Thinking of opening a medical store? First, learn about the licenses and necessary documents.

Medical Store: If you want to open a medical store, it's not just about the shop itself. Understanding the licensing and documentation process is also crucial. Ensure you have the correct documents and are familiar with the regulations beforehand.

Medical Store: In today's world, the health sector is considered one of the most stable and reliable businesses. Whether the market is up or down, the need for medicines never decreases. This is why the medical store business continues to grow. It's a particularly good option for those who want to start their own business with limited space and investment.

However, it's important to understand that a medical store is not just a source of profit, but also a great responsibility. Negligence related to medicines can directly affect people's health. Therefore, it is crucial to thoroughly understand the rules and licensing requirements before entering this business. Learn about the complete process for opening a medical store.

Determine the type of store you want to open

Before opening a medical store, it's essential to decide what type of store you want to start. A medical store located inside a hospital is designed to cater to the immediate needs of patients. Independent medical stores in residential areas are the most common type.

Nowadays, chain pharmacies and franchise outlets are also rapidly growing in malls and commercial areas. Additionally, township medical stores and medical shops located in government premises fall into separate categories. Knowing the store model is essential for proper investment, licensing, and registration.

How is registration done?

Medical store registration is done under the Indian Pharmacy Act, 1948.  An application must be submitted to the relevant department of the state government. It is also necessary to decide on the business structure. Small-scale medical stores are usually opened under sole proprietorship or partnership.

Large hospitals or chain pharmacies adopt the private limited company model. Recently, LLP (Limited Liability Partnership) is also becoming popular because it provides legal protection to the partners. In addition, shop and establishment registration, also known as a Gumasta license, is mandatory. This serves as a base document for several other licenses.

What about tax and drug licenses?

Understanding tax regulations is also crucial for running a medical store. If the annual turnover exceeds a certain limit, GST registration is required. However, the most important is the drug license. It is impossible to operate a medical store without it.

For a retail drug license, the presence of a registered pharmacist with a B.Pharm or M.Pharm degree is mandatory. There is a minimum required shop area, and facilities such as a refrigerator and air conditioner are necessary to store medicines at the correct temperature. The rules for a wholesale license are slightly different.

What documents are required?

Having the correct documents is essential when applying for a drug license. This includes the application form in the prescribed format, a cover letter, fee challan, shop layout plan, and ownership certificate. Documents related to business registration, an affidavit, and documents pertaining to the registered pharmacist must also be submitted. If all the documents are in order, the licensing process becomes much easier and faster.