Are you a pharmaceutical trader or an entrepreneur looking to establish your own pharmaceutical company in India? The Indian pharmaceutical industry has ample room for investment, ranging from PCD franchise businesses to third-party manufacturing, and it is a rapidly growing sector with tremendous potential for development. However, it’s critical to perceive the procedures involved, regulations, and costs beforehand.
We wish to guide you through the process of setting up a pharmaceutical company with our insights on getting licenses, investments needed, alongside infrastructure building and our secret pointers for success.
Who Should Read This?
This blog will be useful for;
- Pharma franchisers
- Trading companies dealing with pharmaceuticals
- Distributors of medical supplies
- Those interested in running a PCD pharma business
- Business people venturing into the health industry
Step-by-Step Process To Open A Pharmaceutical Company In India
1. Choose The Right Business Model
Select which kind of pharmaceutical company to start while registering your business:
- PCD Pharma Franchise Company – Grants marketing and distribution franchises as partners.
- Pharmaceutical Manufacturing Company – Requires construction of facilities dedicated to drug manufacture.
- Third Party Manufacturing Company – Engaged in production for other companies who sell them as their products.
- Wholesale/Trading Company – Centres on the procurement and resale of pharmaceutical products.
Tip: For beginners, starting with a PCD pharma franchise or third party manufacturing is often easier and requires lower investment.
2. Register Your Company
You will need to register your business as a legal entity:
- Private Limited Company
- LLP (Limited Liability Partnership)
- Proprietorship or Partnership Firm
Register with the Ministry of Corporate Affairs (MCA) and obtain a Company Incorporation Certificate.
3. Obtain a Drug License
A drug license is required under the Drugs and Cosmetics Act of 1940, which licenses you for:
- Retail Drug License (RDL)
- Wholesale Drug License (WDL)
The State Drug Control Department issues this license, giving permission for selling, stocking, exhibiting, or distributing medicines.
Documents Required:
- Qualification and experience certificates for pharmacist/proprietor
- Proof of renting or owning the business premises
- Affidavit along with specified forms
- PAN card and Aadhar card of all directors
4. Apply for GST Registration
Your company needs to be first registered before applying through the Government of India portal for gst number. This is now mandatory for issuing bills, filing taxes and doing business legally.
5. Set Up Infrastructure
Infrastructures depend on a selected model, e.g., for a Trading/ Franchise company: Office space (minimum 10 sq meters), Proper temperature-controlled storage facilities, a Computer with basic inventory and billing software set up
For Manufacturing:
- Land and building
- Machines and equipment
- Quality control lab
- Manpower, including technical staff
- Factory license, pollution control, fire safety approvals
6. Diversify Your Product Portfolio
Select the therapeutic segments you want to include:
- Medicine in general
- Dermatology (derma)
- Cardiac and diabetic care
- Nutraceuticals, or
- Gynaecology, paediatrics, and ayurvedic lines
Develop a product list that includes brand names, compositions, packaging style, and pricing. You may tie up with third party manufacturers if you don’t want to produce in-house.
7. Select Marketing & Distribution System
Marketing is the backbone of your pharma company. You can:
- Employ PCD franchise partners over multiple regions
- Set up a sales team for face-to-face meetings with doctors
- Use catalogues and digital marketing alongside WhatsApp promos
Starting A Pharmaceutical Company – Cost Breakdown
The starting cost for opening a pharmaceutical company greatly relies on the business model you intend to use. If a PCD pharma franchise is your first step, it has relatively low investment requirements from ₹50,000 to ₹2 lakh. As for those seeking to establish a wholesale trading firm, costs are estimated between ₹1 lakh and to 5 lakh based on stock levels and infrastructure.
Starting a third party manufacturing unit can reach a steep cost of anywhere from ₹10 lakh to ₹50 lakh, when accounting for equipment, licensing, and operational expenses. For self-starters looking to set up their own pharmacy business,
Need Help Starting Your Pharma Business?
At Philanto Wellness, we assist pharma entrepreneurs with company setup, product selection, and third-party manufacturing solutions.
📞 Contact us today to kickstart your journey into the pharmaceutical world!
+91 9996109333, +91 9996103333
