Key Benefits of Having a Wholesale Drug License

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Key Benefits of Having a Wholesale Drug License

Key Benefits of Having a Wholesale Drug License  –  We all know that the need and demand  of pharmaceutical medicine and products is increasing day by day due to the degradation in people’s health condition. As a result, many people are now starting their own pharmaceutical business in order to meet the need of pharmaceutical medicines and generate high profits revenue. Wholesale pharma business is one of the ventures of the pharmaceutical industry and is seen to earn long term profits. If you are also keen to start your own wholesale business then let’s discuss Key Benefits of Having a Wholesale Drug License.  

Wholesale drug license is a certification that is critical for smooth running of pharma wholesale business. As per the guidelines of Drugs and Cosmetics Act, 1940 a wholesaler who deals with the bulk storing, selling, and distribution of pharmaceutical medicine or related products should get a wholesale drug license. This license is issued by the SLA ( State Licensing authority). This license helps to regulate the sale of non-generic and generic drugs along with cosmetic products in India and to win the trust of the customers in the market. A wholesale drug license also represents the company’s commitment to operate within the law. 

Market Value of Wholesale Drug Business

In order to obtain a wholesale drug license, it is essential that you know the demand of the wholesale pharma business and why so many people are investing in this venture. The pharmaceutical wholesale drug market size is expected to grow at a compound annual growth rate of 8.92% between the year 2022-2027. Moreover, the market size is projected to reach US$ 776.32 billion.  

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Key Benefits of Having a Wholesale Drug License

What kind of Documents are Required to Obtain a Wholesale Drug License?

In order to obtain a wholesale drug license you need to acquire all the mentioned documents. 

  • Business structure documents like MOM/AOA or partnership deed/LLP
  • ID proofs like Aadhaar card, Passport or Voter ID
  • Property papers and Documents
  • NOC( No Objection Certificate)
  • Blueprint or Site layout 
  • Copy of Board Resolution
  • Proof of equipment such as air conditioner, refrigerator , cold storage facilities
  • License application fee payment proof
  • Affidavit of Non-conviction
  • Affidavit from Pharmacist
  • Form 19
  • Applicant qualification proof

Key Benefits of Having a Wholesale Drug License

A wholesale drug license opens a door to endless benefits for the wholesaler and their business. Following are the possible benefits of obtaining a wholesale drug license –

1. Legal Compliance –

One of the first and foremost benefits of wholesale drug licenses is that they ensure legal compliance and help the business to run smoothly within the guidelines of Drugs and Cosmetics act 1940. Every wholesaler is expected to obtain a  wholesale drug license in order to demonstrate their commitment to work within the bounds of law. Inability to do so can lead to legal consequences. 

2. Ensure Better Management and Efficacy of Drugs

It involves working under the guidelines of government authority. Such as operating your business in compliance with CDSCO guidelines can cause a positive impact on the efficacy of production. 

3. Helps in Maintaining the Hygiene of Products

As medicinal drugs have high chances of contamination, the CDSCO( Central Drugs Standard Control Organization) issues a set of guidelines under the Drugs and Cosmetics Act, 1940.  These guidelines are needed to be followed by every wholesaler in order to ensure the optimum hygiene of the drugs. A valid wholesale drug license ensures that all the guidelines are being followed in order to avoid any health risk to the users. 

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4. Helps in Building Strong Professional Relationships with Retailers

When a retailer  purchases drugs from the wholesaler, they are always worried about the quality, storage and pricing of the drugs. They are extremely cautious about all these attributes. But with the presence of a wholesale drug license, the retailers do not have to worry about all this and the license is proof that the wholesaler is following each of the measures provided by the authority and to ensure the full transparency in their code of conduct. 

5. Increases Market Reach

  A wholesale drug license not only allows the wholesaler to stock, sell and distribute drugs but also establish them as a brand. With improved visibility as a brand, the wholesaler can look for new market opportunities and strategies to expand their business.

6. Builds Customers Trust

People tend to trust the products which are legally approved and regulated. Acquiring a wholesale drug license shows your commitment to safety, purity and quality which are key factors to gain customers trust. 

7. Boost Business Credibility

A wholesale drug license states that that every quality standard is being followed by the owner that helps to develop credibility and creates a large number  business opportunities for productive growth. 


To conclude, obtaining a wholesale drug license is very essential for every wholesaler who deals in the stocking, selling and distribution of drugs and cosmetics. This license is granted by the State Licensing authority. This License demonstrates the commitment to operate your wholesale business lawfully and in compliance with the CDSCO standards. This license also provides numerous benefits to the wholesaler and their business venture. 

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FAQS on Key Benefits of Having a Wholesale Drug License

Question 1. Enlist all the steps required to obtain a wholesale drug license?

Answer 1. If someone wants to start their own pharma wholesale business then obtaining Wholesale drug license is the first step. Just follow the mentioned steps to get your own drug license.

  • Sign in on the website
  • Upload the required documents
  • Pay the required fees
  • Undergo verification process
  • Issuing of the Wholesale Drug License

Question 2. What is the amount of fees for getting a wholesale drug license?

Answer 2 . The fees required for a wholesale drug license including professional utilities is 24,999 rupees. The applicants are supposed to pay the government fees during the registration process. 

Question 3. Mentioned the list of forms for wholesale drug license?

Answer 3. The mentioned forms are important in order to avail wholesale drug license.

  • Form 19 – This includes the application form that needs to be filled by the applicant. 
  • Form 20B – This form grants permission for the sale and distribution of drugs except for those included in schedule C, C (1), and X of the Drugs & Cosmetic Act and Rules.
  • Form 21B –  This grants permission for the sale and distribution of schedule C, C (1), and X  drugs of the Drugs & Cosmetic Act and Rules.

Question 4. Do different states need different wholesale drug licenses?

Answer 4. Wholesale drug licenses are issued by the State Licensing Authority of each state. So, you need to get a different wholesale drug license for different states.