Starting a pharmaceutical business is one of the most profitable businesses in India. Like any other business, the pharmaceutical business also requires a lot of research work. So, you have to select the type of pharmaceutical business you want to start. It could be research, manufacturing, trading, distribution, etc.
If you are planning to start a pharmaceutical business, you would have to obtain a drug license and comply with the various legal requirements. One of the most important points to be considered before starting a pharmaceutical business is experience.
Your experience should decide the type of business you should go for. This article contains everything about a pharmaceutical business. Right from prior requirements to marketing strategies, the blog is encapsulated with minute details associated with starting a pharmaceutical business in India.
Prior Requirements
- Experience- As I already said, experience can decide the type of pharmaceutical business you should go for. The point highlights the importance of experience in this business. You must know about the products along with the basic knowledge of business rules.
- Business plan- Think of a business that can proceed without a business plan. Probably none. A business plan covers points like investment, USP, marketing strategy, SWOT analysis, plan of action, and every other relevant detail. It narrates the story of your business.
- Knowledge of area- This is a part of the research. You should know about the territory. The number of hospitals, doctors, pharmacists, are residing in your area. You should hunt for suppliers and distributors right from the beginning.
- Financial Resources- You need to look for reliable sources of finance for your pharmaceutical business. You can arrange finance from investors or through loans. If you have savings or part-time income to finance your business, nothing could be more delightful.
- Research report- Different matters like summary, facts, risk, resources, budget, etc. should be analyzed before the business begins.
After checking up on the prior requirements, the next point is how to start a pharmaceutical business. Here we go with the stepwise guide to start a pharmaceutical business in India.
How to start a pharmaceutical business in India?
- A pharmaceutical business depends heavily on experience. Before you begin with your business, practice under an expert or gather the required training to run a pharmaceutical business smoothly.
- The next step is to prepare a project report. It should contain a detailed description of facts, risk, resources, budget, goals and obligations, analysis, research, etc.
- Your business plan is going to be your savior. If you are planning to proceed without a business plan, be prepared to bear unexpected though avoidable losses. You may get failed in analyzing your competitor’s performance or lack in identifying your strengths and weaknesses owing to the absence of a business plan.
So, before you begin with a pharmaceutical business make sure you have developed a strong and effective business plan. A business plan also helps you in pitching investors. - Choosing the location is hectic as well as challenging. You should consider numerous factors before choosing the location for your pharmaceutical business. Consider your competition, hospitals, distributors before selecting the location. If you don’t have your shop or building or premises, choose the most perfect location to avoid any kind of geographical barrier.
- No business can be started without any investment. The next step is to look for the source of finance. If you have your savings or you can manage from your friends or relatives that is an easy source of arranging finance. But if you couldn’t, you can take loans from the banks or pitch investors.
- Now the next step is to choose your niche. You would have to research and prepare a list of all the combinations based on the specialization, in which you want to enter. You can choose among General, Paediatric, cardiac, ENT, etc. It is advisable to go for the type you hold the maximum knowledge of.
- The next step is to finalize the company name and brand name of all the products. Try to be unique and make sure your brand should not resemble another brand in the market. Also, get a logo designed for your company. You should try to outshine the competitors by choosing a unique name for your pharmaceutical business. Also, you should not choose the name of the company that is in process.
- After selecting the brand name, register your pharmaceutical business. It is up to you whether you want to start as a sole proprietor or private limited, one-person company or partnership firm. It is advisable to start a pharmaceutical business as a partnership firm. Because you may or may not be able to handle the business single-handedly.
- The next requirement is to recruit a registered competent person or registered pharmacist. The registered pharmacist is required as an authorized person for obtaining a drug license. A drug license is a necessity.
- One of the most important steps is to apply for a drug license number. Prepare a file that contains the required documents and submit it to the district drug control officer or you can apply online. Make sure you apply with your registered company name for the drug license.
