Drug License

Learn about drug licenses and their importance. Discover the meaning, purpose, types, prerequisites, and application process for obtaining a drug license.
Business Loan
3 min
02-July-2024

A drug licence is a legal permit required for the manufacture, distribution, or sale of pharmaceutical drugs. It ensures that businesses comply with regulatory standards, maintaining the quality and safety of drugs. Obtaining a drug licence involves meeting prerequisites and submitting essential documents. A business loan can help by providing the necessary funds to cover application fees, set up compliant facilities, and hire qualified personnel. With financial support, businesses can efficiently navigate the licensing process, ensuring they meet all regulatory requirements and can operate legally in the pharmaceutical industry.

What is a drug?

A drug is any substance that, when introduced into the body, alters its normal functioning. Drugs can be classified into different categories based on their effects and purposes. Here are a few key points:

  • Medicinal Drugs: Used for treating illnesses and conditions.
  • Recreational Drugs: Consumed for their psychoactive effects.
  • Illicit Drugs: Illegal substances with no medical use.
  • Prescription Drugs: Available only with a doctor's prescription.

Understanding the different types of drugs helps in recognising their impact on health and society.

Meaning of drug licence

A drug licence is a legal permit required to manufacture, distribute, or sell drugs. It ensures that the holder complies with regulatory standards. Key points include:

  • Manufacturing Licence: For producing drugs.
  • Sale Licence: For selling drugs, either retail or wholesale.
  • Import Licence: For importing drugs into the country.
  • Loan Licence: For manufacturing drugs at another licensed facility.

A drug licence is crucial for maintaining quality and safety standards in the pharmaceutical industry.

Purpose of drug licence

The primary purpose of a drug licence is to regulate the pharmaceutical industry and ensure the safety and efficacy of drugs. Key objectives are:

  • Quality Control: Ensuring drugs meet safety and efficacy standards.
  • Regulation: Monitoring the production and distribution of drugs.
  • Consumer Safety: Protecting the public from harmful or ineffective drugs.
  • Compliance: Ensuring that manufacturers and sellers adhere to legal requirements.

Obtaining a drug licence is essential for any business involved in pharmaceuticals, ensuring trust and safety for consumers. Just as a drug licence is crucial for the pharmaceutical industry, a trade licence is vital for legally operating any business, ensuring compliance with local regulations and establishing credibility. Additionally, securing a shop and establishment registration is important for setting up a business, ensuring it meets all legal and operational standards.

Types of drug licence

Drug licences are categorised to cover various activities in the pharmaceutical industry. Key types include:

  • Manufacturing Licence: For drug production.
  • Sale Licence: For selling drugs, retail or wholesale.
  • Import Licence: For importing drugs.
  • Loan Licence: For manufacturing at another licensed facility.

Each licence type ensures compliance with specific regulatory requirements, ensuring the safe and effective distribution of drugs.

Manufacturing licence

A manufacturing licence is required for the production of pharmaceutical drugs. Key points include:

  • Application: Submit to the drug control authority.
  • Compliance: Adhere to Good Manufacturing Practices (GMP).
  • Inspection: Facilities are inspected for hygiene and quality control.
  • Documentation: Maintain detailed records of production and quality checks.

A manufacturing licence ensures that drugs are produced safely and meet quality standards, protecting public health.

Sale licence

A sale licence is necessary for selling pharmaceutical drugs. Key points include:

  • Retail Sale Licence: For selling directly to consumers.
  • Wholesale Licence: For distributing drugs to retailers or other distributors.
  • Application: Submit to the relevant authority with required documents.
  • Compliance: Follow storage and handling regulations.

Holding a sale licence ensures that drugs are sold legally and safely, maintaining public trust in pharmaceutical products.

Wholesale licence

A wholesale licence allows for the distribution of drugs to retailers or other distributors. Key points include:

  • Storage: Comply with storage requirements to maintain drug efficacy.
  • Documentation: Keep records of all transactions.
  • Regulation: Adhere to regulatory standards for drug distribution.

