How to Start a Medical Store in Gujarat: License, Investment and Setup
Table of Contents
One rule shapes everything about how to start medical store in gujarat: no store can sell a single strip of medicine without a retail drug licence from the Gujarat Food and Drug Control Administration, applied for on Form 19 through the ONDLS portal. Everything else follows from that. A registered pharmacist has to be on the rolls. The premises need to measure at least 10 square metres and hold a refrigerator. And the budget, realistically, sits between INR 2.5 lakh and INR 6 lakh for a retail setup, with medicine stock taking the biggest bite. None of this is complicated once laid out in order, which is what this guide does: the store types open to a first-time owner, eligibility and premises rules, the ONDLS application step by step, the document checklist, an itemised Gujarat cost table, the extra registrations, and how owners commonly fund the setup, including through a Gold Loan.
Types of Medical Store You Can Open in Gujarat
Four models cover the field.
- Retail pharmacy - sells directly to patients against prescriptions. Licence granted in Forms 20 and 21, applied for on Form 19. The natural first business for most new entrants.
- Wholesale pharmacy - supplies retailers and hospitals rather than walk-in customers. Licence granted in Forms 20B and 21B, applied for on Form 19. Needs deeper stock investment.
- Hospital pharmacy - operates inside a hospital and serves its patients. Tied to the institution's requirements.
- Franchise pharmacy - runs under an established pharma brand's name and systems. Lower brand-building effort, but franchise fees apply.
The rest of this guide assumes a retail store, since that is where most Gujarat entrepreneurs begin.
Eligibility and Premises Requirements in Gujarat
Two checklists decide whether an application even gets off the ground.
Qualification Criteria
The applicant, or a pharmacist the applicant hires, is required to hold a D.Pharm or B.Pharm degree and be registered with the Gujarat State Pharmacy Council. Ownership and qualification are separable. A non-pharmacist investor can own the store outright, provided a registered pharmacist is employed full-time and is physically present during operating hours. That salary, typically a recurring monthly cost, belongs in the budget from day one.
Premises and Storage Rules
- Minimum 10 sq m of floor space for a retail store; 15 sq m for a combined retail-wholesale setup
- Adequate refrigeration for temperature-sensitive medicines such as insulin and certain vaccines
- A clean, dry, separate storage area for stock
These are not formalities. A drug inspector from the Gujarat FDCA physically verifies each point before the licence is issued, and premises shortfalls are among the most common reasons applications stall.
Step-by-Step Drug License Application via the ONDLS Portal
The application runs online end to end.
- Create an account on the ONDLS (Online National Drug Licensing System) portal, through which the Gujarat FDCA processes applications.
- Select the licence type. The application goes on Form 19; retail licences are granted in Forms 20 and 21, wholesale in Forms 20B and 21B. Some operators eventually hold both, but one is enough to open.
- Fill the application with business details, the pharmacist's particulars and the premises information.
- Upload the documents listed in the checklist below. Scanned copies are accepted.
- Pay the fee online and await inspection. A drug inspector visits the premises; the pharmacist being present helps. After a successful inspection the licence is issued digitally.
Start to finish, the process typically takes 30 to 60 days. Incomplete uploads and undersized premises cause most of the delays, so it pays to get both right before submitting rather than fixing them mid-application.
Documents Required for a Gujarat Drug License
- Identity and address proof of the applicant
- Pharmacist's registration certificate from the Gujarat State Pharmacy Council
- Premises ownership proof or rental agreement
- Site plan or layout of the store
- Proof of refrigeration facility
- Passport-size photographs
- Business registration certificate (proprietorship, partnership or company)
One line each, but every one is checked. A missing pharmacist certificate in particular sends the application straight back.
Startup Costs for a Medical Store in Gujarat
Medicine stock dominates the budget; the licence fee is almost a rounding error next to it.
|
Cost head |
Indicative range (INR) |
|
Drug licence fee (retail) |
3,000 - 5,000 approx., subject to revision |
|
Business registration |
2,000 - 10,000 depending on structure |
|
Premises setup and interiors |
50,000 - 1,50,000 |
|
Initial medicine inventory |
1,50,000 - 3,00,000 |
|
Refrigeration unit |
15,000 - 30,000 |
|
Billing software |
5,000 - 15,000 per year |
|
Pharmacist salary (if hired) |
15,000 - 25,000 per month |
Note: All figures are indicative estimates only. Government fees are subject to revision by the issuing authorities, and other costs may vary by location, supplier pricing, and market conditions.
The total for a retail store generally lands between INR 2.5 lakh and INR 6 lakh, which is the practical medical store cost gujarat range to plan around. A wholesale store needs considerably more, almost entirely because of inventory.
Other Registrations Your Medical Store Needs
Three more, beyond the drug licence. GST registration becomes mandatory once turnover crosses the applicable threshold; medicines attract GST between 0% and 12% depending on category, and voluntary registration earlier allows input tax credit on purchases. Shop and Establishment registration under the Gujarat Shops and Establishments Act is required within 30 days of opening. And the business entity itself, proprietorship, partnership, LLP or private limited company, is registered as appropriate to the owner's plans, with proprietorship the simplest for a single-owner store.
How to Fund Your Medical Store Setup
An INR 2.5 to 6 lakh requirement usually gets assembled from a few sources rather than one.
