How to Start a Pharmaceutical company

The pharmaceutical Industry is growing day by day worldwide. If you have considered starting a business in the pharma industry, there’s no better time than now to start a pharmaceutical company, because The Indian pharmaceuticals market is the third-largest in terms of volume and the hitters of value, as per the tenth-largest in the report by Equity Master. India is the largest provider of generic medicine globally, with Indian generics accounting for 20 per cent of global exports in terms of volume and that’s a huge number. Not to mention, Indian homegrown pharmaceutical firms have established supremacy and contrast in a once outstanding multinational niche. 

A business model for a pharmaceutical company is usually quite varied in scope. From demonstrating competent production lines to affiliating with a proficient league of medical exponents to associating with a selection of chemists and stockists, the logistics spread is wide and jagged. Starting any business is a challenge such as a Pharmaceutical business and you need to have the right resources, the right documents, and the right people assisting you. In this article by Arlak Corazone, you get a few helpful tips that can get you started on your journey to building a flourishing pharmaceutical company. so follow these guidelines to start a pharmaceutical company.

Different Structures of Pharma Company

The most convenient and suitable types of company structures for the establishment of a pharmaceutical company are as follows,

• Private limited company: A private Pharmaceutical company is run by a group of people privately.
• Public limited company: The public limited Pharmaceutical company has limited liability, and its division can be traded on stock exchanges. 
• Limited Liability Partnership (LLP): Two or more partners establish a Limited Liability Partnership Pharmaceutical Company, it is also run similarly to a partnership firm but has the benefits of a company.
• One-Person Company (OPC): A single individual entrepreneur can establish an OPC Pharmaceutical Company, but an OPC has limited liability and perpetual succession.
• Indian subsidiary: A foreign company can establish a pharmaceutical company as an Indian subsidiary when it wants to run its business in India.

Documents Required to Start a Pharmaceutical Company

• PAN card of directors and shareholders.
• Passport (in case of foreign directors).
• ID proof of Directors and Shareholders.
• Address proof of Shareholders and Directors.
• Proof of registered office address.
• Company MOA (Memorandum of Association).
• Company AOA (Articles of Association).
• Company Registration is the first step.
• Wholesale Drug License to Get Drug License Number.
• Generate Goods and Service Tax Number.
• Get the trademark registered.
• FSSAI Registration (required for selling Food and Dietary Supplements).

Types of Pharmaceutical Business 

• Generic
• Franchise
• Ethical/Branded
• Export or Import
• OTC
• Pcd
• Distribution
• Specialty companies such as Derma, ophthalmic, cardiac, etc

Things to Remember Before Starting a Pharmaceutical Company

Market Research and Idea Validation

You must keep an eye on the trend of the market you can start by scouring Pharmaceutical academic journals, industry reports, and reputable websites, and you may discover a gap in the market you can fill. Identifying Your Unique Value Proposition to Start a Pharmaceutical Company.

Business Plan and Model

Your business plan to start a pharmaceutical company is the blueprint for your venture. In this business plan, you’ll detail your target market, business model, and financial projections. Don’t neglect this step, because investors pay clear attention to well-thought-out plans.

Regulations and Registration

To Start a Pharmaceutical Company, registration of the company is something you can not delay for that, you will need a license or registration from the Drug Department that ensures quality standards for the industry. Keep in mind that multiple types of licenses are provided by the drug department for the manufacture of cosmetics/drugs, so find out which ones you will need to apply for. You are also required to apply GST (Goods and Services Tax) identification number. All pharmaceutical entrepreneurs must be observed with both, the Factory Acts regulation and the Current Good Manufacturing Practice regulations. Approval from several health authorities forms part of the registration process and may vary from state to state. One must also secure a trademark registration from the Department of Industrial Policy and Promotion, as this is crucial to establishing a distinct brand identity, so these documents and processes are compulsory to start a pharmaceutical company.

Join hands with the right people

No business can flourish without a competent team to take your ideas ahead especially the Pharmaceutical business so hire a team of professionals and skilled people who can cover different departments. To start a pharmaceutical company you need a team of scientists, technicians, and other specialists to come together and represent virtually all the sciences, along with the contribution made by the management executives, lawyers, accountants, engineers, and system analysts. You are also required to hire a marketing team to handle promotions as well as a distribution team to supervise the output. Apart from these denominations, you need to partner with the right people who share your vision and will function as team leaders to guide employees in the right direction.

Location and Infrastructure

Being close to hospitals, research centers, or universities could provide an important edge and also, consider ease of access for your employees and supply chain needs.

Conclusion

Arlak Corazon is one of the growing pharma companies in the Pharmaceutical industry. With our blog on How to Start a Pharmaceutical Company, you will face no difficulty in starting your own pharma company at your desired location across the country. However, the process may vary a little as per your preferred location. If you want to start a pharma business or have a lot of queries then feel free to contact us, we are happy to help you.