- After receiving the drug license number, the next step is to apply for a GST number.
- After receiving the GST number, obtain a loan license if it is the requirement of your business. Also, find your manufacturer to get the stock.
- Now check your requirements and place an order for your shop or pharmaceutical store. Find suppliers and enter into agreements. It is advisable to find permanent suppliers and enter into long-term contracts.
- How do you think, you can become unique? By offering unique, descriptive, and right packaging you can perform better than your competition.
Now you got appeased with the stepwise guide to start a pharmaceutical business in India. The next requirement is the documents and licenses required to run a pharmaceutical business in India.
Who is a Competent Person and what are the qualifications?
A competent person is expected to conduct the operations of the pharmaceutical business. He/ she should possess either one from following:
- He/ she should be a registered pharmacist under the pharmacy council or
- He/ she should possess a minimum of one year of experience at a wholesale drug licensed firm after graduation with proof acceptable by the drug licensing authority.
Licenses Required
Starting a pharmaceutical company is a bit hectic as it is necessary to obtain 4-5 types of licenses. Here is a list of licenses required to start a pharmaceutical company in India. We shall be discussing these licenses and the documents required to obtain them in detail.
Most important license and registrations include-
- Wholesale Drug License Number (DL No.)
- Goods and Services Tax (GST) Registration
Other necessary registrations include-
- Company Registration
- Trademark Registration
- FSSAI Registration
You May Also Like These Articles
- How To Build a Solid SEO Foundation For Your Business
- How SEO Can Increase The Productivity Of Your Business
- Want To Start A Food Catering Business
Wholesale Drug License
A wholesale drug license is the license to sell the stock or present the offer for sale or sell through the wholesale method. You would have to take different licenses for wholesale according to the schedule under the Drug and Cosmetic Act and rules.
- License on Form 20-B for wholesale of drugs other than specified in Schedule C, C (1), and X and application is to be submitted on Form-19.
- License on Form 21-B for wholesale of drugs specified in Schedule C& C (1) and application is to be submitted on Form-19.
- License on Form 20-G for wholesale of drugs specified in Schedule X and application on Form-19-C.
Documents required to Obtain Drug license-
- Submit your application in form no. 19 with other relevant forms.
- You or your partner should be a registered pharmacist or competent person or experienced person. If you do not qualify, hire a registered pharmacist, experienced person, or competent person.
- The size of premises should be at least 10 square meters and should have single premises.
- You would require affidavits.
- Fees
- Blue-print or layout of premises
- Freeze purchase bill copy with the address.
- Electricity bill of premises
- Rent agreement or ownership agreement.
- Partnership deed (if any)
- Other documents asked by local drug controller.
- Affidavit of the proprietor, partner, pharmacist, Experienced Person, etc.
- Firm registration receipt in case of private limited firm.
After submission of the required documents drug authority will inspect your premises and the accuracy of your documents. If they got satisfied, they will provide you with a drug license, but if they didn’t satisfy with the application, they will reject it.
Goods and Services Tax Identification Number-
GST number is mandatory if your turnover exceeds INR 40 lakhs. You can skip this if you don’t fall under this term. But it is advisable to take the Goods and Services Tax number by the name of your pharmaceutical company.
Documents required for Goods and Services Tax Registration for Pharma Company-
- Digital Signature Certificate
- Address proof of Business Entity
- Proprietor/ Partner/ Director’s address proof
- Bank details and Bank statements
- Rent agreement or ownership proof.
- Aadhar card, PAN, Image, etc.
- Partnership deed or MOA/ certificate of incorporation
For the group of necessary licenses, we will be mentioning the documents required to obtain them.
Documents required for Company Registration-
- Digital Signature Certificate
- Director Identification Number
- Permanent Account Number (PAN) card
- Tax Deduction and Collection Number
- Passport photo
- Identity proof
- Address proof
- Rent Agreement
- Latest Electricity Bill of premises
- MOA/ AOA
- NOC (if required)
Documents Required for Trademark Registration-
- TM-48 Form
- Assignment Form
- Owner Detail
- Nature of Product/ Service
- Class in which you want to apply.
