Pharmacy Business in Bangladesh – Permission, License process and Business Formation

Tahmidur Rahman, Director and Senior Associate

20 Sept 2019

In this post, Tahmidur Rahman speaks about how to open a Pharmacy Business in Bangladsh successfully and the process of formation in details.

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How to open a Pharmacy Business in Bangladesh  

Bangladesh’s Pharmacy sector is one of the most profitable sector in regards to the proportionality of investment and output . Owning a pharmacy company in Bangladesh is not only a lucrative endeavor but also a satisfying one for you. This is the company for those who want a place to deliver a reliable service. But business startup is a challenging process. Things to do in this process are including market study, financial structure, trade licensing and product licensing, recruiting critical staff, etc.
And make sure you educate yourself thoroughly on what that means before you attempt to open a drug store. When you want to personalize the type of service that you deliver to your clients in different ways, a retail pharmacy offers you complete flexibility.

 

Procedure of starting a Pharmacy in Bangladsh

Launching a pharmacy company in Bangladesh is currently something difficult, but not impossible. Because of this sector’s strengthened regulation it provides a major opportunity to enhance community health. This means the government has given priority to the informal sector, including Bangladesh retail drug shops. It is positive news for the country’s health-care sector. Here are the steps to opening a Pharmacy Business in Bangladesh in simple three steps:

  • A. Market Research & Analyze the Local Community’s Needs and draft a business Plan:

    This is not only the first and initial step for your pharmacy business in Bangladesh but also the most important one. When it’s done, you’ll need to build lasting relationships with drug wholesalers and other vendors. In the process, you also have to negotiate good rebates. Unless you are trying to choose the right place where a lot of traffic passes every day, the company will definitely be running in full swing. If you find it in the vicinity of a government or private hospital, this is the best place for a pharmacy company.

  • B. Obtaining Permission from the Bangladeshi Pharmacy Council for Pharmacy Business in Bangladesh:

    To conduct business as a pharmacist in Bangladesh, you must first obtain Shonod (Permission) from the Pharmacy Council of Bangladesh. You can receive the permission from the Bangladesh Pharmacy Council after completing a 6 month course.

  • C.Obtaining Permission from the Bangladeshi Pharmacy Council for Pharmacy Business in Bangladesh:


    Collect Form 7 from Drug Administration’s (DGDA) General Directorate. To apply for a drug license, fill out Form 7 and submit it to DGDA. The applicant must also send Bank Statement of License Fee payment to Treasury Chalan along with Form 7. Receiving the store deposit or photocopying the rent agreement. If you own the store, then the store’s Ownership Deed. An Angikarpotro by another Pharmacist approved.
    A copy of your Trade License – if you want to set up a pharmacy in a Bangladesh municipal area, you need to get a Trade License. For an idea of how to get a trade license in Bangladesh, please check out our article on “The complete process of obtaining Trade License” here.

  1. At first obtain the Bank statement
  2. And then, the Treasury Chalan of the License fee submission
  3. The receipt of the rent of the shop or photocopy of the rental agreement. If you own the shop, then the Deed of ownership of the shop.
  4. An Angikarpotro by another licensed pharmacist.
  5. A copy of your Trade License – if you want to set up the pharmacy in a municipal area of Bangladesh, then you must obtain Trade License. To have an idea on how to obtain trade license in Bangladesh, please have a look at our article on “Trade License Process and Cost”.
  6. A copy of the certificate of completion of the 6-month course by Bangladesh Pharmacy Council

 

 

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Standards for the establishment and operation of  Pharmacies in Bangladesh

Even after successfully creating the establishment/business the  Pharmacy owner must have these required coml;

In addition to these, every Pharmacy owner shall keep in mind while conducting pharmacy business in Bangladesh:

