Many entrepreneurs want to open an Ayurvedic medicine shop, franchise outlet, herbal store or Ayurvedic pharmacy but are unsure whether they need a drug licence or a registered pharmacist.

The general position is:

Under the central Drugs and Cosmetics Act and Drugs Rules, a separate retail or wholesale drug-sale licence is ordinarily not prescribed merely for selling licensed Ayurvedic, Siddha or Unani medicines.

The Ministry of Ayush has officially stated that a sale licence is not required for Ayurvedic medicines. Current official guidance from Kerala and Puducherry also states that Ayurvedic medicines do not require a special sale licence, provided the products are manufactured under a valid Ayurvedic manufacturing licence.

However, this does not mean that an Ayurvedic shop can always begin without any registration.

The business may still require:

• State-specific AYUSH shop permission
• Shop and Establishment registration
• Municipal trade licence
• GST registration
• FSSAI registration or licence
• Medical-device registration
• Registrations for allopathic or homoeopathic medicines
• Other local business approvals

The requirements depend on the state, products sold and nature of the business.

Clear Answer

Is a Drug Licence Required for an Ayurvedic Medicine Shop?

Ordinarily, no separate drug-sale licence is required under the central Drugs Rules when the shop sells only legally manufactured Ayurvedic, Siddha or Unani medicines.

However:

1. The shop must sell genuine products manufactured by licensed manufacturers.
2. State-specific AYUSH shop-registration rules must be checked.
3. Products containing Schedule E(1) ingredients require special precautions.
4. Separate licences apply when allopathic medicines, homoeopathic medicines, food supplements or medical devices are sold.
5. Normal business, tax and municipal registrations may still be required.

Why Is a Sale Licence Generally Not Required?

The Drugs and Cosmetics Rules contain specific licensing provisions for the manufacture of Ayurvedic, Siddha and Unani medicines.

The main manufacturing provisions appear in Part XVI and include matters relating to:

• Manufacturing licences
• Loan licences
• Product permissions
• Technical personnel
• Good Manufacturing Practices
• Quality standards

Part XVII deals with:

• Labelling
• Packing
• Ingredient declarations
• Alcohol limits
• Schedule E(1) warnings

The central Rules do not prescribe retail and wholesale sale-licence forms for Ayurvedic, Siddha and Unani medicines comparable to Forms 20, 20-B, 21 and 21-B used for allopathic drugs. CDSCO’s official traditional-drugs page identifies the main regulatory provisions for these medicines under Parts XVI, XVII and XVIII.

The Ministry of Ayush has also expressly clarified that a sale licence is not required for Ayurvedic medicines.

Important State-Level Exception

The central position should not be interpreted as a guarantee that no state-level shop permission exists anywhere in India.

For example, the Government of India’s National Government Services Portal currently lists an online service in Karnataka titled:

“License for Establishment of Drug Store by Ayush Department, Karnataka.”

The service covers establishments selling or storing Ayurvedic, Siddha, Unani and homoeopathic medicines.

Therefore, before opening the shop, obtain written or portal-based confirmation from the concerned:

• State AYUSH Department
• State Drug Controller
• District AYUSH Officer
• Municipal authority
• Shops and Establishments authority

The safer conclusion is:

No separate central ASU drug-sale licence is ordinarily prescribed, but state-specific establishment or shop registration may apply.

Is Any Qualification Required?

Under the central Ayurvedic drug-sale framework, no particular qualification such as the following is ordinarily prescribed merely for owning and operating a shop selling Ayurvedic medicines:

• BAMS
• B.Pharm
• D.Pharm
• Registered pharmacist
• Diploma in Ayurveda

Therefore, a person without a pharmacy or Ayurveda qualification may generally own an Ayurvedic medicine shop, subject to state-specific requirements.

However, selling packaged medicines and practising Ayurveda are different activities.

Selling Medicines vs Medical Practice

A shop owner may:

• Purchase approved medicines
• Display products
• Sell packaged products
• Explain printed directions
• Issue invoices

A person should not diagnose disease, prescribe treatment or present themselves as an Ayurvedic doctor unless they possess a recognized qualification and valid professional registration.

The Ministry of Ayush has clarified that recognized qualifications and practitioner registration are required for the medical practice of Ayurveda.

An unqualified shopkeeper should avoid statements such as:

• “You have arthritis.”
• “Stop your existing medicine.”
• “This will cure your diabetes.”
• “Take this combination instead of seeing a doctor.”
• “This product is safe during pregnancy.”
• “No medical consultation is necessary.”