Sign up for our exclusive newsletters.
Subscribe to check out our popular Tips & Tricks for business owners.
Documents required for FSSAI Registration-
- Form-B duly completed and signed.
- List of Directors/ Proprietors/ Producers
- List of food category desired
- Food Safety Management System Plan or certificate (if any)
- Partnership deed/ Affidavit of Proprietorship/ Memorandum of Association & Article of Association
- Photo and address proof issued by Government authority of Proprietor/ Partner/ Director (s)/ Authorised Signatory
- Authority letter with name and address of responsible person nominated.
- Proof of possession of premises. (Sale deed/ Rent agreement/ Electricity Bill, etc)
How much investment is required?
So, one of the most critical questions is what amount should be invested to start a pharmaceutical business. The answer to this question is equivocally critical. Investment depends on the type of business and the type of products you are choosing. If you are planning to start a shop for medical equipment, then you are expected to invest heavily.
But if you are planning to deal in normal pharmaceutical products you can begin with a lesser amount. You would be surprised to know someone (name not known) started pharmaceutical marketing with a minimal amount of INR 1 lakh. But this is not everyone’s cup of tea.
Moreover, you are not only expected to buy products and sell. Other areas also demand investment. The different type of investments includes-
- Fixed Investment– Fixed investment includes the purchase of furniture, shop or premises, computers, equipment, fittings, and fixtures, etc. The fees paid for the license are counted in this category.
- Capital Investment– Capital investments include rents, daily expenses, loan installments (if any), staff salary, promotional and marketing expenses, etc.
- Inventory Investment– It includes the amount invested in the stock. Stock investment should be done wisely. You can consider consulting experts in the market for choosing the best combination of stocks.
The estimated amount with which you can start a pharmaceutical business is INR 12-15 lakh. You need to choose the products cautiously. Some products are expensive while others are cheaper. Neither gets lured to cheaper products for earning profit nor eye costlier products. Instead, go for the combination as per your budget. Once you start earning well, you can expand accordingly.
You must be knowing different pharma franchises like BMW Pharmaco India, Santiago Life Sciences, Innovative Pharmaceuticals, and many more. Yes, you are getting it right. The next point is – Franchise. Is it a good idea? Is it profitable? Is it complicated to start a Franchise? These questions must be revolving around your mind. Don’t contemplate! Just have a look over the next section.
Benefits of Pharmaceutical business
Here is a list of benefits provided by the pharmaceutical business-
- Better health outcomes- Pharmaceutical industry produces medicines that fight sickness and diseases, diabetes, hepatitis, influenza, fever, and many more. With an increase in production and sale of pharmaceutical products, the availability will also increase, leading to improvement of the health sector.
- Cost-effective- You will be happier to know that due to increasing competition the cost of drugs has become lower and more accessible than ever before.
- Economic Benefits- Pharmaceutical benefits have offered a high range of economic benefits. It has employed nearly 300,000 people in the US. That means, along with an improvement in the health sector, it offers employment opportunities for both skilled and unskilled workforce. The products produced by pharmaceutical companies do not only offer profits but also save the lives of people.
You must have found the answer to “why a pharmaceutical business”. But keep your intentions and priorities clear. This business does not only offer profit but also contributes towards improvement in the health sector.
Is Pharmacy Franchise a Good Idea?
Pharma Franchise is one of the lucrative business options in the pharmaceutical sector. Students who did not manage to bag jobs even after passing out from reputed pharmacies go for pharma franchise. Owning a franchise is a bit more complicated than starting a pharmaceutical business.
Starting a pharma franchise is tough but once the business gets established it offers promising returns. People have developed a dicey attitude towards the pharma business. They believe profit margin is shrinking while competition is rising.
