PCD Pharma Companies or Propaganda Cum Distribution company is the business of authorizing the distribution and marketing rights to a business partner at monopoly basis. A pharmaceutical firm gives the rights to a pharma distributor. The distributor can use the name of the company and brand on behalf of the owner company.
Here are 9 crucial things that you never knew about the business concept.
#1 Apply for GST number first
If this is going to be your first business venture, then you have to apply for GST (Goods and Service Tax) number before doing anything. It is essential as any goods or services sold for domestic consumption attract the value-added tax GST.
#2 Apply for Drug License
To launch a pharma business, you need a drug license. In India, it is issued by the drug standard control organization. It is-
- Retail Drug License
- Wholesaler Drug License
You are supposed to check the eligibility guidelines to acquire the license.
#3 You can get credit as per the pharma company’s credit policy
Credit means you receive money in advance and promise to pay for it later. In the PCD Pharma Franchise business, the credit depends on the policy followed by the company.
#4 PI is different from Tax Invoice
PI is Proforma Invoice. It is a preliminary bill of sale sent to buyers in advance of delivery of material or shipment. It has information like item details, MRP, rate, and batch number with expiry. PI is not a valid document for Input Tax. For this, you need a Tax Invoice, which is a commercial instrument delivered to the buyer.
#5 Monopoly Right
A monopoly means there will be only one supplier of one commodity in one area. A pharma franchise monopoly agreement gives the rights to one company at one location as per the contract.
#6 Sales Tax
The Sales Tax is paid to the government for the sales of goods or services, both produced as well as imported. When they are sold without adding any value, then the tax is not levied again. Both central and state governments have the authority to levy the tax.
#7 Ethical, Generic and PCD medicines are different
Generic medicines are similar to Ethical medicines in dose, strength, efficacy, and results but their cost is quite less.
#8 Third-party manufacturing
Also called Contract Manufacturing, it is the process of outsourcing the production of pharmaceuticals with the same brand name.
#9 It is a profitable business if done well
The selection of the right product and right PCD Pharma manufacturing company will bring high profitability and success.