Alna biotech | Regulatory Requirements for PCD Pharma Franchise in India


PCD Pharma Franchise in India | Pharma PCD Company


PCD Pharma Franchise in India - The Indian pharmaceutical industry is the highly competitive and is among the largest industries in the global market. When it comes to the various models of business in this industry, there is quite a popular one known as the Propaganda-Cum-Distribution (PCD) pharmaceutical franchise model. Through this model, it becomes easier for small and medium enterprises to venture into operation in the pharmaceutical industry with lesser capital and exposure to risks. However, there are certain regulatory compliances involved in starting a PCD pharma franchise in India and also while operating the business. This blog will expand on these requirements and include Alna Biotech as the example of this kind of business.


Understanding the PCD Pharma Franchise Model


A PCD Pharma Franchise can thus be defined as a way of distribution in which the pharma manufacturing company (Franchisor) provides distribution rights of certain pharmaceutical products to a distributor or an independent seller (Franchisee) for a specific geographic region. The franchisee gains advantages from the experience of the franchisor and its name both in the brand and the offered products and promotional campaigns.


Regulatory Requirements for PCD Pharma Franchise


  • Drug License


The first and the most important condition to begin PCD Pharma Franchise Business is to obtain a drug license. This license is compulsory if you intend to engage in the marketing, selling, and distribution of pharmaceuticals products. Drug licenses are granted under the Indian Drugs and Cosmetics Act of the year 1940. The license is typically categorized into: The license is typically categorized into:


  • Retail Drug License (RDL): For those who wish to operate a pharmacy or chemist shop.
  • Wholesale Drug License (WDL): For those involved in wholesale distribution.


To apply for a drug license one must meet its requirements such as the presence of a registered pharmacist for RDL and a competent person for the WDL with the right knowledge and experience.


Goods and Services Tax (GST) Registration


Another significant factor is GST registration. After the implementation of GST in Indian economy, it is legal requirement for all kinds of suppliers of goods and services to be registered under GST. This registration aids in the proper manner of collecting taxes and will allow franchisee to recover input taxes.


Trademark Registration


The trademark registration is important in ensuring that the brands name of the Pharma PCD Franchise is protected. It protects the brand name, logo, and other trademarks from being used or copied by other competitors in the market. However, it is obvious that, for a franchisee, registration of a trademark adds credibility and trustworthiness in the market.


Agreement Documentation


The relationship between the franchisor and the franchisee should be governed by a legal document. This document regulates the relationships between the franchisor and the franchisee, identifies the rights and duties of the parties, the cost of the products and services, promotion and advertising measures, and the term of the franchise. It is recommended that this document is legally reviewed to ensure it is very clear about its content as well as compliant with the law.


Compliance with Drug Price Control Order (DPCO)


In India, there is a provision in the Drug Price Control Order (DPCO) that controls the prices of certain strategically important drugs. The DPCO affects the franchisees and to avoid legal complications and penalties they must adhere to the laid down guidelines. This also entails compliance with the NPPA regulated MRP for the controlled drugs in the country.


Case Study: Alna Biotech


Alna Biotech is one of the Best PCD Pharma Franchise Company in India, which provide a wide range of services to its PCD franchise partners. Through its legal department, the company makes sure that all its franchisees meet the required legal standards. Here’s how Alna Biotech facilitates this process:


  • Assistance in Drug License Procurement: Alna Biotech guides its franchisees through the process of obtaining the necessary drug licenses, ensuring they meet all legal criteria.
  • GST Registration Support: The Company provides support for GST registration, making the process smooth and hassle-free for franchisees.
  • Trademark Protection: Alna Biotech’s well-established trademark is registered, providing franchisees with a strong brand identity and legal protection.
  • Comprehensive Franchise Agreement: The company ensures that the franchise agreement is detailed and legally sound, covering all aspects of the business relationship.
  • DPCO Compliance: Alna Biotech strictly adheres to DPCO guidelines and ensures that its franchisees do the same, maintaining transparency and legal compliance in drug pricing.




PCD pharma franchise business is one of the most profitable businesses in India with a condition of responding to strict legal parameters. It is important for a franchisee to understand and adhere to these requirements in order to achieve efficiency in operation. Organizations such as Alna Biotech do a great job of supporting their franchise companions, including helping them understand the legal consequences of the business and gain a good foothold in the market.

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