Obtaining a wholesale licence is crucial for businesses involved in the largescale distribution of pharmaceutical products.

Retail licence

A retail licence permits the sale of drugs directly to consumers. Key points include:

  • Premises: Must meet health and safety standards.
  • Pharmacist: A qualified pharmacist must oversee drug sales.
  • Record Keeping: Maintain records of sales and purchases.
  • Compliance: Follow regulations for storage and handling of drugs.

A retail licence ensures that consumers receive safe and effective drugs from a regulated source.

Loan licence

A loan licence allows a company to manufacture drugs at another company's licensed facility. Key points include:

  • Agreement: Between the licence holder and the manufacturing facility.
  • Compliance: .Adhere to manufacturing regulations.
  • Quality Control: Ensure products meet safety standards.

A loan licence is useful for companies without their own manufacturing facilities, enabling them to produce drugs under strict regulations.

Import licence

An import licence is required to bring pharmaceutical drugs into the country. Key points include:

  • Application: Submit to the drug control authority with necessary documentation.
  • Compliance: Follow import regulations and standards.
  • Inspection: Imported drugs are subject to quality checks.
  • Documentation: Maintain records of imported drugs.

Obtaining an import licence ensures that only safe and effective drugs enter the country, protecting public health.

Multidrug licence

A multidrug licence allows the holder to deal with various types of drugs. Key points include:

  • Coverage: Can include manufacturing, sale, or distribution of multiple drugs.
  • Compliance: Adhere to regulations for all covered drugs.
  • Documentation: Maintain detailed records for each drug type.

A multidrug licence is beneficial for companies dealing with a wide range of pharmaceutical products, ensuring comprehensive regulatory compliance.

Drug controlling authority or regulatory authority

The drug controlling authority plays a crucial role in overseeing the pharmaceutical industry to ensure public health and safety. This authority is responsible for regulating the production, distribution, and sale of pharmaceutical drugs through several key functions:

  • Approval: The authority grants licences for drug manufacturing and sale. This involves a thorough evaluation of applications to ensure that only qualified entities with proper facilities and expertise are allowed to produce or distribute drugs. The licensing process is designed to ensure that all participants in the pharmaceutical supply chain meet stringent safety and quality standards.
  • Inspection: Regular inspections of manufacturing and distribution facilities are conducted to verify compliance with regulatory standards. These inspections check for proper hygiene, equipment maintenance, and adherence to Good Manufacturing Practices (GMP). Inspections help identify any potential issues that could affect drug quality or safety.
  • Compliance: Ensuring that all stakeholders adhere to regulations is a primary responsibility of the drug controlling authority. This includes monitoring the entire lifecycle of drugs, from production to sale, to guarantee that all legal and safety requirements are met. Compliance checks help maintain the integrity of the pharmaceutical industry.
  • Enforcement: The authority has the power to take action against entities that violate regulations. This can include penalties, suspension of licences, or legal action. Enforcement ensures that non-compliant entities are held accountable and serves as a deterrent to others.

By performing these functions, the drug regulatory authority ensures that all drugs available in the market are safe, effective, and of high quality, thereby safeguarding public health.

Prerequisites for obtaining a licence

To obtain a drug licence, certain prerequisites must be met. Key requirements include:

  • Qualified Personnel: Employing a qualified pharmacist or chemist.
  • Premises: Suitable location and facilities meeting health and safety standards.
  • Documentation: Submitting required documents, such as proof of qualifications and premises details.
  • Compliance: Adhering to regulatory standards and guidelines.

Meeting these prerequisites is essential for obtaining a drug licence, ensuring that the business operates legally and safely.

Application for a drug licence

Applying for a drug licence involves several steps. Key points include:

  • Form Submission: Complete and submit the application form to the relevant authority.
  • Documentation: Provide necessary documents, such as identity proof, premises details, and qualifications.
  • Inspection: The authority may inspect the premises.
  • Approval: If all criteria are met, the licence is granted.

The application process ensures that only qualified and compliant businesses can operate in the pharmaceutical sector.

