Planning to open a medical store in Ranchi? Before you can buy or sell a single strip of medicine, you need a retail drug licence. This guide explains the basics in plain language.
Please note: this is general information, not legal advice. Rules, forms and fees change from time to time. Always confirm the current process with the Drugs Control Directorate, Jharkhand, before you apply.
Why a drug licence is needed
In India, the sale of medicines is controlled by the Drugs and Cosmetics Act, 1940 and the Drugs and Cosmetics Rules, 1945. No one may stock or sell medicines without a valid licence. For a medical store in Ranchi, the licence is issued by the state licensing authority, the Drugs Control Directorate under the Jharkhand Department of Health, Medical Education and Family Welfare.
Which licence does a medical store need?
- Form 20 – retail licence for medicines other than those in Schedules C, C1 and X.
- Form 21 – retail licence for medicines in Schedules C and C1 (for example, certain biological products).
- Form 20F – an additional licence needed only if you want to stock Schedule X medicines.
Most medical stores apply for Form 20 and Form 21 together. Wholesalers and distributors hold different licences, Form 20B and 21B. For example, M.S PHARMACEUTICALS holds Drug Licence 20B: 166566 and 21B: 166567.
Basic requirements
1. The shop
The commonly stated minimum area is about 10 square metres for a retail medical store, and about 15 square metres if retail and wholesale run from the same premises. The shop should be clean and dry, and suitable for storing medicines. A refrigerator is needed for medicines that must be kept cold, and many stores also keep air conditioning to control temperature.
2. A registered pharmacist
A retail medical store must have a registered pharmacist (registered with the State Pharmacy Council) present during business hours. The owner can be the pharmacist, or the store can employ one full time.
3. A legal business set-up
The store can be run by a proprietor, partnership firm, LLP or company. Keep your business documents ready, and register under GST if your business needs to.
Documents usually asked for
The exact list is set by the licensing authority, but applicants are usually asked for:
- Application form with the prescribed fee (challan or online payment receipt)
- ID and address proof of the proprietor, partners or directors, and passport-size photos
- Partnership deed, LLP agreement or company documents, if applicable
- Proof of the premises: ownership document, or a rent agreement with the owner's NOC
- Site plan or key plan of the shop
- Registration certificate of the pharmacist, with an appointment letter or affidavit
- Affidavit (declaration) that the applicant has not been convicted under the drug laws
- Details of storage equipment such as the refrigerator
Step-by-step process
Get the shop ready
Arrange the premises, storage, refrigerator and a registered pharmacist before you apply.
Apply to the licensing authority
Jharkhand handles drug licence applications through its own online licensing portal. Check the current link and process with the Drugs Control Directorate.
Inspection
A Drug Inspector visits the shop to check the area, storage and pharmacist. Keep the pharmacist and original documents available.
Licence granted
If everything is in order, the licence is issued. Display it in the shop where customers can see it.
After you get the licence
- Keep a registered pharmacist on duty during business hours.
- Buy medicines only from licensed wholesalers and distributors, and keep every purchase invoice.
- Keep the sale and purchase records the rules require, especially for Schedule H, H1 and X medicines.
- Keep your licence valid. Pay any fees the rules require on time and report changes such as a new pharmacist or new premises.
Opening a wholesale account with us
Once your licence is issued, you can open a wholesale account with M.S PHARMACEUTICALS. Share a copy of your drug licence and GST certificate (if registered), and send your first medicine list. See how medical stores can work with us, or read our frequently asked questions.