How To Start A Medical Shop In India
How To Start A Medical Shop In India

How To Start A Medical Shop In India

Medical equipment & supply shops are never out of business. Even during the worldwide pandemic, when much of the globe was shut down, medical stores were allowed to function under the category of vital services.

Medical supply stores are an important requirement. Everyone wants a medical shop close to their homes and offices. Have you ever considered how much money this kind profession may bring in? Pharmacies are constantly open and are unaffected by the financial crisis. 

The healthcare and pharmaceutical industries have been growing quickly, necessitating the establishment of new businesses. India is second in the world in terms of pharmaceutical manufacturing volume. Global growth analysts undertaking that India’s pharmaceutical business would rise by 754% by 2060. 

Starting a medical shop is the best option if you want to create a business that will bring you consistent income. This solution is ideal for those with limited space and funds.

However, opening a medical shop is only the first step in the process. Running it is a another story. When dealing with people who are sick, you must be responsible enough to offer them the proper medication. A minor mistake on your part might have serious consequences for the those who have it.

 As a result, medical business owners must follow particular legal processes and keep their records in order.

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Table of Contents

Choosing the Right Medical Store

You must first pick what sort of medical shop you want to own before proceeding with the rest of the procedures. There are several choices available:

Hospital medical store

These stores are placed within a hospital complex and serve patients who are visiting the hospital.

Clinical medical store

These medical stores are located in hospitals and medical centers and work to provide the right medication amounts.

Standalone medical store

These are the most common and are frequently seen in home nearby locations.

Franchise medical store

Franchise medical stores or chain pharmacies are typically found in malls or near hospitals and are part of larger pharmaceutical companies.

Township medical store

These medical businesses are located in a residential or commercial township and service the residents of the township.

Industrial medical store

These medical stores are part of the pharmaceutical sector and involve pharmaceutical product research, manufacture, marketing, and so on.

Government premises medical store

These stores are located in government-run hospitals and clinics and serve patients from such facilities.

Consulting medical store

These shops are quite new, having opened in 1990. They are more concerned with the theoretical elements of medications than with sales.

Regulatory medical store

They are also known as government medical stores and are in charge of ensuring that drugs are safe to use.

Homecare medical store

They are stationed at a patient’s residence and are on hand to assist seriously ill homebound patients. They are sometimes known as infusion pharmacies since they solely deliver injectable medications.

Online medical store

They are relatively new in India, where many individuals choose to obtain their prescription medications using online apps and websites.

Documents Required For Medical Shop Licence

Now that you’ve decided what type of medical shop you’ll operate, here’s a list of medical shop licensing documents requirement you’ll need before registering your business:

Pharmacy Licence

This is the most basic and fundamental requirement. This topic will be covered in greater depth later in the article, but here are the essentials. A certified pharmacist with a B. Pharm or M. Pharm degree should be the proprietor of a medical business. If the proprietor is not a registered pharmacist, he can hire one.

Land Registration

Proceed with land registration afterwards. A retail business must have at least 10 square meters of space, whereas a wholesale store must have at least 15 square meters. In your medical shop, you might potentially combine wholesale and retail.

A rental agreement is required if you rent a space. If you are utilizing your own land, you must have the necessary ownership documentation. A sales document is required when purchasing a business. In any event, it would be preferable if you sought legal assistance to help you overcome any difficulties.

Medical Shop Registration

Under the Indian Pharmacy Act 1948, every medical shop in India must be registered. This Act requires you to provide the essential documentation to the state government. You will be registered under the Act if your application is complete and all of the prerequisites are met.

While registering, you must also choose whether your store will be a sole proprietorship or a partnership. Many individuals favor limited liability partnerships (LLPs) in recent years because they provide benefits to all partners. 

Business Registration

You can register for the sort of business you wish to start once you’ve decided on it. The many various types of businesses are as follows:

  • Proprietorship
  • Partnership
  • One person company
  • Private limited
  • Limited liability partnership (LLP)

Establishment Registration

Depending on where the store is located, you must register it with the local body (municipal corporation, municipality, etc.) and acquire approval from them.

Drug Licence Registration

This is one of the most significant documents you must have before opening a medical store. A drug license is required whether you want to create a small store, a large one, a chain drugstore, or one affiliated to a hospital. A retail drug licence (RDL) or a wholesale drug licence (WDL) can be obtained.

GST Registration Certificate

If you want to operate a business in India, you must get a Goods and Services Tax (GST) registration. If your annual revenue reaches INR 40 lakhs (or INR 20 lakhs in some states), you must register. Before going, you should verify the limit for your state.

