How Wholesale Drug Licenses 20B & 21B Can Boost Your Pharma Business
- dsouzaemily64
- May 1
- 2 min read
Updated: May 3
In India's rapidly expanding pharmaceutical industry, launching a wholesale medicine distribution company may be quite profitable. But according to the Drugs and Cosmetics Act of 1940, companies need to have Wholesale Drug Licenses in Forms 20B and 21B in order to sell, store, and distribute pharmaceutical items lawfully.
What Are Form 20B and 21B Drug Licenses?
Form 20B: Authorizes wholesale distribution of non-schedule drugs (general medications).
Form 21B: Authorizes wholesale distribution of schedule drugs, including prescription and controlled drugs.
Together, these are often referred to as FDA Wholesale Drug Distributor Licenses in India and are mandatory for any entity involved in pharmaceutical trade.
Important Advantages of 20B and 21B Drug Licenses
1. Legal Authorization to Operate
Operating without these licenses can lead to heavy fines, product seizure, or even imprisonment. These forms ensure full compliance with the Drugs and Cosmetics Act, offering peace of mind and credibility.
2. Business Expansion and Tie-Ups
With a valid FDA wholesale drug distributor license, you can:
Supply to pharmacies, hospitals, and government agencies
Partner with manufacturing units
Bid on pharma supply tenders
3. Access to Import and Export Opportunities
Many international drug companies require their Indian distributors to hold valid 20B and 21B licenses. These documents are also critical for applying for import/export codes and foreign market tie-ups.
4. Boosts Customer Trust & Reputation
Having a valid FDA license increases transparency, making your business more trustworthy to buyers, institutions, and healthcare providers.
5. Low Startup Barrier
Compared to manufacturing licenses, FDA license costs in India for wholesale drug distribution are relatively low. The FDA license cost India-wide varies by state, but on average:
FDA License India Fees for Form 20B & 21B: ₹3,000–₹6,000
FDA Certificate Cost in India (including documentation & consultation): ₹10,000–₹25,000 (approx.)
Considering the legal protection and business potential, this is a small investment with a high return.
Documents Required for 20B & 21B License
Application in Form 19
Company PAN Card and registration proof
Constitution of the firm (MOA, Partnership Deed, etc.)
Rental agreement or ownership proof of premises
Refrigerator invoice (for temperature-controlled storage)
Qualified pharmacist’s appointment letter and registration certificate
How Corpseed Helps You Get Licensed
At Corpseed, we support you along the whole process.
Documentation & compliance advisory
Application filing with the State FDA
Tracking & follow-up
Transparent breakdown of FDA license cost in India
With 100% compliance assurance, we help you get licensed faster and without hassle.
Conclusion
Acquiring a Wholesale Drug License in Forms 20B and 21B is a prerequisite for long-term success in the pharmaceutical distribution sector, in addition to being a legal need. There is no denying the advantages, which range from access to a larger client base to legal credibility. Additionally, any pharmaceutical entrepreneur would be wise to invest in it given the low FDA licensing cost in India.
Also Read: CDSCO Dual-Use Noc
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