How to Start Chemist Shop or Pharmacy or Pharma Retail Business?

Pharmaceutical market has one of the highly emerging market and annually growing with rate of approx. twenty percentage in India. There is number of good options in pharma market to make your career. Being part of distribution chain is also good option in pharmaceutical sector. Pharmacy, chemist, stockist, distributors, c&f etc are related to distribution chain. For doing pharma distribution, sale, purchase, retail, one should have drug license number. Without drug license number any type of sale, purchase and distribution is prohibited under drug and cosmetic act. It is punishable crime.

If you want to start chemist and druggist shop then in this article we will provide you few tips for starting Chemist Shop in India. Along with tips we are going to discuss about requirements, profit margin, possibilities of starting retail pharmacy in pharmaceutical sector. First have look at definitions of Pharmacy, Drug Store, Chemist and Druggist.

Read Related: What is the difference between Pharmacy, Pharmacist and Chemist/Druggist?

Important Definitions related to Chemist Shop and Pharmacy:

  • Drugstore word is used for such licensees who do not require the services of a qualified person.
  • Chemists and Druggists word is used by such licensees who employ the services of a Registered Pharmacist but who do not maintain a “Pharmacy” for compounding against prescriptions.
  • Pharmacy, Dispensing Chemist word is used by such licensees who employ the services of a Registered Pharmacist and maintain a “Pharmacy” for compounding against prescriptions

Pharmacies and chemists are the the retailers who deals in procurement, storing and dispensing of medicine, drugs and related products. Pharmacies/Chemist require particular drug license number to carry out all activities i.e. sale and purchase of medicines. Every pharmacy or chemist shop require a pharmacist for handling all daily activities.

Pharmacies Shops are important source of medicines and related products. Along with prescription drugs, pharmacies in India also deals in food and feed supplements, Ayurvedic Preparations, Cosmetic products and OTC products. Online Pharmacy concept are also becoming popular but success of online pharmacies is uncertain. There is requirement of drug license number to carry out sale of medicines in retail. 

Business Plan and procedure for Drug Retail/pharmacy/chemist Shop:
Most important thing to consider before starting retail for medicines is Location. Your income from chemist shop is depend at which location your chemist shop is present. How much doctors are present at that location, population, already existing numbers of chemist shops are few factors that should be consider before proceeding to search for a chemist shop. Along with location your premises should fulfill minimum requirements like area required, cemented floor and walls, concrete roof etc. Second important thing for fulfilling requirement of a Pharmacist. If you are pharmacist then you don’t need any other person but if you don’t have Pharmacist Registration then you have to employee a Pharmacist as technical person to carry out Pharmacy/Chemist/Druggist Daily Activity. In short we are describing business plan for chemist shop below: 
  • Search for Premises with required space at Prime Location.
  • Conduct some research and survey about general medicines, prescription habits of doctors and otc products running in that locality
  • Find out distributors and suppliers of medicines and other products in that locality
  • Make a rent agreement of premises if premises is rented
  • Apply for shop registration if necesary
  • Appoint a pharmacist if applicable
  • Decorate premises as per medical shop standard
  • Get prepared a blue print of premises
  • Purchase a air conditioner and refrigerator
  • Complete all documents
  • Visit to nearby Drug Inspector Office
  • Submit application for retail license for sale, purchase and exhibition of medicines manually or online.
  • After application successful submission, drug inspector will visit premises and check manually about authenticity of documents and premises
  • If D.I. will be satisfy with all formalities. he will approve application and issue letter for grant of drug retail.

Documentations and requirements for applying for chemist/pharmacies drug license:

Application has to be submitted in prescribed form to district drug inspector or drug selling authority office. Application is submitted at application form with detailed information

  • Application Form 
  • Area Required: 10 square meter for Retail license only. 15 square meter in case of retail with wholesale license
  • Pharmacist registration certificate photo copy. If proprietor or one of partner is not registered pharmacist, appointment letter and affidavit of pharmacist will be submitted along with registration certificate copy of pharmacist 
  • Academic qualification certificates of pharmacist
  • Date of birth proofs 
  • Prescribed fees 
  • Ownership proof or in case rented premises, rent agreement with owner detail. 
  • Purchase bill receipt photocopy of refrigerator 
  • Partnership deed in case of partnership firm 
  • Affidavit of proprietor or partners 
  • Address proof 
  • Blue print/layout plan of premises in 3 copies 

Premises should have adequate space for refrigerator, racks, pallets etc. After submitting application, drug authority will inspect premises manually for accuracy and correctness of information. After inspection drug authority may approve or reject application or instruct for modification or amendments in documents or premises.

Drug authority will issue drug license number after being satisfy with documents and premises. With this drug license number, sale and purchase of medicines and drugs and related products & services can be carried out at retail basis.

Profit Margin in Chemist/Pharmacy/Pharma Retail Shop:

Profit margin of chemist shop varies products to products but generally 16-20% margin is provided to retailers by most of companies with scheme. At generic medicines, this margin increases to higher side. Along with allopathic medicines, A Pharmacy and Chemist Shop also deals in Ayurvedic Medicines and Food/Dietary Supplements.

Requirement and qualification for registration as Pharmacist in State Pharmacy Council:

Person should be either minimum of diploma in pharmacy or degree in pharmacy and undergone three months of training at PHC( primary healthcare center) or above government hospital under registered pharmacist and medical practitioner. After that he/she has to apply for registration in Pharmacy council of particular state. Pharmacy council issue unique registration number and registration certificate to person. Now he/she is a registered pharmacist and can get all benefits of registered pharmacist like apply for hospital pharmacist job or start own pharmacy shop or do job as pharmacist etc. Note: Qualification and requirement may vary state to state. Read More about Pharmacist

Related Articles:

I am planning to open a pharmacy /medical store in a small village of gorakhpur, Uttar pradesh. I am planning to have a doctor in that pharmacy which can recommend medicine.
I am looking for a catchy name for my pharmacy / medical store according to locality which helps as booster for my pharmacy.
Please suggest some names

You can read how to select catchy name for your company? same will be applicable for your shop.
Choose a technical different name, not common names like —- medicals store,etc. Choose names which give professionalism like:

  • Pharma Hub
  • Pharmacy Corner
  • Pharmacy Point
  • Drug House
  • Dawa Ghar etc.

Hope above information was useful to you…
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16 Replies to “How to Start Chemist Shop or Pharmacy or Pharma Retail Business?”

  1. it is a nice article. Actually, after reading this blog everyone has gotten a little bit idea about the how to start the chemist shop. What document required to start a medical shop. This Detailed is very useful to each person who can start his chemist shop. Thanks for the published this important information for us.

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