India is the world’s third-largest pharmaceutical market by volume and a key player in the global healthcare ecosystem. With its robust manufacturing base, cost efficiency, and innovation-driven approach, India has earned the reputation of being the “pharmacy of the world.”
Both Indian pharmaceutical giants and foreign companies entering the market are shaping this growth trajectory, making the sector one of the most lucrative industries to invest in.
If you are an entrepreneur or investor looking to establish a pharmaceutical company in India, understanding the regulatory requirements and registration process is essential.
This article provides a step-by-step guide on everything you need to know to register a pharma company in India, ensuring compliance while tapping into this high-growth industry.
Table of Contents
About the Pharma Company in India
A pharmaceutical company is an entity involved in the development, manufacturing, distribution, and marketing of medicines and healthcare products. Depending on the business model, pharma companies in India are typically classified as:
- Manufacturing companies: involved in the production of drugs and medicines.
- Marketing companies: focus on branding and distribution, often outsourcing manufacturing.
- Wholesale businesses: supply medicines in bulk to retailers, hospitals, and distributors.
- Retail businesses: run pharmacies and directly sell medicines to consumers.
India’s pharmaceutical industry has been expanding rapidly. As of 2025, it is valued at $55 billion and is projected to reach $120–130 billion by 2030. The government has also introduced several supportive measures:
- 100% Foreign Direct Investment (FDI) allowed in greenfield pharma projects.
- ₹15,000 crore PLI (Production Linked Incentive) scheme to promote domestic manufacturing.
- Incentives for Active Pharmaceutical Ingredients (APIs) and medical devices to reduce import dependency.
With this growth potential, starting a pharmaceutical business in India is both a profitable and impactful opportunity.
Choosing the Right Business Structure for a Pharma Company
The first step in starting a pharmaceutical business in India is selecting the proper business structure. The choice depends on the scale of operations, funding requirements, and ownership preferences. Common structures include:
- Limited Liability Partnership (LLP): Offers flexibility with limited liability.
Private Limited Company (Pvt Ltd): Ideal for manufacturing and marketing businesses due to scalability and investor appeal. - Public Limited Company: Suitable for large-scale operations planning to raise funds from the public.
- Indian Subsidiary of a Foreign Company: Allows foreign companies to establish a presence in India and leverage the growing market.
India ranks 3rd in the world by volume and 14th by value in pharmaceuticals, making it a preferred hub for domestic and international players. Choosing the right structure ensures smooth registration and compliance.
Eligibility for Registering a Pharma Company
Eligibility criteria are designed to maintain quality and compliance in the pharma sector. Key rules include:
- The applicant must be legally competent to enter into a contract.
- The company must appoint qualified directors and pharmacists, depending on the business type.
- Proper compliance with the Drugs and Cosmetics Act of 1940 is mandatory.
- Only individuals or entities with relevant pharmaceutical qualifications/experience can run such businesses.
Requirements for Registering a Pharma Company
Corporate & Structural Requirements
These are the standard legal requirements for forming a company under the Ministry of Corporate Affairs (MCA).
- Directors and Members: The structure depends on your company type. For a Private Limited Company, a minimum of two directors and two members (shareholders) are required. The same individuals can hold both positions.
- Director Credentials: Every proposed director must have a Digital Signature Certificate (DSC) for online document submission and a Director Identification Number (DIN), a unique identifier issued by the MCA.
- Unique Company Name: Your proposed company name must be unique and not resemble any existing company or trademark. It must be approved and reserved through the MCA portal.
- Registered Office Address: You must provide a physical address in India as the company's official registered office. Proof of address, such as a utility bill or rental agreement, is mandatory for verification.
Pharmaceutical & Technical Requirements
These are specific mandates from the Drugs and Cosmetics Act, 1940, enforced by state drug control departments, which are essential for obtaining a drug license.
Qualified Technical Personnel:
You must employ qualified individuals to supervise the sale and distribution of drugs. The requirements vary based on the business type:
- For Wholesale Business (Distribution): The operations must be supervised by a "Competent Person." This can be:
- A Registered Pharmacist.
