When you think about different business models of the medical sector, Pcd Pharma Franchise is one of the best ones. This popular business model is called PCD because it is the abbreviation of the term Propaganda-Cum-Distribution (PCD).
This model is especially better for small and medium companies. They can build their future in the world of pharmaceuticals using limited capital and having relatively less risk exposure.
If you are an entrepreneur who wants to enter into the business world, but you are worried about any restrictions imposed on PCD pharma franchise companies, then this blog is useful for you.
You will come to know that there are no restrictions for that matter, but there are certainly some regulations and statutory requirements.
Regulatory Requirements for PCD Pharma Franchise
Drug License
When you launch a PCD pharma franchise, the first and the most important requirement is to obtain the drug license. Since you will be selling, marketing, and distributing pharma products, it is mandatory to obtain a drug license.
This is granted under the Indian Drugs and Cosmetics Act of the year 1940 and it is categorized into two types- RDL and WDL.
RDL is for retailers who are planning to run a chemist shop or pharmacy. WDL is for wholesalers who want to distribute medicines at the wholesale level.
Some people want to know about who is eligible for opening a pharma company? It is mandatory to have a registered pharmacist in the case of RDL and for WDL, you need to have a person who is knowledgeable and experienced in the niche. This eligibility criterion has to be met.
Goods and Services Tax (GST) Registration
Another important aspect is GST registration. It is a legal requirement for all types of supplies of goods and services, including pharma products.
You have to get registered under GST.
Registration of trademark
Trademark registration is important to ensure protection to the brand name of the Pcd Pharma Company.
It protects the brand name, logo, and other trademarks from unauthorized copying by others. Plus, it is important for trustworthiness in the market and credibility.
Documentation of agreement
It is important to cover the relationship between the franchisor and the Pharma Franchise Company with a legal document acceptable to both parties. This document is called Agreement. By this, the rights and duties of both parties are identified. It also covers aspects such as the cost of the products and services, promotion, and advertising measures.
The agreement also defines the term of the franchise.
You should get it prepared and reviewed by a legal expert because every term in the content should be clear and unambiguous, and it should comply with the law.
DPCO Compliance
Finally, you need to be compliant with the Drug Price Control Order (DPCO). This authority controls the prices of certain strategically important pharma products. This order affects the franchisee and by that one can avoid legal complexities or penalties,
Not just that, by this order one can be compliant with the NPPA-regulated MRP for a list of specific controlled drugs in India. So, you need to be aware of this.
Also Read
The Unique Aspects of How PCD Pharma Companies Work
What Support Can You Expect from a PCD Pharma Franchise Provider?