Schedule E(1) Ayurvedic Medicines

Schedule E(1) contains substances that require special caution because improper use may cause serious harm.

Rule 161 requires an internal Ayurvedic, Siddha or Unani medicine containing a Schedule E(1) substance to carry the warning:

“Caution: To be taken under medical supervision”

in both English and Hindi.

Examples of products requiring careful handling may include certain formulations containing specified toxic or potent ingredients.

The shop should:

• Check the caution statement.
• Avoid recommending the medicine without medical supervision.
• Keep such products separately identified.
• Train employees not to self-prescribe them.
• Preserve the purchase and sale trail.
• Follow any state-specific prescription requirement.

Online Sale of Schedule E(1) Medicines

The Central Consumer Protection Authority advised e-commerce platforms that Ayurvedic, Siddha and Unani medicines containing Schedule E(1) ingredients should be sold only after the customer uploads a valid prescription from a registered practitioner of the relevant system.

Therefore, an online Ayurvedic store should not treat every Ayurvedic product as an unrestricted wellness product.

Its system should be capable of:

• Identifying Schedule E(1) products
• Blocking automatic checkout
• Collecting the prescription
• Verifying the prescription
• Maintaining the transaction record
• Displaying warnings prominently

What Registrations May an Ayurvedic Shop Need?

1. Business Constitution

The business may operate as:

• Proprietorship
• Partnership
• LLP
• Private Limited Company

A small shop owned by one person commonly begins as a proprietorship.

Basic documents may include:

• PAN
• Aadhaar
• Address proof
• Business-name proof
• Rent agreement
• Owner’s NOC
• Bank account

2. Shop and Establishment Registration

Registration under the applicable state Shops and Establishments law may be required.

This generally relates to matters such as:

• Business establishment
• Working hours
• Employee records
• Weekly holidays
• Wages
• Leave
• Display of registration

Requirements vary by state.

3. Municipal Trade Licence

A municipal corporation, committee, council or panchayat may require a local trade licence.

The requirement depends on:

• Shop location
• Local body
• Nature of goods
• Commercial-use status
• Local municipal rules

4. GST Registration

GST registration depends on:

• Aggregate turnover
• Interstate supplies
• E-commerce activity
• Compulsory-registration provisions
• Business structure
• State of operation

A shop may also register voluntarily where commercially useful.

From 22 September 2025, drugs and medicines generally attract 5% GST, except products specifically placed under the nil-rate category. Product classification must still be checked because herbal foods, cosmetics and general wellness products may fall under different HSN entries.

5. FSSAI Registration or Licence

An Ayurvedic drug licence and an FSSAI licence cover different products.

FSSAI registration or licensing is required where the shop sells food-category products such as:

• Nutraceuticals
• Health supplements
• Herbal foods
• Protein powders
• Functional beverages
• Herbal teas sold as food
• Food gummies
• Dietary supplements
• Food for special dietary use

Do not assume that every capsule, syrup or powder is an Ayurvedic medicine.

Check whether the product label carries:

• AYUSH manufacturing-licence details
• FSSAI logo and licence number
• Cosmetic manufacturing details
• Another regulatory classification

6. Medical-Device Registration

Where the shop sells regulated medical devices, the requirements of the Medical Devices Rules should be examined.

A person intending to sell, stock, exhibit, offer for sale or distribute applicable medical devices generally applies in Form MD-41, and the State Licensing Authority grants the premises registration certificate in Form MD-42.

Possible devices may include certain:

• Diagnostic devices
• Monitoring devices
• Therapeutic devices
• In-vitro diagnostic products
• Medical equipment

7. Allopathic Retail Drug Licence

If the shop also sells allopathic medicines, it needs the applicable allopathic retail drug licences.

Common licences include:

• Form 20
• Form 21
• Additional applicable licences for special categories

A registered pharmacist and compliant premises are ordinarily required for a regular retail pharmacy.

Delhi’s official drug-control guidance separately lists Forms 20 and 21 for allopathic retail sale and Forms 20-B and 21-B for wholesale activity.

An Ayurvedic-only shop cannot sell allopathic prescription medicines merely because both are described as medicines.

8. Homoeopathic Retail Licence

Retail sale of homoeopathic medicines ordinarily requires a licence in Form 20-C.

Wholesale homoeopathic activity ordinarily requires Form 20-D.

A shop selling both Ayurvedic and homoeopathic products should therefore check the homoeopathic licence requirement separately.

