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Drug License Form 20B & 21B
Drug Licence

Wed, Aug 20 2025

Shubham Bansal

Drug License in India: Retail (20 & 21) vs Wholesale (20B & 21B)

Introduction to Drug Licence Form 20B & 21B

If you are planning to start a pharmacy or work as a distributor in the pharmaceutical sector, getting the right drug license is not optional—it is a legal requirement. Under the Drugs and Cosmetics Act, 1940, businesses must obtain specific licenses to ensure that medicines are sold, stored, and distributed safely.

In India, the key drug licenses are:

  • Form 20 & 21 → For retail businesses such as pharmacies and medical stores.

  • Form 20B & 21B → For wholesale businesses that supply medicines in bulk to hospitals, clinics, and retailers.

This article explains the difference between retail and wholesale drug licenses, their eligibility criteria, required documents, and the step-by-step application process. Whether you are a pharmacist, retailer, or distributor, this guide will help you understand which license you need.

What is Form 20 & Form 21 (Retail Drug License)?

A retail drug license is required when medicines are sold directly to consumers. This applies to:

  • Pharmacies and chemist shops
  • Medical stores
  • Online pharmacies delivering to patients

Key Features

Form 20 → Retail sale of general allopathic drugs (non-Schedule C, C1, or X).

Form 21 → Retail sale of Schedule C & C1 drugs (e.g., vaccines, insulin).

  • Retail Use Only – Meant for businesses selling drugs directly to the public.
  • Mandatory for Pharmacies – Operating without this license is illegal.
  • Issued by State Authority – Approved by the State Drugs Control Department.

What is Form 20B & Form 21B (Wholesale Drug License)?

A wholesale drug license is mandatory for businesses involved in large-scale distribution of medicines. This applies to:

  • Wholesale suppliers
  • Distributors serving pharmacies, hospitals, or clinics
  • Stockists supplying medicines in bulk

Key Features

✔ Form 20B → Wholesale sale of general allopathic drugs (non-Schedule C, C1, or X).

✔ Form 21B → Wholesale sale of Schedule C & C1 drugs (special storage needed).

  • Wholesale Distribution – Allows bulk supply to retailers and healthcare institutions.
  • Stricter Storage Rules – Proper warehouses and cold storage may be required.
  • State/Central Approval – In some cases, central approval is needed for restricted drugs (e.g., Schedule X).

Eligibility Criteria

For Retail License (Form 20 & 21)

  • A registered pharmacist must be present.

  • Minimum shop space (usually 10–15 sq. meters, depending on state).

  • Proper storage conditions for medicines.

For Wholesale License (Form 20B & 21B)

  • Competent staff with a pharmacy degree or relevant qualification.

  • Adequate warehouse/storage facility with temperature control.

  • Proper documentation of suppliers and buyers.

Documents Required

Common for Both Licences

  • Proof of business premises (Rent agreement/Property papers)

  • Identity & Address proof (PAN, Aadhaar, etc.)

  • Qualification certificates (Pharmacy degree/diploma)

  • Affidavit of non-conviction under the Drugs & Cosmetics Act

Additional for Wholesale (Form 20B & 21B)

  • List of medicines to be supplied

  • Warehouse compliance certificate

  • Details of storage facilities (e.g., cold storage units)

Key Differences Between Retail and Wholesale Drug Licenses

Aspect Retail License (Form 20 & 21) Wholesale License (Form 20B & 21B)
Purpose Sale to consumers Bulk supply to retailers/hospitals
Applicability Pharmacies & medical stores Distributors, stockists, suppliers
Approval Authority State Drug Control Dept. State/Central Drugs Authority
Storage Standards Basic pharmacy storage Warehouse/cold storage compliance
Inspection Standard inspection before approval More detailed and strict checks

Step-by-Step Application Process

  1. Online Registration – Visit the respective state drug control authority’s portal and create a new account.

  2. Fill the Application Form – Select the appropriate license (Form 20/21 for retail, Form 20B/21B for wholesale).

  3. Upload Documents – Submit scanned copies of all required documents.

  4. Fee Payment – Pay the license fee (amount varies by state).

  5. Inspection & Approval – A drug inspector visits the premises; if compliant, the license is issued within 30–45 days.

Common Reasons for Drug Licence Rejection

❌ Missing or incomplete documents

❌ Lack of qualified pharmacist or technical staff

❌ Poor storage arrangements (no cold storage where required)

❌ Premises failing inspection standards

👉 To avoid delays, make sure all requirements are met before applying.

Conclusion

Getting the right drug license—whether retail (20 & 21) or wholesale (20B & 21B)—is essential to legally run a pharmacy or distribution business in India. The process involves proper documentation, facility inspections, and compliance with the Drugs and Cosmetics Act, 1940.

If you need assistance, a PSR Compliance consultant can guide you through the application, help prepare documents, and ensure faster approvals. With expert support, you can stay compliant and focus on growing your pharmaceutical business.

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