- A graduate with at least one year of experience in dealing with drugs.
- For Retail Business (Pharmacy): All sales and dispensing activities must be conducted under the direct supervision of a Registered Pharmacist.
Adequate Storage Premises:
You must have a proper commercial space for storing medicines. The premises are inspected by a Drug Inspector and must meet specific conditions:
- Minimum Area: Typically, a minimum of 10 square meters is required for a wholesale license. This can vary by state.
- Proper Storage Facilities: The premises must be clean, well-lit, and equipped with necessary storage solutions like cupboards, racks, and, crucially, a refrigerator and freezer to store temperature-sensitive drugs like vaccines and serums.
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How to Start a Pharmaceutical Company in India?
The incorporation process is now simplified through the SPICe+ (Simplified Proforma for Incorporating a Company Electronically Plus) form by the Ministry of Corporate Affairs. Steps include:
Phase 1: Business Incorporation
The first step is to register your business as a legal entity with the Ministry of Corporate Affairs (MCA). The modern SPICe+ (Simplified Proforma for Incorporating a Company Electronically Plus) form has streamlined this process significantly.
- Get Director Credentials: All proposed directors of the company must obtain a Digital Signature Certificate (DSC) and a Director Identification Number (DIN). The DSC is an electronic signature used for filing documents online, and the DIN is a unique number assigned to each director.
- Reserve a Company Name: You must apply for and reserve a unique name for your company. This can be done through the MCA portal's RUN (Reserve Unique Name) service or directly within the SPICe+ form.
- Draft Foundational Documents: Two critical documents need to be prepared:
- Memorandum of Association (MoA): This document defines the company's objectives and the scope of its business activities.
- Articles of Association (AoA): This document outlines the internal rules and regulations for managing the company.
- File the SPICe+ Form: This single, integrated web form is used to file for incorporation. It combines applications for the company name, DIN allotment, and issuance of important tax numbers like PAN and TAN.
- Receive Certificate of Incorporation: Once the MCA approves your application, you will receive a Certificate of Incorporation. This certificate includes your unique Corporate Identity Number (CIN) and officially marks the legal birth of your company.
Phase 2: Securing Pharmaceutical Licenses
This is the most critical phase and is specific to the pharmaceutical industry. These licenses are granted by the Central Drugs Standard Control Organization (CDSCO) and State Drug Control Departments.
- Drug License: This is the primary license required to deal with drugs and cosmetics. The type of license depends on your business model:
- Manufacturing License: Required if you plan to manufacture drugs. This involves a rigorous inspection of your manufacturing facility to ensure it complies with Good Manufacturing Practices (GMP) and has the necessary technical staff and equipment.
- Wholesale/Distribution License: Required for stocking, selling, and distributing drugs. This requires having adequate storage premises with proper refrigeration facilities and employing a registered pharmacist.
- GST Registration: Before you can apply for a drug license, you must complete your Goods and Services Tax (GST) registration. The GSTIN is a mandatory requirement for the drug license application.
Phase 3: Brand and Tax Formalities
With your company and licenses in place, the final step is to protect your brand and manage your finances.
- Trademark Registration: It is highly advisable to register your company name, logo, and the brand names of your pharmaceutical products. This protects your intellectual property and prevents others from using similar names.
- Bank Account Opening: You can open a corporate bank account using the Certificate of Incorporation and other registration documents.
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Documents Required to Register a Pharma Company
Here’s a checklist of essential documents required to open pharma company:
For Indian Directors/Shareholders:
- PAN Card
- Aadhaar Card
- Passport-size photographs
- Address proof (utility bill, bank statement)
For Foreign Directors/Shareholders:
- Passport (notarised and apostilled)
- Proof of overseas address
- Photograph
For the Company:
- Registered office address proof (rent agreement/ownership proof)
- Utility bill of the premises (electricity/water bill)
- MoA and AoA
Other Registrations Required for a Pharma Company
After incorporation, a pharma company must obtain additional registrations and licenses to operate legally:
- Drug License (under the Drugs and Cosmetics Act, 1940)
- Manufacturing License
- Wholesale License
- Retail License
- Loan License (for outsourcing manufacturing)
- Import License (for foreign medicines)
- GST Registration – Mandatory for taxation and interstate sales.
