Which License is Required to Start a Medical Store?

July 26, 2025
Registrationwala

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Which License is Required to Start a Medical Store?

Which License is Required to Start a Medical Store?

July 26, 2025

Registrationwala

A medical store, also known as a pharmacy, drugstore or a chemist shop, is a retail store that sells pharmaceutical products and healthcare items to customers. This kind of business plays a central role when it comes to providing individuals access to life-saving medications as well as general healthcare products.

A medical shop business is especially important during times of illness or health crises. In this blog post, we shall explain the necessary licenses required to start a medical store in India.

Why Start a Medical Store?

Establishing a medical store can be a rewarding business opportunity. This is majorly due to the fact it serves as a consistent income source and allows you to contribute positively to public health. The growth of the Indian healthcare sector is propelled by a burgeoning population and an ever-increasing prevalence of lifestyle diseases. It creates a strong demand for establishment of medical shops in the country.

These stores are essential for providing necessary medicines and healthcare products. Even during economic downturns, the medical shop business remains profitable because there is a constant need for healthcare among the population.

Types of Medical Stores in India

The types of medical stores that an individual can establish in India include the following:

Hospital Medical Store: This type of store is located within a hospital and serves the needs of patients visiting the facility.
Medical Shops within Government Premises: These medicine stores operate under various government policies and schemes, and are managed directly by the government. They are commonly found inside government offices and buildings.
Chain Pharmacy (a.k.a Franchise Outlets): These medical outlets are set up at malls and shopping complexes. They’re a part of pharmacies’ chains with branches across different areas. Generally, they are large-sized medical shops.
Township Medical Shops: They are opened in townships to serve the needs of individuals living in towns and villages.
Standalone Medical Pharmacies: Standalone pharmacies are the most common type of pharmacy. They are small to medium-sized stores that are usually located in residential areas where residents can easily visit to buy essential medications.

Licenses and Certificates to Start a Medical Store in India

The following licenses and certificates are crucial to start a medical shop/store in India:

1. Business Registration Certificate

To establish a medical shop in India, it is essential for an individual to obtain proprietorship, partnership, LLP registration or company registration. In case of proprietorship or partnership, no mandatory registration process needs to be fulfilled.

However, in case of LLP or company registration, it is essential to file an application online with the Registrar of Companies (ROC) via the MCA portal and secure a business registration certificate.

2. Drug License

Obtaining a drug license, a.k.a medical store license, is a mandatory requirement for operating a medical shop. It is issued by the State Drug Control Organization. To secure this license, the owner of the medical shop must be a qualified pharmacist with a degree of B. Pharm or M. Pharm.

If the owner isn’t a qualified pharmacist, they must hire a qualified pharmacist who will be responsible for the pharmacy's operations.

3. Shop and Establishment Certificate

To operate a shop of establishment in India, it is necessary to obtain the shop and establishment certificate according to the local laws. This certificate must be obtained within 30 days of commencing business operators.

By securing the shop and establishment certificate for your pharmacy, you will ensure legal compliance and demonstrate business legitimacy.

4. GST Registration Certificate

GST registration is a mandatory requirement for businesses if their annual turnover exceeds the threshold limit. If the business annual turnover exceeds Rs. 40 lakhs for goods or Rs. 20 lakhs for services, it must get registered under the GST system. The registration process must be completed online via the GST portal.

After successful registration, the business is issued a GST registration certificate. This certificate ensures compliance with GST regulations and helps the business to be in the good books of the government.

Conclusion

Medicines are essential as they help individuals to recover from illnesses and diseases. Thus, by starting a medical shop, you can significantly contribute to public health. Need assistance in setting up a medical shop in India? Connect with Registrationwala for assistance in securing the drug license and other necessary approvals.

Frequently Asked Questions (FAQs)

Q1. Which authority issues medical store licenses in India?

A. The State Drug Control Organization issues medical store licenses in India.

Q2. Is it mandatory to have a B. Pharm degree to run a medical shop?

A. Yes, it is mandatory for a business owner or an appointed pharmacist to have a B. Pharm degree to run a medical shop in India.

Q3. Is GST registration mandatory for a pharmacy business?

A. Yes, if a pharmacy business’ annual turnover exceeds the threshold limit, then securing GST registration is mandatory.

Which License is Required to Start a Medical Store?