Drug Store

Basically Pharmacy or pharmaceutical business is of two types, drug retail and wholesale business. Therefore certain rules have to be followed In this case of two types of business. And the necessary license has to be taken.

Today we will discuss the necessary steps to start a pharmacy business.

Pharmacy Business registration

In the case of retail business, the single drug store or standalone pharmacy is the most popular in our country. This type of business is usually proprietorship or partnership. However, the drug business can also be registered as a private limited company.

Tax registration

GST registration is essential for starting a business. As per the rules, any business with an annual turnover of Rs 20 lakh or more has to register for GST. Once your business exceeds that limit, you need to collect GST number and register for GST.

Pharmacy license or drug license

Obtaining a pharmacy license is mandatory for doing pharmacy business or drug business. In West Bengal, the license is issued by the Directorate of Drug Control under the Department of Family Welfare.

Rules

According to the Drugs and Cosmetics Act 1940, any drug dealer or any trader involved in the pharmacy business has to obtain a drug license from the concerned authority. This rule should be followed in the case of any allopathic, homeopathic, Ayurveda or unani medicine.

Types of drug licenses

There are three types of drug licenses issued by the government – manufacturing licenses, sales licenses and borrowing licenses.

Manufacturing license

This license is given for making allopathic and homeopathic medicines in a specific place. This place is a must have, for any Affiliate, promoting any program.

Sales license

There are two types of sales licenses, retail licenses and wholesale licenses. To open a pharmacy, you need to get a retail license. To get this license you need to have a degree or diploma in pharmacy from a recognized university. If the owner does not have a degree or diploma in his own pharmacy, someone with such a degree will have to be hired. If you want to do wholesale business of medicines, you have to take wholesale pharmacy license.

Loan license

Loan licenses are issued to pharmacy businesses that want to use production units under other licenses. This means that drug dealers who do not have their own pharmaceutical factory, who want to manufacture drugs in any other pharmaceutical factory, will have to take this license.

Remember, if you want to do pharmacy business in more than one state, you have to get a separate license from each state.

Necessary infrastructure

In West Bengal, a pharmacy business (both manufacturing and sales) requires a space of 108 square feet (carpet area), with a minimum ceiling height of 6 feet 2 inches. The place should have a brick made and plastered floor and with it a concrete roof. The two entrances must be divided into two separate but equal parts. The entrance cannot be used as an entrance to any residence.

Medicines should be kept in a clean, cool and ventilated place. The vaccine should be kept in the freezer, that is, in the refrigerator.

Documents for pharmacy

The following documents are required to apply for a Pharmacy Business License.

• Power of Attorney (if any) on non-judicial stamp paper as per proforma.
• Trade license is required to specify the type of business.
• Proof of place of business (tax bill / proof of rent).
• Lease agreement and rent receipt (if rented space).
• Owner’s Permit (No Objection Certificate) in case of rented house.
• Registered partnership deed and firm registration receipt (in case of partnership pharmacy business).
• Memorandum and Article of Association (in case of private limited pharmacy business).
• List of names of board of directors and decision of board meeting (in case of private limited company).
• Sketch map of the place of business and its surroundings (CAD model).
• Pharmacist’s letter of appointment and his letter of recognition and his name (according to the proforma).
• PAN card and cancelled cheque sheet.
• Director’s illustrated identity card and proof of address.
• CPI’s educational qualifications and its details for wholesale pharmacy business.
• Pharmacist / CPI Registration Certificate and Renewal Certificate (if applicable).
• Affidavit of swearing in of Pharmacist / CPI before First Class Judicial Magistrate or Executive Magistrate.

Pharmacist experience certificate.

Affidavit of swearing in of the applicant (proprietor / partner / director) before the first class Judicial Magistrate or Executive Magistrate (as per proforma).

Procedure for applying for a new pharmacy business (retail and wholesale) drug license

If you want to do pharmacy business in West Bengal, you have to apply for a license online. The application procedure is as follows-

Registration

The applicant must first go to the website of the Department of Health and Family Welfare and register.

User ID and password

After completing the name registration process, he will get a user ID and password.

Log in

After that you can log in to the applicant portal with this user ID and password.

Fill out the application form

After logging in, the applicant has to click on the ‘Apply for New License’ button to complete the application form.

Types of business

You have to choose the right option between retail and wholesale business.

Upload the application form

The application form has to be uploaded in PDF format, along with all the necessary documents.

• Deposit money

You have to pay the required money online.

Once the application form is uploaded and the money is deposited, the applicant will receive a letter of recognition (System Generated Acknowledgment), which he can use in the future. The authority will then verify the application and issue a license. Authorities may request further information or documents if necessary. The authority takes 15 days to verify the application and issue the license. Its progress can be seen online before getting the license. The applicant will also be informed through email and SMS.

Inspection

Before issuing the license, the drug inspector will visit the place of business on behalf of the state government. The license will be issued only if all the conditions for obtaining the license are met. Otherwise, the authorities may ask the applicant to change the application or reject the application.

Pharmacy business capital

The amount of pharmacy business capital depends on where you are doing business. The main costs in the retail business are shop rent or buying a store house, the salary of the pharmacist (if the owner is not a pharmacist himself), interior decoration, refrigerator, license fee, other groceries and the cost of storing medicines. All in all, it is better to start a pharmacy business with one and a half to two lakh rupees. But of course it depends on the place and the range of the shop.

Profit in the pharmacy business

The amount of profit in pharmacy stores depends on the specific company and the drug. However, retailers generally get 18-20 percent margin. This margin increases in the case of generic drugs.

In order to make a profit in the pharmacy business or drug store, you need to be careful in choosing the place first. Keep in mind the population of the area where you want to open a store and the number of existing drug stores. Stand on it and judge if there is more demand.

Business would be better if there was a hospital, clinic or doctor’s chamber nearby. The closer you can shop to the doctor’s chambers, the more business there will be. Do a good research on what kind of medicine to keep before starting the pharmacy business.

Keep in mind that if the buyer has to go back without getting the medicine, he may not be interested in coming to your store next time. As a result, try to stock up on all the medicines that your local doctor treats and prescribes. In addition, keep more medicines for common diseases.

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