Udyam Registration Certificate

Register your medical shop with the Ministry of MSME on Udyam registration portal to unlock financial and tax rebates. Enjoy numerous benefits for your business growth and sustainability. Take the first step towards securing a stronger future for your pharmacy business.

Also Read: Complete Guide on Udyam Registration for Medical Shop

Licence Requirements for Starting a Medical Shop

To open a medical business in India, you must first secure a drug license. In addition, a pharmacy license and a retail or wholesale medical store license are required. If you want to create a general medical store, you’ll need a retail drug license, whereas a wholesale drug license will allow you to offer pharmaceuticals at wholesale prices.

To be eligible for a pharmacy license, you must also possess a degree in pharmacology (B. Pharm or M. Pharm). If you do not have a degree, you may contact a pharmacist who will apply for the license on your behalf in exchange for cash.

All the extra staff you engage for the business should be knowledgeable enough to market pharmaceuticals to customers. They could be

  • A graduate with one year of drug-selling experience
  • A licensed pharmacist
  • A person who has completed the tenth grade and has four years of drug-selling experience.

If you meet all of the following conditions, you can obtain a pharmacy license and a medical shop license.

Applying for a Pharmacy Licence

In India, a pharmacist license is required to open a medical store. In India, you may apply for a medical license through the following organizations:

  • Organization for Central Drug Standard Control
  • The State Drug Control Organization

Fill out the application form and pay the cost, and if you match the qualifying requirements, you can receive a pharmacy license.

We are available to answer your questions. Send us a WhatsApp message and we’ll respond as soon as we’re available! Send us a WhatsApp message.

Documents Required for a Medical Shop Licence

The following are the documents you will need to receive a medical store license:

  • Form of application (fully and accurately filled out)
  • Cover letter outlining the applicant’s intent with signature
  • Receipt for paid fees
  • The applicant completed a declaration form.
  • Building plans and blueprints
  • If the premises is rented, proof of ownership is required.
  • Owner identification using passport-size pictures
  • Proof of Medical Store Constitution (Partnership Deed, MOA, AOA, Incorporation Certificate, etc.)
  • Owners’ non-conviction under the Drugs and Cosmetics Act of 1940
  • Affidavit of a full-time registered pharmacist or a competent individual
  • Letter of appointment of the pharmacist or competent person, if they are employed

When you submit these documents, you will be able to obtain your medical shop license.

Additional Requirements for Obtaining a Drug Licence

Area specification

Retail establishments should have a minimum shop space of 10 square meters and wholesale stores should have a minimum shop area of 15 square meters.

Storage facility

A medical shop must have a refrigerator and air conditioning for optimal storage since certain drugs must be stored at low temperatures and most medications should not be exposed to heat.

Technical staff

If you have employees at your store, you must follow the following rules:

  • Staff at wholesale businesses must be licensed pharmacists with one year of drug sales experience or a person who has passed their 10th grade and has at least four years of drug sales experience.
  • When drugs are given out in retail stores during business hours, a registered pharmacist should be present.

Financing Your Medical Store

Finance is an essential component of launching a business. Starting a medical store is no exception. However, it might be difficult work for someone with limited funds.

A small medical business would demand around INR 15 to 20 lakhs. Once the business is established, you may progressively grow its size.

There are two methods for raising funds:

Owned funds

You can utilize your funds to start a small-scale medical store. This is a method of making money with little capital. 

Owed funds

If you do not want to select into your savings or do not have sufficient cash, you can apply for a loan from a bank or financial institution, many of which provide loans with simple conditions registered Udyam certified and low interest rates.

Applying for a Loan to Start a Medical Shop

To file a financing loan application for your medical shop, you will need the following documents:

  • Identity documentation for the owner, partners, and directors, if any
  • Evidence of Indian citizenship and residency
  • Proof of age (must be between the ages of 25 and 66).
  • Proof of business registration
  • Income tax returns and bank statements
  • GST Certificate
  • Udyam Certificate 
  • Drug License

Opening a Medical Shop in India and Running It Successfully

Starting a medical clinic store is only the first step in the process. If you want to make money from your medical shop, you must consider a few factors.


A good location is critical to the success of your store. You must choose a location with a large population, but you must also consider whether there are many competitors in the region. If there is a hospital or clinic nearby, it may enhance customer traffic to your shop.


For supplies, you can contact a pharmaceutical business or a local distributor. If you can have a direct supply from the corporation, your profit margins will grow. However, if you have little funds or space, it is preferable to approach a wholesaler.


