What is the concept of Pharma Franchise and how it works?
Experience and Qualification required getting Pharma Franchise
Documents Required for the Registration
Requirement for Pharma Franchise Business Agreements
Important Steps for starting Pharma Franchise Business
Meaning of Pharma Franchise:
What are the Requirements for Taking a Pharma Franchise? Pharma industries are rapidly growing day by day and lots of people are investing to start a stable career. Starting a Pharma company is a good choice due to its demand in the market. The Pharmaceutical Industry in India is one of the fastest-growing industries. With the increase in the demand for pharma products both globally as well as in the country, this sector witnessed tremendous growth. It has been estimated that within a few years India’s pharmaceutical industry will become a third global market for Pharmaceuticals.
This huge growth in the pharmaceutical sector has opened the door of opportunities for pharma professionals in India. One such opportunity is Pharma Franchise Business. Pharma Franchise is considered as the best marketing strategy by the pharma company. It is the best way by which a pharma company can provide its drugs to customers. Thus, the pharma franchise business is quite popular in the country. Pharma Franchise business has good scope for growth which has attracted several people. Many newcomers are joining the business but are unaware of the requirements for a pharma franchise business.
What is the Concept of Pharma Franchise and how does it Work?
PCD Pharma stands for Propaganda-Cum-Distribution ship. The franchise means giving rights to sell or promote a product or wares of another company at your preferred location. This business model will help in the expansion of pharmaceuticals.
The Pharma companies offer franchises to various individuals. It can be on two bases – Pharma Franchise or PCD Pharma Franchise. PCD is an abbreviation for Propaganda Cum Distribution. The main difference between the two terms is that the Pharma franchise works on a larger scale whereas PCD works on small scales. This includes a working area, investment planning. Marketing inputs etc. The qualification & experience is not an issue to take PCD whereas in Pharma Franchise it is.
Experience and Qualification Required Getting Pharma Franchise:-
To get into the Pharma industry and deal frequently with other dealers you need to have some experience in the Pharma sector and know about the requirements for taking a Pharma franchise. Below are the listed requirements you need to have to start your Pharma Company.
You have to have a minimum of 2-3 years of experience in the sales and marketing field of pharma products.
There are no minimum or maximum qualification criteria but if you were 12th pass out or graduate it can add more sweetness to your fruit.
⮚ Documents Required for the Registration:-
Pharma Business is quite risky because indirectly you are dealing with people’s life by providing them medicines and drugs so you need some documentation and registration to be done for smooth and transparent dealing. These documents are required to become a certified dealer and to achieve PCD franchise business from a reputed pharma company.
1. Drug License Number:
It is issued by the central and state drug standard organization. If you have it, then you can use the distributor’s registration number but it is better to always obtain your registration number. Rupees 5000 which may vary from state to state.
Here is another important document is required for the pharma franchise business. This is one of the essential documents without which you won’t be able to sell any kind of drugs in India. A wholesale drug license provides you the authority to store drugs on your premises and sell them.
You can apply for a pharma drug license here:
Central Drug Standard Control Organization
State Drug Standard Control Organization
If you don’t have any of these documents or do not have enough time to apply for them, you can use the documents for your wholesalers or stockist but it is always advised to have your drugs license. It is important and can help you in many ways further in your business. Therefore, apply as soon as you can.
2. Pharmacists registered under State Pharmacy Council
3. Tax Identification Number (TIN) Rupees 4500
4. Tax Registration:
This is one important registration that is required for the pharma franchise business. This comes under the state government and requires one-time investment which may vary from state to state. For selling and purchase of goods or pharma drugs, this document is mandatory for every pharma professional.
Following things are included in the tax registration:
VAT (Value Added Tax)
CST (Central Sales Tax)
TIN (Tax Identification Number)
GST No
PAN No
Adhaar No
5. Investment & Funding Plan:-
Before dealing in the pharma business or taking a pharma franchise you need to prepare a proper investment plan according to your requirements. It is the most important step which can help your business to smooth dealing. You should also prepare with a backup plan so that in case of emergency you can stay secure. You need to invest a minimum of 40,000rs to 50,000rs for the first order to purchase drugs and medicine as per your requirement.
Requirement for Pharma Franchise Business Agreements
For the Pharma Franchise business, another most important thing is the pharma agreement it provides assurance and builds trust between the Pharma Company and associates. To have a pharma franchise business agreement, the following are the requirements:
First and foremost Stamp Paper
Complete Address details of Company and Franchise should be mentioned on the paper
Name of Authorized Persons along with complete Residence Address
Two witnesses are required
Agreement contain mutually agreed term and conditions
Rubber Stamp of both parties are also needed
Important Steps for starting Pharma Franchise Business
If you want to start a successful business in the pharmaceutical sector the first and foremost thing is to do good market research. Since the competition is quite high in this sector you will be not only competing with the big brands but also with the local competitors thus. it becomes important for you to start with a good understanding of the industry.
Here are a few steps that you must take into consideration before starting a Pharma franchise business:
Research the molecules and prepare the list of formulations that you want to launch in the industry.
Now look for the unique brand name and the company name that does not exist in the industry.
Now the next step should be searching for the area, premises, shop or office it could be your own or rental. Space should be as per the governmental norms.
Appoint the experienced pharmacist as per the norms.
Now prepare all the documents and another required license.
Finalize the vendors that you will be requiring for your business such as manufacturer, printer, etc.
