Pharma Company Registration

India is the largest provider of generic drugs globally and is known for its affordable vaccines and generic medications. As per a report by IBEF i.e, India Brand Equity Foundation, India is the third ranked country in Pharmaceutical industry. Also, India fulfile 50% of global supply demand for drugs for various vaccines. Phara Business is one of the businesses growing rapidly both domestically and globally.

The rise in demand of pharma supplies globally increases the chance of setting up a successful Pharma Company. For Pharma Company Registration, it is important for an individual to understand which business structure they can choose. Also, there are multiple documents needed for a successful Pharma Company setup. In this article, we will discuss the major requirements for Pharma Company Registration, Documents Required, Pharma Company Registration Process, other mandatory licenses, etc.

Pharma Company Registration Types

In India, there are multiple types of company structures available for Company Registration. However, there are few business structures which are suitable for Pharma Company Registration in India:

1. Private Limited Company: A Private Limited Company is one of the most preferable company structures for Pharma Company Registration in India.
2. Limited Liability Partnership: LLP or Limited Liability Partnership is another preferable option for starting a Pharma Company in India. It is run by two or more partners. LLP works as a partnership firm and has benefits just like a Private Limited Company.
3. Public Limited Company: A Public Limited Company has limited liability just like LLP & Pvt Ltd Company. Their shares can be traded on the stock market for easy operations.
4. One Person Company: An OPC or One Person Company is run by an individual and has perpetual succession which means it can be continued in the absence of an owner.
5. Indian Subsidiary: Indian Subsidiary refers when a foreign company wishes to run their pharma business in India. They can work in India as another branch.

Basic Requirement for Pharma Company Registration

To start a Pharma Company in India, there are some basic requirements that should be completed. These requirements are as follow:

• There should be a minimum of three directors for a Public Limited Company, two directors for Private Limited Company & LLP and one director for One Person Company.
• Any Foreign National can be a director in a Pharma Company in India but there should be at least one Indian Citizen director.
• Company must have an official and legal registered office address in India.
• All Directors must have a Director Identification Number (DIN).
• Also, Directors & Shareholders must have a Digital Signature Certificate (DSC).
• Company Owner, Partner or Director must have experience in the Pharma Sector. Also, at least one director or member should be registered pharmacist under the State Pharmacy Council.

Documents Required for Pharma Company Registration

In order to start a Pharma Company in India, there are some mandatory documents required. Following is the Document Checklist for Company Registration:

1. Identity Proof: Identity Proof of Director is required, it can be an Aadhaar Card, PAN Card, Voter ID, etc.
2. Address Proof: Address Proof of Director/Shareholder residential address is required.
3. MoA: Memorandum of Association of Company including the major clauses of the company including name clause, object clause, etc.
4. AoA: Article of Association is a document which includes all the rules and responsibilities within the internal management.
5. Passport Size Photograph: Passport Size Photograph is needed of Director/Shareholders of the company.
6. DSC: DSC or Digital Signature Certificate of all the Directors/Shareholder is required.
7. DIN: Director Identification Number or DIN is a unique 8 digit number provided to each director of a company.
8. Registered Office Address Proof: Address Proof of registered office address is required.
9. Proof of Ownership: Permission of owner is required, in case of any rented property, NOC from the owner is needed.

Steps to Register a Pharma Company

To Start a Pharma Company in India, certain steps are required to be followed. These steps include:

• Step 01: Obtain DSC, DIN & DPIN: In order to register a pharma company in India, individual need to obtain Digital Signature Certificate of all the shareholders, Director Identification of all the Directors & Designated Partner Identification Number for all the designated partners within the company. If a Director already has a DIN then there is no need to obtain a DIN again. Directors can use their DIN for more than one company.
• Step 02: Reserve Company’s Name: Once you obtain DSC, DIN & DPIN, next search the availability of Company’s Name through MCA portal. While choosing the name of the company, make sure it should be unique & not similar to any existing company. The chances of rejection are high if the company applies for a similar name. It is advised to search for the name with a professional expert who can guide you in detail related to Company’s Name Reservation guidelines. For applying the name of the company, RUN form which is Reserve Unique Name form is used.
• Step 03: Documentation: It is important to arrange all these documents and cross check all the details before applying. Also, there are some documents needed to be obtained including Identity Proof, Address Proof, Passport Size Photographs, NOC, Company’s registered address proof, etc. These documents should be arranged before proceeding with the final filing of the application form. Also, you need to draft a MoA i.e, Memorandum of Association and AoA i.e, Article of Association for the company including all the clauses in MoA and rules & responsibilities in AoA respectively.
• Step 04: Filing SPICe+ Form: Next, you will proceed with the filing of SPICe+ Form for the Pharma Company Registration. In this form you’ve to update all the required details and along with the maintained documents, including MoA & AoA.
• Step 05: Pay the Required Fee: Once you fill the application form, cross check the details before submitting the application. Once you are sure, pay the required fee and wait for the final approval from the RoC side. Remember the stamp duty varies from company to company, along with that the professional fee might differ depending on the professional consultant you have hired. These are the basic reasons due to which Company Registration fee can differ.
• Step 06: Obtain Drug License: The Central Drug Standard Control Organisation and State Drug Standard Control Organisation are the authorities in India responsible for issuing Drug License. Depending on your business goal you can apply for a Manufacturing License, Wholesale Drug License, Retail License, Loan License or Import License.
• Step 07: Obtain Other License & Registration: On the final approval from the RoC side, you’ll get your Incorporation certificate. Once you get the certificate, apply for other essential licenses & registration which are GST Registration, Trademark Registration, FSSAI Registration. These Registration are only mandatory in some cases. One can run their Pharma Company without obtaining these licenses. However, it is advised to obtain these licenses to avoid legal consequences.
• Step 08: Post Compliance: Now, once you are set up to start your Pharma Company in India, make sure you have completed all the compliances. There are some annual and one time compliances that should be completed within a specific timeline of incorporation of the company. Failure in compliances can lead to penalties or even lead to strict actions against your Pharma Company.

Other Mandatory License & Registration to start a Pharma Company

There are certain licenses that every Pharmaceutical company needs to obtain before proceeding with the work. These licenses include:

1. Drug License: The Central Drug Standard Control Organisation and State Drug Standard Control Organisation are the authorities in India who issue Drug Licensefor the Pharma Companies. This License is mandatory for running a Pharma Company in India. Also, depending on the business type the license criteria differs. One can get a Drug License for the following:
   • Manufacturing Drug License
   • Wholesale Drug License
   • Retail Drug License
   • Loan License
   • Import License
2. Goods & Service Tax Registration: For Inter-state supply of medicines, GST Number i.e, GSTIN is required. For Obtaining GSTIN, GST Registration is mandatory. Also, in case of turnover more than ₹40 lakh, GST Registration is mandatory.
3. FSSAI License: One another license is FSSAI License, in case if the pharma is dealing with some dietary or food related product as well, then they need to obtain FSSAI License. Obtaining FSSAI License Registration can be a difficult task due to its multiple documents. Hiring a consultant for FSSAI Registration can be a good option.

Why Bizfoc?

Bizfoc has a team of professionals who have expertise in Pharma Company Registration. They provide Pharma Company Registration at most cost effective rates. We ensure the whole company registration process goes smoothly so that you can focus on your business. Also, we will assist and help in obtaining mandatory licenses such as GST Registration, Trademark Registration, FSSAI License, etc. We will guide you in maintaining post-compliances for your company. Start your Pharma Company Now!

Frequently Asked Questions