How to Start Generic Medicine Drug Store?

Our charitable trust want to open generic medicines drug store in Gurudwara sahib. We need to know the whole procedure for license requirements and legal formalities.
For Generic medicine store, you also need to take Retail Drug License as required for a general chemist shop. You should have minimum of 10 square meter area in shop or room where you want to open medicine store. All requirements, licenses and procedure for opening medicine store, you can read at our article: How to start Chemist Shop in India?
One most important person you will require for it is a Pharmacist. You have to visit Drug Inspector Office (will be situated in your district head quarter) first to know complete procedure for opening medicine shop in your area.
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Query related to online b2b pharma company Portal


It  was very enlightening to have read your article. I am a founder of
an online b2b pharma company that sells medicines in terms of credits to retailers from wholesalers instead of cash. After reading from your article I guess that the money spent on marketing and sales by wholesalers can be effectively reduced by using my website. Now being from a non pharma I have a very big issue in determining the profit margins of the 5 players in distribution hierarchy.
1. Can you please send the price list of all medicines currently
available and their margins to each player?
2. I find very difficult to settle on a ecommerce margin that can be
collected from wholesalers. Can you please suggest a margin?
3. Should I collect different margins for different medicines or a
uniform margin for all medicines?
4. How would I know the profit margins if I were to fix different
prices for different medicines?

Thanks in advance.


Congrats for your B2B Portal for retailer and wholesaler. Before proceeding further, please conduct complete research in pharma market, so it become easy to acquire market.

Wholesale to retail transaction is already in credit, No Pharmacy and Chemist give payment in cash to wholesaler in India. Payment term is 30 to 45 days. In many cases, it crosses 45 days mark. You need to keep in mind this aspect to associate retailers and wholesalers with you.

Second aspect, wholesaler, distributor and stockist doesn’t spend at marketing. It’s company responsibility to spend at marketing and sale.

Retailers and wholesalers are key costumer only in case of generic medicines. If you also want to sell branded and ethical medicines, Retailers and wholesalers are not key costumers to decide price and margin.

  1. Margins and prices vary according to company and its marketing type, so it’s not possible to send price list of all available medicines and their margins.
  2. A wholesale charge generally 10 percent margin. A wholesaler can give your margin from this 10 percent margin. You can decide 1%, 2% or maximum of 3% that can be afford by a wholesaler against your services.
  3. You can charge differently for different type of margins according to market demand and market competition.
  4. You margin will vary according to market demand and competition. You have to fix it accordingly.

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Related: Best Ayurvedic Herbal Products Online

How to start Online Pharmacy in India?


What is the procedure to open a online pharmacy in India?



In India, There is no special provision or act present that can describe, regulate and specify online pharmacy. Online Pharmacies also follow drug and Cosmetic Act and Rules made there under. Along with Drug and Cosmetic Act, it should also follow the rule and regulation mentioned under Information Technology Act.

For setting-up online pharmacy, you will require to either set-up own online pharmacy website/mobile app or need to create seller account at existing online pharmacy portals.

Before setting-up own online pharmacy website/app or making seller account at existing online pharmacy portal, you need to set-up a physical pharmacy as in case of traditional pharmacy. Requirement and document will be same for online pharmacy as we have discussed in our article: How to start Pharmacy in India?

You will require a pharmacist at your online pharmacy for receiving and processing prescription uploaded by patient or his care taker. Offline Pharmacy set-up is mandatory for selling medicine online with complete documents and procedure.

Here we take a short look at documents and necessities for starting Offline Store First and then sell medicine online.

Licenses required:

  • Retail Drug License
  • GST number

Retail Drug License:

Retail drug license is issued by District Drug Control Officer who provide drug license as per guidelines issued by State Drug Control Officer. You need to visit district drug control office for applying retail drug license number. Procedure for applying retail drug license may be online or offline as per state policy, you are going to apply.