- FSSAI Registration – Required if dealing with nutraceuticals or dietary supplements.
- Trademark & Patent Registration – Protects brand identity and intellectual property.
- Import Export Code (IEC) – For companies engaged in pharma exports/imports.
Frequently Asked Questions (FAQs)
Private Limited Company
(Pvt. Ltd.)
- Service-based businesses
- Businesses looking to issue shares
- Businesses seeking investment through equity-based funding
Limited Liability Partnership
(LLP)
- Professional services
- Firms seeking any capital contribution from Partners
- Firms sharing resources with limited liability
One Person Company
(OPC)
- Freelancers, Small-scale businesses
- Businesses looking for minimal compliance
- Businesses looking for single-ownership
Private Limited Company
(Pvt. Ltd.)
- Service-based businesses
- Businesses looking to issue shares
- Businesses seeking investment through equity-based funding
One Person Company
(OPC)
- Freelancers, Small-scale businesses
- Businesses looking for minimal compliance
- Businesses looking for single-ownership
Private Limited Company
(Pvt. Ltd.)
- Service-based businesses
- Businesses looking to issue shares
- Businesses seeking investment through equity-based funding
Limited Liability Partnership
(LLP)
- Professional services
- Firms seeking any capital contribution from Partners
- Firms sharing resources with limited liability
Frequently Asked Questions
What is the minimum investment required to open a pharmaceutical company in India?
The minimum investment depends on the type of pharma business you plan to set up:
- Retail pharmacy/wholesale distribution – ₹5–10 lakhs (primarily for licenses, shop setup, and inventory).
- Small-scale manufacturing unit – ₹2–5 crores (including land, plant, machinery, and approvals).
- Marketing company (without manufacturing) – ₹10–20 lakhs (mainly for licenses, branding, and distribution network).
The costs vary depending on location, scale, and whether you plan to export.
Which business structure is best for a pharmaceutical startup in India?
The Private Limited Company structure is considered the most suitable for pharmaceutical startups because:
- It provides limited liability protection to the founders.
- It is preferred by investors and VCs, making it easier to raise funds.
- It ensures better compliance and credibility with regulators, suppliers, and customers.
For foreign companies, setting up an Indian subsidiary is often the best route to enter the Indian pharma market.
How long does it take to register a pharma company?
Registering a pharmaceutical company in India through the SPICe+ process generally takes 10–15 working days, provided all documents are in order.
Do I need separate licenses for manufacturing and marketing drugs?
Yes. The licenses are different depending on your business model:
- Manufacturing License: Required if you are producing drugs and medicines.
- Marketing License: Required for companies that outsource production but handle branding and distribution.
- Wholesale/Retail License: Required for distribution or retail pharmacy operations.
So, you must apply for the specific license(s) that match your pharma company’s scope of operations.
How can I protect my pharma brand name and logo from competitors?
To secure your brand identity in the competitive pharma market, you should:
- Register a Trademark: Protects your brand name, logo, and tagline under the Trademarks Act, 1999.
- Patent Registration: If you’ve developed a new drug formula or process, apply for patents to secure exclusivity.
Copyright Protection: For marketing materials, packaging, and designs.
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Mukesh Goyal is a startup enthusiast and problem-solver, currently leading the Rize Company Registration Charter at Razorpay, where he’s helping simplify the way early-stage founders start and scale their businesses. With a deep understanding of the regulatory and operational hurdles that startups face, Mukesh is at the forefront of building founder-first experiences within India’s growing startup ecosystem.
An alumnus of FMS Delhi, Mukesh cracked CAT 2016 with a perfect 100 percentile- a milestone that opened new doors and laid the foundation for a career rooted in impact, scale, and community.