Making connections within the community may be quite beneficial to the business you work for. You may even build partnerships with nearby physicians so that their patients are sent to you.


It is critical to have skilled salespeople working in your shop. However, there are several requirements that they must meet before you may appoint them. Before appointing them to your shop, make certain that you are entirely confident in their experience.


Your medical shop must have sufficient space to keep medications in good condition. You can significantly boost the amount of medications if you can afford a refrigerator and an air conditioner. Make sure you have well-kept racks and drawers for storing materials so you can find them fast.


A medical store, like any other business, requires advertising. Distributing brochures in your region will help you market your medical shop. To attract clients in the initial few days, you might provide discounts and freebies. You may also expand your customers by offering services such as home delivery.


Every aspect of our lives has been altered by technology, and owning a medical shop is no exception. Inventory, bookkeeping, billing, and other processes may be made easier by using technology. 


This is a key component of running a medical shop. Every drug, whether over-the-counter (OTC) or doctor-prescribed, should be dispensed only with a valid prescription. Before selling a pharmaceutical, the owner or salesman must thoroughly examine the prescription or even provide it with a doctor.

Also Read : Startup India Registration Certificate – Process, Benefits, Documents


Starting a medical shop in India can be a rewarding venture, considering the ever-growing importance of the healthcare industry. Whether you are a pharmacist or an entrepreneur with an interest in healthcare, venturing into the retail side of medicines requires careful planning and execution. The pharmaceutical sector is expanding at a rapid pace, so it makes sense to hop on board. If you want to open a medical business, you may go through the necessary legal and financial procedures to make your idea a reality. Your medical store will thrive if you take the necessary steps.

We are available to answer your questions. Send us a WhatsApp message and we’ll respond as soon as we’re available! Send us a WhatsApp message.

Frequently Asked Questions

How much money is required to start a medical shop?

In major cities, you may require between INR 7 and 10 lakhs. In suburban and metropolitan locations, you may require between INR 3 and 5 lakhs.

What are the necessary documents required to open a medical shop?

You will require:

– Rental contract/proof of ownership

– Premises blueprint 

– Drug license

Is a chemist shop a profitable business?

Yes, a chemist shop or medical store is a very successful business, owing to the enormous growth of the pharmaceutical sector and the high demand for medicines.

Which degree is required to open a medical shop?

To start a medical business, you must have a bachelor’s or master’s degree in pharmacology (B. Pharm or M. Pharm). After completing your 12th grade in the Science stream, you might pursue a Diploma in Pharmacy.

Is it possible for a doctor to operate a pharmacy?

No, a doctor is not permitted to operate a pharmacy. A medical shop can only be opened by a certified pharmacist.

Who may open a medical store?

Anyone can start a medical business, however a degree in Pharmacology is preferred. You can employ a pharmacist if you do not have a degree. Only a registered pharmacist will be granted a drug license.

Is it possible for a nurse to run a pharmacy?

In India, a nurse cannot open a medical store.

Is a pharmacist considered a medical professional?

Yes, a pharmacist is a medical practitioner that specializes in the following areas: – Health and wellness testing – Chronic illness management – Medication management – Immunization administration

What is the best course for opening a medical shop?

The B. Pharm and M. Pharm programs are appropriate for launching a medical store. After completing your 12th grade, you can pursue a Diploma in Pharmacology.

Is there a particular license required to sell Ayurvedic, Unani, and Homoeopathic medicines?

To sell Ayurvedic, Unani, Siddha, and Homoeopathic medications, you must get a license from the Ministry of Ayurveda, Yoga and Naturopathy, Unani, Siddha, and Homoeopathy (AYUSH).

Is a specific license required to offer dietary supplements?

To sell dietary supplements, you must obtain a license from the Food Safety and Standards Authority of India (FSSAI).

Do I need a pharmacy degree to start a medical shop?

While a pharmacy degree is beneficial, it’s not mandatory. You can hire a licensed pharmacist to oversee operations.

How can I market my medical shop online?

Utilize social media platforms, create a user-friendly website, and consider online advertising to reach a broader audience.

What are the key legal requirements for running a medical shop?

Licensing, compliance with drug control regulations, and adherence to safety standards are crucial legal aspects.

How can I stay updated on changes in healthcare laws?

Regularly consult with legal professionals specializing in healthcare and stay informed through industry publications.

Is it necessary to have an online presence for a medical shop?

In the digital age, having an online presence is beneficial for reaching a wider customer base.


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