Requirement and documents for Setting UP Online Pharmacy:

  • Area required: Minimum of 100 square feet
  • Registered Pharmacist: All related documents photocopy will be attached along with Drug License application form
  • Rent agreement or ownership proof of premises
  • Blue print of premises (3 copies)
  • Address Proof of Premises
  • Refrigerator and Air conditional Purchase Bill

Goods and Service Tax Number (GST):

GST is mandatory for firm having annual turnover above 20 lac but in case of online sale GST may be compulsory for all firms/persons having any amount of annual turnover. Read complete detail about applying Goods and Service Tax Identification Number here

After taking retail drug license and GST number, you need to set-up online presence. Online presence could be set-up by either building own e-commerce pharmacy website/app or creating a seller account at already present online pharmacy websites/apps.

Completing above step, you can start selling medicines and drugs online.

What’s coming new:

Government is in process to regulate online sale of medicine by making amendment in Drug and Cosmetic Act and Rule. For knowing new regulations and amendments, we have to wait for new government policy.

Online Pharmacies could have to follow following provisions:

  • Requires a valid Prescription
  • Online Pharmacy should have Physical Address so drug authority can inspect quality and standards of online pharmacy store
  • Government is planning to launch a common portal where all online pharmacies must have registered their self.
  • Online Pharmacy License will be issued by State Drug Control Authority.
  • Presence of Pharmacist is must for collecting prescription and answering the questions of the consumers.
  • Pharmacy can’t dispense habit forming medicines and schedule X drugs.
  • Prescription Drugs (Schedule H and Schedule H1) can only be sell out against a valid doctor prescription.
  • Online Pharmacies have to comply with e-commerce standards covered under IT act, 2000.

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What is the margin of pharma retailers in India?

Is the margin of pharma retailers in India based on MRP inclusive GST or excluded of GST ? What is the margin of retailers in India?


Retailer margin in India is based at PTR (Price to Retailer), not at MRP. Suppose if retailer margin is 20% then it would be calculates as per price to retailers. Margin is calculated at price whereas vat is different thing.

Retailers margin in India varies from 16% to 22% depend at area and location.

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can a person apply for the chemist shop license at government employee registration ?


My father worked in livestock department under WB govt as a Veterinary doctor. So i want to open a medicine shop….so can I apply for the license using my father’s cerificate…please answer
Response:You can’t apply medicine shop at your father’s registration certificate. There is two reason behind it:

One: For medicine Shop, pharmacist registration certificate is must.
Second: Your Father can do job at single place at one time. Applying at registration certificate mean, he is permanently working in your medicine shop. But he is government employee so he is working there also. There government job could be in trouble at that time..

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How to start Chemist Shop?

I want to open a chemist shop. Please give some ideas for it. Please suggest where should I open it ,there are many chemist shops near me and also they provide up to 10% discounts on medicines. Suggest few ideas to increase business.
Also what should I do if the medicine which doctor has prescribed to the patient is not available with me at that time , if I don’t have it at that time then the patient might go to some other store what to do if that happens.
Also can you suggest what else can I do along with my chemist shop as a side business.


Read requirements to start chemist shop at our article:

How to start Chemist Shop?

Opening shop doesn’t depend at number of shops available in your locality. It depends at sale and market potential of that area. If there is good number of doctors and sales potential is available then you can start medical shop there.

If market is saturated and already opened chemists are not working good then don’t need to open shop there. 10% discount is not a big issue, you could also provide when you will start.

If a doctor prescribe medicines and you don’t have at that time. In that condition, your relationships with nearby chemists matter most. Most of chemist behave corporative  in that conditions and make availability from nearby chemists and fulfill patients requirement.

Chemist shop is full time work. Along with chemist shop you can’t do any thing in your licensed shop premises but outside shop you can do any other business as you have knowledge…

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How to start Pharma Generic Shop?


I am a D. Pharma. I wish to know How to start a pharma generic shop with  a single company initially? How to contact distributor or company for this? I have searched various big companies though failed. Also how much capital is required to invest in generic medicines let alone other investments.