  • Ensure that the Pharmacy staff has the appropriate skills, qualifications, and competencies for their role and for the tasks they carry out.
  • Prominently display the Pharmacy accreditation certificate, dispenser registration certificate(s), and trade license.
  • Prominently display the name of the pharmacist—in-charge for the premises and his/her registration certificate in the professional service area.
  • Notify the DGDA in writing within 30 days after the Pharmacy permanently closes; in so doing, the authority shall inspect the inventory and provide advice for proper disposal of medicines and other products.
  • Notify the DGDA in writing within 30 days after the Pharmacy temporarily closes with the anticipated date of re-opening, which should also be publicly displayed in front of the Should a Model Pharmacy close for one year, it shall be considered a new applicant for accreditation.
  • Notify DGDA in writing within seven days for any change in approved personnel including when a notice for termination of contract with pharmacist-in-charge is issued.
  • Report any thefts or unexplained losses of drugs or records immediately to the nearest police station and to DGDA.

Premise requirement for  Pharmacy Business in Bangladesh

In regards to the Pharmacy Business in Bangladesh and premise of the Pharmacy, every Model Pharmacy premises must meet minimum requirements as follows:

  • Be a permanent structure that is not at risk from floods.
  • Have a roof and ceiling free from leakage.
  • Provide adequate seating for customers waiting for service.
  • Have surfaces/floors/walls with smooth finish that can be washed with disinfectants.
  • Assure good hygiene inside and outside the premises.
  • Have a source of potable water.
  • Have space with dimensions of at least 300 square feet and a ceiling height of at least 8
  • Have a source of electricity such as a direct connection to an electrical grid, generator, instant power supply, or solar panels.
  • Have a sink with running water dedicated to support hand hygiene practices.
  • Where a Model Pharmacy prepares extemporaneous products, the sink must have sufficient space for cleaning related equipment.
  • The sink should not be used for disposal of mop water and other liquid wastes.
  • The building must be constructed and maintained to minimize entry of animals, such as rodents and birds.

How ‘Tahmidur Rahman & CLP Associates’ helps the formation of any business in Bangladesh

The Barristers, Advocates, and lawyers at CLP in Gulshan, Dhaka, Bangladesh are highly experienced at assisting clients through the entire process relating to formation of pharmacy business in Bangladesh. For queries or legal assistance, please reach us at:

E-mail: tahmidur@counselslaw.com
Phone: +8801727983838
Address: House 39, Road 126 (3rd Floor) Islam Mansion, Gulshan 1, Dhaka.

Pharmacy Business in bangladesh_best law firm in Bangladesh

Signage Requirement for Pharmacies in Bangladesh

Pharmacies will have the following signage:

  • A sign board with the name of the outlet, registration number, address, and officially approved logo (brand) for a Model Pharmacy in accordance with DGDA’s Model Pharmacy branding guidelines.
  • A “NO SMOKING” sign conspicuously placed to prohibit smoking on the premises.
  • A sign indicating operating hours.
  • Upon closure or relocation, or loss of accreditation status, all signage indicating that the premises was a Model Pharmacy must be removed immediately.

 

Requirements in professional service area for Pharmacy Business in Bangladesh

 

  • The Model Pharmacy must have a clearly delineated and marked professional service area restricted to the provision of therapeutic goods and services.
  • The professional service area should be distinguishable from other areas of the Model Pharmacy; customers should readily be able to locate the dispensing area.
  • The area should be designed and located such that consumers are able to access the advice of the pharmacist or other qualified pharmaceutical personnel to assist in their safe and effective use of therapeutic goods.
  • The professional service area contains the dispensary, counselling area, prescription drop-off and collection points, and over-the-counter and prescription medicine storage areas. The professional service area must be free from information, products, and services that are not therapeutically related.
  • Non-therapeutic items (e.g., toiletries, cosmetics) should not be displayed for sale within the professional area.
  • No person other than a member of the Model Pharmacy staff is allowed behind the counter in the professional services area.
  • The dispensary must have a dispensing counter with a clean and smooth surface. (For Pharmacy Business in Bangladesh.)

