How to start wholesale business in Pharmaceutical? Procedure to get stockist/Distributor/c&f license in pharmaceutical sector?

If you are thinking to start pharma business, wholesale/stockist or distributor can be good idea to start with. Stockist/Distributors/c&f require whole sale drug license for sale and purchase of medicine and other related products. Worried about how to get wholesale drug license!!! Here we are going to help you to start Pharmaceutical Wholesale Business and Distribution, Stockist ship etc. Most important things for starting wholesale, distribution business should have: Firm Name, Premises: Minimum of 10 sq. meter area, EP, Fridge etc. All documents will be related to above mentioned things.


You can watch this video to learn how to start pharmaceutical wholesale business and start distribution in Hindi. If you don’t want to watch video, you can continue reading this article.

Here we are going to provide few quick steps and licenses & documentation required for starting stockist, wholesale business.

For taking whole sale drug license, you have to complete required documentation and qualification. After complete process wholesale drug license is granted by drug department. You have to visit local drug controller office or drug inspector office for complete guidance and procedure.

Read here: How to Start Chemist and Druggist Shop in India?

Pharmaceutical Stockists, Distributors and Wholesalers:

Pharma stockists/distributors/Wholesalers are the dealers or his agents engaged in sale to retailers, hospitals, dispensaries, medical, educational or research institutions or other agencies. These are engaged in the whole sale business of medicines, drugs and related products.

They purchase goods from c&f or companies, and sell it to the pharmacies and chemists. They do business to business type of work. They charge particular margin in medicines. They require wholesale drug license number to carry out their work. Most stockist and distributors also has GST Registration Number because they do interstate sale and purchase also.

Read Related: Types of Distributors/Stockists/WholeSalers

C&F (Carrying and Forwarding Agents):

They also require wholesale drug license number. They do work at large level. They purchases medicine, drugs and related products directly from the company and sell these to wholesalers or stockists.

Before discussing about documentation for licenses, have look at business plan to start Pharmaceutical Wholesale Business:

  • Search for a premises/shop/plant (In case you don’t have own arrangement).
  • Make a rent agreement.
  • Contact pharmaceutical companies or C&F for Stockist ship or Distribution
  • Finalize all deals with Pharmaceutical Company or C&F.
  • Apply for wholesale drug license to district drug control office and Goods and Service Tax Registration. (Previously Tin/Vat/CST)  (Read in detail about Goods and Service Tax here)
  • Purchase office accessories like Furniture, computer, Freeze etc.
  • Drug Inspector or Concern person will personally visit premises. If he finds all things good, he will approve your application for issuing license.
  • After some time you will receive your drug licence copy and number
  • Start purchasing, stocking and invoicing drug and medicines to retailers and pharmacies

Requirements and documentations to apply for wholesale drug license for selling and distribution of allopathic drugs are following:

Application is to submit to district drug inspector/drug selling authority office in prescribed form 19 with other information forms.

  • Required area of premises should be minimum of 10 sq. meter (15 sq. meter for whole sale plus retail), minimum 8’2″ height. Premises should be brick built, plastered floor cemented.
  • Application have to submit in Form no.19 with addition information form
  • Experience person certificate or pharmacist registration certificate or appointment letter of competent person
  • Fees of Rs. 3000/- ( For biological & Non Biological )
  • Address proof
  • Ownership proof or Rent agreement in case of rented premises
  • Refrigerator purchase bill photocopy with complete address
  • Academic qualification certificate photocopy
  • Date of birth certificate photocopy
  • Affidavit of EP/competent person
  • Partnership deed, in case of partnership firm and In case of private registration firm, registration firm receipt copy and list of directors with address proof, Memorandum of article of association etc.
  • Affidavit of proprietor/partners/directors
  • Blueprint/layout plan of premises with signature in 3 copies

Adequate storage facilities required including cupboards with glass doors, racks, pallets, refrigerator etc.

What is the requirement/qualification for experience person certificate/competent person for whole sale drug license.

  • Registered pharmacist under state pharmacy council or
  • Minimum one year experience as salesman in registered drug licensed firm after graduation or
  • Minimum four year experience as salesman in registered drug licensed firm after senior secondary examination
After submitting application, drug department will provide you schedule for inspection and verification. If all documents and requirements is complete & accurate, drug department will issue wholesale drug license number in Form 20B and 21B, otherwise it will reject your application or send it correction/amendments in documents or premises.

After receiving drug license number, you can start sale, purchase and distribution of medicines, drugs and related products & services.You may require addition registration for Food and Dietary supplements under FSSAI.

Scope of Wholesale Drug License:

Investment Required:

  • Documentation and License: approximately twenty five to thirty thousand.
  • Furniture: Approximately twenty thousand
  • Rent of premises
  • Refrigerator
  • Medicine and Drugs: Depend at your purchase

44 Replies to “How to start wholesale business in Pharmaceutical? Procedure to get stockist/Distributor/c&f license in pharmaceutical sector?”

  1. If mouthwash and toothpaste is medicated and fall under drug and cosmetic rule then you require drug license number. For mouthwashes or toothpastes fall under herbal, ayurvedic or cosmetic preparation doesn't require drug license number.

