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Top Benefits of Obtaining a Drug Shop License in India

Drug shop license
| Updated: Jun 21, 2022 | Category: Drug

The use of drugs and medicines is essential for ensuring good health. However, the use of drugs and medicines must be restricted to ensure that such drugs are not misutilised or abused by individuals. Hence, the government has laid strict laws and regulations for manufacturing and distributing drugs and medicines in India. The statute governing the manufacture and sale of drugs is given in the Drugs and Cosmetics Act, 1940, and rules are framed thereunder. This regulation helps in efficiently getting the Drug shop license. In this blog, we will discuss the top benefits of obtaining a Drug shop license in India.

Purpose of obtaining a Drug Shop License in India

To ensure that individuals do not abuse the drugs –

  • All Pharmacists, 
  • Wholesalers, 
  • Retailers, 
  • Manufacturers, 
  • Sellers, 
  • Dealers and 

Importers of drugs, cosmetics, ayurvedic, Siddha, and Unani medicines must obtain this license mandatorily under the Drugs and Cosmetics Act, 1940. The purpose of obtaining this license is to permit organizations or individuals to engage in businesses related to drugs and medicines. No organization or individual can operate a shop in drugs, medicines, or cosmetics without obtaining a drug shop license in India.

The Drugs and Cosmetics Act, 1940, and the Drugs and Cosmetics Rules, 1945 help the authority regulate and monitor the quality of drugs sold in India. The government exercises control over drugs from the raw material stage till it is sold to a patient/consumer by a pharmacist in a drug shop or dispensary.

Criteria for obtaining a Drug Shop License in India

  • Pharmacist or Competent Individual must be qualified: The pharmacist must be qualified in the case of obtaining this License.
  • Shop Space Requirement: The other requisite criteria is the space of the shop, i.e., the area of the drug shop/unit. The size of the shop for wholesale and retail drug shop licenses should be sufficient. The clear space of the Drug premise shall be as per the guidelines laid down under the National Building Code of India, 2005.
  • Storage Facility: The other essential requirement is a storage facility. Since some drugs must be stored in low temperatures, refrigerators and air conditioners are a must.
  • Technical Staff: The retail pharmacy staff must be experienced with in-depth knowledge. The pharmacy team must be a graduate with a minimum of 1-year experience or an undergraduate with four years of experience.

Top Benefits of obtaining a Drug Shop License in India

1.    Establish A Legal Ground for dealing in Drug-Related Activities

A government agency like CDSCO[1] issued strict regulations for enforcing compliance with the Drugs and Cosmetics Act in 1940 against non-registered entities. So, in addition to ensuring that the code of ethics complies with existing rules, registered businesses must keep up-to-date with the latest developments. Although this might seem an inconvenience, it has certain benefits as well.

The Drug shop license, in its simplest form, allows pharmacists to continue their business without the hassle and legal complexities.

2.  It Boost Business Credibility

This License ensures the consumers that the drugs are distributed according to strict quality standards. One of the top benefits of obtaining this license as per the Drugs and Cosmetics Act of 1940 is that it can help them create the credibility required for the market to thrive and open up endless opportunities. This license can provide significant business opportunities that will sustain expansion. One of the top benefits of a drug shop license lies in this.

3.  It Improves Management and Efficiency

Ensuring that the entity complies in accordance with CDSCO and SLA’s chemical compliances might be difficult at first. However, over time it will be beneficial to the entity’s efficiency when the drug shop owner is willing to adhere to the guidelines within the Drugs & Cosmetics Act 1940.

4.  Put a stop to Adulteration

Adulteration is a practice that has hampered the authenticity of drugs for many years. Since the introduction of the Drug and Cosmetic Act of 1940, the government has restricted the extent of Adulteration, punishing the people who are in default. Holders of this license must keep a distance from such practices to avoid penalties outlined in the regulations. Thus, this license assures that the drugs produced by the particular manufacturer are 100% authentic and that buyers can consume the product without a doubt. It’s possibly one of the finest benefits of a Drug shop license.

5.  Put a stop to Prohibited Drugs.

Drug and Cosmetic Act, 1940 provides detailed guidelines for importing pharmaceuticals into India. The registered importer cannot purchase the vaccination from banned foreign buyers or have no medicinal significance. If the authorities argue that a particular medicine isn’t potent enough to treat the disease, they can stop its use with shorter notice. As long as a pharmacist gets a Drug shop license and remains in compliance, and their business grows, they can expand without worrying about penalties.

6.  Make sure that the Price is fair.

The Act regulating the drug license does not allow manufacturers or wholesalers, dealers, and retailers to charge the inflated Price on the trading of the drug. It is a fact that unfair pricing could harm the entity’s long-term viability. In light of this, the government has created a system that guarantees pricing transparency within the business community. This is among the benefits that outperform other benefits of a drug license easily.

does not allow manufacturers or wholesalers, dealers, and retailers to charge the inflated Price on the trading of the drug. It is a fact that unfair pricing could harm the entity’s long-term viability. In light of this, the government has created a system that guarantees pricing transparency within the business community. This is among the benefits that outperform other benefits of a drug license easily.

Conclusion

The pharmaceutical sector has grown dramatically in recent years and will continue to grow in the future. So, if you take the appropriate steps to getting this license before beginning your business venture, your drug shop will be a success, and you can avail a lot of benefits of obtaining the Drug Shop License in India.

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A Company Secretary together with PG in international Business, she has gained significant experience as legal content writer. She has keen interest in doing research and writing on legal and financial subject matters. She also holds work experience in legal compliances.

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