4 Types of Drug Licenses for Pharma Company

4 Types of Drug Licenses for Pharma Company

Before you start a Pharma Company, there are a number of licenses and other legal documents you require. Not only are they required by the state but also by other businesses for example the pharmacies and dispensaries you partner with. You are also legally obligated to make sure your partners have the necessary licensing to commence with business.

No one wants to “stand with one leg knowing they can stand with both”. This means that no one wants to risk their business by partnering with an unlicensed partner when they know they can play safe with another licensed Pharma PCD Company in India. That is why companies like Vivaceutical are a preference in the industry, with transparent legal documentation.
For upcoming businesses, there are four basic drug licenses for a Pharma Company to function in India.

PCD pharma licenses

Manufacturing Drug License

Are you manufacturing Allopathic, Ayurvedic, Cosmetic drugs or any other drug under the Drugs and Cosmetics Act, 1940? If yes, then you need the manufacturing license which can be granted by your respective State Government. This license is issued to insure good manufacturing practices of pharma medicines.
If you are wondering:

Allopathic drugs are the modern drugs used by doctors and other health specialists to treat diseases. Also known as Western drugs, orthodox drugs or conventional drugs.
Ayurvedic drugs are the natural remedies or medicines of India often used for relaxation and as a natural cure for multiple diseases. The drugs that are indigenous to India from the ancient past.

Loan Drug License

The Loan Drug License is issued to a company without its own land to manufacture drugs, but want to produce their products and operate their business on land of a business whose manufacturing license has been taken, while keeping your own brand name on the land and your services.

Import Drug License

This is a license issued to pharma companies who are engaged in distributing drugs that have been imported into the country from other places. It also applies to companies that want to process imported raw materials and use them to produce their pharmaceutical products.

Sales Drug License

Sales Drug License in India is the license issued to wholesalers and retailers who are engaged in the selling and distribution of pharmaceutical products like drugs and pharma equipment.

Retail Drug License – This is a type of Sales Drug License issued to chemists, pharmacies and dispensaries who want to sell pharmaceutical products like drugs. The pharmacists should be registered to the State Pharmacy Council.

Wholesale Drug License – this is issued to firms that want to sell pharmaceutical products on a wholesale level for example a Pharma PCD Company in India. The presence of a registered pharmacist is also required when selling drugs and other pharmaceutical products on a wholesale level.


There are many illegal drug dealings that are happening nowadays, not only in India but worldwide. This includes illegal drug productions, for example some companies are using the wrong composition of raw materials or adding illegal substances in their medical drugs to enhance their effect. It is hard to easily trust any pharma company nowadays and hard to know which to partner with. This is why, it is important to find reliable pharma or a third party manufacturing company with proper licenses.

Having the necessary licenses which are constantly renewed is not only good for audits, but makes it easier for the customers to trust your products. It is also a green light for firms that want to partner with you like pharmacies and dispensaries, to trust your dealings.