Starting a PCD (Propaganda Cum Distribution) pharma franchise company is a lucrative business opportunity in India. In 2023 – a post-pandemic world – economies are going through major disruption. The market is volatile and avenues for investments have shrunk. It is difficult to find the right investment venue where your investment is safe. However, registering a PCD pharma franchise company requires certain formalities to be fulfilled. In this blog post, we will discuss the step-by-step process of registering a PCD pharma franchise company in India. After reading this blog, you will find it easier to establish a top pharma franchise company of your own!
Choose a name for your company
The first step in starting a PCD pharma franchise company is to choose a unique and catchy name for your company. The name should be easy to remember and should reflect the nature of your business. You can check the availability of the name with the Registrar of Companies (ROC) in your state. We enumerate a few of the reason why a company’s name is crucial:
(a ) Brand recognition: If you are asked to recount the names of top third party pharma manufacturers in India, will you be able to do it? Brand recognition is as essential as quality of service. If you are a top manufacturer with low visibility, your business will not go far. The name of a company is the first thing that people will associate with it. It is essential to choose a name that is easy to remember, easy to spell, and catchy so that it will stick in people’s minds and make your company stand out from the competition.
(b) Legal requirements: When you start a business, you need to register your company with the relevant authorities. Choosing a unique name that is not already taken by another company is essential to avoid legal disputes in the future.
(c) Marketing and advertising: A good company name can make it easier to market and advertise your business. It can help to create a positive brand image, attract customers, and increase sales. Marketing is basically concerned with making your brand visible to others. Visibility in the modern world is too important. If you dream of running a top pharma franchise company, you need to invest in your brand building through advertising and marketing
(4) Differentiation: A company name can help to differentiate your business from others in the same industry. A unique name can make it easier to stand out from the competition and create a strong brand identity.
Overall, the name of a company is an important part of its identity, and choosing the right name can have a significant impact on the success of the business.
Obtain Digital Signature Certificate (DSC)
The second step in the process is to obtain a Digital Signature Certificate (DSC) for the proposed directors of the company. A DSC is a digital signature that is used to sign electronic documents. It is required for the online filing of various documents with the Ministry of Corporate Affairs (MCA).
Obtain Director Identification Number (DIN)
The third step is to obtain a Director Identification Number (DIN) for the proposed directors of the company. DIN is a unique identification number allotted by the Ministry of Corporate Affairs to individuals who intend to be appointed as directors of a company. It is mandatory for all directors of the company to have a DIN.
File for Name Approval
The next step is to file for name approval with the Registrar of Companies (ROC) in your state. You can file the application online on the MCA website. You will have to provide the proposed name of the company along with the main object of the company. Once the name is approved, it is valid for 20 days.
Drafting a Memorandum of Association
Draft Memorandum of Association (MoA) and Articles of Association (AoA)
The Memorandum of Association (MoA) and Articles of Association (AoA) are the two most important documents of a company. The MoA contains the main objects of the company, while the AoA contains the rules and regulations that govern the internal management of the company. These documents have to be drafted by a qualified professional and have to be signed by all the subscribers.
File for incorporation
Once the MoA and AoA are drafted, the next step is to file for incorporation of the company with the Registrar of Companies (ROC) in your state. You can file the application online on the MCA website. You will have to provide the following documents:
- Memorandum of Association (MoA)
- Articles of Association (AoA)
- Form SPICe (Part A and Part B)
- Affidavit and declaration by the subscribers and first directors
- Proof of registered office address
- PAN and TAN of the company
Obtain PAN and TAN
Once the company is incorporated, you have to obtain a Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) for the company. You can apply for PAN and TAN online on the NSDL website.
Register for GST
If your company’s annual turnover exceeds Rs. 20 lakhs (for services) or Rs. 40 lakhs (for goods), then you have to register for GST (Goods and Services Tax). You can register for GST online on the GST portal.
Obtain Drug License
In order to start a PCD pharma franchise company, you need to obtain a drug license from the Central Drugs Standard Control Organization (CDSCO). You can apply for a drug license online on the CDSCO website. You will have to provide the following documents:
- Business Registration: Register your business with the appropriate authorities such as Registrar of Companies, State Drug Control Authority or Food Safety and Standards Authority of India.
- Premises: Choose a suitable location for the business and get it inspected by a Drug Inspector.
- Documents Required: The following documents need to be submitted along with the application form:
- Proof of business registration
- Proof of premises ownership or lease agreement
- PAN card and identity proof of the applicant
- List of drugs to be sold
- Proof of qualification of the person responsible for handling the drugs
- Standard Operating Procedures (SOP) for handling the drugs
- List of machinery and equipment to be used
- Layout plan of the premises
- Affidavit of non-conviction
- Fees: Pay the prescribed fees along with the application form.
- Inspection: Once the application is received, the Drug Inspector will conduct an inspection of the premises to verify compliance with the Drug and Cosmetic Act, 1940 and rules.
- Grant of License: If the inspection is satisfactory, the license will be granted by the appropriate authority.
Conclusion:
At a time when the world is in flux, PCD Pharma Franchise has emerged as a great avenue for investment. All you need is a good sense of business and a sound understanding of marketing. A Pharma Franchise makes you your own boss. But before you rush through the decisions, you must keep certain points in mind.
Registration of your pharma franchise company is a must. You need to submit all the relevant documents required for registration before getting a government approved license for your new ventures. You will have to ensure transparency in your business conduct and not conceal any fact lest you want to get in trouble with authorities. Right from GST no. to Pan card no and much more, get everything in order for a hassle-free registration of your pharma franchise company.