How to Check if a Company is Legally Registered?

About the Pharma Company in India

A pharmaceutical company is an entity involved in the development, manufacturing, distribution, and marketing of medicines and healthcare products. Depending on the business model, pharma companies in India are typically classified as:

• Manufacturing companies: involved in the production of drugs and medicines.
• Marketing companies: focus on branding and distribution, often outsourcing manufacturing.
• Wholesale businesses: supply medicines in bulk to retailers, hospitals, and distributors.
• Retail businesses: run pharmacies and directly sell medicines to consumers.

India’s pharmaceutical industry has been expanding rapidly. As of 2025, it is valued at $55 billion and is projected to reach $120–130 billion by 2030. The government has also introduced several supportive measures:

• 100% Foreign Direct Investment (FDI) allowed in greenfield pharma projects.
• ₹15,000 crore PLI (Production Linked Incentive) scheme to promote domestic manufacturing.
• Incentives for Active Pharmaceutical Ingredients (APIs) and medical devices to reduce import dependency.

With this growth potential, starting a pharmaceutical business in India is both a profitable and impactful opportunity.

Choosing the Right Business Structure for a Pharma Company

The first step in starting a pharmaceutical business in India is selecting the proper business structure. The choice depends on the scale of operations, funding requirements, and ownership preferences. Common structures include:

• Limited Liability Partnership (LLP): Offers flexibility with limited liability.
  Private Limited Company (Pvt Ltd): Ideal for manufacturing and marketing businesses due to scalability and investor appeal.
• Public Limited Company: Suitable for large-scale operations planning to raise funds from the public.
• Indian Subsidiary of a Foreign Company: Allows foreign companies to establish a presence in India and leverage the growing market.

India ranks 3rd in the world by volume and 14th by value in pharmaceuticals, making it a preferred hub for domestic and international players. Choosing the right structure ensures smooth registration and compliance.

Eligibility for Registering a Pharma Company

Eligibility criteria are designed to maintain quality and compliance in the pharma sector. Key rules include:

• The applicant must be legally competent to enter into a contract.
• The company must appoint qualified directors and pharmacists, depending on the business type.
• Proper compliance with the Drugs and Cosmetics Act of 1940 is mandatory.
• Only individuals or entities with relevant pharmaceutical qualifications/experience can run such businesses.

Requirements for Registering a Pharma Company

Corporate & Structural Requirements

These are the standard legal requirements for forming a company under the Ministry of Corporate Affairs (MCA).

• Directors and Members: The structure depends on your company type. For a Private Limited Company, a minimum of two directors and two members (shareholders) are required. The same individuals can hold both positions.
• Director Credentials: Every proposed director must have a Digital Signature Certificate (DSC) for online document submission and a Director Identification Number (DIN), a unique identifier issued by the MCA.
• Unique Company Name: Your proposed company name must be unique and not resemble any existing company or trademark. It must be approved and reserved through the MCA portal.
• Registered Office Address: You must provide a physical address in India as the company's official registered office. Proof of address, such as a utility bill or rental agreement, is mandatory for verification.

Pharmaceutical & Technical Requirements

These are specific mandates from the Drugs and Cosmetics Act, 1940, enforced by state drug control departments, which are essential for obtaining a drug license.

Qualified Technical Personnel: 

You must employ qualified individuals to supervise the sale and distribution of drugs. The requirements vary based on the business type:

• For Wholesale Business (Distribution): The operations must be supervised by a "Competent Person." This can be:
  
  • A Registered Pharmacist.
  • A graduate with at least one year of experience in dealing with drugs.
• For Retail Business (Pharmacy): All sales and dispensing activities must be conducted under the direct supervision of a Registered Pharmacist.

Adequate Storage Premises: 

You must have a proper commercial space for storing medicines. The premises are inspected by a Drug Inspector and must meet specific conditions:

• Minimum Area: Typically, a minimum of 10 square meters is required for a wholesale license. This can vary by state.
• Proper Storage Facilities: The premises must be clean, well-lit, and equipped with necessary storage solutions like cupboards, racks, and, crucially, a refrigerator and freezer to store temperature-sensitive drugs like vaccines and serums.

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How to Start a Pharmaceutical Company in India?

The incorporation process is now simplified through the SPICe+ (Simplified Proforma for Incorporating a Company Electronically Plus) form by the Ministry of Corporate Affairs. Steps include:

Phase 1: Business Incorporation

The first step is to register your business as a legal entity with the Ministry of Corporate Affairs (MCA). The modern SPICe+ (Simplified Proforma for Incorporating a Company Electronically Plus) form has streamlined this process significantly.