Product-Wise Licence Guide

Product sold	Common regulatory requirement
Only licensed Ayurvedic, Siddha or Unani medicines	No separate central ASU sale licence ordinarily prescribed; verify state rules
Allopathic medicines	Applicable retail or wholesale drug licence
Homoeopathic medicines	Form 20-C for retail or Form 20-D for wholesale
Nutraceuticals and food supplements	Applicable FSSAI registration or licence
Cosmetics	Normal business compliance; verify product and local requirements
Medical devices	Form MD-42 premises registration may apply
Own manufactured Ayurvedic medicines	Form 25-D manufacturing licence
Ayurvedic products made under a loan licence	Form 25-E arrangement
Imported products	Applicable import, registration and category requirements

Can an Allopathic Medical Store Sell Ayurvedic Medicines?

Generally, an allopathic medical store may stock legally manufactured Ayurvedic medicines without obtaining a separate central Ayurvedic sale licence.

Puducherry’s official Drug Control Department states that Ayurvedic drugs may be stocked in a medical shop where sufficient storage space is available and that no separate licence is required for dealing with them.

The shop should still:

• Separate product categories.
• Maintain adequate storage.
• Avoid billing mistakes.
• Follow Schedule E(1) precautions.
• Comply with state-specific requirements.

Can an Ayurvedic Shop Sell Allopathic Medicines?

No—not merely because it sells Ayurvedic medicines.

The shop must obtain the applicable allopathic retail drug licences and meet requirements relating to:

• Registered pharmacist
• Premises
• Storage
• Refrigerator
• Purchase records
• Sales records
• Prescription medicines
• Scheduled drugs

Can an Ayurvedic Shop Sell Cosmetics?

It may sell legally manufactured cosmetic products, subject to ordinary business, tax and local requirements.

However, the shop should verify that the product is genuinely licensed as a cosmetic and is not an unlicensed medicinal preparation.

Common cosmetic products include:

• Shampoo
• Face wash
• Skin cream
• Hair serum
• Body lotion
• Cosmetic hair oil
• Soap
• Face pack

Do not make unapproved medicinal claims for cosmetics.

Can an Ayurvedic Shop Sell Nutraceuticals?

Yes, but the shop may require the applicable FSSAI registration or licence.

Examples include:

• Protein powder
• Calcium food supplement
• Vitamin gummies
• Nutrition bars
• Dietary fibre
• Herbal tea
• Food-category health drinks

The shop should not describe an FSSAI-licensed food supplement as an Ayurvedic medicine unless it separately meets the drug requirements.

Can an Ayurvedic Shop Sell Loose Herbs?

Selling raw herbs may involve separate considerations depending on whether the herbs are presented as:

• Raw agricultural commodities
• Food ingredients
• Medicinal raw materials
• Formulated medicines
• Powdered retail preparations

The shop should avoid preparing and packing its own medicinal formulas without an applicable manufacturing licence.

Activities such as the following may amount to manufacturing or processing:

• Mixing multiple herbs
• Grinding medicines
• Filling capsules
• Preparing syrups
• Making oils
• Relabelling medicines
• Repacking finished medicine under a new brand

Can the Shop Make Its Own Churna or Oil?

Not without the applicable manufacturing approval.

A person should not:

• Purchase loose herbs
• Mix them into a formula
• Pack them under a brand
• Print medicinal indications
• Sell them as Ayurvedic medicine

unless the product is manufactured through a valid licensed structure.

Possible compliant models include:

• Own Form 25-D manufacturing facility
• Form 25-E loan licence
• Third-party manufacturing by a licensed manufacturer

Verify the Manufacturer Before Purchasing

An Ayurvedic shop should purchase medicines only from reliable and traceable sources.

Before purchasing, check:

• Manufacturer’s legal name
• Manufacturing address
• Manufacturing-licence number
• Batch number
• Manufacturing date
• Expiry or use-before date
• Ingredient declaration
• Net contents
• Seal and packaging
• Schedule E(1) warning
• Supplier invoice

Government authorities continue to inspect and sample AYUSH medicines from both manufacturing firms and retail shops. Where samples are found not of standard quality, authorities may prevent sale and initiate legal action.

