Every individual has the right to access medicines and drugs for their physical and mental well-being. The store that manages the distribution and sale of these drugs is called a drug store. If you plan to open a drug store in India, you will need to obtain a drug license for practicing your profession.
Why Do You Need a Drug License?
Though drugs are primarily used for the betterment of health, they can often be misused. Irregular dosage, improper knowledge about proper application or intake, or addiction can lead to serious consequences. To prevent such occurrences, it is necessary for pharmacists and other medicinal retailers and wholesalers to possess a drug license. A drug license gives the person the right to sell and appropriately deal with medicines. Any individual or business that deals in drugs without a drug license is liable for imprisonment and/or fine payment.
According to the Drugs and Cosmetics Act of 1940, the government can check the quality of drugs sold in India. It also helps the government monitor the manufacture, sale, and distribution of drugs right from the beginning, where the raw material is sourced. The government also performs regular checks on medical stores and pharmacists who stock these medicines.
[adinserter block=”3″] [adinserter block=”4″]Different Types of Drug License
Just like there are different types of drugs, there are different types of drug licenses. Every pharmaceutical business in India must have the following drug licenses.
- Manufacturing license
This license is given to a business that manufactures drugs of any kind, including homoeopathic and ayurvedic.
- Sale license
This drug license is issued to the individual or store selling the drugs. There are two types of sale licenses:
- Wholesale license
This license is issued to a drug wholesaler. They sell drugs to a drug retailer and usually sell drugs on a large scale.
- Retail license
This license is issued to a drug retailer. They buy drugs directly from the manufacturer or a wholesaler and sell directly to the customer. Retailers can sell to different types of customers like standalone customers, dispensaries, hospitals, medical colleges, research institutes, etc.
- Loan license
This drug license is issued to a company that uses the manufacturing unit of another licensed drug manufacturer.
- Import license
This drug license is issued to a dealer who imports drugs or the raw materials required for manufacturing the drugs.
- Multi-drug license
This drug license is issued to a business that owns pharmaceutical units with the same name in multiple states.
[adinserter block=”3″] [adinserter block=”4″]Requirements for Obtaining a Drug License in India
You have to fulfil the following requirements to get a drug license for a medical store in India:
- Pharmacist
A medical license is issued only to a registered pharmacist. The pharmacist should know the details of the retail business as well. For a wholesale business, a graduate with one year of experience or an undergraduate with four years of relevant experience can apply.
- Premises
A retail medical store needs to have a minimum area of 10 square metres. In the case of a wholesale medical store, the minimum area requirement is 15 square metres. Beyond the physical requirements, running a compliant medical shop also necessitates robust operational tools, such as advanced pharmacy billing software, to manage sales, inventory, and regulatory reporting.”
- Storage
The medical store or manufacturing unit must have proper storage facilities including cold storage and refrigerators. Medicines that do not need to be stored in a refrigerator also need to be stored safely without exposure to the sun.
- Staff
As the staff of a medical store will be dealing with patients and sick people, it is important to hire people who have experience in such matters. A graduate with at least a year of experience or an undergraduate with at least four years of experience is preferred.
A business dealing in medicines needs to consider the different licenses they will need for operating their business. A medical license is region-specific, that is, a medical store license in state A is valid only for that state. The business cannot operate in state B.
Before obtaining a drug license, you need to be aware of all the terms and conditions you need to follow while running your establishment. Failure to follow these rules can get your medical store license revoked or suspended.
[adinserter block=”3″] [adinserter block=”4″]Regulatory Authority for Issuing a Drug License
The Drugs and Cosmetics Act, 1940 has mentioned the various drug controlling authority that is responsible for the safe manufacturing, distribution, and sale of drugs in India. They are as follows:
- State Drugs Standard Control Organisation (SDSCO)
This organisation issues licenses for the manufacture, distribution, and sales of drugs as regulated by the State.
- Central Drugs Standard Control Organisation (CDSCO)
This organisation issues licenses for newly manufactured medicines and cosmetics and also for clinical trials. It also monitors the quality of imported drugs and coordinates with the SDSCO for seamless drug distribution and sales.
- State Drug Controlling Authority and Central License Approving Authority
These two organisations work with each other to issue licenses for blood banks and other related products like vaccines, serums, etc.
- AYUSH department
AYUSH issues licenses for dealers in ayurvedic, Unani, Siddha, and homoeopathic medicines and cosmetics.
How to Apply for a Drug License?
If you wish to apply for a drug license, you must approach the regulatory authority that is responsible for it. You must apply to the respective drug controlling authority depending on the type of drug license you want. Each authority is responsible for different licenses.
You must follow these steps to obtain a drug license:
- Visit the concerned authority
Once you have decided the type of pharmaceutical unit you are going to establish, visit the respective drug controlling authority for the drug license. This is an online process.
- Fill out the application form
Fill out the details asked in the application form correctly.
- Upload relevant documents
Upload the documents and submit the application form with the fees.
- Expect a visit from the drug inspector
Within 15 days of submitting your application online, the Drug Licensing Authority will receive your application. A drug inspector will come and inspect your premises, storage facilities, and staff. They will also check your documents.
- Grant
Once the drug inspector visits and verifies your setup, you will receive your medical store license from the concerned authority.
[adinserter block=”3″] [adinserter block=”4″]Documents Required for Obtaining Drug License
You will require the following documents while applying for a drug license:
- Identity proof of proprietor/partner/co-founder/director, etc.
- Address proof of applicant and other members
- Educational qualification of the applicant
- Declaration form
- Constitution of the establishment, Memorandum of Association (MOA), Articles of Association (AOA), partnership deed, LLP agreement, etc.
- Premises ownership or rental agreement. If rental property, NOC (No Objection Certificate) from the landowner.
- Site plan of premises
- Proof of storage space availability
- Copy of Board resolution allowing you to obtain a drug license
- Copy of fee challan
- Affidavit from a registered pharmacist
- Cover letter in which the name and designation of the applicant are mentioned
- Affidavit of non-conviction of proprietor/partner/director under the Drugs and Cosmetics Act, 1940
- For a retail medical outlet pharmacist
- Qualification certificate
- Registration certificate
- Appointment letter
- For a wholesale medical outlet pharmacist
- Qualification certificate
- Experience certificate
- Appointment letter
List of Application Forms for Drug License Application
The Food Safety and Drug Administration (FSDA) Department of a state government issues and handles the rules and regulations related to drugs license. It receives and processes your application. The different application forms you need to fill out are:
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Conclusion
Obtaining a drug license in India is a pretty straightforward process. You need to be clear about what kind of pharma unit you want to run. Once you have decided, all you have to do is fill out the application form and get your unit verified by the drug inspector. With all the relevant documents in place, you can get a drug license easily to proceed with your business.
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