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Illustration of an Indian pharmacist in a white coat reviewing a clipboard in a pharmacy with shelves of medicine bottles, accompanied by the title Pharmacy License in India – Registration, Renewal, and Compliance Guide.
Pharmacy License

Thu, Jul 10 2025

Shubham Bansal

Pharmacy License: Registration, Renewal & Legal Compliance

Pharmacy License Overview

A pharmacy license is the fundamental legal authorization required to operate any drug dispensing establishment in India. The Drugs and Cosmetics Act of 1940 and state rules govern this license. It keeps the public safe by enforcing strict standards for storing drugs, distributing them, and supervising these practices. The Central Drugs Standard Control Organisation (CDSCO) oversees national standards while State Drug Control Authorities implement local compliance.

Running a pharmacy without a valid license is a crime. It may result in a prison sentence of up to 3 years and fines exceeding ₹10 lakh. Besides being legal, the license shows consumers they can trust the pharmacy. It ensures that trained professionals provide good quality medicines in proper storage conditions.

Detailed Pharmacy License Registration Process

Step 1: Eligibility Verification and Infrastructure Setup

Before applying, ensure compliance with infrastructure requirements:

  • Retail pharmacies must have at least 10 square meters of space. They need special areas for processing prescriptions. They also require temperature-controlled storage for vaccines, which should be between 2-8°C. Additionally, they must have good ventilation systems and be rodent-proof.

  • Wholesale establishments need larger warehouses. The minimum size is 15 square meters. They must have separate locked cabinets for Schedule X drugs. They also need climate monitoring systems and fire safety equipment.

  • Hospital Pharmacies need direct connectivity to inpatient wards and emergency departments, with separate access control for narcotics storage.

Qualified personnel requirements include:
  • Full-time Registered Pharmacist (B.Pharm/D.Pharm with state council registration) physically present during operating hours

  • Supporting staff trained in inventory management and prescription handling

Step 2: Document Compilation and Verification

  • Property Documents: Registered lease agreement or ownership papers with municipal tax receipts

  • Pharmacist Credentials: Council registration certificate, employment agreement with notarized affidavit

  • Technical Documents:

    • Scale drawings showing storage zones, dispensing counters, and entry/exit points
    • Refrigeration equipment specifications and maintenance contracts
    • Waste disposal agreements for expired medicines
  • Application Forms:

    • Form 19 (Retail) / Form 20-B (Wholesale) with ₹100 judicial stamp
    • Affidavit of compliance with Drugs & Cosmetics Rules

Step 3: Application Submission and Inspection

Submit complete applications through state drug control portals (ONDLS) • Pay application fees ranging from ₹3,000 to ₹15,000 via portal payment gateways • Receive inspection date within 15 working days • Drug inspectors verify: • Temperature logs and calibration certificates of refrigeration units • Mock prescription handling process • Security systems for narcotics storage • Staff qualification documents

Step 4: License Issuance and Display

Upon satisfactory inspection:

  • License issued within 60-90 days as per state timelines

  • Validity Period:

    • 1 year for new establishments
    • Up to 5 years for renewal applicants with compliance history
  • Mandatory Display Requirements:

    • Original license in business premises
    • Pharmacist registration certificate
    • Emergency contact numbers

Pharmacy License Renewal

Renewing a pharmacy license is a mandatory process that must be initiated at least 90 days before its expiry. You can submit renewal applications through state drug control portals. Examples include Kerala PRISM and the Delhi Drug Control portal.

Pre-Renewal Preparation

Before applying for renewal, you should conduct a full compliance audit. Pharmacies must check their prescription registers for the last three years.

They should also verify purchase records against supplier licenses. Ensuring that someone disposes of expired drugs properly with valid certificates is important.

Additionally, pharmacies need to upgrade their infrastructure according to the latest rules. This includes installing or maintaining refrigeration systems, CCTV cameras, and fire safety equipment.

