Medical Store Licence in India (2026): Drug Licence for a Pharmacy – Forms 20 and 21, Documents, Area, Fee and Process
By the Trumac Healthcare team, Panchkula · PCD pharma franchise company since 2007 · Updated 14 November 2026 · About us · WhatsApp +91 90416 77932
To open a medical store in India you need a retail drug licence – Forms 20 and 21 under the Drugs and Cosmetics Act – issued by your State Drugs Control department. This guide explains which forms apply, who can apply, the premises and pharmacist rules, the documents, the fee, how long it takes and what to keep after you open.
हिंदी में पढ़ें: मेडिकल स्टोर कैसे खोलें – डिग्री, लाइसेंस, दस्तावेज़ और खर्च।
Which medicines go in the H1 register? See the Schedule H1 drugs list (all 51 entries, including pregabalin from 16 November 2026).
Free download: drug licence documents checklist (PDF) – application, firm, premises and pharmacist/competent-person documents for retail and wholesale licences.
How much does a medical store earn? See medical store profit margin – margin per ₹100 MRP and a monthly example.
Free tool for running the store: medical store stock register (Excel) with expiry and reorder alerts.
Which drug licence does a medical store need?
| Form | What it covers |
|---|---|
| Form 19 | Application for a retail or wholesale licence (Form 19A for a restricted licence, Form 19C for Schedule X) |
| Form 20 | Retail sale of drugs other than those in Schedules C, C(1) and X – most tablets, capsules, syrups |
| Form 21 | Retail sale of Schedule C and C(1) drugs, excluding Schedule X – sera, vaccines, insulin, many injectables |
| Form 20F | Retail sale of Schedule X drugs (narcotic and psychotropic substances) |
| Forms 20A / 21A | Restricted licence – general stores and vendors selling household remedies without a pharmacist |
| Forms 20B / 21B | Wholesale licence – needed to sell to other chemists, hospitals and doctors |
A normal pharmacy takes Forms 20 and 21 together so that it can stock the full range. Wholesale (Forms 20B/21B) is only needed if you also supply other chemists or hospitals – see our wholesale drug licence guide.
Eligibility: who can open a medical store?
- Any individual, partnership or company can own the store – the owner does not need to be a pharmacist.
- A registered pharmacist (D.Pharm or B.Pharm registered with the State Pharmacy Council) must be employed and medicines sold under his or her personal supervision during opening hours.
- The applicant must not have been convicted under the Drugs and Cosmetics Act, and the premises must be a lawful commercial place (owned or rented).
- Doctors: a registered medical practitioner may supply medicines to his or her own patients without a sale licence (Schedule K), but the medical ethics regulations (2002) say a physician should not run an open shop selling medicines on other doctors’ prescriptions. A pharmacy open to the public needs its own retail licence and a registered pharmacist – check your State Medical Council’s view before a doctor owns one.
Premises requirements
- Minimum area of 10 square metres for a retail licence, and 15 square metres if retail and wholesale are on the same premises.
- Storage that protects medicines from heat, light, dust and moisture; a refrigerator for vaccines, insulin and other cold-chain products; air-conditioning where labels require storage below 25 °C.
- Racks and a counter, a display of the licence, the pharmacist’s name and registration, and the company price lists.
Documents required for a medical store licence
- Application in Form 19 (online on the state drugs control portal or the national ONDLS portal) and the fee challan
- Site plan / key plan of the premises with dimensions, and proof of ownership or a rent agreement
- Identity and address proof of the proprietor, partners or directors; partnership deed or incorporation documents for a firm
- Pharmacist’s registration certificate, qualification certificate, appointment letter and affidavit of full-time working
- Affidavit/declaration of non-conviction and other declarations required by your state
- Details of the refrigerator and storage arrangements
Fee, validity and timeline
- Government fee: ₹1,500 per licence form – ₹3,000 for Forms 20 and 21 together – paid online.
- Validity: since the 2017 amendment of Rule 63, the licence stays valid as long as a retention fee equal to the licence fee is paid every five years.
- Timeline: usually two to six weeks, depending on the state and the inspection date.
Drug licence renewal (retention fee): fees, late fee and documents
Since the 2017 amendment of Rule 63 there is no separate renewal application for a sale licence. The licence stays valid as long as you pay a retention fee equal to the licence fee every five years from the date of issue. Keep the pharmacist’s registration, premises and storage unchanged or inform the licensing authority of changes.
| Item | What applies |
|---|---|
| When | Before each five-year anniversary of the date of issue (Delhi’s portal opens the retention application two months before) |
| Fee | Same as the grant fee: ₹1,500 per form for retail (20, 21) and wholesale (20B, 21B) licences; ₹500 for restricted (general store) and Schedule X licences |
| Paid late | Allowed for up to six months with a late fee of 2% of the licence fee for each month or part of a month |
| Not paid within six months | The licence is deemed cancelled – you must apply for a fresh licence |
| Documents (vary by state) | Copy of the licence and last retention receipt, fee challan, pharmacist or competent person’s current registration and appointment, proof of possession of the premises and a declaration that nothing has changed |
| Where | Your state drugs control portal – Delhi, Kerala and several other states use the Online National Drug Licensing System (ONDLS); others have their own portals |
Fees are as listed by the Delhi Drugs Control Department under Rule 59; confirm the amount on your state’s portal before paying.
