To start pharmacy shop in Gujarat, you need a retail drug license from the Gujarat Food and Drug Control Administration (FDCA), a registered pharmacist on staff, a commercial premises of at least 10 sq m, and a startup budget of around INR 2.5 lakh to INR 6 lakh depending on location and inventory size.

This guide explains how to start pharmacy shop business in gujarat, covering licensing requirements, ONDLS application steps, premises rules, funding options like gold loans and cost estimates so you can plan your setup in a structured and compliant manner.

What Type of Drug License Do You Need in Gujarat?

Understanding the types of drug license Gujarat is the first step in your setup journey. Most small pharmacies require a retail license.

For a typical pharmacy shop, a retail drug license Gujarat is required. Wholesale licenses are only needed if you plan to supply medicines to other businesses.

Eligibility and Premises Requirements

To apply for a pharmacy license, you must meet both personnel and pharmacy premises requirement Gujarat standards.

1. Pharmacist requirement Gujarat

• A registered pharmacist with Gujarat State Pharmacy Council registration is mandatory for retail
• For wholesale, a graduate with relevant experience may qualify

2. Premises requirement Gujarat

• Minimum area:
  • 10 sq m for retail
  • 15 sq m for combined retail and wholesale
• Premises must be commercial and properly ventilated
• Storage systems must ensure medicine safety
• A refrigerator is required for temperature-sensitive drugs

These requirements ensure safe storage and proper dispensing of medicines under the Drugs and Cosmetics Act.

Documents Required for a Gujarat Drug License

The documents required drug license Gujarat application can be organised into the following checklist:

1. Identity & Address Proof
   • PAN card
   • Aadhaar or other valid ID
2. Premises Documents
   • Rent agreement or ownership proof
   • Shop layout or site plan
3. Pharmacist Documents
   • Qualification certificate (Diploma/Degree in Pharmacy)
   • Gujarat State Pharmacy Council registration
4. Business Registration Proof
   • Proprietorship declaration / partnership deed / company documents
5. Other Documents
   • Passport-size photographs
   • Affidavit as required by licensing authority

Ensure all documents are scanned clearly for online submission.

Step-by-Step Application Process via the ONDLS Portal

The ONDLS portal Gujarat drug license system provides an online process for applications.

Step 1: Register on ONDLS

Visit ONDLS portal and create an account using your mobile number and email.

Step 2: Select License Type

Choose the appropriate category (retail for most pharmacy shops).

Step 3: Fill Application Form

Enter details related to business registration, premises, and pharmacist credentials.

Step 4: Upload Documents

Upload all required documents in the prescribed format.

Step 5: Pay Application Fee

The fee for a retail license is approximately INR 3,000–5,000.

Step 6: Inspection and Approval

• A Drug Inspector may visit your premises
• Inspection typically checks:
  • Storage conditions
  • Refrigeration availability
  • Display arrangements
  • Presence of a registered pharmacist

Approval timelines may range between 5–20 working days, depending on documentation and verification.

Once approved, the license can be downloaded and verified online.

Note: Timelines and fees are indicative and may vary based on application completeness, inspection scheduling, and regulatory updates.

Pharmacy Shop Business Plan: Startup Costs in Gujarat

A detailed pharmacy shop business plan Gujarat should account for the following typical cost components:

Total estimated startup cost: INR 2,50,000 – INR 6,00,000

Costs may be higher in cities like Ahmedabad or Surat and relatively lower in smaller towns.

Note: Figures mentioned above are indicative market estimates and may vary depending on location, supplier pricing, borrower profile, and operational scale.

Other Registrations Your Pharmacy Needs

Along with the drug license, a pharmacy shop requires additional registrations:

1. Business Registration
   Most single-store pharmacies are set up as sole proprietorships due to simpler compliance. Partnerships or LLPs may be used where multiple owners are involved.
2. GST Registration
   GST registration is required if turnover exceeds applicable thresholds. Medicines typically attract GST between 0% and 12% depending on classification.
3. Shop and Establishment Registration
   You must register your business with the local municipal authority under the Shop and Establishment Act.

