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How to start wholesale business in Pharmaceutical? Procedure to get stockist/Distributor/c&f license in pharmaceutical sector?



Worried about how to get wholesale Drug license!!!

Here we are going to provide few quick steps and licenses & documentation required for starting stockist, wholesale business.

For taking whole sale drug license, you have to complete required documentation and qualification. After complete process wholesale drug license is granted by drug department. You have to visit local drug controller office or drug inspector office for complete guidance and procedure.

Read here: How to Start Chemist and Druggist Shop in India?

Pharmaceutical Stockists/Distributors/Wholesalers: Pharma stockists/distributors/Wholesalers are the dealers or his agents engaged in sale to retailers, hospitals, dispensaries, medical, educational or research institutions or other agencies. These are engaged in the whole sale business of medicines, drugs and related products. They purchase goods from c&f or companies, and sell it to the pharmacies and chemists. They do business to business type of work. They charge particular margin in medicines. They require wholesale drug license number to carry out their work. Most stockist and distributors also has GST Registration Number because they do interstate sale and purchase also.

Read Related: Types of Distributors/Stockists/WholeSalers

C&F (Carrying and Forwarding Agents): They also require wholesale drug license number. They do work at large level. They purchases medicine, drugs and related products directly from the company and sell these to wholesalers or stockists.

Before discussing about documentation for licenses, have look at business plan:

  • Search for a premises/shop/plant (In case you don't have own arrangement). 
  • Make a rent agreement.
  • Contact pharmaceutical companies or C&F for Stockist ship or Distribution
  • Finalize all deals with Pharmaceutical Company or C&F.
  • Apply for wholesale drug license to district drug control office and Goods and Service Tax Registration. (Previously Tin/Vat/CST)  (Read in detail about Goods and Service Tax here)
  • Purchase office accessories like Furniture, computer, Freeze etc. 
  • Drug Inspector or Concern person will personally visit premises. If he finds all things good, he will approve your application for issuing license.
  • After some time you will receive your drug licence copy and number
  • Start purchasing, stocking and invoicing drug and medicines to retailers and pharmacies

Requirements and documentations to apply for wholesale drug license for selling and distribution of allopathic drugs are following:

Application is to submit to district drug inspector/drug selling authority office in prescribed form 19 with other information forms.
  • Required area of premises should be minimum of 10 sq. meter (15 sq. meter for whole sale plus retail), minimum 8'2" height. Premises should be brick built, plastered floor cemented.
  • Application have to submit in Form no.19 with addition information form
  • Experience person certificate or pharmacist registration certificate or appointment letter of competent person
  • Fees of Rs. 3000/- ( For biological & Non Biological )
  • Address proof
  • Ownership proof or Rent agreement in case of rented premises
  • Refrigerator purchase bill photocopy with complete address
  • Academic qualification certificate photocopy
  • Date of birth certificate photocopy
  • Affidavit of EP/competent person
  • Partnership deed, in case of partnership firm
  • In case of private registration firm, registration firm receipt copy and list of directors with address proof, Memorandum of article of association etc.
  • Affidavit of proprietor/partners/directors
  • Blueprint/layout plan of premises with signature in 3 copies
Adequate storage facilities required including cupboards with glass doors, racks, pallets, refrigerator etc.

What is the requirement/qualification for experience person certificate/competent person for whole sale drug license.

  • Registered pharmacist under state pharmacy council or
  • Minimum one year experience as salesman in registered drug licensed firm after graduation or
  • Minimum four year experience as salesman in registered drug licensed firm after senior secondary examination
After submitting application, drug department will provide you schedule for inspection and verification. If all documents and requirements is complete & accurate, drug department will issue wholesale drug license number in Form 20B and 21B, otherwise it will reject your application or send it correction/amendments in documents or premises. After receiving drug license number, you can start sale, purchase and distribution of medicines, drugs and related products & services.

You may require addition registration for Food and Dietary supplements under FSSAI.

Scope of Wholesale Drug License:
  • Generic Medicine Distribution
  • Ethical/Branded Medicine Distribution 
  • Over the Counter (OTC) Medicine Distribution
  • Pcd and Franchise Medicine Distribution
  • Institutional sale and Supply
  • Hospital Supply
  • Pharma Distribution Company
  • Medical/surgical/health supplement distributors
  • Ayurvedic/Homopathic/Unani medicine distribution
  • Supply to Pharmacy Chains
Investment Required:
  • Documentation and License: approximately twenty five to thirty thousand.
  • Furniture: Approximately twenty thousand
  • Rent of premises
  • Refrigerator
  • Medicine and Drugs: Depend at your purchase

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  • How to register as a Pharmacist?
  • Top Business opportunities in Pharmaceutical Sector
  • What is Distribution Channel? How to build Strong Distribution Channel
  • Top most business opportunities available in Pharmaceutical sector read here
  • How to start pharmaceutical manufacturing company in India?
  • How to start Ayurvedic business, manufacturing and marketing company?
  • What is third party/contract manufacturing in Pharmaceutical/Ayurvedic sector? Procedure, Requirements, Inventory !
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This post first appeared on Pcd Pharma Franchise Help (Pharma, Healthcare, He, please read the originial post: here

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