How to Open a Pharmacy in Bangladesh 2025 – Avoid These Costly Mistakes

Opening a pharmacy in Bangladesh is a promising business opportunity that combines profit with public service. With the country’s growing population and increasing demand for quality healthcare, pharmacies have become one of the most stable and essential businesses nationwide.

However, starting a pharmacy is not just about renting a shop and selling medicines. It involves strict legal compliance, specific qualifications, drug licenses, and proper business planning. This detailed guide explains everything you need to know – from licensing to setup, costs, and ongoing compliance — to help you open a pharmacy in Bangladesh legally and successfully.

Why the Pharmacy Business Is Growing in Bangladesh

Bangladesh’s healthcare market has grown rapidly over the past decade. The domestic pharmaceutical industry now meets more than 97% of the local demand and exports to over 150 countries. With the expansion of hospitals, diagnostic centers, and online medicine delivery, the demand for licensed pharmacies has never been higher.

Opening a pharmacy provides:

• Stable demand year-round.
• Moderate initial investment compared to other retail sectors.
• High social value as you serve your community’s healthcare needs.
• Long-term profit margins when managed properly and ethically.

Legal Framework for Pharmacy Businesses in Bangladesh

The pharmacy business is governed by several key laws and authorities:

• The Drugs Act, 1940
• The Drugs (Control) Ordinance, 1982
• Bangladesh Pharmacy Council Act, 2018
• The Directorate General of Drug Administration (DGDA) – the main regulatory authority for issuing pharmacy licenses and monitoring medicine sales.

You cannot legally sell or stock medicines in Bangladesh without obtaining the required licenses and approvals from DGDA.

Step-by-Step Guide to Open a Pharmacy in Bangladesh

1. Decide the Type of Pharmacy

There are three major types of pharmacies you can open:

a. Retail Pharmacy – Sells medicines directly to the public.
b. Wholesale Pharmacy – Distributes medicines in bulk to hospitals, clinics, and other retailers.
c. Hospital or Institutional Pharmacy – Operates within hospitals or healthcare facilities.

Each requires a separate license and compliance process, although the core registration steps are similar.

2. Obtain a Qualified Pharmacist

According to DGDA and the Pharmacy Council of Bangladesh, every pharmacy must have a registered pharmacist with at least a Diploma in Pharmacy (Category-B Pharmacist).

You will need to:

• Hire a registered pharmacist approved by the Pharmacy Council.
• Display the pharmacist’s certificate and registration card in your pharmacy.
• Ensure the pharmacist is present during business hours, as DGDA often inspects for compliance.

If you are the owner and not a pharmacist, you must still employ one full-time registered pharmacist to manage your shop.

3. Choose a Suitable Location

DGDA imposes specific conditions for the location of pharmacies:

• The premises must be clean, dry, and properly ventilated.
• It cannot be located near drains, kitchens, or polluted areas.
• A minimum space of 120–150 square feet is recommended for retail pharmacies.
• The space should include storage shelves, refrigeration for temperature-sensitive medicines, and proper security arrangements.

Try to select a location close to hospitals, diagnostic centers, or residential areas with high foot traffic.

4. Register Your Business Entity

Before applying for a drug license, you must register your business:

• Obtain a Trade License from your local City Corporation or Municipality.
• Register your TIN (Tax Identification Number) from the National Board of Revenue.
• Open a bank account in the business name.
• If you plan to operate under a business name, register the name with the Registrar of Joint Stock Companies and Firms (RJSC).

5. Apply for the Drug License from DGDA

A Drug License is mandatory for all pharmacies in Bangladesh. You must apply to the Directorate General of Drug Administration (DGDA) through the local District Office.

Documents required for Drug License Application:

• Application form (available from DGDA or local drug office).
• Trade license copy.
• NID and passport-size photos of owner and pharmacist.
• Ownership or rental agreement for the shop premises.
• Layout plan of the pharmacy (showing shelves, counter, refrigerator, etc.).
• Certificate and registration card of the pharmacist (from Pharmacy Council).
• Bank receipt of license fee payment.
• Declaration of compliance with the Drugs Act and DGDA regulations.

After submission, DGDA officers will inspect your pharmacy. If it meets all standards, your drug license will be issued.

6. Prepare the Pharmacy Premises

Before inspection, ensure:

• Adequate lighting, ventilation, and cleanliness.
• Medicines stored by category (prescription, OTC, controlled).
• Refrigerator for insulin and other cold-chain drugs.
• Lockable cupboards for narcotic or restricted drugs.
• Proper labeling and stock records.
• Display of license and pharmacist certificate at the counter.

7. Obtain Signboard and BSTI Approvals (If Needed)

Signboards must display your pharmacy name and license number.
If you plan to sell any locally manufactured healthcare products, cosmetics, or medical devices, check whether they require Bangladesh Standards and Testing Institution (BSTI) approval.

8. Hire Supporting Staff

Besides the registered pharmacist, you may employ sales assistants or cashiers. However, only the pharmacist can legally dispense prescription medicines. All staff should be trained in handling drugs responsibly and maintaining hygiene.

9. Keep Proper Records and Renew Licenses

DGDA requires all pharmacies to maintain:

• Daily sales and purchase records.
• Prescription registers for controlled substances.
• Expiry and return records.
• Renewal of drug license (typically every 3 years).
• Annual trade license renewal from the local authority.

Failure to maintain records or renew licenses can lead to fines, suspension, or permanent closure.

Estimated Cost of Opening a Pharmacy in Bangladesh

While costs vary based on location and size, here’s a general estimate:

Expense	Estimated Range (BDT)
Trade License & TIN	2,000 – 5,000
Shop Rent & Setup	100,000 – 300,000
Interior & Shelves	50,000 – 150,000
Initial Medicine Stock	300,000 – 700,000
Refrigerator & Equipment	25,000 – 40,000
Drug License Fee	3,000 – 5,000
Miscellaneous (signboard, documents, etc.)	10,000 – 20,000

Total Estimated Startup Cost: 5–12 lakh BDT depending on size and location.

Marketing and Business Tips

1. Build relationships with doctors and clinics to receive legitimate prescriptions.
2. Offer free consultations or blood pressure checks to attract local customers.
3. Maintain a digital inventory to track stock and expiry dates efficiently.
4. Promote online ordering and home delivery through a simple app or website (with DGDA compliance).
5. Stay ethical – avoid selling expired or unregistered medicines.

Common Mistakes to Avoid

• Starting operations before obtaining the official drug license.
• Employing unregistered staff to dispense medicines.
• Stocking drugs from unauthorized or fake distributors.
• Not keeping temperature-sensitive medicines refrigerated.
• Ignoring renewal deadlines for licenses or trade permits.

Frequently Asked Questions (FAQ)

Final Thoughts

Opening a pharmacy in Bangladesh is a secure and impactful business opportunity, but it demands full legal compliance and professional management. By following the DGDA’s licensing process, hiring a qualified pharmacist, and maintaining high ethical standards, you can build a trusted and profitable pharmacy that serves your community’s healthcare needs.

How Dewey & LeBoeuf Can Help

Dewey & LeBoeuf’s global legal team assists entrepreneurs and healthcare investors with business registration, licensing, and compliance in Bangladesh. Whether you are setting up a retail, wholesale, or hospital-based pharmacy, we ensure that every step meets DGDA and local authority regulations.

Contact our Dubai office today for expert guidance, document preparation, and full legal support to establish your pharmacy business in Bangladesh smoothly.