How to Start a Medical Agency (Pharma Distributorship) in India: Licence, Margins and the PCD Option (2026)
By the Trumac Healthcare team, Panchkula · PCD pharma franchise company since 2007 · Updated 14 November 2026 · About us · WhatsApp +91 90416 77932
A medical agency – also called a pharma agency, distributorship or stockist – buys medicines from companies and supplies chemists, hospitals and doctors in its area. To start one you need a wholesale drug licence (Forms 20B/21B), GST, a godown and working capital, and then either a company’s stockist rights or your own PCD franchise brands. This guide explains each step.
हिंदी में: मेडिकल एजेंसी शुरू करने के लिए होलसेल ड्रग लाइसेंस (Form 20B/21B), GST, गोदाम और वर्किंग कैपिटल चाहिए; फिर किसी कंपनी की स्टॉकिस्ट एजेंसी या अपनी PCD फ्रेंचाइज़ी ब्रांड से काम शुरू होता है।
हिंदी में पढ़ें: मेडिसिन डिस्ट्रीब्यूटर कैसे बनें – लाइसेंस, मार्जिन और तरीका।
Bigger role in the chain? See C&F agent in pharma – role and requirements.
Free tool: monthly stock and sales statement (Excel) for stockists.
How much a stockist earns: pharma distributor and stockist margin (10% on PTR, 8% on PTS for DPCO drugs) with a monthly example.
Types of medical agency
| Type | What it does | Typical margin |
|---|---|---|
| C&F / super stockist | Holds company stock for a state or region and supplies stockists | Small handling margin; appointed by the company |
| Stockist / distributor (agency) | Supplies chemists and hospitals in a city or district for one or more companies | About 10% on PTR (non-scheduled) |
| PCD franchise partner | Own brands of a PCD company on a monopoly basis for the district; does the doctor promotion | Net rate well below PTS – see PTR/PTS calculator |
| Wholesale / generic trader | Buys at trade rates from many sources and sells to chemists | Varies by product |
Licence and setup
- Wholesale drug licence in Forms 20B and 21B from the State Drugs Control department – see the wholesale drug licence guide.
- Competent person: a registered pharmacist, or a graduate with one year of experience in dealing with drugs, or an SSLC/matriculate with four years of experience.
- Premises: a godown of adequate area (generally at least 10 sq m), racks, a refrigerator for cold-chain products and protection from heat, light and moisture.
- GST registration (most medicines are 5% since 22 September 2025 – GST on medicines) and the local trade licence.
- Records: batch-wise purchase and sale records; know which products are Schedule H1 (chemists keep an H1 register) and avoid Schedule X unless you hold Form 20G.
How to get a pharma company’s agency
- Get the wholesale licence, GST and godown in place – companies ask for copies before appointing anyone.
- List the chemists, hospitals and doctors you can reach and the divisions they need (cardiac, gastro, paediatric…).
- Approach the area or regional manager of the companies you want, or apply through their websites; expect to be asked about coverage, payment terms and any security deposit.
- Established brands usually already have stockists in big towns; new agencies often start with newer companies, smaller towns, or a PCD franchise where you get exclusive rights straight away.
- Agree margins, credit period and returns policy in writing, then place the first order.
Medicine wholesale business: investment, income and plan
A medicine wholesale business – a medical agency – needs money for four things:
- Licence and registration: wholesale drug licence in Forms 20B and 21B (₹1,500 each under Rule 59) and GST registration (no government fee) – wholesale drug licence guide.
- Premises: a godown of about 10 sq m or more with racks, a refrigerator for cold-chain products, and a computer with billing software.
- Opening stock: each company sets its own minimum; with a PCD range such as Trumac’s the first order starts from ₹25,000.
- Working capital: the credit you give chemists (often 15–30 days) and regular refills – usually the largest amount.
Income: the gross margin on branded medicines is about 10% on PTR – see distributor and stockist margin, where an example with assumed numbers shows what may remain each month after staff, delivery, rent, credit and expiry. PCD and generic ranges earn more per strip. Put your own numbers into the free business plan Excel.