Documents for starting Generic Medicine shop is same as other medicines shop.
Generic medicine distribution is credit base work. Start with small generic company which will provide you facilities along with credit. Most of big companies will already has distributors at most of locations and second they look for already established and good networked distributors. Investment for starting with any generic company could be as less as 1 lac and as more as of any numbers.
You can find generic distributors locally by asking to chemists about particular company distributor or search online about generic manufacturers. Meet local distributors personally and companies which are far away, talk to them at phone first and then fix meeting if gets positive response….

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How to start Pharmacy/Retail/Chemist Business in India? How much Investment is required to Start?

Query:I want to start my own pharmacy business. How much capital is requires in it?


Read Documentation and License required for pharmacy business here.

We are considering Pharmacy Business as Retail Shop. Retail shop investment for your start-up depend at location and size of pharmacy. You will need a premises i.e. Owned Shop or Rented Shop in area where you think demand of medicines. We will consider a rented shop for investment calculation. Many factors will impact investment required i.e. shop location, documentation, pharmacist salary (if you are not pharmacist) etc.

Monthly Expenses:
Suppose monthly rent is 6500-10000/-. Required space for premises is 10 square meter. Fully cemented floor and walls.
Pharmacist Salary ( In case you are not pharmacist) is 7000-12000 per month.

One Time Expenses:

Furniture: 30000/-
Refrigerator: 10000/-
Computer and other Accessories: 25000/-
License Fees and Documentation etc.: 6000-7500/-

Other than these you will require investment for purchase of medicines and drugs. This calculation is only for informational purpose. You can calculate your own by getting costing of all things required.

Your investment will be approximately 13500 to 17000/-per month at monthly basis.
One time expenses may be approximately 75000 to 90000 /- month.
Add medicine purchase cost in this.

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How to sale medicines through Online Pharmacy ?

I want to marketing my Company Pharma Medicines on Online Site or Distributor/Stockist for my Pharma Products.

You can contact websites like ,, etc to sell you brands online

If want directly to distributors or wholesaler, you can either choose generic marketing or pcd/Franchise Marketing.

Read our article: How to expand your Pcd/Franchise/Third Party Business in Pharmaceutical Sector?

Hope above information was useful to you…

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How to Start Pharmacy Business (Chemist/Pharmacy/Retail)?

In this article, we will cover following topic about Pharmacy Business:

  • Definition of Pharmacy
  • Difference between Pharmacy and Chemist Shop
  • Area required and premises specifications
  • Competent Person (Pharmacist)
  • Documents and Requirements
  • How to Start/ Procedure to start
  • Investment Required
  • Inspection
  • Profit Margin
  • FSSAI Registration
  • Shop Registration

Pharmacy and Chemist shops are last part of distribution channel and are in direct contact with customers i.e. patient and/or his caretaker. Pharmacy and Chemist shops are a profitable as well as a charitable business. In this article we will provide you almost complete information about how you can start pharmacy and retail business.

For staring a pharmacy or chemist shop business, a person requires Retail Drug License Number which is issued by Drug Control Department and has to employ services of a registered pharmacist.  Along with prescription drugs, pharmacy and chemist shops also deal in food and dietary supplements, Ayurvedic Preparations, Cosmetic products and OTC products. Online Pharmacy concept are also becoming popular in pharmaceutical sector.


Pharmacy can be defined as a store or shop or place where drugs and medicines are dispensed, compounded, prepared under supervision of a registered Pharmacist against prescription of a Registered Medical Practitioner.

Difference between Pharmacy and Chemist Shop:

Most of us feel confusion when it comes to differentiate between Pharmacy and Chemist Shop. Both are similar in many aspects. But still have lot of difference in regards with operation and functioning. Both require presence and supervision of Pharmacist during working hours.

Pharmacy is a premises where compounding, preparation of drugs and medicines as per patient requirement is conducted along with dispensing of pre packed drugs and medicines dosage form where as chemist shop is a premises where only dispensing of pre packed drugs and medicines dosage form is conducted.