  2. One of my friend have a wholesale drug licence of Arunachal Pradesh now what he have to do how to stock the medicine whom to contact

  3. I would like to know if the owner of a cancer drug manufacturer has a doctor son, would it amount to conflict of interest as per Food and drug admin or Medical Council of India

  4. I am Naresh Pujari from Mumbai was planing to start at business of pharma distributor.
    My question was
    I am a commerce graduate and hold master degree in business administration.
    Can with this knowledge and degree
    Can I open or get the distributor ship for pharma product

  5. You can start medicine wholesale business by taking distribution ship of any pharma company. You will need wholesale drug license and Sale tax number for it. For wholesale drug license, you have to apply at district drug inspector office. First you will need 10 sq. meter shop and a person having pharmacist registration or person having experience person registration for whole sale distribution in drug department. Other requirements, you can read in above article

  6. Hi Sir please guide me can I sell both herbal and allopathic medicines under my company name for example manufactured by abc and marketed by xyz and can I get success in that I m from Punjab chd and will obtain drug licence also please help me in this context

  7. Sir I have applied for a whole sale drug license with my firm name but my firm name ,can I run my pharmacy by giving a different brand name and putting a unit of that firm under the that brand

  8. Hello sir,
    I am post graduate in chemistry.
    I wants to take drug licence, what is the procedure.
    I wants to prepare 4 to 5 generic medicines from any pharma manufacturer and then sell these medicine from my own brand name. So what type of license we required.
    My brother is masters in physiotherapy and his own clenic since 10 years.
    Is he sutable for taking drug licence??
    Please describe….
    And what is the average cost.

  9. Hello sir,
    I am post graduate in chemistry.
    I wants to take drug licence, what is the procedure.
    I wants to prepare 4 to 5 generic medicines from any pharma manufacturer and then sell these medicine from my own brand name. So what type of license we required.
    My brother is masters in physiotherapy and his own clenic since 10 years.
    Is he sutable for taking drug licence??
    Please describe….

  10. @Amit Rathore..
    You will need atleast 18 months experience certificate from any pharma wholesale/distributor and have to register yourself at District Drug Inspector Office…

  11. can a registered medical agency bill to government hospitals….. I mean Can we sell medicines to government hospitals…

  12. Hi,

    I work in a company which has warehouse in various states.
    I am B.Com & MBA with focused experience of 4 yrs in Pharma Sector. I have worked as RBM for a Pharma company for 1 yr previously.

    I have 2 question.

    1. Am I a competent person for getting the licence in my name? If yes, What I have to do to get the licence in my name?

    2. My company wishes to start wholesale business of pharma in all its warehouse. What I have to do to obtain the licenses at different locations? Will the licence will be in the Company name for Different locations?

    Kindly help me on a very URGENT basis.

    Thanks.

  13. @Freedom For being competent person, you have to present 18 months experience as person handling drug dealing with firm having wholesale drug license number at letter pad of company with salary slips. With proper verification drug department issue competent person certificate…

    For starting wholesale business from warehouses, you have to apply for wholesale license differently for all warehouses at concern district drug inspector office. You will need individual competent person certificate for applying drug license for each location.

    License should be at company name and if applying for different location, each location should be mention for applying license

  14. Hi,

    Thanks for your reply.

    I have further question:

    My company wishes to apply for Wholesale Drug licence at various places,For example : Ahmedabad , Gurgaon, Pune, Bangalore, Delhi and more.

    1. Is the procedure and documentation same for each state?

    2. what is the fees structure for each state? We would like to apply for licence 20 -B , 21 -B and 20 -G.

    3. Any more additional fees other then for the above mentioned forms?

    4. We will be only keeping drugs at our warehouse, only supplying logistics solution to the distributors or C&F or companies. We will not be dealing in Drugs. Do we still require the Licence 20-B , 21-B, 20-G ?

    Kindly help on urgent basis.
    Thanks

  15. Dear Sir,
    Good Morning

    I m graduated in B.A. currently i m in Saudi Arabia, i want do wholesale business of pharmacutical, i want to know what is process and how much money will be invest for taking an one company.

    Pls Advise me

    Your Advice will be appreciable& important for me.

  16. Hello sir,
    I am post graduate in chemistry.
    I wants to take drug licence, what is the procedure?
    can i become a distributor of drugs? i'm working in pharma company as a research analyst (analytical development ) from last one and half year.
    And also wanted to know if i started pharmacist shop do i need any certification or my M.Sc degree will be used.

  17. I am running a partnership stockist.Now my partner wants break partnership in stockist business.My questions is ,Can I run this stockist business with previous Drug licence number.What is processed ? Electric connection,bank account,rent paper all on my name.If my partner gives affadebite that he leaves partnership in stockist then Can I run this stockist ?

  18. Important thing to consider in your case is that who is Competent Person or EP means who is authorized in your wholesale drug license. If You are EP then no problem but if your partner has EP then you have to change EP or have to apply on behalf of your self if you fulfill all requirement of becoming EP as per requirements mentioned in above article…

  19. Dear Sir

    I am an electronic engineer with MBA in finance, I am working in banking sector, recently I was working on a balance sheet and i was surprised to see they have declared very good profit, later i took few other pharma company financials and saw they were also making good money in distributorship

    i want to know i want to start the export business of pharma medicines, do i still need a license for this plz reply

  20. Dear Sir

    I am an electronic engineer with MBA in finance, I am working in banking sector, recently I was working on a balance sheet and i was surprised to see they have declared very good profit, later i took few other pharma company financials and saw they were also making good money in distributorship

    i want to know i want to start the export business of pharma medicines, do i still need a license for this plz reply

    1. If twelth pass has 4 year experience at wholesale drug firm as sales man. He/She could be capable of starting wholesale business

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