 

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Frequently Asked Questions about Pharmacy Business in Bangladesh

In regards to opening a pharmacy business in Bangladesh, people also ask these questions frequently, hence this FAQ content block is dedicated to answering your questions.

General Questions about Starting a Pharmacy business in Bangladesh

How can I get pharmacy license in Bangladesh?

The process is pretty easy! All you need to do is to complete a 6 months course from the Bangladesh Pharmacy Council.

How much does it cost to start a pharmacy in Bangladesh?

Only a fee of 3000 Taka must be paid through Treasury Chalan if the pharmacy is to be established in the municipality of Bangladesh. In the case of areas outside the municipal area, the fee will be 1500 Taka. The license must be renewed every two years.

Is pharmacy business profitable in Bangladesh?

Pharmacy business has emerged as one of the most profitable segments in the healthcare sector. Industry experts believe that Bangladesh will soon become one of the top ten countries in terms of individual medical expenditure. Medicine spending in Bangladesh is projected to increase by 10% over the next five years.

What is drug license in Bangladesh?

You need to get a drug license if you want to deal with medicine. This drug license is issued by the Department of Medicine Administration under the Ministry of Health and Family Planning. License fee is 3000 BDT inside the municipal area and outside the municipal area is BDT 1500.

How to apply for drug licence in bangladesh?

You need the following documetns for getting a drug license in Bangladesh:

  1. Bank statement.
  2. Treasury Chalan of the License fee submission.
  3. The receipt of the rent of the shop or photocopy of the rental agreement. …
  4. An Angikarpotro by another licensed pharmacist.

 

How to get GMP certificate License for drug?

Good manufacturing Practice (GMP) Certificate:

  1. An Application in Company Letter Head
  2. Manufacturing license of medicine
  3. Your company profile
How do pharmacies make their money in Bangladesh?

For each item sold, pharmacies shall be reimbursed at the agreed price as set out in the Drug Tariff. Buying profit is generated by ensuring that goods are purchased at a price lower than the price indicated. Bulk buying is one obvious way this can be done.

What Bangladesh Pharmacy Council?

Bangladesh Pharmacy council is the only regulatory body for controlling the pharmacist and the pharmacy education in Bangladesh as per the law of Bangladesh, The Pharmacy act 2013.

About Our Services

Pharmacy Formation

CLP is considered one of the best law firm in Pharmacy formation in Bangladesh, and not only that in general it is considered as the best company law firm in Dhaka.

How to start a pharmacy seamlessly with Tahmidur Rahman CLP's help

The Barristers, Advocates, and lawyers at CLP in Gulshan, Dhaka, Bangladesh are highly experienced at assisting clients through the entire process relating to formation of pharmacy business in Bangladesh. For queries or legal assistance, please reach us at:

E-mail: tahmidur@counselslaw.com
Phone: +8801727983838
Address: House 39, Road 126 (3rd Floor) Islam Mansion, Gulshan 1, Dhaka.

.

How do I run a successful pharmacy in Bangladesh?

First and foremost decide a strategic location to open your pharmacy. To make your pharmacy successful, you need to get to know the industry and determine what your goals are.

  • Invest in well-manered and trained employees by the Bangladesh Pharmacy council.
  • Make a really good first impression.
  • Incorporate state-of-the-art technologies for the easy distribution of medicines.
  • Provide expcetional health service to people, in the end its is a noble profession.
What other services does Tahmidur Rahman (CLP) provide in Company formation?

The firm offers advice to domestic and foreign clients on matters related to general company and corporate enforcement, including but not limited to investment legislation, sectoral structures and regulatory matters / enforcement. Clients in this field of practice come from across industries, including but not limited to telecommunications, e-commerce, technology, ITES, electricity, healthcare, real estate, security, retail, pharmaceutical, education , infrastructure, media, automotive, etc.
The firm actively advises clients on trade related issues that directly affect foreign investment in Bangladesh. These issues growing include preferential market access for Bangladeshi businesses, position of technology, etc.

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