Specialist Advisor

Published on: Sep 28, 2026

Madhya Pradesh Drug License

In India, conducting any business activity requires an appropriate license. A Drug license, issued by the Government, is a legal permit to operate businesses that deal with drugs and cosmetics. The Drug license is region-specific and location-specific, implying that if a business operates in multiple states, each state requires a distinct license. Furthermore, if the business sells at more than one location, a separate license is necessary. The Drug license comprises both drug manufacturing and drug sale licenses. In this article, we delve into the procedure of obtaining a Madhya Pradesh Drug License in detail.

Drugs and Cosmetics Act, 1940

The Drug license is authorized by a competent authority to carry out businesses concerning drugs, medicines, or cosmetics under the Drugs and Cosmetic Act, 1940. As per the Act, the license includes all types of drug or cosmetic businesses, including Ayurvedic, homeopathic, allopathic, or Unani drugs. The manufacturer or seller of these drugs or cosmetics is liable if a user is harmed due to negligence, constituting an offense under the Act. For comprehensive documentation, check about documents required in business operations.

Conditions of License

The licensee must have at least four years of practical experience in the distribution of drugs.
Drugs must be manufactured under the direct and personal supervision of a registered pharmacist.
Drugs should be supplied on the prescription of a registered medical practitioner and under the supervision of a registered pharmacist.
The retail supply of the drug should be recorded in a register at the time of supply. The following particulars are mandatory for the register:

The serial number of the entry
Date of supply
Name and address of the prescriber
Name and address of the patient; if for veterinary use, the name and address of the animal's owner
Name of the drug and the quantity
If specified in Schedule C or Schedule H, the manufacturer's name, batch number, and expiry date
Signature of the registered pharmacist who supervised the supply

Maintain purchase records for drugs intended for sale or sold by retail, including:

Date of purchases
Name and address of the supplier and their license number
Name of the drug, quantity, and batch number
Name of the manufacturer

Drugs specified in Schedule H or Schedule X should only be supplied to registered medical practitioners, hospitals, dispensaries, and nursing homes with a signed order valid for two years.
Do not sell or stock drugs after the expiry date.
Do not store drugs intended for distribution as free samples on your premises.
Medicines for animal treatment should be labeled “Not for human use – for treatment of animals only.”

Note:Expired drugs stored for tax rebates are not deemed an offense under the Act if they are not intended for sale. Learn more about tax deductions applicable.

Madhya Pradesh Drug Sale License

The drug sale license is issued for both retail and wholesale, facilitating the distribution of drugs across India. The issuance is subject to conditions attached to the competent person handling the drugs and the premises (area of pharmacy shop and storage facility). To better understand how different licenses impact a business structure, consider company registration requirements.

Documents Required

For New Drug Sale License

The documents required for obtaining a new drug sale license are outlined below. Applicants must attest to these documents duly.

a) Documents needed for Applicant

Proof of Identity as specified in the online application
Applicant’s qualification document - Mark Sheet (SSC, HSC & Graduation) as applicable.
Residential Proof.
Map of Shop/Firm Premises.
Shop/Firm related documents (partnership deed for firms, MOA & COI and director list for private limited firms)
Proof of ownership/rent agreement with the landowner.
Applicant’s affidavit.
Refrigerator purchase bill.
Electricity bill for shop/firm premises.
Two passport-size photographs.

b) Documents for pharmacist or qualified person

Two passport-size photographs.
Identity proofs as specified in the online application.
Applicant’s qualification document - Mark Sheet (SSC, HSC & Diploma or Graduation) as applicable.
Proof of residence.
Appointment Letter of Pharmacist / Competent Person.
Registration Certificate of Pharmacist for retail sale license application.
Pharmacist Registration Certificate and Experience Certificate for wholesale license application.
Drug sale license copy and Affidavit of the Experience Certificate issuer.
Affidavit of Pharmacist / Competent Person (combined affidavit if applicant/pharmacist/competent person are the same)
Consent Letter of Pharmacist / Competent Person.

c) Documents for Shop or PremisesIf Owned:

Registered sale deed / conveyance deed / registered GPA in the name of the owner
For unregistered documents, support with water/electricity bill or property tax receipt.
Khasra Khatauni documents for village verification.

If Rented:

Registered rent agreement and receipt. For unregistered agreements, a No Objection Certificate from the premises owner is required.
Site and key plans attested by an approved architect or municipal mapmaker.

Find out more about relevant fee structures applicable to different licenses.

Fees Structure

For New Drugs Sale License

S.No.	License Type	Fee	Portal Fee
1	Retail sales drug License
	a) Form 20	Rs. 1500	Rs. 150
	b) Form 21	Rs. 1500
	c) Form 20-F	Rs. 500
2	Whole sales drug License
	a) Form 20-B	Rs. 1500	Rs. 150
	b) Form 21-B	Rs. 1500
	c) Form 20-G	Rs. 500
3	Retail and Whole sales drug License
	a) Form 20	Rs. 1500	Rs. 150
	b) Form 21	Rs. 1500
	c) Form 20-B	Rs. 1500
	d) Form 21-B	Rs. 1500
	e) Form 20-F	Rs. 500
	d) Form 20-G	Rs. 500
4	Restricted and whole sales drug License
	a) Form 20-B	Rs. 1500	Rs. 150
	b) Form 21-B	Rs. 1500
	c) Form 20-A	Rs. 500
	d) Form 21-A	Rs. 500
	e) Form 20-G	Rs. 500
5	Restricted License
	a) Form 20-A	Rs. 500	Rs. 150
	b) Form 21-A	Rs. 500

For Drugs Sale License Renewal

Renewing the drug sale license incurs specific fees, subject to the type of license. For a seamless renewal process, proper planning, and advance tax compliance can be crucial.