Choosing a name: pick a firm name that is not already a registered trademark or used by another licence holder in your district, and use it the same way on your drug licence, GST and bank account.
हिंदी में: दवा का होलसेल बिज़नेस शुरू करने में खर्च – ड्रग लाइसेंस (20B, 21B: ₹1,500 प्रति फॉर्म), गोदाम, फ्रिज, कंप्यूटर, शुरुआती स्टॉक और केमिस्ट को दिया उधार। ब्रांडेड दवाओं पर मार्जिन PTR का लगभग 10% होता है। पूरी जानकारी: मेडिकल एजेंसी कैसे खोलें।
Medical agency vs PCD franchise
| Medical agency (stockist) | PCD franchise | |
|---|---|---|
| Brands | Company’s brands, promoted by its MRs | PCD company’s brands, promoted by you |
| Area rights | Shared or company-assigned | Monopoly for your district |
| Margin | About 10% on PTR | Net rate well below PTS |
| Working capital | Higher – stock plus chemist credit | Lower start – first order from ₹25,000 with us |
| Best for | Strong chemist network in a town | People with doctor contacts – MRs, chemists, distributors |
Many agencies do both: they keep a few company agencies for steady volume and add a PCD franchise for margin. See also PCD vs distributorship vs ethical and buying at wholesale rates.
Related guides: Schedule G drugs list · Schedule H drugs · Schedule H1 list · Revised Schedule M (GMP)
Frequently asked questions
What is a medical agency?
A medical agency is a wholesale medicine business that holds the stockist or distributor rights of one or more pharma companies for an area and supplies chemists, hospitals and doctors there. It works on a wholesale drug licence (Forms 20B and 21B). In Hindi: मेडिकल एजेंसी यानी दवाओं का होलसेल कारोबार, जो किसी इलाके में कंपनियों की दवाएँ केमिस्ट और अस्पतालों तक पहुँचाता है। In Telugu: మెడికల్ ఏజెన్సీ అంటే ఒక ప్రాంతంలో కంపెనీల మందులను కెమిస్టులు, ఆసుపత్రులకు సరఫరా చేసే హోల్సేల్ వ్యాపారం.
Which licence is needed to start a medical agency?
A wholesale drug licence in Forms 20B and 21B from your State Drugs Control department, GST registration and the local trade licence. A retail licence (Forms 20/21) is only needed if you also run a counter for patients.
Who can be the competent person for a wholesale licence?
A registered pharmacist, or a graduate with at least one year of experience in dealing with drugs, or an SSLC/matriculate with four years of experience. Your state applies the exact rule.
How do I get the agency of a pharma company?
Get the wholesale licence and GST first, then approach the company’s area or regional manager with your licence, godown details and the chemists you can cover. Established companies usually already have stockists, so new agencies often start with newer companies or a PCD franchise.
What margin does a medical agency earn?
A stockist of an ethical company usually earns about 10% on PTR for non-scheduled medicines (8% on PTS for DPCO scheduled ones). A PCD franchise partner buys at a net rate well below PTS and keeps a larger margin, but also does the doctor promotion.
Medical agency or PCD franchise – which is better?
A medical agency supplies other companies’ promoted brands at a thin margin and needs working capital for chemist credit. A PCD franchise gives you your own brands on a monopoly basis for the district with a higher margin, but sales depend on your promotion to doctors. Many agencies run both.
How much space is needed for a medical agency?
States generally expect at least 10 square metres for a wholesale licence (15 if retail and wholesale share the premises), with racks, a refrigerator for cold-chain products and protection from heat and moisture.
Starting a medical agency? Add our brands on a monopoly basis for your district – 3000+ products, no franchise fee, first order from ₹25,000. WhatsApp +91 90416 77932 with your district. Trumac Healthcare, Panchkula – supplying 4000+ partners since 2007.