List of essential documents for obtaining a licence

Obtaining a drug licence requires several essential documents. Key documents include:

  • Application Form: Completed and signed.
  • Identity Proof: For the applicant, such as a passport or ID card.
  • Qualification Proof: Degrees or certificates of the pharmacist or chemist.
  • Premises Proof: Ownership or rental agreement of the premises.
  • Affidavit: Declaring compliance with regulations.

Submitting these documents is crucial for a successful drug licence application, ensuring all regulatory requirements are met.

List of application forms

Different application forms are needed for various types of drug licences. Key forms include:

  • Form 19: For a manufacturing licence.
  • Form 20: For a retail sale licence.
  • Form 21: For a wholesale licence.
  • Form 8: For an import licence.
  • Form 24: For a loan licence.

Each form requires specific information and documentation, ensuring a thorough evaluation process for granting drug licences.

Conclusion

In conclusion, obtaining a drug licence is a critical step for any business involved in the pharmaceutical industry. It ensures compliance with regulatory standards, guarantees the safety and efficacy of drugs, and protects public health. Understanding the different types of licences and their specific requirements is essential. By meeting all prerequisites and submitting the necessary documents, businesses can secure the appropriate licences and operate legally and safely, contributing to the overall wellbeing of society. Additionally, securing a business loan can provide the necessary financial support to cover the costs associated with obtaining a drug licence, such as application fees, facility setup, and hiring qualified personnel. This financial backing ensures that businesses can efficiently navigate the licensing process and meet all regulatory requirements.

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Frequently asked questions

What is the cost of drug license in India?
The cost of obtaining a drug licence in India varies depending on the type of licence and the state. Typically, the fees range from INR 3,000 to INR 25,000. For a manufacturing licence, fees may be higher, while retail and wholesale licences generally have lower costs. Additional charges may apply for inspections and document processing. It’s advisable to check with the specific state drug control authority for precise fee details.
How do you become a licensed drug dealer?

To become a licensed drug dealer in India, you must follow these steps:

  1. Eligibility: Ensure you meet the eligibility criteria, including having a qualified pharmacist or competent person.
  2. Application: Submit an application to the state drug control department along with the required forms and documents.
  3. Documentation: Provide necessary documents such as proof of premises, qualification certificates, and identity proof.
  4. Inspection: The drug control authority will inspect your premises to ensure compliance with regulations.
  5. Approval: If all requirements are met, the authority will grant the drug licence.

Compliance with ongoing regulatory standards is necessary to maintain the licence.

How can I verify my drug license number in India?

To verify your drug licence number in India:

  1. Visit the Website: Go to the official website of the state drug control department or the Central Drugs Standard Control Organisation (CDSCO) portal.

  2. Search Tool: Use the licence verification search tool available on the website.

  3. Enter Details: Input the drug licence number and other required details.

  4. Verification: The system will display the licence details, confirming its validity and status.

This process ensures that the drug licence is legitimate and up to date.

Who can get a drug license in India?

In India, a drug licence can be obtained by individuals or entities involved in the pharmaceutical industry, such as:

  • Manufacturers: Companies producing pharmaceutical drugs.

  • Distributors: Entities involved in the wholesale distribution of drugs.

  • Retailers: Pharmacies and medical shops selling drugs to consumers.

  • Importers: Businesses importing pharmaceutical products into India.

Applicants must meet specific qualifications, including having a qualified pharmacist or competent person, suitable premises, and adherence to regulatory standards.

How do I get my CDSCO license?

To obtain a CDSCO licence:

  1. Registration: Register on the CDSCO online portal.

  2. Application: Fill out the application form for the specific type of licence you need (manufacturing, import, etc.).

  3. Documentation: Submit the required documents, such as proof of premises, qualifications, and product details.

  4. Compliance: Ensure your facilities and processes comply with Good Manufacturing Practices (GMP) and other regulations.

  5. Inspection: The CDSCO may conduct inspections of your premises.

  6. Approval: Once all criteria are met and inspections are passed, the CDSCO will grant the licence.

Maintaining compliance with ongoing regulations is essential for retaining the licence.

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