Funding Your Pharmacy: How to Finance the Setup

Setting up a pharmacy requires upfront capital for inventory, rent deposits, storage infrastructure, and working capital. Depending on your financial profile and risk preference, you may consider multiple funding sources. Each option comes with different requirements, flexibility, and cost implications.

1. Personal Savings

Using personal savings is one of the most common ways to start pharmacy shop in Gujarat, especially for first-time entrepreneurs.

• No repayment obligation or interest cost
• Full financial control over the business
• No dependency on lender approval

However, using savings may reduce liquidity for emergencies or personal needs. It is often used alongside other funding sources to balance risk.

2. Family Contributions

Financial support from family members can supplement your initial capital requirement.

• Typically informal and flexible terms
• May not involve interest or strict repayment schedules
• Useful for early-stage funding gaps

It is advisable to document contributions clearly to avoid misunderstandings later, especially if the business evolves into a partnership.

3. Business Loans (Unsecured Loans)

A pharmacy shop business loan Gujarat can help finance setup costs such as inventory purchase, shop fit-out, and day-to-day expenses.

What it typically covers:

• Medicine stock procurement
• Store interiors, shelving, billing systems
• Working capital for operations

Key considerations:

• Loan eligibility depends on business profile, income proof, and credit history
• Interest rates, tenure, and EMI structure may vary
• Requires documentation such as bank statements, KYC, and business proof

NBFCs like IIFL Finance provide business loans for small enterprises. Approval, loan amount, and disbursal timelines are subject to lender evaluation and documentation. You may explore business financing solutions on IIFL Finance Business Loan to understand available options and eligibility requirements.

4. Loan Against Property (LAP)

If you own residential or commercial property, you may consider a loan against property.

Features:

• Larger loan amounts compared to unsecured loans
• Typically, longer repayment tenure
• May offer relatively lower interest rates compared to unsecured credit

Use cases:

• High inventory investments
• Expansion of pharmacy store
• Multi-outlet business planning

Important note: The property is kept as collateral. In case of non-repayment, lenders may initiate recovery proceedings as per applicable regulations.

5. Gold Loan – Flexible Short-Term Funding Option

A gold loan can be a practical financing option for small business owners who have gold jewellery available as collateral.

How a gold loan works:

• You pledge gold jewellery with a lender
• The loan amount is determined based on gold purity and market valuation
• The Reserve Bank of India (RBI) permits lenders to offer loans up to a certain Loan-to-Value (LTV) ratio, typically up to 85% of gold value (subject to prevailing guidelines)
• The loan tenure is generally short to medium term

Gold loan eligibility:

• Ownership of gold jewellery (typically 18–24 karat)
• Basic KYC compliance
• No mandatory income proof in some cases

Using a gold loan calculator:

Before applying, borrowers may use a gold loan calculator available on lending websites to estimate:

• Eligible loan amount based on gold weight and purity
• Approximate interest payable
• EMI or repayment structure (if applicable)

Documents required:

• Identity proof (Aadhaar, PAN, etc.)
• Address proof
• Basic KYC documents
• Gold ownership declaration (if required)

How to apply for a gold loan with IIFL Finance:

1. Visit the official IIFL Finance gold loan branch or apply via the website.
2. Fill in the basic loan enquiry or application form
3. Submit KYC documents
4. Gold is evaluated for purity and weight at the branch
5. Loan amount is determined based on valuation and applicable LTV ratio
6. Upon agreement to terms, loan is sanctioned and disbursed

Loan approval, amount, and disbursal are subject to lender evaluation, gold quality verification, and internal policies. You may explore detailed options and eligibility on the IIFL Finance Gold Loan page or consult a branch for guidance.

Choosing the Right Funding Mix

Most small pharmacy owners use a combination of funding sources, such as:

• Savings + Gold loan (for working capital)
• Business loan + personal contribution
• Family support + small-ticket secured loan

The right mix depends on:

• Available collateral
• Credit profile
• Risk appetite
• Business scale

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