How to open a pharmacy (medical store) in Nepal

Who can open a pharmacy in Nepal?

The owner need not be a pharmacist: DDA's application records the owner and the professional separately, one person can be both, and a private limited company or organisation can own a pharmacy.

What the law requires is a qualified professional. Under DDA's Drug Sale and Distribution Code, 2080, every pharmacy must have at least one full-time pharmacist or pharmacy assistant registered with the Nepal Pharmacy Council, or a व्यवसायी recognised by the Drug Advisory Committee; hospital pharmacies follow the Hospital Pharmacy Directive for staffing instead.

A pharmacist has at least a bachelor's degree in pharmacy and a pharmacy assistant at least a certificate-level qualification (in practice, B.Pharm and Diploma in Pharmacy graduates); either can be the full-time professional.

Because the professional must be full time, in practice one person cannot be the registered professional of two pharmacies. DDA treats one certificate used in two places as a violation and can suspend the pharmacy's certificate for up to six months.

Whether DDA still grants new recognition to व्यवसायी (drug sellers without a pharmacy degree) for human medicines is not confirmed, so ask DDA before relying on one.

Which licenses does a pharmacy need?

Two, often mixed up in searches for ‘pharmacy license’; a PAN and a local-level recommendation are also needed.

For exam schedules and other Council notices, use the Nepal Pharmacy Council website directly.

Running a pharmacy without a DDA certificate can bring up to three years' imprisonment, a fine of up to Rs 25,000, or both (Drugs Act, 2035, section 34(1)). Practising pharmacy without Council registration: up to three years' imprisonment and a fine of up to Rs 30,000 (Nepal Pharmacy Council Act, 2057, section 29(1), as amended in 2074).

Which office registers a pharmacy?

DDA does. Under section 10 of the Drugs Act, 2035, anyone who sells medicines must register their name and shop or firm with DDA, and neither the Act nor the Drugs Registration Rules, 2038 give this to provinces or municipalities. DDA registers pharmacies from its head office at Bijulibazar, Kathmandu, and branch offices in Biratnagar, Birgunj and Nepalgunj; ask which covers your district.

Provincial governments can appoint drug inspectors, and the Local Government Operation Act, 2074 lists the operation, permission, monitoring and regulation of medicine shops, local firm registration and business tax among municipal functions. DDA's citizen charter also asks for your local level's recommendation for a new registration and each renewal. Your municipality may add its own permission, registration or tax, but none replaces the DDA certificate; ask your municipality.

What does the shop need before you apply?

The shop must meet the premises rules in Code 2080, which replaced the 2071 Code:

• A clean, rodent-proof building with enough space, protecting medicines from sun, dust, smoke, damp and heat; the Code sets no minimum floor area or distance rule.
• Separate places for expired and returned stock; narcotic, psychotropic and poisonous medicines kept locked.
• A refrigerator or cold room with a temperature indicator for medicines that need cold storage (2-8°C in the Code's Good Pharmacy Practice schedule).
• Storage furniture, client seating, a counselling room or fixed place with devices such as inhaler and insulin-pen demonstrators, reference materials, and safe storage for records and certificates.
• A signboard with the shop's name in Nepali and English, plus the DDA registration number once issued.
• A toilet, a waste bin and drinking water; no smoking or alcohol.

DDA's notice of 20 Chaitra 2082 (3 April 2026) adds that a new pharmacy may apply for registration only after preparing to meet all the Code's Good Pharmacy Practice (GPP) standards, such as ‘pharmacy’ in the shop's name, a signboard as DDA prescribes, computers, fire safety, and aprons and name tags for staff.

Documents required for pharmacy registration

DDA's citizen charter, posted on 24 Jestha 2083 (7 June 2026), lists these documents. Scans go into DAMS, and the originals go to the pharmacy officer in Room 18.

The GPP commitment and the local-level recommendation are new since DDA's 2025 charter; confirm the list with DDA.

How to register a pharmacy with DDA, step by step

These steps follow Rule 6 of the Drugs Registration Rules, 2038 and DDA's 2015 DAMS manual, so screens may differ.

1. Confirm that the professional's Council registration or recognition card is current and not tied to another pharmacy.
2. Get the premises ready to the Code 2080 standards, sign the rent agreement if you rent, and get your local level's recommendation.
3. Open DDA's DAMS website and click ‘Get New Submission Number’, then log in and enter the pharmacy's, each professional's and the owner's details.
4. Upload the documents, choose the commitments (kabuliyatnama) that apply, submit, and print the Schedule-8 application.
5. DDA makes the ‘necessary inquiry’ that Rule 6 requires, inspecting the shop where needed; approval appears in your DAMS login.
6. Take the printed application and original documents to DDA, pay the fee and collect the Schedule-9 certificate.
7. Before the first sale, display the certificate, add the DDA number to the signboard and get a PAN.

How much does pharmacy registration cost?

DDA's citizen charter (posted 24 Jestha 2083) sets fees by the estimated capital you declare on the Schedule-8 application:

The charter's service time is 2 working days for a new certificate and 1 for a renewal.

Council registration is separate: Rs 2,000 for a pharmacist and Rs 1,000 for a pharmacy assistant (Council notices of 2082 and 2083 BS).

Confirm fees with DDA before you pay. There is no official figure for the total cost of starting a pharmacy business.

Do you need a PAN, VAT or firm registration?

PAN

Yes. Code 2080 requires the pharmacy's PAN on every bill, and DDA's charter asks for a PAN copy and a tax clearance certificate at renewal. Get it from the Inland Revenue Office or Taxpayer Service Office for your area with ID (citizenship or passport), a photo, a professional or firm registration certificate, and proof of your own premises or a rent agreement.

VAT

Whether the pharmacy must also register for VAT is a separate question, and our guide to VAT on medicines in Nepal covers it.

Firm or company

Not for DDA, if you are a sole owner: DDA's charter asks for company papers only when a private limited company or organisation owns the shop. Registering a firm with the Department of Commerce, Supplies and Consumer Protection or your municipality is common practice, not a DDA rule.

After you open: renewal, bills and records

Renewal

Under section 11 of the Drugs Act, as amended from 14 Shrawan 2082 (30 July 2025), the certificate is valid for three years from issue, but DDA's notice of 20 Kartik 2082 still described yearly renewal, so confirm with DDA how yours is dated.

Apply before it expires. Within 30 days after expiry you can still apply, giving a reason and paying double the fee; after that the certificate is cancelled automatically.

Read our pharmacy license renewal guide before your first renewal falls due.

Bills, records and buying

• Issue a bill for every sale showing the pharmacy's PAN, phone and DDA registration number, each item's batch number, expiry date and price, and the seller's name and signature (Code 2080, clause 8(9)).
• Sell prescription-only medicines only on a valid prescription, stamped ‘Dispensed by’ with the dispenser's name and Council or व्यवसायी number.
• Keep records for at least three years, including purchase and sale bills, expired and returned stock, narcotic records, temperature logs and certificates, and manage stock first expiry, first out (FEFO) or FIFO (Code 2080, clauses 13 and 14).
• Tax law sets a longer period: keep bills and other records that support your income tax return for five years after the income year ends (Income Tax Act, 2058, section 81).
• Buy only from wholesalers authorised by the manufacturer or importer, and keep their name and registration number (DDA directive, 18 Asar 2083).

Please note: This guide is general information for pharmacies in Nepal, written from the laws and official notices listed under Sources as they stood on the review date. It is not legal or tax advice. Rules, fees and forms change, so confirm with the office concerned or a qualified adviser before you act.