Documentation Required for Renewal of Pharmacy License

Applicants must submit the existing pharmacy license along with the renewal application form. You need to provide some other documents.

These include:

  • An updated pharmacist registration certificate
  • A sworn statement confirming no past violations
  • The latest property tax receipt or a valid rental agreement

The renewal fee typically ranges between ₹3,000 to ₹10,000, depending on the state and the pharmacy’s turnover.

Focus Areas During Renewal Inspection

Inspectors primarily focus on verifying record integrity, ensuring sales entries match stock inventory. They also check sourcing documents to ensure drugs come from licensed suppliers.

Storage compliance is crucial too. This includes keeping temperature logs for sensitive drugs. It also means having separate storage areas for internal and external medications. Finally, someone must keep accurate records for Schedule H1 drugs.

Penalties for Late Renewal

If the license renewal is delayed by up to 6 months, a 50% surcharge is imposed on the renewal fee. If the delay exceeds 6 months, we will cancel the current license. The applicant must then apply again for a new license.

Pharmacy License on Rent: Legal Risks and Implications

Renting or transferring a pharmacy license is strictly prohibited under Rule 65(2) of the Drugs and Cosmetics Rules. These licenses are non-transferable and linked to specific premises and owners.

Engaging in illegal licensing arrangements can result in severe penalties. For license owners, it may lead to license cancellation, blacklisting, and criminal charges under Section 27 of the Act.

Renters may face imprisonment and fines up to ₹5 lakh for unauthorized operations. Pharmacists involved in such schemes risk permanent cancellation of their registration certificates.

Permissible Ownership Models

  • Proprietorship: The owner must be a qualified pharmacist and be present full-time at the pharmacy.
  • Partnership: All partners involved in the pharmacy must hold valid pharmacist registration.
  • Private Limited Company: At least one of the directors must be a registered pharmacist.

Types of Pharmacy Licenses and Their Requirements

1. Retail Pharmacy License (Form 19)

Governed under Rule 64, this license mandates the display of a “Registered Pharmacist on Duty” sign. Pharmacies must keep separate records for Schedule H, H1, and X drugs. They cannot sell antibiotics without a valid prescription.

2. Wholesale Drug License (Form 20-B)

Issued under Rule 63, this license requires pharmacies to have at least 3 meters of aisle space between storage racks. Storage areas must be humidity-controlled, especially for hygroscopic drugs. A digital logging system is essential for monitoring Schedule X drug distribution.

3. Hospital Pharmacy License (Form 20-C)

As per Rule 65, hospital pharmacies must offer 24/7 access to emergency medicines. They should have automated inventory systems in hospital wards. They must also keep a separate vault for narcotics. This vault should have dual-key security.

Critical Compliance Standards

Pharmacies are expected to adhere to strict protocols regarding record maintenance, storage, and dispensing:

  • Prescription Register Maintenance
  • Each record must include patient details.
  • It should have the doctor’s registration number.

You must note the amount of drugs given. These documents should be retained for a minimum of three years.

  • Purchase Records: Records should include supplier license numbers, batch numbers received, and proof of CDSCO approval from the manufacturer.
  • Storage and Handling Protocols: Pharmacies must log minimum and maximum refrigerator temperatures daily and install alarms for power outages. Store flammable substances in isolated areas, place psychotropic substances in child-proof cabinets, and quarantine any suspected spurious drugs immediately.
  • Dispensing and Sale Compliance: All pharmacies must verify prescriptions through their respective state medical council portals. Schedule X drugs require special handling and duplicate prescriptions. Every drug dispensed should carry clear labeling with dosage instructions, expiry dates, and auxiliary labels for appropriate storage conditions.

Conclusion

Timely renewal of your pharmacy license is crucial to avoid penalties and ensure uninterrupted operations. Staying compliant with documentation, inspections, and legal requirements helps maintain your credibility. For a smooth and hassle-free renewal process, PSR Compliance is here to assist every step of the way.

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