Tue, Dec 30 2025
Raju Karn
In India, the sale, distribution, and manufacture of drugs and pharmaceuticals are strictly regulated to ensure the safety and quality of medicines. Any business dealing with drugs must obtain the appropriate drug license under the provisions of the Drugs and Cosmetics Act, 1940.
The licensing process involves applying for different forms, each catering to a specific type of drug activity. This blog explains the main types of drug licenses and the forms used for each purpose.
A drug license is an official permission granted by the State Drug Control Department or Central Drugs Standard Control (CDSCO), allowing an individual or entity to legally.
| Drug License Type | Purpose | Applicable Forms | Who Needs It? |
|---|---|---|---|
| Retail Drug License | Allows the retail sale of drugs to end consumers. | Form 20: General retail sale of allopathic drugs Form 21: Retail sale of drugs specified in Schedule C and C1 | Chemists, Pharmacies, Medical shops |
| Wholesale Drug License | Permits the sale of drugs to retailers, hospitals and other institutions. | Form 20B: Wholesale of general drugs Form 21B: Wholesale of drugs listed in Schedule C and C1 | Wholesale distributors, Stockists, Supply chain companies |
| Manufacturing Drug License | Authorizes the manufacture of drugs, including applicable repackaging and processing activities. | Form 25: Manufacture of non Schedule C/C1 drugs Form 28: Manufacture of Schedule C and C1 drugs | Pharmaceutical manufacturers, Repackaging units |
| Loan License | Allows a manufacturer to use another manufacturer's manufacturing premises when it does not own its own facility. | Form 25A: For non Schedule drugs Form 28A: For Schedule C and C1 drugs | Manufacturers using another licensed manufacturer's facility |
| Import License | Required for importing drugs and applicable pharmaceutical products into India. | Form 10: License to import drugs Form 41: Import license for new drugs and investigational drugs | Drug importers, Pharmaceutical importers |
| Restricted License | Allows certain entities to sell specified drugs without the supervision of a registered pharmacist, subject to applicable restrictions. | Form 20A: Restricted license for general drugs | Businesses eligible for restricted drug sale |
Note: Drug license forms and applicability can vary depending on the drug category, activity, premises and applicable rules. Verify the exact form requirements before applying.
Schedule C and C1 include biological products such as:
- Sera
- Vaccines
- Insulin
- Other injectable preparations
These require stricter controls and specialized forms.
All licenses are issued under the Drugs and Cosmetics Act, 1940.
Applicants must meet infrastructure, storage, and personnel qualifications.
Licenses must be renewed periodically and displayed prominently on the premises.
Compliance with Good Distribution Practices (GDP) and Good Manufacturing Practices (GMP) is mandatory for relevant licenses.
Understanding the different types of drug licenses and forms is essential for any pharmaceutical business in India. Whether you plan to retail medicines, distribute to hospitals, manufacture formulations, or import products, the correct license ensures legal compliance and safeguards public health.
A Drug License is a legal authorization required for businesses involved in the sale, distribution, manufacturing or import of drugs in India. The type of license depends on the nature of the business and the category of drugs handled.
The main types include Retail Drug License, Wholesale Drug License, Manufacturing Drug License, Loan License, Import License and Restricted Drug License. Each license has specific eligibility requirements and applicable forms.
A Retail Drug License generally involves Form 20 for general allopathic drugs and Form 21 for drugs covered under the applicable Schedule C and C1 categories.
A Wholesale Drug License generally involves Form 20B for wholesale of general drugs and Form 21B for wholesale of drugs covered under the applicable Schedule C and C1 categories.
A Retail Drug License allows the sale of drugs directly to consumers, while a Wholesale Drug License allows the sale or distribution of drugs to retailers, hospitals, institutions and other eligible businesses.
A pharmaceutical manufacturing business generally requires a Manufacturing Drug License. Depending on the type and category of drugs manufactured, applicable forms can include Form 25 and Form 28.
A Loan License is applicable when a manufacturer does not have its own manufacturing facility and uses the premises and facilities of another licensed manufacturer for manufacturing activities.
An Import Drug License is required for applicable businesses importing drugs into India. The applicable requirements and forms depend on the type of drug and import activity.
Businesses involved in wholesale distribution or supply of drugs may require a Wholesale Drug License. This can include wholesalers, distributors, stockists and businesses supplying drugs to retailers, hospitals and institutions.
The application process generally involves determining the correct license category, preparing the required documents, submitting the application through the applicable regulatory portal, premises verification where applicable, and obtaining approval from the concerned drug licensing authority.
Common documents can include premises ownership or rental documents, site plan, details of the competent person or registered pharmacist, educational and registration certificates, identity and address documents, business constitution documents and other documents required by the concerned licensing authority.
Drug License fees depend on the type of license, number of forms, drug categories, state requirements and other applicable factors. Government fees and professional assistance charges may be separate.
The processing time depends on the license type, state authority, document completeness, premises inspection requirements and other regulatory factors. Applications with complete and accurate documentation can generally be processed more efficiently.
Businesses cannot legally carry out activities requiring a Drug License without obtaining the applicable authorization from the competent drug regulatory authority.
Yes. Professional compliance consultants can assist with identifying the applicable license, preparing documents, application filing, responding to regulatory requirements and completing the Drug License process.
PSR Assistant