According to Mahatma Gandhi, "a man's ultimate riches is his health, not gold or silver," yet the health of the average man is being harmed by contemporary lifestyle patterns and routines, as well as the unpredictably changing weather circumstances. For example, the constant rains have resulted in a lot of dengue and influenza cases, while increasing pollution has resulted in a number of asthma cases. In addition, the busy and stressful work environment has caused mild cardiac difficulties, as well as cholesterol and blood pressure issues. Because these illnesses are rarely life-threatening, people often continue to work while taking medicine. Medicines are, therefore lifesavers, providing relief from minor ailments as well as curing major illnesses, chronic disorders, and diseases.
The medical industry is one of the few industries that is mostly untouched by the ever-changing economic cycles. Health is the most crucial aspect of a person's existence under any circumstance. The health and pharmaceutical industry in India is growing at an incredible rate, thanks to corporate and multi-speciality institutions. Investing in a medical shop is the finest alternative accessible for startups and people with little funds who wish to invest only in the healthcare industry. Even though there is stiff competition, it is still an important investment area. Medical stores, notwithstanding their value, are accountable for a person's life. A small error might result in a huge bill for their consumer. This is why, before selling medicines, medical stores must comply with all laws and processes.
Did you know?
Professor Mahadeva Lal Schroff is rightfully known as the Father of Pharmacy Education in India. Despite not being a trained pharmacist, he gave Indian pharmaceutical education and industry the right direction.
Benefits of Opening a Medical Store
The benefits of opening a medical store are as follows-
1. Drug Classifications
Medical stores not only carry a wide range of medications for any and all medical conditions, but they also have drugs from different brands for the same indication. Additionally, medical stores have generic pharmaceuticals, which are less expensive yet equally effective as branded prescriptions.
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2. Home Delivery is Available
Medical stores offer an added benefit in that they may deliver drugs to your home. This, together with its other benefits, makes visiting a pharmacy the preferable option for clients.
3. A Wide Range of Medications is Available
A medical shop sells medication for every condition or disease that affects people of any age, gender, organ, or part of the body. Medical stores also have the benefit of being able to obtain medications for their consumers within a day if they are unavailable. As a result, the most significant benefit of a medical shop is the large range of pharmaceuticals available for every disease.
4. Individualized Service
Customers often contemplate obtaining their prescription online in this day and age, but a medical store delivers personalised service to each and every consumer that walks into their store. The medical shop staff listens carefully to each customer's issues and symptoms before prescribing the appropriate prescription or even proposing an alternative, effective drug or supplement to be used in conjunction with the prescribed medications to help them heal quicker. This kind of personalised service is not available when purchasing drugs from internet pharmacies. Furthermore, being welcomed by a friendly face that knows the customers personally helps to establish a link between the customers and the employees, resulting in the consumers returning to the medical shop for any additional services.
Type of Medical Store
The different types of medical stores that can be started include the following -
1. Standalone Medical Store
Individual small/medium medical stores can be found in residential neighbourhoods. It's one of the most popular types.
2. Medical Store inside the Hospital
This sort of medical shop is located within a hospital and was created to give medical services to hospital patients.
3. Medical Stores inside Townships
It is located in a township and serves the community's requirements.
4. Franchise Outlets or Chain Pharmacies
Medical shops that are part of a chain of pharmacies have locations throughout the country. Usually a large shop.
5. Medical Stores in Government Premises
Such types of medical stores are located inside government buildings and premises.
Requirements for Starting a Medical Store in India
Being qualified and obtaining a Pharmacy License is one of the most important prerequisites for starting a medical business. B. Pharm or M. Pharm degree is required in order to start a medical shop and become a trained pharmacist.
To register for land, one must first select whether he wants to buy or rent a shop, which is determined by the budget. A rent or sale deed agreement is crucial, and you may get legal help with it.
Registration of the Business
The medical store is registered under the Indian Pharmacy Act 1948. According to the statute, all medical stores and pharmacies must register with the state government and provide all necessary papers. Following the submission of the papers, the officials will decide on the registration following the rules. The structure of a medical shop is crucial. A freestanding medical shop should be established as a sole proprietorship or a partnership, whereas hospital, chain, and township medical stores should be established as a private limited company. Limited Liability Partnerships (LLP) have recently been a popular type of business formation among medical shop owners. The promotion of the partners' rights, which is granted in the LLP type of constitution, is largely responsible for this transformation.
Registration of Company
There are different options available for registering the business. These include the following-
- Partnership Registration
- One Person Company Registration
- Limited Liability Partnership
- Private Limited Company
If the aggregate turnover of the business exceeds the threshold limit, the organisation will have to register for GST, i.e. Goods and Service Tax. The limit for registration is ₹20 Lakhs except in north-eastern hilly states where the limit is ₹10 Lakhs.
Drug License Registration
It is necessary for every medical store to obtain a drug license from the State Drugs Standard Control Organization and the Central Drugs Standard Control Organization. Two types of drug licenses are issued. These are wholesale drug licences and retail drug licenses.
Wholesale Drug License
This type of license is issued to medical stores for wholesale dealing of medicines and drugs. In this case, no strict conditions are there for obtaining the license.
Retail Drug License
A retail drug license is necessary to operate a general/retail chemist or medical shop. Only those with a legitimate degree or diploma in pharmacy from a recognised institute or university are eligible to register. To obtain the license, you must pay a cost.
Minimum Requirements for Obtaining a Drug License
The following are the minimum requirements for obtaining a drug license are as follows-
One of the most important things to consider before starting off is the location. It's crucial to choose where you want to open your shop. It will be quite difficult for your store to succeed and survive if you do not select a decent location. Choose a site that isn't overrun with similar businesses since too many medical stores in the same area will not provide you with the success you need. Find better solutions for your company that will allow it to last longer.
Insulin, liquid antibiotics, vaccinations, and other pharmaceuticals that must be maintained at low temperatures would necessitate a refrigerator in your pharmacy. Cupboards and drawers are also necessary for storing various pharmaceuticals and other things in your shop so that business may be conducted more quickly, simply, and efficiently.
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Staff with good knowledge of medicines is a must for running a medical store.
For wholesale business, 15 square meters is required, whereas in the case of a retail store minimum of 10 square meters of the area is required.
Documents for Obtaining a medical store licence
The documents required for obtaining a drug license include the following-
- Application form
- Fee receipt of challan
- Proof of ownership of premises
- Blueprint of premises
- Proof of business constitution and registration
- Residential Proof
- Proof of qualification
- Cover letter with the name and designation of the applicant
- Affidavit from a registered pharmacist
The healthcare business has grown dramatically in recent years and will continue to do so in the future. So, if you take the appropriate procedures and pay attention to these key elements before beginning your business venture, your drug shop will be a success and will continue for generations.
As a result, considering the high-profit margins and other benefits of launching a medical practice, investing in the medical field might be a good place to start.
We hope the article gives you the relevant information about opening a medical store business, including the types of medical shops, requirements for starting a medical store, as well as the licenses required for starting the medical store business.
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