Do Not Purchase From Unverified Suppliers

Avoid purchasing medicines from:

• Unidentified WhatsApp sellers
• Suppliers refusing to issue invoices
• Manufacturers without licence details
• Products without batch numbers
• Products with altered labels
• Short-expiry clearance brokers
• Sellers offering unexplained deep discounts
• Unlicensed home manufacturers

A low purchase price does not compensate for:

• Counterfeit risk
• Substandard quality
• Regulatory seizure
• Customer injury
• Loss of reputation

Documents to Collect From Suppliers

Maintain copies of:

• Supplier GST details
• Supplier address
• Manufacturer’s licence
• Product list
• Invoice
• Batch information
• Expiry policy
• Return policy
• Product authorization where applicable
• Quality certificate where necessary

Recommended Shop Documents

Even where a special Ayurvedic drug-sale licence is not prescribed, the shop should maintain:

• Purchase register
• Sales register
• Batch-wise stock register
• Supplier register
• Expiry register
• Damage register
• Return register
• Schedule E(1) product list
• Complaint register
• Recall register
• GST invoices
• Customer prescription records where applicable

Storage Requirements

The shop should provide storage suitable for the product label.

Basic controls include:

• Clean shelves
• Dry premises
• Pest control
• Protection from sunlight
• Adequate ventilation
• Temperature monitoring where needed
• Separate expired stock
• Separate damaged stock
• Separate returned stock
• Secure storage for sensitive formulations

Do not store medicines:

• Directly on the floor
• Near drains
• In damp areas
• Beside pesticides
• In direct sunlight
• In an overheated vehicle
• With food items likely to contaminate them

FEFO Stock Management

FEFO means:

First Expiry, First Out

The earliest-expiring acceptable batch should ordinarily be sold first.

Example:

Batch	Expiry	Quantity
A101	December 2026	20
A102	June 2027	30

Batch A101 should generally be issued first, provided it has sufficient remaining shelf life.

Expired Medicines

Expired medicines must not be sold.

They should be:

• Removed from saleable shelves
• Clearly marked
• Stored separately
• Recorded batch-wise
• Returned to the supplier where permitted
• Disposed of through an appropriate process

Do not cover or alter an expiry date.

Returned Medicines

Customer returns should not be immediately mixed with saleable inventory.

Check:

• Product seal
• Batch
• Expiry
• Storage history
• Damage
• Leakage
• Original invoice
• Reason for return

Products with uncertain storage conditions should not be resold merely because the package appears unopened.

Shop Signboard

The shop may use descriptions such as:

• Ayurvedic Medicine Shop
• Ayurvedic Product Store
• Ayurvedic Wellness Store
• Ayurvedic and Herbal Products
• Authorized Ayurvedic Retail Outlet

Avoid signboards that falsely imply:

• Government approval
• Hospital status
• Doctor availability
• Pharmacy registration
• Guaranteed cures
• Official Ministry affiliation

Use of the Word “Pharmacy”

The word “pharmacy” may create the impression of a licensed retail drug establishment staffed by a registered pharmacist.

Before using names such as:

• Ayurvedic Pharmacy
• Medical Pharmacy
• Herbal Pharmacy

confirm whether the local authority permits that business description and whether it could mislead consumers.

Online Ayurvedic Medicine Shop

An online Ayurvedic store should comply with:

• Business registration
• GST requirements
• Consumer-protection rules
• E-commerce disclosures
• Product-category requirements
• Prescription safeguards
• Schedule E(1) restrictions
• Advertising restrictions
• Return and refund rules
• Data protection

The website should display:

• Seller’s legal name
• Address
• Contact information
• GSTIN where applicable
• Product manufacturer
• Ingredient information
• Batch and expiry information where appropriate
• Cautions
• Return policy
• Customer-care details

Advertising Restrictions

An Ayurvedic shop should not advertise medicines using misleading claims.

Avoid claims such as:

• Guaranteed cure
• No side effects
• Permanent treatment
• Works in three days
• Government approved
• Clinically proven without evidence
• Replaces surgery
• Stops all medicines
• Safe for everyone
• Cure for serious diseases

The shop is responsible for the claims it independently publishes, even where the manufacturer supplied promotional content.

Step-by-Step Process to Open an Ayurvedic Medicine Shop

Step 1: Decide the Product Range

Determine whether the shop will sell:

• Only Ayurvedic medicines
• Ayurvedic and Unani medicines
• Nutraceuticals
• Cosmetics
• Homoeopathic medicines
• Medical devices
• Allopathic medicines

Every additional category may introduce a separate regulatory requirement.

Step 2: Check State-Specific Rules

Contact the State AYUSH Department or State Licensing Authority and ask:

• Is an AYUSH drug-store licence required?
• Is registration required for the premises?
• Are Schedule E(1) sales separately regulated?
• Are local qualifications prescribed?
• Is an online application available?

Obtain a written response or portal reference.