- Personal savings carry no cost, and many owners use them for the licence, registration and interiors.
- Business loans from banks and leading NBFCs can fund stock and working capital, subject to eligibility, though a brand-new store with no trading history may find sanction slower.
- Government-backed MSME routes such as Mudra (Shishu up to INR 50,000, Kishore up to INR 5 lakh, with Tarun and Tarun Plus reaching INR 10 lakh and INR 20 lakh) suit smaller tickets, subject to scheme rules.
- A Gold Loan works differently: it is secured against household jewellery, so the store's newness does not count against the applicant. For a pharmacy launch it commonly pays for:
- The opening medicine inventory, the single largest bill
- The refrigeration unit and cold-storage compliance
- Interiors, racks and the dispensing counter
- The first few months of the pharmacist's salary
- Licence, registration and software costs bundled together
As a concrete illustration, jewellery assessed at around INR 4 lakh could support a loan in the region of INR 3 lakh within the applicable loan-to-value ceiling, roughly the size of a modest store's opening stock bill. Figures depend entirely on the gold's weight, purity and prevailing prices.
Estimate Your Loan Requirement
The IIFL Finance Gold Loan Calculator converts weight and purity into an indicative eligible amount, useful for checking whether the household's gold covers the stock bill before any branch visit.
How to Apply for an IIFL Finance Gold Loan
- Bring the gold jewellery to an IIFL Finance branch (bank-issued coins of at least 22 carat, up to 50 grams, may also be pledged).
- Purity and weight are certified in the applicant's presence.
- The loan offer follows from the assessed value.
- KYC is minimal; current RBI directions do not mandate a detailed credit appraisal for loans up to INR 2.5 lakh, though lenders may apply their own policies, while larger loans involve a repayment-capacity review.
- Funds are released on approval, once verification and formalities are complete.
Loan-to-value is capped in tiers under the RBI (Lending Against Gold and Silver Collateral) Directions effective 1 April 2026: 85% up to INR 2.5 lakh, 80% across the INR 2.5-5 lakh band, and 75% above INR 5 lakh. The gold is returned once the loan is repaid.
How IIFL Finance Can Help
For a Gujarat entrepreneur whose licence has come through but whose stock bill has not been paid, an IIFL Finance Gold Loan can bridge the last stretch between approval and opening day, with transparent on-the-spot valuation and terms that depend on the borrower's profile and prevailing guidelines.
Conclusion
A medical store in Gujarat is a rules-first business: Form 19 through ONDLS, a registered pharmacist on the premises, 10 square metres and a refrigerator, then GST and Shop Act registrations behind it. Get those right and the commercial side is manageable, with a setup bill of roughly INR 2.5 to 6 lakh led by inventory. Where savings stop short of that figure, gold lying at home can be pledged to fund the stock without being sold, and redeemed as the store finds its feet. All costs and loan terms here are indicative; actuals turn on the applicant, the lender and the guidelines applicable at the time.
Frequently Asked Questions
Can a non-pharmacist own a medical store in Gujarat?
Yes. A non-pharmacist can own a medical store but needs to employ a registered pharmacist, D.Pharm or B.Pharm qualified and enrolled with the Gujarat State Pharmacy Council, who is present during operating hours. The drug licence is issued in the name of the business, not the owner personally. Budget the pharmacist's salary, commonly INR 15,000 to 25,000 a month, as a fixed cost. When hiring, verify the registration certificate directly with the Council, since the inspector will.
How long does it take to get a drug license in Gujarat?
Typically 30 to 60 days from the date of application on the ONDLS portal, subject to a successful premises inspection by a Gujarat FDCA drug inspector. Most delays trace back to incomplete document uploads or premises falling short of the minimum area. A useful habit is to photograph the finished premises, refrigerator included, before applying; matching the uploaded site plan to what the inspector actually sees avoids a second visit and weeks of waiting.
What is the minimum space required for a medical store in Gujarat?
A retail medical store needs at least 10 sq m of floor space, and a combined retail-wholesale setup needs 15 sq m. The premises also need a refrigeration unit for temperature-sensitive medicines and a separate, clean storage area. Measure the carpet area before signing any rental agreement, because a shop that looks adequate can fall just under the threshold once pillars and partitions are excluded, and that shortfall surfaces only at inspection.
What is the drug license fee for a medical store in Gujarat?
Approximately INR 3,000 to 5,000 for a retail drug licence, payable online through the ONDLS portal. Wholesale licence fees run higher. The Gujarat FDCA revises fees periodically, so the current schedule on the official portal is worth checking just before payment. Keep the payment receipt saved separately; it is asked for again at inspection and renewal, and a missing challan is an avoidable reason for the file to sit unprocessed.
Is GST registration mandatory for a medical store in Gujarat?
It becomes mandatory once annual turnover crosses the applicable threshold. Even below that, voluntary registration is often sensible because it allows input tax credit on purchases from distributors. Most medicines fall in the 0% or 5% GST slabs, with some products at 12%. Registration happens on the GST portal after the drug licence is in hand. Practical point: distributors generally insist on a GSTIN before opening a credit account, so early registration smooths supplier relationships too.
Disclaimer : The information in this blog is for general purposes only and may change without notice. It does not constitute legal, tax, or financial advice. Readers should seek professional guidance and make decisions at their own discretion. IIFL Finance is not liable for any reliance on this content. Read more