They are not wrong but if you want to do it, no one can stop you. All you need to do is prepare your mind and become courageous enough to bear the loss in case profit didn’t like your pocket.
Here we go with the stepwise guide to own a franchise-
- As I already said, prepare your mind. Preparing the mind does not only mean that you are bold enough to face good and bad times, but it considers other aspects too. You have to set your priorities, like why do you want to start a franchise. The sole motive is to earn profit or to serve the community. Or you want to learn new things. By defining your priorities clear, you can move on the required path accordingly.
- The next step is to select the Franchise. Before selecting a franchise, understand the management, requirements, ethics, and philosophy of the franchise and then choose accordingly. Choose the franchise that aligns with your motive and purpose.
- Now construct a business plan for the franchise. You have to describe points like the plan of action, organization structure, marketing strategies, budget in the business plan. While making your business plan, check the requirements of the franchise. It is not possible to start a pharma franchise without the help of a pharma franchise company.
- You have to meet legal requirements. As a newcomer, you may or may not be clear with laws and their requirements. You can talk to a franchise business consultant that can help you in understanding legal, operational, and other aspects of the pharma franchise company.
- Now you have to finance your pharma franchise. You can knock on the door of investors or go for bank loans to arrange finance. That depends on you.
This is how you can start a pharma franchise in India. Now you must be thinking about the benefits associated with running a pharma franchise. Just keep reading and you will find answers to all your questions-
Advantages of Pharma Franchise-
- You can protect yourself from unnecessary pressure if you are running a pharma franchise. What else one could ask for? In today’s world, when mental issues are upsurging, why someone would not go for a business that offers minimum pressure.
- Unlike other businesses, a pharma franchise has low risk. Also, it does not ask for heavy investment. Yes, you found a perfect combo of low investment and low risk. The risk involved is lower owing to the less investment.
- If you own a pharma franchise business, then you can enjoy monopoly rights. You can implement your strategies and use unique and innovative techniques of marketing.
- So, another benefit is a huge product profile. A franchise deals in several products. By owning a pharma franchise, you are getting a chance of dealing with an extensive product profile.
You become eligible for these benefits, only if you invest in the right pharma franchise. And to find the right franchise, you have to research a lot. We, at traffic tail, aim towards helping our viewers at every step. So, check these points that you can consider while choosing the right franchise-
- The products should be of fine quality and match the required quality standards.
- ISO and WHO certified.
- The pharma franchise should have a large product inventory. This is going to help you in long run.
- Do not forget to consider the ethics, working style, and commitment of the pharma franchise. These moral values matter the most.
As of now, you have got acquainted with every aspect of starting a pharma franchise. And if you want to make profits, just choose the right pharma franchise company, and invest wisely.
Why PCD Pharma Franchise Business?
The pharmaceutical sector is contributing heavily to the economy. There is a list of reasons why you should go for the PCD pharma franchise business-
- Branded drugs are in demand- People prefer branded drugs over others. They consider branded products reliable, as they match with the quality standards. Also, business-oriented minds consider the pharma sector as “hot-beds” for investment.
- Be your boss- This 9-5 grind is not for everyone. Some people want to be their boss. This is why they choose to invest in the Pharmaceutical sector.
- Profitable business- Profitability is the biggest source of attraction. People get lured to businesses that offer a good return on investment. PCD pharma franchise is one of those businesses.
PCD pharma franchise business is the brightest career option for aspiring entrepreneurs. So, if you are planning to invest in the pharma business, just follow the right strategy and earn higher revenues.
Third-party pharma manufacturing, contract manufacturing, and loan licensing
The demand for pharmaceutical products is constantly rising. And the global pandemic has added a lot more to it. India has become one of the largest suppliers of drugs in the world. The pharma industry is working day and night to fulfill domestic as well as international demand for drugs.
Do you know that the pharma manufacturing sector has many production models? Now we will be discussing the two most important models in this section.
