Company Registration
NGO Registration
Virtual business address
Startup Registration
Shop Act Registration
BIS Registration main
CDSCO Registration
Star Rating Certification
WPC Registration
Brand Registration
Legal Metrology Certification
CPCB Approval
PESO certification
Fire NOC
PSARA License
Fssai License
RCMC Certification
China Food Export
Import Export Registration
RNI Certification
NSIC Registration
Income tax Filing
Trade License Registration
Factory License Registration
Fri, Jul 25 2025
Shubham Bansal
India’s pharmaceutical industry is booming, and entering the medicine wholesale business can be a highly profitable opportunity—if done right. However, it requires proper licensing, legal compliance, and a solid understanding of how the wholesale supply chain works. This guide will walk you through every detail of starting a wholesale medicine business in India—from licensing to growth strategies.
India has one of the world’s largest populations needing affordable and quality medicines. Hospitals, clinics, and retail pharmacies rely heavily on wholesalers for consistent supplies.
The COVID-19 pandemic has increased health awareness, driving demand for essential medicines, vaccines, and health supplements—making this business more future-proof than ever.
Many remote and semi-urban areas are underserved. Wholesalers can create a strong distribution network in these regions and build a loyal customer base.
India is the third-largest pharmaceutical producer by volume globally. The industry is expected to reach USD 130 billion by 2030, presenting ample room for new wholesale businesses.
Medicine wholesalers can also venture into exports, especially for generic medicines, which are highly demanded in African, Asian, and Latin American countries.
Government initiatives like the Production Linked Incentive (PLI) scheme are pushing pharmaceutical growth, creating a favorable environment for wholesalers.
Retail Drug License: For selling directly to consumers.
Wholesale Drug License: For selling medicines in bulk to retailers, hospitals, and institutions.
Both are governed by the Drugs and Cosmetics Act, 1940, but wholesale licenses have more rigorous conditions regarding distribution and storage.
Higher profit margins
Larger business scale
Easier to work with bulk suppliers and manufacturers
Form 20B: Required for dealing in general drugs.
Form 21B: Required if dealing with Schedule C & C1 drugs (like vaccines or injectables).
Narcotics License: If dealing with psychotropic substances
FSSAI License: If you plan to sell dietary supplements or nutraceuticals
Licensing is regulated by the State Drug Control Department, but central approval is required for narcotic or controlled substances.
Choose the right entity:
Proprietorship
Partnership
LLP or Private Limited Company (preferred for scalability)
Minimum 10 square meters of space
Air conditioning and refrigeration (for temperature-sensitive drugs)
Proper labeling and racking systems
You must appoint someone with:
B.Pharm/D.Pharm degree
Minimum 1–4 years of experience in drug sales (varies by state)
Apply through your state’s drug control office or online portal, along with required documents and fees.
Authorities will inspect the premises and storage facilities. Once approved, your license will be issued within 30–60 days.
Business registration documents
Rental agreement/ownership proof of premises
Pharmacist’s qualification and registration certificate
Identity & address proof of all partners/directors
Site layout and storage details
Affidavit declaring compliance with the Drugs Act
Maintain detailed records of every sale, return, and batch number as per Schedule H/H1 requirements.
Temperature-sensitive drugs must be stored in refrigerators or cold storage units. Daily temperature logs are often required.
The wholesale license is usually valid for 5 years. Make sure to renew before expiry to avoid penalties.
Procure medicines only from licensed manufacturers and avoid counterfeit or misbranded drugs at all costs.
Offer credit periods, discounts, and efficient delivery to build long-term relationships with clients.
Use technology to track stock levels, expiry dates, batch numbers, and automate billing.
Quick and efficient logistics is a competitive edge. Tie up with local delivery partners or invest in your own transport system.
Keep an eye on pricing regulations by NPPA to avoid legal issues while pricing your medicines.
You can apply if you appoint a qualified person (Registered Pharmacist or Competent Person) for your business.
Typically ₹5–10 lakhs is required initially including premises, inventory, staffing, and licensing.
Yes, GST registration is mandatory for any business involved in the sale of goods in India.
Starting a medicine wholesale business in India can be highly rewarding if you follow the right legal procedures and build strong industry relationships. From obtaining licenses like Form 20B and 21B to ensuring legal compliance and leveraging growth strategies—each step matters.
👉 Need expert help with Wholesale Drug License or Compliance? Visit: https://www.psrcompliance.com