How to Start a Medical Store Business in India in 2026?

How to Start a Medical Store Business in India in 2026?

If you are planning to open a medical store in 2026, the first thing you should know is this it is not like opening any other shop. Medicines come with responsibility. There are rules. There are inspections. And yes, paperwork matters more here than in most businesses.

That doesn’t mean it’s impossible. It just means you need to move in the right order.

Let me explain it to you the way it actually works.

Why Medical Stores are a Good Business Option?

A medical store is not just a place where people buy tablets. For many customers, especially older people, it becomes a daily stop. They rely on you for correct medicines, correct quantities, and basic guidance.

Because of this, the government keeps a close watch on pharmacies. You are allowed to run one only if you follow the rules properly.

If you are okay with that this business can be stable and long-term

Read More How to Apply for a Drug License Wholesale and Retail Online?

Step One: Decide Who Will Own the Business

Before you apply for any licence decide how the business will be registered

Most people choose one of these:

• Sole proprietorship
• Partnership firm
• LLP or private limited company

If you are running a single store and starting small, proprietorship is common. If you are planning expansion later, LLP or company structure makes more sense.

There is no “best” option. Choose what fits your future plans.

Step Two: Understand the Drug Licence Requirement

This is the most important part. You cannot sell medicines without a Retail Drug Licence.

This licence is issued by the State Drug Control Department. It is not optional. Without it, even one sale is illegal.

To apply for this licence, you must have:

• A fixed shop location
• Proper storage facilities
• A registered pharmacist
• Basic infrastructure like refrigerator and racks

The licence is issued for a specific address. If you change your shop later, you must update the licence.

About the Pharmacist (This Is Mandatory)

You must appoint a qualified pharmacist who is registered with the State Pharmacy Council.

This person must be present during business hours. Inspectors do check this. It is not a name-only requirement.

Without a pharmacist:

• Your drug licence will not be approved
• Your store can be sealed during inspection

Many first-time owners ignore this and face trouble later. Don’t make that mistake.

Choosing the Right Location Matters More Than You Think

A medical store works best when people need it regularly.

Good locations usually are:

• Near hospitals or clinics
• Close to residential areas
• Around diagnostic centres

High rent areas are not always better. Footfall from actual patients matters more than crowd.

Also check:

• Power supply
• Clean water
• Easy access for delivery vehicles

Inspectors also look at hygiene and storage conditions during approval.

Other Registrations You Will Need

Apart from the drug licence, you will also need:

• GST registration (mandatory beyond threshold, helpful otherwise)
• Shop and Establishment registration
• Trade licence from the local authority (in some cities)
• Bank current account in the business name

If you plan to sell nutrition supplements or health drinks, you may also need FSSAI registration, depending on product type.

Setting Up the Store Properly

Your store does not need fancy interiors. But it must be organised.

You should have:

• Proper racks for medicines
• Separate storage for expired or damaged stock
• Refrigerator for temperature-sensitive medicines
• Clean counter and billing area

Expired medicines are taken seriously. Never keep them mixed with regular stock.

Inventory Planning

Many people waste money here.

In the beginning:

• Stock common medicines only
• Focus on fast-moving products
• Avoid bulk buying expensive medicines

Your distributor will guide you on demand patterns. Listen to them, but also track what actually sells in your store.

Expiry losses can quietly eat your profits if you are careless.

Read More Drug License Wholesale Retail in Ghaziabad, UP

Billing and Record Keeping

A medical store must maintain proper records.

You will need:

• Purchase bills from distributors
• Sales records
• Stock register with batch numbers
• Prescription records for restricted medicines

Use a basic pharmacy billing software. Manual records are risky and often lead to errors.

During inspections, paperwork matters as much as stock.

Inspections Are Normal 

Drug inspectors do routine checks. This is normal.

They usually look for:

• Valid licences displayed
• Pharmacist presence
• Expiry management
• Cleanliness and storage
• Proper bills and registers

If your store is organised, inspections pass smoothly.

Problems happen when records are missing or licences are incomplete.

Common Mistakes You Should Avoid

From experience, these mistakes cause trouble:

• Starting sales before getting the drug licence
• Hiring an unregistered pharmacist
• Ignoring expiry dates
• Poor documentation
• Changing shop location without updating licences

Conclusion

Starting a medical store business in India in 2026 is a serious but rewarding decision. It requires patience, compliance and discipline. If you follow the correct steps the business can grow steadily and earn trust in the community

If you want help with drug licence registration, GST, shop registration and overall compliance, Agile Regulatory can guide you through the process. We handle the paperwork so you can focus on setting up and running your store the right way

Getting compliance right at the start saves you stress later. Reach out to Agile Regulatory and start your medical store with confidence.