Three documents. A Drug Licence issued by your State Drugs Control Department, a GST registration, and a PAN in the name of the firm. A PCD pharma company willing to release stock without seeing all three is a company that will cost you more than it saves you.
The list is short. Almost all the work sits in the first item. Here is what each one involves, what the company you are signing with should ask you for, and what you should ask them for in return.
The three documents, in order of difficulty
| Document | Issued by | Realistic time |
|---|---|---|
| Drug Licence — Form 20B / 21B | State Drugs Control Department | Weeks. A premises inspection is part of it. |
| GST registration | GST portal, Government of India | Days |
| PAN in the firm’s name | Income Tax Department | Days |
Start the Drug Licence first. The other two are administrative. The licence involves an inspector visiting a premises you may not have taken yet.
The Drug Licence
This is the document that makes the supply legal. Section 18 of the Drugs and Cosmetics Act, 1940 prohibits the sale, stock or distribution of drugs without one, and the exposure sits on both sides of the invoice. That is why a serious supplier will not ship to an unlicensed buyer whatever the urgency on the call.
Which form applies to you
Wholesale and retail are separate licences. Both are applied for on Form 19, filed with your State Licensing Authority, usually through the state’s own portal.
- Form 20B — wholesale licence for general allopathic drugs. This is the one most PCD partners need.
- Form 21B — wholesale licence for drugs in Schedule C and C(1): biologicals, vaccines, sera and the like.
- Form 20 and Form 21 — the retail equivalents, if you also intend to sell directly to patients.
Schedule X items sit under a separate licence again, with tighter record-keeping. If anything on your proposed product list falls there, raise it before you file rather than after.
The competent person
A wholesale licence does not require a registered pharmacist. It requires a competent person, which means one of:
- a registered pharmacist; or
- a graduate with at least one year of experience dealing in drugs; or
- a non-graduate with at least four years of such experience, approved by the department.
Retail is stricter: a registered pharmacist has to be present through working hours. The two requirements get conflated constantly, and the difference usually surfaces during the inspection rather than before it.
The premises
Ten square metres of carpet area for a wholesale licence. Fifteen if you hold retail and wholesale at the same address. Add ventilation, lighting, proper racking, and a refrigerator if anything on your list needs cold storage.
Take the premises before you file. The inspector is inspecting a room, not a plan.
What you attach, and why applications come back
The exact bundle varies by state, but expect some combination of: the applicant’s ID and affidavit; the competent person’s affidavit, experience certificate and qualification documents; proof of premises — ownership papers or a registered rent deed, with an electricity bill and a site plan; the constitution document for the firm; the refrigerator purchase bill where applicable; and the fee receipt. Fees differ state to state.
Most first-attempt rejections are not substantive. They are a missing experience certificate, premises that fall short on area, or a fee receipt nobody attached.
GST registration
Non-negotiable, and quick. Pharmaceutical supply cannot be invoiced legitimately without a GSTIN, and no company will raise an invoice to a firm that does not have one. Register in the state where the premises sits — the same state as the Drug Licence.
Keep the trade name on the GST certificate identical to the name on the Drug Licence. A mismatch between those two is one of the most common reasons a first consignment sits waiting.
PAN and the firm’s bank account
A PAN in the firm’s name, not your personal PAN, unless you are trading as a sole proprietor under your own name. The current account follows from it. Paying from a personal account against a firm’s invoice creates a reconciliation problem for both sides at the first audit, and it is easier to avoid than to explain.
What the company should ask you for
Before your first consignment, a legitimate PCD pharma company will want copies of:
- the Drug Licence, with the number and validity visible;
- the GST certificate;
- the firm’s PAN;
- a cancelled cheque or bank details in the firm’s name;
- the address the goods will actually be delivered to and stored at.
If nobody asks, that is information about them rather than convenience for you. It means somebody else on their books was not asked either.
What you should ask the company for
The same test, run in reverse. Ask for:
- their Drug Licence number and the state that issued it;
- their GST number, which you can check on the GST portal in a minute;
- a registered address you could visit;
- any quality certification they claim, as a document rather than a logo on a brochure;
- a sample invoice, so you see what the paperwork looks like before it matters.
We fail one of these tests on purpose: if you do not hold a Drug Licence yet, we cannot supply you, and we will say so on the first call rather than keep you warm while you apply. Get the licence, then come back. Running the same checks on us is the fair response.
A realistic timeline
PAN and GST are a matter of days. The Drug Licence depends on your state’s queue and on how complete the first submission was. Work backwards from the inspection: premises taken, competent person appointed and documented, racking and refrigeration in place, then file.
Do not commit to a territory, a monthly target or an opening order until the licence is in hand. Companies will book the territory on a promise. The stock still cannot move.
Common questions
Can I start a PCD pharma franchise without a Drug Licence?
No. Section 18 of the Drugs and Cosmetics Act, 1940 prohibits the sale, stock or distribution of drugs without one, and the exposure runs both ways. Any company willing to supply you regardless is telling you how it treats compliance generally.
Do I need a registered pharmacist for a wholesale licence?
Not necessarily. A wholesale licence needs a competent person: a registered pharmacist, a graduate with one year of experience dealing in drugs, or a non-graduate with four years of such experience approved by the department. Retail is the one that requires a registered pharmacist present through working hours.
How much space does the premises need?
Ten square metres of carpet area for retail or wholesale. Fifteen if you run both from the same premises. Storage has to suit the products, which means a refrigerator if your list includes anything requiring cold storage.
Can I hold retail and wholesale together?
Yes, with separate applications for each licence and the larger minimum area. Storage has to satisfy both standards.
Does a wholesale drug licence expire?
Validity and renewal rules are set by your state authority and have changed over time. Confirm the current position with your State Drugs Control Department rather than relying on what a consultant told someone in another state.
Licence in hand? Send us the ranges.
We supply 77 formulations across 23 therapeutic ranges from Sonipat, Haryana — ISO 9001 certified, GST registered, in wholesale supply since 2000. Send your Drug Licence and GST details with the ranges you want and we will come back with rates and the current stock position.
This article describes licensing requirements in general terms for readers evaluating a PCD arrangement. It is not legal advice. Forms, fees, timelines and renewal rules are administered state by state and should be confirmed with your State Drugs Control Department directly.