- Contract Manufacturing
- Third-party pharma manufacturing
Contract Manufacturing-
This is a kind of manufacturing where a pharma company gets the products at customized conditions. The raw material, packaging material, etc are assembled by the manufacturer. Usually, high-grossing companies use this business model. The company manufacturer matches the quality standard and provides the products timely.
Benefits of contract manufacturing-
- Contract manufacturing cuts the cost of manufacturing. It is relatively cheaper. Also, it reduces the pressure on the production of pharmaceutical products.
- The parent company can improve its functioning by focusing on other important matters.
Third-party pharma Manufacturing
Third-party manufacturing is a way to get your products manufactured from a different company. It is a way of getting your products manufactured by a pharma manufacturer at the specification available. The brand name of the parent company is mentioned on the products. Usually, normal, and small-sized companies go for this model. They don’t have conditions or time restrictions.
Benefits of Third-party pharma manufacturing-
- You don’t have to invest much in the production area.
- You can also save your money by avoiding the purchase of a big land.
- You can cut costs by not appointing big manpower.
Loan Licensing-
In loan licensing, a pharma manufacturing company provides its manufacturing facility to a pharma marketing company to manufacture its products. In this case, the marketing company acts as a manufacturer in the manufacturing company’s manufacturing facility.
It is a bit complicated business model when compared to third-party manufacturing and contract manufacturing. You have to meet legal requirements if you are planning to adopt this business model.
The manufacturing company has to apply for a loan license from to marketing company at its premises. Loan licensing requires a lot of formalities to be completed.
Scope of Pharmaceutical business in India
It is a genuine proposition to ponder about the scope of the business in which we are planning to invest. Indian pharmaceutical sector is doing exceptionally well.
India is on its way to becoming a pharmaceutical hub for the world. Vishal Yadav, CEO, and founder of FDI India has labeled the pharmaceutical sector as a “hotbed” for investment. These points are enough to prove that you are not making a mistake by investing in the pharmaceutical sector. All you need is prior experience, a strong business plan, and a sound strategy and you become unstoppable. You can pursue any of the following businesses-
- You can sell Branded Medicine.
- Generic medicine selling is also an option.
- How about owning a Pharma Franchise?
- Export of pharmaceutical product.
- Import of pharmaceutical products.
- You can also go for the medical device and surgical dressing business.
- If you want to support online dealers, you can supply them with the required products.
- Supplying to pharmacy chains
- You can also sell the raw materials required to produce pharmaceutical products.
- A Counter sale is also a feasible option
So, you must have got an idea that the pharmaceutical sector has a lot to offer. There are numerous opportunities for earning in the pharma industry. But you need to consider various factors like budget, location, knowledge, etc to find your perfect fit. In the next section, we will be discussing other relevant business opportunities in the pharmaceutical industry.
How to start an online pharmacy in India?
Think of a sector, that has not digitalized. Probably none. Almost, every sector is using online methods to promote its business. People even earn their living through online methods. Then, why pharmaceutical sector should lag?
To enhance the reach and to expand the business, people have started opening an online pharmacy. You would be surprised to know that it has only a 1% share in the Indian retail market, but it is growing with a CAGR of 13.6%. It is expected to reach US$ 105 billion by 2025. These are global figures. In India, the performance is even better. It is growing with a CAGR of 20%.
If you are also thinking of starting an online pharmacy, check out this section thoroughly-
Online pharmacy needs to comply with two Acts- Drug and Cosmetic Acts & Rules and Information Act 2000. As you know, the pharmacy is going to deal in drugs, so the former law needs to be considered. And it is an E-commerce business, so the latter one is necessary too.
Prior Requirements-
- Appoint a registered pharmacist, if you are not the one. Also, if you have started in partnership, make sure either you or your partner is a registered pharmacist.
- Fulfill all the minimum and other requirements.
- Take Goods and Services Tax Number.
