1. Retail, wholesale or both
A retail store sells to patients; a wholesaler sells to other shops, clinics and hospitals. Each needs its own licence, and both in one place need more space. Most owners start with retail.
2. A registered pharmacist
Prescription medicines are sold under the personal supervision of a pharmacist registered with the State Pharmacy Council. The owner can be the pharmacist, or the shop employs one — the licence application names them.
3. The premises
The Drugs and Cosmetics Rules set a minimum area for a medicine shop — 10 square metres for retail, more when wholesale is in the same place — and ask for proper storage.
- A refrigerator for medicines that need cold storage
- Shelves away from sunlight and damp
- Proof that the premises are yours or rented to you
4. The drug licence
Apply to your State Drugs Control Department for retail sale licences. A drug inspector checks the premises, storage and pharmacist before the licence is granted. Our guide on the drug licence has the details.
5. Other registrations
Ask a CA which of these apply to you:
- GST registration — needed above the turnover limit, and useful for input credit
- Shop and establishment or trade licence from the local body
- FSSAI registration if you sell food items such as health drinks or baby food
- A current account in the shop’s name
6. Suppliers, stock and software
Talk to two or three distributors about credit days and returns, and start with the medicines doctors near you prescribe most. Set up billing software with batch, expiry and rack from the first day — it is much harder to add later.
- Start with fast-moving medicines
- Racks named so anyone can find a medicine
- Schedule H1 register ready from day one
Requirements differ by state and change over time. This is a plan for owners, not legal advice — confirm with your State Drugs Control Department and a CA.
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