The A-Z of Starting a Third Party Pharma Manufacturing Company in India

If you have the potential, money, and the vision to set up your own pharma company, then you could easily do so by making the right choice and a few important decisions. The Indian pharma industry is transitioning through a growing stage, and, therefore, the time is ripe to invest in your own pharma company. Moreover, the Indian government is lending help to new start-ups in terms of tax relaxations, liberal policies, etc. The scenario is even more promising if you are thinking about starting a third party pharma manufacturing company in India. The challenges are less, however, the returns are more for third party manufacturer companies in India.

The commendable effort of the government to take most processes online has encouraged individuals to launch their own business. With fewer or no bureaucratic obstacles, digitization, and online registrations, the third party pharma manufacturing companies are finding it easier than before to start a business. All the application formalities including the company registration have become a cakewalk, thus letting a third party medicine manufacturer to focus on other important areas concerning the business.

Continue reading to know the procedure and nitty-gritty of starting a 3^rd party pharma manufacturing company in India.

The Scope of Third Party Pharma Manufacturing Company in India

The third party manufacturer companies in India are devising new ways and every now and then to fulfill the client’s need for large scale production at affordable prices. The help from the government, new technologies, accommodating policies, increased FDI, etc are all pushing the pharma figures which are likely to continue to rise. With betterment in every quarter of the pharma industry, it is no surprise that the third party pharma manufacturing companies are feeling the effect too. This is why there has been a sharp rise in the 3^rd party pharma manufacturing companies in India.

Additionally, Special Economic Zones (SEZ) that are home to numerous third party manufacturer companies act as a powerhouse. These zones benefit from lighter taxes, flexible policies, increased trading activity besides many other advantages. Baddi in Himachal Pradesh is a well-known SEZ popular for pharma third party manufacturing.   

How to Become a Third Party Medicine Manufacturer in India?

Every third party pharma manufacturing company must follow the steps listed below for a smooth and effortless start.

• Choose a Company Name

To start a new third party pharma manufacturing company, you must first choose a name for the business because every company is known and identified by its name. Pick a name that is not only unique but also reflects the essence and objective of the business.

• Choose the Pharma Product Specialty

Next step would be to identify your area of expertise in relation to the product segment. Whether you wish to do 3^rd party pharma manufacturing of tablets, capsules, injectables, etc in the ayurvedic, allopathic, or any other segment is a major decision. Parameters such as market demand for the products, the current supply of products, existing competition, future returns, profits involved, etc. could help you make the right choice.

• Type of 3^rd Party Pharma Manufacturing Company

In the following step, ask yourself what type of third party manufacturing company you would perform well as. You could choose to be either of the following;

• Generic
• Branded
• Over the Counter
• Export

• Company Registration

All the third party pharma manufacturing companies must be registered under the Company Act 1956 or 2013. A company started with a partner must be registered as a Limited Liability Partnership (LLP) Company. Registration with MSME becomes mandatory if you are a small- scale or a medium-scale third party manufacturing company.

• Payment of Fees

Next, make the payment towards registration through prescribed modes of payment.

• Apply for Drug Manufacturing License

A valid pharma drug manufacturing license enables you to operate as a pharma third party manufacturing company in India. Following documents are required to obtain the license.

• Fee Payment Receipt/ Challan Copy from the Bank
• The Layout of the Site
• Rental Agreement/Plant Purchase Documents
• Machinery & Equipment Purchase Receipt
• Loan License Letter
• Partnership Deed
• Partnership Details for LLP Company
• Employment consent
• NOC from Municipal Corporation
• NOC from Pollution Control Board
• Clearance Letter from DCGI

Don’t let challenges become stumbling blocks in your business. Follow the steps properly and in the correct order to ensure you have a fruitful third party pharma manufacturing company in your hands. For more information call Pharma Franchise Business at +91-9888885364.