What are the Requirements for Pharma Franchise Business in India?

What are the Requirements for Pharma Franchise Business in India? – Pharma franchise is a successful business to invest in. With the increase in the demand for quality pharma products all around, many people are planning to invest in this sector. As per the estimates, in the coming years, the Indian pharma market is expected to become the third global market for pharma products. Due to the huge scope, the pharma franchise is one of the most lucrative businesses in India. But confused about how to start it? Don’t know what are the requirements for pharma franchise business opportunity in India? Don’t worry, we are here to help you out.

Starting a business in this sector is a great opportunity. It is a way to provide quality medications to humanity and earn a good income. The industry welcomes pharma professionals, pharma dealers, wholesalers, retailers, etc for franchise deals across the country. To know what are the Requirements for Pharma Franchise Business in India read this blog. But before that, you need to understand the concept of a pharma franchise.

What is a Pharma Franchise? How Does it Work?

A pharma franchise is an authorization or permission by the government or a pharma company to an individual or a group qualifying them to carry out specified commercial activities as an agent to the market, sell, or promote the company’s products. the company either gives you monopoly rights or a mutually agreed contract that gives you the rights to sell, market, distribute and promote the products offered by the pharma company. 

The franchise business helps in the expansion of the pharmaceutical products consumers. The business can be on two bases, Pharma Franchise or PCD Pharma Franchise. PCD stands for Propaganda Cum Distribution. The main difference between the both is that the pharma franchise works on a large scale while PCD works on a small scale. It includes the working area, marketing inputs, investments, etc. In PCD Franchise, there is no compulsion of any qualification or experience, while in Pharma Franchise, specific qualifications are a necessity. 

What are the Requirements to Start a Pharma Franchise?

To start your business in the pharma sector, there are some requirements and criteria to be fulfilled. They might vary from company to company as every company or organisations have their own rules and regulations but the most important and the common in all the companies are listed below.

Tax Registration

The first and most important requirement of all for the pharma franchise companies is tax registration. It is allotted by the state government and requires one-time investment which may vary from state to state. It is a mandatory document for purchasing or selling goods or pharma products. Things are included in the tax registration are:

  • VAT (Value added Tax)
  • CST (Central Sales Tax)
  • TIN (Tax Identification Number)

Pharma Drug Licence

Drug licence is another major requirement for trading any kind of drug or pharma product. usually, it is provided by the state government and is an essential and mandatory document for starting your pharma franchise. You can apply for your drug licence at:

  • Central Drug Standard Control Organisation
  • State Drug Standard Control Organisation

Required Qualifications and Experience for Starting Pharma Franchise Business

To start a pharma franchise, a person should at least be an SSC or graduate. With some knowledge of business, the person must be capable of calculating net margin, profit margin, and other financial stuff. He/she much have experience of at least 3 years. With the above-mentioned qualifications, the person can apply for the following:

  • Pharma Distributors
  • Medical Representatives
  • Wholesalers and retailers
  • Pharmacists registered under the state pharmacy council

Vacant Monopoly Right

Monopoly means that only one party is the supplier of that good. So, the pharma company monopoly agreement says, that only one person or one company at one location or zone is given the distribution rights. If you want monopoly rights, it is best if you look for vacant zone or locations where you want to establish your business. The monopoly agreement is an important document. To get your business wholly secure, make sure to have a written copy of the document with yourself. 

Investment Required for Establishing Successful Pharma Franchise Business

Investment is an essential part of any business. a lot many people plan to start a business in the pharma sector but when it comes to investments, either they don’t have the proper knowledge or the right guidance. If you invest in the right way with appropriate arrangements, then there are fewer chances of facing any financial crisis. Although it is a little difficult to propound the exact amount required for investing in the pharma franchise business as it varies from company to company, the best way to figure your investment is by dividing it into 3 sections:

  • Initial investment
  • Secondary Investment
  • Emergency investment

Shortening of money is a common yet serious matter in the business. Thus, it is important to have a stock of payment for every stage. 


So, here we have discussed all the major requirements for establishing a Pharma Franchise business in India. Although it’s not an easy task it's not that difficult too. You can have a successful career in this field by associating with Cagrus Biopharma, the topmost pharma franchise company that offers pharma franchise as well as PCD pharma franchise services across the country. With several certifications, the company provides top quality products at affordable rates. for more details contact the company.