Elementary requirements to begin a pharma franchise
Pharma franchise business is a perennial business in India that is not influenced by the economic cycles. The multi-specialty and corporate hospitals in India aid in the growth of healthcare and pharmacy business through their popularity. Establishment of a franchise pharma company is an ideal business that needs minimal investment and space for several entrepreneurs. The procedure for beginning a franchise pharma company in India is discussed in this article.
Pharmacy business is categorized into 4 types depending on the storage format. These categories are standalone pharmacy, chain pharmacy, hospital pharmacy and township pharmacy. Most of the pharmacy businesses in India belong to the standalone type that runs as an unorganized sector. Hospital, chain and township pharmacies are arranged at a large corporate building or a hospital. Standalone pharmacy is usually started under a partnership or as a LLP or private limited company. Starting this business as an LLP constitution ensures that this business is transferable, scalable and restricts the personal liability of the promoters.
A business requires value added tax (VAT) registration in India when goods or products are sold by it. As VAT is monitored by the state government, depending on the state where the pharmacy business was set up, VAT registration has to be gained from the concerned state or from the sales-tax department. Pharmacy businesses need VAT registration and have to pay VAT taxes.
To begin a pharma franchise business, a drug license has to be acquired by the person prior to starting the business. The drug license matters are managed by the central drugs standard control organization and state drugs standard control organization in India.Usually the state drugs standard control organization reviews the starting of the pharmacy business.
The drug control organization offers two types of licenses for making a pharmacy business to function. They are retail drug license and the other is wholesale drug license. To operate a general chemist shop, retail drug license is sufficient. The wholesale drug license is provided to the people or institutions that are involved in wholesale of drugs and medicines. In many states, retail drug license is provided to those who are qualified in pharmacy diploma from a recognized institution or university. This is a specialized job and can be handled only by the qualified people. In the case of wholesale drug license, the diploma is not compulsory and the conditions are relaxed.
The essentials for obtaining drug license
There are certain minimum requirements for getting drug license to start a pharmacy business in India. The area that is necessary for establishing a medical shop or a pharmacy or a wholesale outlet is 10 square meter. If the business is both retail and wholesale, then the area required will be 15 sq.m. The shop premises must have a refrigerator to store certain drugs like vaccines, insulin injections, and sera in the refrigerator. The pharmacist carrying out wholesale must be a graduate with 1 year experience in drug sales or a person who had passed 10th Std. with 4 years of experience in drug sales. To handle the retail shop, the person must be a registered pharmacist approved by the concerned department.