Step 3: Register the Business

Choose:

• Proprietorship
• Partnership
• LLP
• Private Limited Company

Step 4: Finalize the Premises

Check:

• Commercial use
• Rent agreement
• Owner’s NOC
• Storage space
• Accessibility
• Municipal permissions

Step 5: Obtain Local Registrations

Arrange applicable:

• Shop and Establishment registration
• Trade licence
• GST registration
• FSSAI registration
• Medical-device registration
• Category-specific drug licences

Step 6: Select Licensed Suppliers

Collect supplier and manufacturer documents before placing orders.

Step 7: Install Inventory Software

The software should record:

• Product
• Batch
• Expiry
• Purchase
• Sale
• GST
• Stock balance
• Schedule E(1) status

Step 8: Prepare Storage

Arrange:

• Racks
• Pest control
• Expiry segregation
• Damage area
• Temperature control
• Security

Step 9: Train Employees

Employees should understand:

• Product categories
• Schedule E(1) caution
• Expiry
• Storage
• Billing
• Complaint reporting
• Limits on medical advice

Step 10: Begin Sales

Sell only:

• Properly labelled products
• Licensed products
• Products within shelf life
• Products supported by purchase invoices

Common Mistakes

Avoid:

• Assuming no business registration is required
• Ignoring state-specific AYUSH shop rules
• Selling allopathic medicines without a drug licence
• Selling homoeopathic medicines without Form 20-C
• Selling food supplements without FSSAI compliance
• Selling medical devices without checking MD-42 registration
• Offering medical consultation without qualification
• Recommending Schedule E(1) medicines casually
• Buying products without invoices
• Stocking unlicensed products
• Selling expired medicines
• Repacking loose herbs as medicines
• Mixing returned goods with saleable stock
• Making guaranteed-cure claims
• Calling every herbal product Ayurvedic medicine

Frequently Asked Questions

1. Is a drug licence required for an Ayurvedic medicine shop?

Under the central Drugs Rules, a separate sale licence is ordinarily not required merely for selling licensed Ayurvedic, Siddha or Unani medicines. State-specific establishment requirements must still be checked.

2. Is a pharmacist required?

A registered pharmacist is not ordinarily required merely for selling Ayurvedic medicines under the central rules. A pharmacist is required for applicable allopathic retail-pharmacy operations.

3. Is BAMS required to open the shop?

No specific BAMS qualification is ordinarily required merely to own an Ayurvedic medicine shop. BAMS qualification and registration are relevant where medical practice or consultation is offered.

4. Can anyone prescribe Ayurvedic medicine?

No. Diagnosis, prescription and medical treatment should be provided only by a duly qualified and registered practitioner.

5. Is a licence required in Karnataka?

Karnataka currently lists a state online service for licensing the establishment of an AYUSH drug store. Applicants in Karnataka should check the current Seva Sindhu and AYUSH Department requirements before opening.

6. Can Ayurvedic medicines be sold in an allopathic medical store?

Generally yes, subject to adequate storage and state-specific rules. No separate central Ayurvedic sale licence is ordinarily required.

7. Can an Ayurvedic shop sell allopathic medicines?

Only after obtaining the applicable allopathic retail drug licences and meeting pharmacist and premises requirements.

8. Is FSSAI required?

FSSAI registration or licensing is required when the shop sells food supplements, nutraceuticals or other food-category products.

9. Can Schedule E(1) medicines be sold freely?

They require prominent medical-supervision warnings. E-commerce platforms have been advised to sell them only after a valid prescription is uploaded.

10. Is GST registration compulsory?

It depends on turnover, interstate transactions, e-commerce and compulsory-registration provisions. Product-wise GST classification must also be checked.

11. Can I make my own Ayurvedic medicines in the shop?

No. Manufacturing, mixing, processing, repacking or branding medicines requires an appropriate licensed manufacturing arrangement.

12. Can I sell Ayurvedic medicines online?

Yes, subject to business, tax, consumer, product-category and prescription requirements, especially for Schedule E(1) products.

Final Conclusion

The correct legal position is not simply:

“No licence is required.”

The more accurate conclusion is:

A separate central drug-sale licence is ordinarily not prescribed for selling properly licensed Ayurvedic, Siddha or Unani medicines. However, state-specific AYUSH shop permissions and normal business registrations may apply. Separate licences are required for allopathic medicines, homoeopathic medicines, food supplements and medical devices.

The safest procedure is:

Confirm the state rule
→ Register the business
→ Obtain local permissions
→ Check every product category
→ Purchase only licensed products
→ Maintain batch and expiry records
→ Follow Schedule E(1) restrictions
→ Avoid unqualified medical practice

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