S.No.	License Type	Fee	Portal Fee
1	Retail sales drug License
	a) Form 20	Rs. 1500	Rs. 100
	b) Form 21	Rs. 1500
	c) Form 20-F	Rs. 500
2	Whole sales drug License
	a) Form 20-B	Rs. 1500	Rs. 100
	b) Form 21-B	Rs. 1500
	c) Form 20-G	Rs. 500
3	Retail and Whole sales drug License
	a) Form 20	Rs. 1500	Rs. 100
	b) Form 21	Rs. 1500
	c) Form 20-B	Rs. 1500
	d) Form 21-B	Rs. 1500
	e) Form 20-F	Rs. 500
	d) Form 20-G	Rs. 500
4	Restricted and whole sales drug License
	a) Form 20-B	Rs. 1500	Rs. 100
	b) Form 21-B	Rs. 1500
	c) Form 20-A	Rs. 500
	d) Form 21-A	Rs. 500
	e) Form 20-G	Rs. 500
5	Restricted License
	a) Form 20-A	Rs. 500	Rs. 100
	b) Form 21-A	Rs. 500

Late fee charge for Drugs Sale License Renewal

S.No.	License Type	Fee
1	Retail sales drug License
	(a) Form 20	2% of Fee per month
	(b) Form 21	2% of Fee per month
2	Whole sales drug License
	(a) Form 20B	2% of Fee per month
	(b) Form 21B	2% of Fee per month
3	Retail and Whole sales drug License
	(a) Form 20 + Form 20B	2% of Fee per month
	(b) Form 21 + Form 21B	2% of Fee per month
4	Restricted and whole sales drug License
	(a) Form 20A + Form 21A	2% of Fee per month
	(b) Form 20B + Form 21B	2% of Fee per month
5	Restricted License
	(a) Form 20A	2% of Fee per month
	(b) Form 20B	2% of Fee per month

Note: The late fee is calculated for every six months. For businesses, minimizing late fees through better bookkeeping and resource management extends beyond savings, improving overall compliance and CA-assisted compliance consulting can be beneficial.

Online Application Process for Drug Sale License

The applicant can apply online for a Madhya Pradesh Drug Sale License through the official website of the Food and Drugs Administration.

Step 1:

To apply online, visit the official website. Under the 'Drug Sale License' tab, click 'Apply for New License'.

Content image Madhya Pradesh Drug License - Drug Sale license

Step 2:

The online application form for the New Drug Sale License appears. Enter the required details, which include:

Application Details
- Select the application type as 'new drug sale license'
Applicant Personal Details
Applicant Local / Permanent Address Details
Applicant Qualification Details
Registered Pharmacist’s Details

Content image Madhya Pradesh Drug License - Drug Sale license application form

Step 3:

Click Submit.

For further guidance, consider exploring services related to online CA consultation.

Renewal of Drug Sale License

The application for the can be done by entering the licensee's details and the application number. Click 'Search'. The license application can be renewed by updating the changes. Understanding tax variations through resources like new vs old tax regime can aid businesses in strategic financial planning.

Content image Madhya Pradesh Drug License - Drug Sale license Renew application

Back to Learn

Frequently Asked Questions

Common questions about Madhya Pradesh Drug License.

A drug license is a legal permit granted by the competent authority to carry out a business concerning drugs/medicines or cosmetics under the Drugs and Cosmetic Act, 1940. It covers all kinds of drug or cosmetic businesses, including ayurvedic, homoeopathic, allopathic, or Unani drugs.

A drug license is mandatory to ensure that the manufacturer or seller of drugs or cosmetics is responsible if any person using the product is affected due to negligence. It is considered an offence under the Drugs and Cosmetic Act, 1940, if a drug license is not obtained.

Some key conditions for obtaining a drug license in Madhya Pradesh include having at least four years of practical experience in drug distribution, having a registered pharmacist supervise drug manufacturing and retail supply, maintaining purchase and sale records, and not selling expired or sample drugs.

The documents required for a new drug sale license include proof of identity and residence for the applicant and pharmacist, educational qualifications, shop/firm premises details, affidavits, consent letters, and relevant fees.

The fees for a new drug sale license range from Rs. 500 to Rs. 3000, depending on the type of license (retail, wholesale, or combined). For license renewal, the fees range from Rs. 500 to Rs. 3000, with an additional portal fee of Rs. 100.

You can apply for a new drug sale license or renew an existing one through the official website of the Food and Drugs Administration of Madhya Pradesh. The process involves filling out an online application form and submitting the required documents.

The article does not explicitly mention the validity period for a Madhya Pradesh Drug License. However, most drug licenses need to be renewed periodically, typically annually or every few years.

No, the drug license is region-specific and location-specific. If the business operation occurs in two or more states, then each state requires a different license. Additionally, if drugs are sold at more than one place, a separate license must be acquired for each location.

The article does not mention specific penalties, but it states that selling drugs or cosmetics without a valid license is considered an offence under the Drugs and Cosmetic Act, 1940. Penalties may include fines or other legal consequences.

Yes, the drug license comprises both a drug manufacturing license and a drug sale license. While the article focuses on the procedure for obtaining a drug sale license, it implies that a separate license is required for manufacturing drugs.