Is License Compulsory for Starting Pharmaceutical Business in India?

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Is License Compulsory For Starting Pharmaceutical Business In India?
September 12, 2023

Why pharma business license is important?

When you want to launch a business, it is essential to complete the legal and statutory responsibilities related to it. And a pharma business is also not an exception. The process of obtaining the license for a pharma business license is a multifaceted process.

What are different licenses needed and why is it essential? If you want to understand this, then this blog is important. Whether you want to launch a pharma manufacturing company, wholesale pharma business, medical pharmacy, distribution agency, or PCD pharma franchise company in India, this blog will be useful.

Pharmaceutical businesses need a drug license if they are supposed to be run. This license is important for many reasons, and if it is not there, then there could be serious consequences for the business.

Drug procurement is impossible without a drug license

Since the pharma business is related to medicines and drugs, which are related to the health and well-being of a person, licensing has been made mandatory by authorities.

If the business doesn’t have a drug license, then it is not possible to cannot procure any drugs or cosmetics from pharmaceutical businesses.

It means that they will not be able to purchase any products from any of the authorized vendors.

Also, they will not be allowed to carry out any R&D (Research or Development) activities to develop new products. Furthermore, the pharma company will not be allowed to sell their products in India or even export the products overseas.

For a pharma business, the end user or customer is the patient. He will go to a pharmacy or retail chemist.

The pharmacy will order the PCD pharma products from distributors.

Distributors will order medicines from their stockiest.

The stockiest will order their products from C&F agents.

The C&F agents will get their required stock from PCD pharma company.

It is the complete supply chain of a typical pharma distribution process. Any of these entities cannot operate the business without procuring the necessary related licenses.

To supply pharma products like various types of rugs and medicines pharma distributors, wholesalers, or stockiest are the dealers or agents. These products are supplied to agencies like pharmacies, hospitals, and other retail businesses.

They will regularly buy these medicines from pharma manufacturing companies and then they will sell them directly to different channel partners.

The profit is earned via margin and work in the business segment. They will also need a license and GST number. Other channel partners like C&F agents, pharmacies, pharma franchises, and distributors will also require the same license to carry out their business.

The pharmaceutical segment is one of the most important business segments in the country. It is directly associated with not only well-being and good health but also the survival of human beings. By ensuring proper licenses the safety of people is taken care of.

Therefore, concerned government authorities have made it compulsory for each and every pharma channel partner to register their firm and run the pharma business after getting proper approval and a drug license for fair and ethical business practice in the medical sector.

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