- Also, set up offline pharmacy stores after taking a drug license.
- Develop a website, application, or online portals for your online pharmacy to function.
Other Requirements-
- A valid prescription
- Comply with Information Act 2000
- You cannot advertise your products using social media.
- Make sure you don’t sell prescription drugs without prescription.
- Register at the Government portal.
- A customer care center should be developed for handling the grievances of the customers. It should remain active 12*7. By 12 we mean at least, 12 hours a day.
- Prohibition of Sale of schedule X drug and other habit-forming drugs.
- A registered pharmacist should only sell prescribed drugs and prescribed drugs should be sold under his supervision, to prevent repercussions.
A small stepwise guide to starting an online pharmacy-
- Do I need to say that you have to develop a business plan? Probably no. Because a strong business plan is needed for every business.
- Search for premises having a small area, if you don’t want to make offline sales. But if you want to make offline sales, you have to consider different factors like size, budget, area, suppliers, customers, competition, etc.
- The next step is to appoint a registered pharmacist if you or your partner is not the one.
- Check the requirements and fulfill them to avoid problems in the future.
- Apply for a drug retail license.
- Now drug department will inspect your premises, and if he got gratified, he will issue a retail drug license number.
- Now apply for Goods and Service Tax Number.
- The next step is to apply for registration to the central licensing authority in form 18AA through an online portal.
- Now build a medium through which you are going to trade. Construct your website or develop an application or start selling through an existing online pharmacy.
- Now you can sell medicines and other pharmaceutical products online as well as offline.
Starting an online pharmacy is not hectic. At an initial level, you can enter the pharmaceutical sector through online platforms.
Let’s talk about other business Opportunities-
The pharmaceutical sector is one of the top-most profitable businesses in the world. Indian pharmaceutical industry is doing well, globally. Apart from starting a pharmaceutical company or owning a franchise, there are tonnes of business opportunities available in the pharmaceutical industry. If you want to try hands-on something different, then check out this detailed description of the business opportunities available in this industry.
- Pharmaceutical Raw Material Supplier-As the pharmaceutical sector is constantly growing, the demand for raw materials is also rising. In India, most of the pharma raw material suppliers are of a trading or marketing nature. Big companies prefer to deal directly with raw material suppliers. Therefore, you can become a raw material supplier.
- Wholesaler/ Stockist- Retailers gather stock from a wholesaler. And the number of retailers is increasing in the market. So, you can start as a wholesaler or stockist. But a wholesale business demands heavy investment. If you can manage, you should go for wholesale business as you don’t have to depend on small sales to earn money. The different types of distributors include-
- Branded products distributor
- Generic Products distributor
- PCD/ Franchise Distributors
- OTC/ Institution sales Distributors
3. Retail/ Chemist Pharmacy- Starting a chemist shop is one of the best options for the pharmaceutical business. You can develop connections with suppliers and customers both. If your services are exceptionally well, you can develop a strong base of customers and earn high profits. You can also use the internet to boost your sales. It is one of the leading business opportunities in the pharmaceutical industry.
4. Cosmetic manufacturing company- Do I need to explain the demand for cosmetic products in the market? The demand for cosmetics products is increasing constantly. For starting this business, you will need a diploma in pharmacy and should be registered under the pharmacy state council. There are very few chances of losing in this business. As the demand for cosmetic and beauty products is constantly rising. Every day a new cosmetic product gets launched in the market.
5. Pharmaceutical Blogging and News Website– If you want to start a business with zero investment, go for blogging. You can start a website or blogging related to pharma, ayurvedic, health, etc. You can produce informative blogs on various topics belonging to these categories.
All you need is good knowledge to outshine your competitors. The content you offer should be readable, informative, and indulging. After six months of blogging, you can apply for Google Adsense. And if Google approved, you can show ads on your blogs. You can consult traffic tail for further help.