Read Related Article: How to start wholesale Distribution Business in Pharmaceutical Sector?

Area Required and Premises Specification:

Minimum of area required for starting Chemist Shop and Pharmacy is 100 square feet.  Premises should have adequate space for refrigerator, racks, pallets, sitting etc. Walls and floor should be at least cemented and concreted roof. No crack and flake should be present in premises.

Competent Person (Registered Pharmacist):

For handling daily activity in pharmacy and chemist shop, supervision of Pharmacist is must. No activities can be carried out in retail pharmacy and chemist shop without presence and supervision of a Registered Pharmacist.

A Registered Pharmacist is a person who holds a diploma, degree or doctorate in Pharmacy and his/her name is entered in the register of the state pharmacy council in which he/she is for the time being residing or carrying on his profession or business of pharmacy.

Documents and Requirements:

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

  • Application Form
  • 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

How to Start/ Procedure:

Most important thing to consider before starting retail for medicines is Location. Your income from chemist shop and pharmacy depends at which location your premise 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 opening a pharmacy and chemist shop. Along with location your premises should fulfill minimum requirements like area require, cemented floor and walls, concrete roof etc. Second important thing is 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 competent 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 premise is rented
  • Apply for shop registration if necessary
  • Appoint a pharmacist if applicable
  • Decorate premises as per medical shop standard
  • Get prepared a blue print of premises
  • Purchase an air conditioner and refrigerator
  • Complete all documents
  • Visit to nearby Drug Control Office
  • Submit application for retail license for sale, purchase and exhibition of medicines manually and/or online.
  • After application successful submission, drug inspector or any other authorized person by government will inspect premise and check manually about authenticity of documents and premise
  • If Drug Authority is satisfied with all formalities. Application will be approved and drug authority will issue letter for grant of drug retail.

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.

Initial Investment Required:

Total initial investment will vary according to location, area, city etc. There is requirement of shop or premises to start Pharmacy outlet or chemist shop. This shop or premises could be owned or rented. In owned shop, we can add purchase cost in investment if pharmacy is to start after purchasing shop. But starting by purchasing own premises or shop is not possible for majority of start-ups. For them renting a premises or shop is best option.

Rent and/or cost of premises can change with change of location.  So add what is your own shop or premises rent. Suppose rent is 6000/- per month. Pharmacist salary also varies place to place. We are supposing it 12000/- for fresher candidate.

Now come to accessories investment. Decoration and interior expenses vary according to your need. Simple interior will cost less and high profile interior will cost high. Furniture, fitting and chair etc will cost approximate 30000/-. Refrigerator cost is approximate 9000/-. License fee and documentation may be cost approximately 6000/-. Few other hidden expenses may cost approximately 15000/-.

Above expenses are without purchasing any single medicines. These estimates could be change depend at many factors. This investment idea is for information purpose only; you can change actual value from approximate values to find actual investment you require to start.

Investment at purchase of medicines also varies according to stock you purchase in starting and cost of medicines you purchase. Most of retailer can get medicines at credit from wholesaler and distributor.


Inspection is carried out by Senior Drug Inspector/Drug Inspector or any other person appointed by state government time to time for inspecting pharmacies and chemist shops. If all facilities, documents, competent person detail and other particulars are found to be satisfactory then application file has to be processed for issuing retail drug license. Otherwise authority can return file for amendments and/or rejection.

Profit Margin in Chemist/Pharmacy/Pharma Retail Shop:

Profit margin of chemist shop varies products to products but generally 16-24% 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 deal in Ayurvedic Medicines and Food/Dietary Supplements.

FSSAI (Food Safety and Standards Authority of India) Registration:

If pharmacy and chemist shop want to sell food and dietary supplements along with medicines and drug. Then it must be registered itself under FSSAI. Read in detail about how to apply for FSSAI Registration?

Shop Registration:

Shop registration requirements and criteria may vary according to your area. Before starting pharmacy business, it should be recommended to confirm first for shop registration or any other registration in locality.

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

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.

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