Pharmacy licence vs medical store licence
They are the same thing: a “pharmacy licence” or “chemist licence” for a shop is the retail drug licence in Forms 20 and 21 described above. It is different from a pharmacist’s registration with the State Pharmacy Council, which is personal to the D.Pharm or B.Pharm holder you employ. A wholesale licence (Forms 20B/21B) is a separate licence for selling to other chemists, hospitals and doctors.
मेडिकल स्टोर कैसे खोलें (संक्षेप में): 10 वर्ग मीटर की दुकान, एक रजिस्टर्ड फार्मासिस्ट, फ्रिज और रैक तैयार करें; राज्य ड्रग कंट्रोल पोर्टल पर Form 19 भरकर Form 20 और 21 का लाइसेंस लें (फीस ₹1,500 प्रति फॉर्म); निरीक्षण के बाद लाइसेंस मिलता है, फिर GST रजिस्ट्रेशन कराएँ।
Step-by-step process
- Fix the premises (10 sq m or more), racks and refrigerator, and appoint a registered pharmacist.
- Register on your state drugs control portal or ONDLS and fill Form 19 for Forms 20 and 21; upload the documents and pay the fee.
- The drug inspector inspects the premises and checks the pharmacist and storage.
- The licensing authority grants the licence; display it in the shop.
- Take GST registration and the local shop/trade licence; add an FSSAI licence if you will sell food supplements.
- Open purchase accounts with stockists and companies, and start the H1 register from day one.
After you open: adding a PCD franchise line
A licensed chemist is the most natural PCD franchise partner: the licence, the counter and the doctors’ prescriptions are already there. With a franchise brand for your area you keep both the retail and the distributor margin on the products you sell most – see the PCD franchise guide for chemists, the GST on medicines guide (5% since September 2025) and the PTR PTS calculator.
This page summarises the Drugs and Cosmetics Rules, 1945 as applied by state licensing authorities, as of November 2026. Requirements and fees are set by the rules and your state portal; check the current checklist with your State Drugs Control department.
Related guides: Schedule G drugs list · Schedule H drugs · Schedule H1 list · Schedule X list · Revised Schedule M (GMP)
Frequently asked questions
Which licence is needed to open a medical store?
A retail drug licence under the Drugs and Cosmetics Act, 1940 – Form 20 for drugs other than those in Schedules C, C(1) and X, and Form 21 for Schedule C and C(1) drugs. Most pharmacies take both. Schedule X (narcotic and psychotropic) drugs need a separate licence in Form 20F.
Can a doctor open a medical store in India?
A doctor may supply medicines to his or her own patients without a sale licence under Schedule K of the Drugs Rules. Running a pharmacy open to the public needs a retail drug licence (Forms 20/21) and a registered pharmacist, and the medical ethics regulations (2002) say a physician should not run an open shop selling medicines on other doctors’ prescriptions – so check with your State Medical Council first.
Can a non-pharmacist open a medical store?
Yes. The owner does not need a pharmacy degree, but the shop must employ a registered pharmacist (D.Pharm or B.Pharm registered with the State Pharmacy Council) and medicines must be sold under his or her personal supervision.
How much area is required for a medical store?
At least 10 square metres for a retail or a wholesale licence, and 15 square metres if you take both on the same premises, with storage that protects medicines from heat, light and moisture and a refrigerator for cold-chain products.
What is the fee for a medical store licence?
The government fee is ₹1,500 per licence form – ₹3,000 for Forms 20 and 21 together – paid online with the application. Your state portal shows the exact amount; consultant charges, if any, are extra.
How do I renew a drug licence?
There is no separate renewal application since 2017: pay the retention fee (equal to the licence fee – ₹1,500 per form for a retail or wholesale licence) every five years on your state drugs control portal before the due date. Paying within six months after the due date attracts a late fee of 2% of the licence fee per month; after that the licence is deemed cancelled.
How long is a medical store licence valid?
Since the 2017 amendment of Rule 63, a drug sale licence remains valid as long as the retention fee (equal to the licence fee) is paid every five years. If it is not paid even within six months of the due date (with a late fee of 2% per month), the licence is deemed cancelled.
How long does it take to get a medical store licence?
Usually two to six weeks from the online application, depending on the state and on how soon the drug inspector inspects the premises.
Do I also need a wholesale licence?
Only if you want to sell to other chemists, hospitals or doctors. Wholesale needs Forms 20B and 21B and a competent person; many chemists add it later, for example when they take a PCD franchise for their area.
What records does a medical store have to keep?
Purchase and sale bills, and for Schedule H1 drugs (certain antibiotics, anti-TB drugs and habit-forming drugs) a separate register with the prescriber’s and patient’s name, the drug and the quantity, kept for three years. Schedule X drugs have stricter record and storage rules.
Running a medical store and want your own brand for your area? WhatsApp +91 90416 77932 with your district; we send the price list (3000+ products) and confirm monopoly availability. Related: PCD pharma franchise · requirements · product list.