6. Food and Dietary Supplement (Nutraceutical) Manufacturing Company- Food and dietary supplement manufacturing businesses are easy to start. If you don’t want to get into many formalities, then you should go for this business. The demand for food and dietary supplement is no less. You can get several contracts in this business. Make sure you take a license of manufacturing from FSSAI to manufacture these products.
7. Carrying and Forwarding Agents- Carrying and Forwarding agents carry products from godown and after repacking, they distribute them to wholesalers or distributors. They get commission or the fixed percentage of share.
8. Pharmaceutical Manufacturing Company- Pharmaceutical manufacturing company manufactures the products and supplies them to other companies. You can make a profit from this type of pharma business. You can sell your products as per these marketing types-
- Loan license manufacturing
- Third-party manufacturing/ contract manufacturing
You can also choose from the following-
- Pharmaceutical raw material manufacturing
- Surgical and dressing
- Veterinary Pharma Products
- Disposal Syringes
- Ayurvedic manufacturing unit.
The type of pharmaceutical business you choose depends on you. Make sure you consider the factors like budget, legal formalities, operational activity, type of products, license, etc before choosing your perfect fit.
Do you know?
- India is on its way to become the world’s pharmaceutical hub.
- India is the largest provider of generic drugs in the world.
- India’s pharmaceutical sector is expected to grow to $100 Billion by 2025.
- Vishal Yadav (CEO of FDI India) says India’s pharmaceutical sector has become a “hotbed” for investments.
- Government-approved production-linked incentive (PLI) scheme for the pharmaceutical sector.
Key Takeaways-
- Strong research can make you win the game. Make sure you research the relevant matters like location, product, customers, and market.
- A perfect business plan can reduce the intensity of upcoming hindrances. Your plan of action, marketing strategies, USP, etc should be mentioned in your business plan.
- Don’t forget to obtain the necessary licenses and registration.
- Your marketing should be graceful. Every business is a slave of marketing. Make sure you promote your products effectively.
- Customer satisfaction is necessary. Serve your customers politely, address their grievances, consider their opinions and you can do well. You know the customer is the king.
- Don’t hesitate in choosing online methods for promoting your pharmaceutical business.
- Build strong connections both online as well as offline.
- Invest wisely. Try to start with a minimum amount and expand your business with the profits you earned. Some products are costlier while others are cheaper, so the task is to choose the best combination within your budget.
- It is advisable to get your logo designed by professional designers.
India is on its way to become the pharmaceutical hub of the world. India has a great image in the pharmaceutical industry, globally. So, it would be safe to say that the pharmaceutical sector has a great scope.
There are tonnes of business opportunities like export and import of pharmaceutical products, selling of branded medicine, selling of generic medicine, online pharmacy, raw material supplier, etc are available. All you need to do is, choose your perfect fit and invest wisely.
Talking about legal requirements, one of the most important licenses and registration includes drug license and Goods and Services Tax Number. The legal requirements may vary based on the type of pharmaceutical business.
You can even start an online pharmacy if you cannot afford to start an offline business. The procedure of starting an online pharmacy is slightly different from an offline business. We, at Traffic Tail, can assist you in starting an online pharmacy by developing a first-class website or mobile application depending upon your needs.
The pharmaceutical business offers a good return on investment. You can start a pharmaceutical business with low investment and then finance the expansion from the profits. It offers a large market to function. And after the outbreak of the global pandemic, the domestic, as well as international demand for pharmaceutical products, has augmented in sizeable amount.
Investing in the pharmaceutical industry does not only offer monetary benefits, it also marks the growth of the health sector. The pharmaceutical business produces drugs that treat infections, diabetes, hepatitis, fever, flu, sickness, and other diseases.
Availability of these drugs at a good level, would not allow people to remain deprived of medicines. So, if you are planning to enter the pharmaceutical industry, do not just think of earning. Join the industry to serve as well.
