Opening a medical store is a good business idea if one plans to venture into business in India as the overall profit in this field is considerably high compared to others. Another advantage of the medical shop business is that economic crises do not easily affect this business field. Nevertheless, it is important to note that proper analysis is a must before initiating this business venture as it may not do as well as expected in the absence of proper planning.
So, if anybody has minimal capital for investing besides space, opening a medical store business is ideal for new businessmen in India. One can either go for a pharmacy franchise like Netmeds, Apollo, etc. or opt for a stand-alone pharmacy or a medical store. But it should be kept in mind that the former option is a bit more expensive than the latter one.
But there are some things to know before starting this business. They are:-
A professional degree for selling of medicines
The first and foremost point is the necessity of a B Pharm / M Pharm degree. If the person starting this business does not have this degree, he might have to search for a pharmacist willing to work in the store for a salary.
This is necessary because one will need proof of qualification of at least one pharmacist (either employee or owner) to obtain a Pharmacy License for opening a medical store.
Most importantly, during the selling of drugs, the presence of a professional person in the shop during working hours is mandatory. So, one needs to ensure to have additional Rs 5,000 to Rs 30,000 per month for a pharmacist in their medical shop.
The professional can be any of the below:-
✔ Approved by the Pharmacy department, a registered pharmacist, or
✔ Any graduate with at least one year of experience in drugs (medicine) dealing, or
✔ Any individual, approved by the Department of Drug Control, who has passed in S.S.L.C with at least 4 years of experience in drugs (medicine) dealing.
Agreement for the medical shop business
One needs ownership proof and/or rental agreement of premises with a minimum area of 10 square meters for starting a medical store business or outlet dealing in wholesale. In case the person wants to combine retail and wholesale, then a minimum of 15 square meters of space is a prerequisite.
Investment is essential for the medical shop business.
The minimum basic need for starting a pharmacy business is owning or renting a shop if one wants to operate locally. They must keep aside a fixed amount of money for renting or buying the place plus the furniture & inventory that will be bought for such individuals. Depending on the shop, locality, and city area, the cost can range from Rs 5,000 to Rs 12 lakhs. One can take a medical store loan from banks for starting a pharmacy.
A refrigerator is important
The medical store must have a refrigerator as certain types of drugs (medicines) like Sera, Vaccines, Insulin Injections, etc. need to be stored at lower temperatures.
A computer for medical shop business
For maintaining business accounts such as inventory, billing, stock updating, bookkeeping, bill generating, etc., the computer has become the need of the hour for a pharmacy. Further, with GST implementation, it is much easier to calculate with the help of different software rather than calculating manually.
Documents required for medical store business
The list of documents required for pharmacy varies in every state. But the below mentioned is a list of the important documents required for opening a pharmacy in India as per the various rules set up by the Department of Drug Control. They are:-
- A full-time registered pharmacist or competent individual’s affidavit.
- Blueprint of pharmacy.
- Basis of possession of the shop.
- Covering letter with the applicant’s signature and name along with their designation.
- Constitution proof (Incorporation Certificate / MOA / AOA / Partnership Deed).
- Declaration form in the prescribed format.
- Fee depositing challan for getting drug licenses.
- If the competent individual or registered pharmacist is hired, then their appointment letter is necessary.
- ID proof and photocopy of all partners or owners of the pharmacy.
- License application form for pharmacy in the prescribed format.
- Ownership proof of the pharmacy.
- Site Plan of the shop.
- Under the Drugs and Cosmetics Act, 1940, affidavit of all the non-conviction of proprietor or directors or partners.
The above-listed documents are required for opening a pharmacy. After the procurement of all the documents, one needs to pay a visit to the Drug Inspection Office and file an application for granting a pharmacy store and a drug (medical) store. Once all the documents are approved, one can open their pharmacy.
Advantages of applying for medical store loan online
There is no need to get hard copies of various documents; one can submit the required documents online.
For applying online, there is minimum documentation required. Various documents, like internal data, audit reports, and balance sheets, are not required.
Collateral Free Medical Store Loan
There is no collateral required for medical store loans for thriving or new businesses.
Fast Disbursal of Loans:
Once the required documents are submitted, and eligibility criteria are met, the funds are directly submitted to one’s bank account.
No Hidden Charges or Fees:
All interest and handling fees mentioned before. There is no pre-payment fee, and one can pay EMI’s back.
Business Loan for a Medical Store or Pharmacy
All of the above mentioned needs a certain amount of money to invest in the medical store. A medical store loan aids a person in getting profit. The most convenient way to get a loan is to find a lender that will answer one’s monetary needs.
Documents required for a medical store loan
The documents required for getting a medical store loan are:-
- Aadhaar Card
- Age Proof Documents
- Bank Details
- Business Partnership Details
- Current Sales
- Non-Defaulter Certificates
- PAN Card
- Photo ID Proof like Passport, Voter Card, Driving Licence, etc.
- Project report
- Shop Registration Details
Eligibility to apply for a medical store loan
Any person above 21 years of age who has a regular income can apply for the loan.
How to apply for a medical store loan?
Visit any lender’s site or bank website and go to the ‘apply for loan’ section after reading the business loan’s eligibility. Enter personal details and upload documents. Once completed, select the submit button. Keep checking the registered number and email address for loan approval.
Points to note:-
- A retail drug license is a certificate which is issued by the Drug Control Office for selling, purchasing, stocking, and exhibiting the drugs (medicine) on a retail basis under the guidance of a registered pharmacist.
- A wholesale drug license is issued by the Drug Control Office on selling, purchasing, stocking, and exhibiting the drugs (medicine) on a whole basis under the supervision of a pharmacist.
- Both certificates are required if one wants to sell wholesale and retail at a medical store.
- A pharmacist is a qualified individual who has at least a degree, diploma, or doctor of pharmacy qualification.
- Except for wholesale or retail drug license, no other NOC is required for opening a pharmacy.
- Drugstore, Chemists and Druggists, Pharmacy, Dispensing Chemist, Pharmacist, and Pharmaceutical Chemist, can be used.
- Yes, one needs to get a license from the AYUSH ministry for selling Ayurvedic, Unani, and Homoeopathy medicines.
- FSSAI license or Food Safety and Standards Authority of India’s registration is required for selling dietary supplements.
- Yes, GST is necessary for pharmacy.
Disclaimer: The statements, opinions, and data contained in these publications are solely those of the individual authors and contributors and not of Credihealth and the editor(s).
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