Business

What All You Need to Know About Drug License?

Drug licensing also termed as the pharmaceutical license is needed for kinds of businesses that are involved in distributing medications as well as pharmaceutical supplements. As Drugs & Cosmetics Act, Section 3B introduced in 1940, drugs is the term that encompasses all sorts of medications( for human as well as animal use, both externally & internally ) along with the devices/ substances, everything which is utilized for diagnosis, treating, preventing as well as mitigating or preventing any type of the diseases occurring with the human being or animal.

In the year 1964, there was an amendment introduced in the Drugs & Cosmetics Act that included regulations for ayurvedic & Unani Drugs. Licensing is mandatory for carrying out business in the Drugs & cosmetic industry in the Indian Subcontinent. The provision of this has been made in accordance with the Drugs & Cosmetics Act, 1940 & this is applicable all throughout the country.

In case the business entity has an operating unit in two or more of the states, it is required to seek licensing for each & every state in which the business is opening. The drug license registry is location-specific. So, this entails that whenever the drug products stock is held for sale as well as distribution at more than a single place, then the application is to be made to each & every state & licensing shall be issued about each of such places in exception to the migrant vendors.

What is objective of drug licensing?

  • Access to medications as well as pharmaceutical products must be restricted as well as regulated to ensure that such items are not at all misused or abused by individuals. Thus, the manufacturers, dealers, pharmaceuticals, retailers, importers, exporters of pharmaceuticals, cosmetics, Siddha as well and Unani drugs are required to seek Drug Licensing, as per the Drugs & Cosmetics Act, in the year 1940.
  • The reason why this drug licensing has been introduced is to facilitate enterprises/ people to get involved in businesses concerning drugs as well as cosmetics.
  • No company or individual is allowed to run their business concerning drugs, cosmetics, or medications while seeking drug licensing within India.
  • What are the various types of drug licensing in India?

  • Manufacturing Drug Licensing
  • The manufacturers who are involved in the trade of cosmetics, drugs, allopathic or cosmetics, or any other products mentioned under the Drug & Cosmetic Act, 1940 need to seek manufacturing drug licensing.

  • Loan Drug Licensing
  • The manufacturer of the drug who is not owing their own land, however willing to produce drugs through the utilization of their brand name on land upon which the licensing has been granted.

  • Import drug licensing
  • Any dealer who is involved in the import of products to manufacture drugs or working as a drug importer in India is mandated to seek this drug licensing.

  • Multi-Drug License
  • All the business entities that are operating in more than one state or owning multiple units need to seek a multi-drug license.

    What are needs to obtain Drug licensing Registration in India?

    Here are crucial factors that need to be taken into consideration for drug license registration:

  • Area of Establishment
  • There is a need for at least a 10 square meter area in order to establish retail or pharmaceutical units. But under the scenario of the retail cum wholesale drug business, the minimum area which shall be needed for setting up the unit is 15 square meters.

  • Pharmacist Professional
  • The individual who wants to establish a retail unit must be a qualified pharmacist. However, in the case of doing the wholesale business, the applicant should hold a graduation degree with a single year of experience or even an undergraduate with a minimum of four years of work experience.

  • Storage Unit
  • There must be the proper storage establishment for the setting up of the refrigerating unit, cold storage facility, or any other type of the same region to facilitate the drug/ medicinal storage as they are required to be restored within the cool area.

  • Technical expertise
  • The retailer who would like to set up a pharmacy shop must have the requisite experience along with the in-depth knowledge. So, the applicant must be the qualified pharmacist for seeking licensing.

  • Proficient & Technical staff
  • While setting up the retail pharmacy, there must be the employment of proficient as well as technical staff who have thorough knowledge in the pharmaceutical area. A qualification of pharmacist is the mandatory requirement for seeking a drug license.

  • Drug Inspector Inspection
  • The drug inspector coming under the jurisdiction will be visiting the establishment for which the application for drug licensing has been filled. The concerned authority will be investing as well as verifying all the particulars which are being furnished within the application. In case required, the individual will also measure the premises and interview the applicant.

    Documentation needed to obtain Drug Licensing

    Here is the vital of documentation that is required for seeking drug licensing in India:

  • Proof of identity of director/ partner/ proprietor
  • Premises key as well as site plan
  • Business entity constitution which includes Memorandum of Association (MOA), AOA( Articles of Association) for firms. Also include partnership deed, agreement for LLP along partnership.
  • Board of resolution copy for seeking drug license
  • Under the condition of the rented premise, there is ownership documentation for the property/rental contract as well as NOC, no objection certification from the business owner.
  • Proof of the storage space availability which includes cold storage, refrigerator equipment & others
  • Proof of free deposit challan
  • Submission of affidavit concerned with non conviction of partner/ director/ proprietor as well as firm
  • Affidavit linked to the partner’s/ director/proprietor’s non-conviction
  • Producing an affidavit from any competent individual/ registered pharmacist
  • Covering letter with applicant’s name as well as designation
  • Declaration form in a prescribed format;
  • Applicant’s educational credentials
  • What is process to obtain drug licensing in India?

    Here are the steps mentioned below for seeking drug licensing in India:

  • Visiting website
  • This is the first & foremost step in which the applicant is required to visit the concerned drug control authority portal. It is dependent upon the nature of the licensing the individual is applying for. As there is a different authoritative portal for issuing varied types of drug licensing.

  • Application filing
  • The applicant needs to file an application for the particular licensing on the portal of the respective authority. This is dependent upon the licensing type based on the applicant applying for.

  • Uploading documentation
  • Once the application form has been filled upon, then the next step is to carry out the uploading of the documentation as well as the form submission along with the applicable fee structure. Along with that, the applicant must be in a condition to keep a record of all original documentation before applying.

    Read also this -: How to Apply for New Drug License

  • Drug Inspector Visit
  • Upon receipt of the application, the drug inspector of the area will visit the premises of the company, drug store/shop to verify documentation along with checking the appropriateness of all the facts & figures mentioned.

  • Issuing of license
  • Once inspection of the area is done and all documentation, as well as applications, have been verified, then the drug controller will be issuing licensing.

    Businesses dealing in drug needs to obtain licensing

    Every person must have access to medicines and other pharmaceutical products, living anywhere in the world. However, the drugs as well as the pharmaceutical industry are strictly regulated by Governmental authorities. It is only by obtaining a license, that you can start your operations in India.