Pharma Company Registration - How to Register A Company in India?

In India, the pharmaceutical industry is the third largest in the world in terms of volume, backed by many Indian and foreign pharmaceutical companies engaged in India. The government has taken many measures to encourage and promote pharma company registration in India, such as necessary amendments and refinements in the Patents Act of 1970, subsidies and support to pharmaceuticals and biotechnology, and allowing FDI up to 100% to the Indian biotechnology sector, etc.

In India, the pharmaceutical sector is expected to grow with an annual growth rate of over 10%. The major importers of Indian pharmaceutical products have been South Africa, the USA, Russia, Nigeria, the UK, Kenya, Brazil, Tanzania, Germany, Australia, etc.

Different Structures of Pharma Company

The most suitable and convenient types of company structures for the establishment of a pharma company are as follows:

• Private limited company: A private company is the most preferred type of business structure. A private company is run by a group of people privately.
• Limited Liability Partnership (LLP): Two or more partners establish an LLP. It is run similarly to a partnership firm but has the benefits of a company.
• Public limited company: The public limited company has limited liability, and its shares can be traded on stock exchanges. 
• One Person Company (OPC): A single individual can establish an OPC. OPC has limited liability and perpetual succession.
• Indian subsidiary: A foreign company can establish a pharma company as an Indian subsidiary when it wants to run its business in India.

Requirements for Registering a Pharma Company

• A minimum number of directors (One for OPC, two for a private company, two partners for a LLP and three for a public company).
• Foreign nationals can be directors, but at least one director should be an Indian citizen.
• Directors must obtain a Director Identification Number (DIN).
• A minimum number of members (One for OPC, two for a private company and seven for a public company).
• Directors and shareholders must have a Digital Signature Certificate (DSC).
• The company must have a registered office address.
• The company owner or one partner/director should have experience in the pharmaceutical sector. At least one director or member should be a registered pharmacist under the State Pharmacy Council in the case of retail business or have a minimum of one year of pharma experience in the case of a wholesale business.

How to Register A Company in India?

• Select a company name which complies with the Companies Act, 2013 provisions and its rules.
• File the company registration application (Part-A of SPICe+ Form) on the MCA website for approval of the company name from the Registrar of Companies (ROC).
• Obtain the Director Identification Number (DIN) or Designated Partner Identification Number (DPIN) for the directors or designated partners.
• Draft company documents, such as Memorandum of Association (MOA) and Articles of Association (AOA), LLP agreement, affidavits, powers of attorney, etc.
• File the company registration application (Part-B of SPICe+ Form) with the concerned ROC on the MCA website along with the required documents and fees.
• The ROC will examine the application and issue the Certificate of Incorporation.

Documents Required to Register a Pharma Company

• PAN card of directors and shareholders.
• ID and address proof of directors and shareholders.
• Proof of registered office address.
• Passport, in case of foreign directors.
• Company MOA and AOA.