As we discussed earlier, today our startup solution is about opening a Pharmacy/Medical store business in India. In this article, we will know how to start the business, what are the basic requirements, what are documentation and approvals that we need to have in order to start a medical store in India. Let’s get into the topic.
WHO CAN DO THE BUSINESS?
People who have completed B.Pharma, M.Pharma, D.Pharma, Pharma.D students are eligible to open the store. If you haven’t got any of these degrees you can still open a medical shop by hiring the students with the above qualifications on a monthly salary basis. But, make sure that whenever your medical shop is open the student with Pharma professional should be available in the shop.
REGISTRATIONS REQUIRED TO OPEN A PHARMACY?
- You need a shop registration
- Business Registration
- GST registration
- Drug license
If the shop is yours you will already have documents of it. If the shop is rented it should have a rented agreement which is easy to get these days.
Business registration is quite easy these days it takes around 5000/- rupees and involves in single or multiple partnerships. You need to approach a Chartered Accounted to do this job.
GST is quite an important document for the business. From every drug you sell, a minimum of 18% will go to the government as GST which you need to pay the government every month before the 7th. The Chartered Accountant will do this job for you.
Drug License is of two types: Retail Drug License and Wholesale Drug License. Retail Drug License is mostly used these days. So, we will discuss it. The shop should be at least 10 square meters with a fridge and air conditioner. For getting a drug license you need to apply for these licenses. The license numbers are 19, 20, 19-C, 20-F, 19-B, and 20-C. These are forms under Drug schedules.
So, these are the documents you finally need.
- Application form
- Covering letter
- Rent Agreement
- Site Plan
- Declaration Form
- Property Tax
- Pharmacist license
- Incorporation Certificate
INVESTMENT FOR SETTING UP THE STORE:
- Initial Medical stocking and Registration will usually cost you 4-5 lakhs
- You will need to buy the medical stock from Medical Agencies near you
- Find the best deals near you who gives the stock at a reasonable price
- All these depend on the agreement that you and the dealer does between yourselves
- Shop modeling depends on the place usually 1 lakh is a good amount for interior for a 10 square meter area.
- So finally, the final investment for opening a medical store is around 6-7 lakh rupees
Every medicine-making company will give you 5-30% profit on the tablet sold in your medical shop. But, customer attraction is possible only through discounts. So, a 5% discount margin in the initial days will fetch you a good number of customers. Promotion through hoarding, pamphlets, and other ways will help your business to reach more customers.
This is for now. Comment your doubts below or send us your queries to our mail firstname.lastname@example.org
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