Frequently Asked Questions
1. How can I start a pharmaceutical business in India?
Ans. To start a pharmaceutical business, you need to research and prepare a business plan. After preparing a business plan, you have to find the location, suppliers and obtain the necessary license. Then you are expected to promote your pharmaceutical business using offline and online methods of marketing.
2. What is a necessary license required to start a pharmaceutical business?
Ans. You are expected to obtain a wholesale drug license to start a pharmaceutical business in India.
3. What are necessary registrations?
Ans. Here is a list of necessary registrations-
- Goods and Services Tax (GST) Registration
- FSSAI Registration
- Company or Firm Registration
- Trademark registration
4. Is it profitable to start a pharmaceutical business?
Ans. Yes, it is profitable to start a pharmaceutical business. All you need is the necessary knowledge and prior experience to run this business. You can learn the tact by practicing under a registered pharmacist.
5. What are the prior requirements of the pharmaceutical business?
Ans. Prior requirements include-
- Business plan
- Project Report
- Knowledge of area
- Experience
- Financial Resources
6. What are other business opportunities?
Ans. Here is a list of top-most business opportunities available in the pharmaceutical sector-
- Pharmaceutical trading company
- Pharmaceutical manufacturing company
- Carrying and Forwarding Agents
- Chemist/ Pharmacy
- Food and Dietary supplement
- Cosmetic Manufacturing company
- Consultancy and Legal Firms
- Pharmaceutical Blogging and News Website
7. How much investment is required to start a pharmaceutical business in India?
Ans. The starting budget of pharmaceuticals highly depends on the type of products you are selling. Some products are expensive while others are cheaper. Products like Cefpodoxime, Cefuroxime, levofloxacin, etc are costly while vitamins, nimesulide, paracetamol, etc cost less. If you invest wisely with a sound plan, you can start a pharmaceutical business with an amount of 12-15 lakhs.
8. Which documents are required to start a pharmaceutical company under Company Act?
Ans. Here is a list of documents required to start a pharmaceutical company-
- DSC
- DIN
- PAN, TAN, Identity Proof
- Passport Photo
- Address Proof, Rent Agreement
- Latest Electricity Bill
- MOA and AOA
- NOC (if required)
9. Can I start a pharmaceutical Franchise in India?
Ans. Yes, you can start a pharmaceutical Franchise in India. You need to comply with the legal requirements and follow the standards of the franchise.
10. What are the least prevalent business opportunities in the pharmaceutical sector?
Ans. Here is a list of lesser-known business opportunities in the pharmaceutical sector-
- Pet Bottle manufacturing
- Cap manufacturers
- Maintenance service providers
11. Is pharmaceutical blogging and news website a good idea?
Ans. Yes, it is a great idea to start blogging in this sector. You can start this business with the least or no investment. And once you learned the tact of promoting you can run this business smoothly and earn well.
12. Which are the top-most online pharmacies?
Ans. The top-most online pharmacies in India include-
- 1mg
- Apollo Pharmacy
- PharmEasy
- Medway
- MyraMed
- Care on Go.
- Buy drug.in
- chemist
- Medplusmart
13. List the documents required to obtain FSSAI registration.
- Ans. Form-B duly completed and signed.
- List of Directors/ Proprietors/ Producers
- List of food category desired
- Food Safety Management System Plan or certificate (if any)
- Partnership deed/ Affidavit of Proprietorship/ Memorandum of Association & Article of Association
- Photo and address proof issued by Government authority of Proprietor/ Partner/ Director (s)/ Authorised Signatory
- Authority letter with name and address of responsible person nominated.
- Proof of possession of premises. (Sale deed/ Rent agreement/ Electricity Bill, etc)
14. Can I start an online pharmacy?
Ans. Yes, you can start an online pharmacy. Online pharmacy asks for a lower investment. The procedure of starting an online pharmacy is slightly different from starting an offline business. It is a profitable business as you can use both online as well as offline methods of selling your products.
