines online and have them delivered to their homes.

Register Your Store

To legally operate your pharmacy business, you must register with local authorities. This ensures that your store complies with all necessary regulations. Choose a unique name for your pharmacy, follow municipal laws, and obtain the required local permits. Proper registration is a must for establishing a legitimate and trustworthy pharmacy business in India.

Get a Drug License

A drug license is mandatory for running a pharmacy business in India. To get a drug licence for your pharmacy business, apply through the Central Drugs Standard Control Organisation (CDSCO) or the State Drug Control Organisation. You will need to submit documents like your pharmacy registration certificate, proof of business premises, and details of a registered pharmacist. Once approved, this licence allows your store to sell medicines legally.

Get GST Registration

Obtaining GST registration is essential for your pharmacy business to comply with tax regulations. To get GST registration for your pharmacy business, visit the GST portal and create an account. Submit required documents like your business PAN, proof of address, and bank account details. Once verified, you will receive your GSTIN, enabling you to charge and remit GST. This step ensures tax compliance for your business operations.

Explore Funding Opportunities

Starting a pharmacy business involves significant investment. Consider funding options like personal savings, business loans, or support from investors. For large capital needs, applying for a business loan is a practical option. Additionally, explore government grants and schemes designed to support healthcare ventures, as well as partnerships with local healthcare providers that could offer financial assistance or collaborative opportunities.

Learn How a Business Loan Can Help You Start a Pharmacy Business in India

A business loan can provide the capital you need to set up your pharmacy business, covering expenses like rent, stock, and operational costs. With competitive interest rates and flexible repayment options, a business loan ensures you can focus on growing your pharmacy business without the burden of financial strain.

Conclusion

Requirements to open a pharmacy in India include careful planning and an understanding of the legal requirements. If you're wondering how to start a pharmacy business, take the time to create a solid plan and explore various funding sources for long-term success. If you’re looking for financial support to grow your business, SMFG India Credit offers unsecured business loans of up to INR 75 lakhs*. Please be aware that businesses must be operational for a minimum of three years to apply for a business loan.

* Please note that this article is for your knowledge only. Loans are disbursed at the sole discretion of SMFG India Credit. Final approval, loan terms, disbursal process, foreclosure charges and foreclosure process will be subject to SMFG India Credit's policy at the time of loan application. If you wish to know more about our products and services, please contact us

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