The documents you actually need to start a pharma franchise in India
UNOS Biotech 2 min read
To start a pharma franchise in India you need a wholesale drug licence (typically Form 20B and 21B) and a GST registration certificate, both in the name of the firm being invoiced. PAN, firm registration, bank details and premises address proof are usually also requested. Trademark applications are needed only if you plan your own brands.
Most delays between agreeing a franchise and receiving the first consignment are documentation delays, not supply delays. Here is the list.
Non-negotiable
- Drug licence. A wholesale drug licence (commonly Form 20B and 21B) issued by your State Drugs Control Department, in the name of the firm taking the franchise. Not a personal licence, not a licence in a relative's name — the firm that will be invoiced.
- GST registration certificate. In the same firm name, with the same address as the drug licence wherever possible. A mismatch here is the single most common reason a first dispatch stalls.
Usually asked for
- PAN card of the firm or proprietor.
- Firm registration or proprietorship declaration.
- Cancelled cheque or bank details for the account payments will be made from.
- Address proof for the premises where stock will be held.
Additionally, if you plan your own brands later
A trademark application (Form TM-A) or registration certificate for each brand name. Manufacturers will generally accept an application number rather than a granted registration, but they will not accept nothing — a brand-name dispute is a problem for both parties.
The two that cause delays
Name and address mismatches between the drug licence and GST certificate. Fix these before you start the conversation, not after your order is placed.
Competent person details on the drug licence. Some states require a registered pharmacist or a qualified competent person named on the licence, and a licence that has lapsed on this point is not a valid licence.
What happens next
Once documents are exchanged, the commercial side is usually quick: territory confirmed, product list and rates shared, order placed, payment made, goods dispatched. On our side, dispatches are against advance payment, rates are ex-Chandigarh and freight is extra at actuals — so the last thing to settle is usually transport, not paperwork.