• Get Director Credentials: All proposed directors of the company must obtain a Digital Signature Certificate (DSC) and a Director Identification Number (DIN). The DSC is an electronic signature used for filing documents online, and the DIN is a unique number assigned to each director.
• Reserve a Company Name: You must apply for and reserve a unique name for your company. This can be done through the MCA portal's RUN (Reserve Unique Name) service or directly within the SPICe+ form.
• Draft Foundational Documents: Two critical documents need to be prepared:
  
  • Memorandum of Association (MoA): This document defines the company's objectives and the scope of its business activities.
  • Articles of Association (AoA): This document outlines the internal rules and regulations for managing the company.
• File the SPICe+ Form: This single, integrated web form is used to file for incorporation. It combines applications for the company name, DIN allotment, and issuance of important tax numbers like PAN and TAN.
• Receive Certificate of Incorporation: Once the MCA approves your application, you will receive a Certificate of Incorporation. This certificate includes your unique Corporate Identity Number (CIN) and officially marks the legal birth of your company.

Phase 2: Securing Pharmaceutical Licenses

This is the most critical phase and is specific to the pharmaceutical industry. These licenses are granted by the Central Drugs Standard Control Organization (CDSCO) and State Drug Control Departments.

• Drug License: This is the primary license required to deal with drugs and cosmetics. The type of license depends on your business model:
  
  • Manufacturing License: Required if you plan to manufacture drugs. This involves a rigorous inspection of your manufacturing facility to ensure it complies with Good Manufacturing Practices (GMP) and has the necessary technical staff and equipment.
  • Wholesale/Distribution License: Required for stocking, selling, and distributing drugs. This requires having adequate storage premises with proper refrigeration facilities and employing a registered pharmacist.
• GST Registration: Before you can apply for a drug license, you must complete your Goods and Services Tax (GST) registration. The GSTIN is a mandatory requirement for the drug license application.

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Phase 3: Brand and Tax Formalities

With your company and licenses in place, the final step is to protect your brand and manage your finances.

• Trademark Registration: It is highly advisable to register your company name, logo, and the brand names of your pharmaceutical products. This protects your intellectual property and prevents others from using similar names.
• Bank Account Opening: You can open a corporate bank account using the Certificate of Incorporation and other registration documents.

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Documents Required to Register a Pharma Company

Here’s a checklist of essential documents required to open pharma company:

For Indian Directors/Shareholders:

• PAN Card
• Aadhaar Card
• Passport-size photographs
• Address proof (utility bill, bank statement)

For Foreign Directors/Shareholders:

• Passport (notarised and apostilled)
• Proof of overseas address
• Photograph

For the Company:

• Registered office address proof (rent agreement/ownership proof)
• Utility bill of the premises (electricity/water bill)
• MoA and AoA

Other Registrations Required for a Pharma Company

After incorporation, a pharma company must obtain additional registrations and licenses to operate legally:

1. Drug License (under the Drugs and Cosmetics Act, 1940)
   
   
   
   • Manufacturing License
   • Wholesale License
   • Retail License
   • Loan License (for outsourcing manufacturing)
   • Import License (for foreign medicines)
     
     
2. GST Registration – Mandatory for taxation and interstate sales.
3. FSSAI Registration – Required if dealing with nutraceuticals or dietary supplements.
4. Trademark & Patent Registration – Protects brand identity and intellectual property.
5. Import Export Code (IEC) – For companies engaged in pharma exports/imports.

Frequently Asked Questions (FAQs)

Eligibility

• Should be recognised by DPIIT.
• Startups should not have received more than Rs 10 lakh of monetary support under other significant government schemes.
• The Startup shall have been in existence for no more than two years at the time of application.
• Should be using technology as its core product or service to create innovative solutions in different sectors.
• Must have a business idea to develop the product with a scope of scaling
• According to the Companies Act of 2013 and the SEBI (ICDR) Regulations of 2018, Indian promoters must own at least 51 percent of the company at the time of application to the incubator.
• The seed support is generally available in grants and debt/convertible debentures.

Application procedure for Startups

The application procedure for availing the seed fund from the incubators by the startups under the StartUp India Seed Fund Scheme is as follows:

Startup India Registration

• Go to https://seedfund.startupindia.gov.in/.
• On the top right side of the homepage, click the 'Login' button, then the 'Create an Account' option at the bottom of the "Login" tab.
• The ‘Startup India’ registration page will open.
• After filling out the form, click the 'Register' button.
• An OTP will be sent. Enter the OTP and click the ‘Submit’ button.

Startup India Seed Fund Application

• Go to the website again and click on the ‘Apply Now’ button on the right-hand side of the homepage.
• Click on the ‘Apply Now’ button under the ‘For Startups’ option and log in using the username and password registered.
• The application form will open. Put in all the details, upload the documents, and click on the ‘Submit’ button.
• The application will be submitted for the selection of the startup.

Selection of Startups for the Scheme

The Eligible Incubator will select startups for this scheme based on the following criteria:

• Idea
• Feasibility
• Novelty
• Fund Utilization Plan
• Business Plan
• Presentation
• Potential Impact

Benefits

To register a company in the U.S., several essential criteria must be met.

• Under this scheme, up to Rs 50 lakh in financial assistance will be provided to startups at an early stage through incubators.
• The incubator will disburse the seed fund to an eligible startup:
  - As a grant for validation of “prototype development, proof of concept or product trials”-  Up to Rs. 20 Lakh        
  - Investment for commercialization, market-entry, or scaling up through debt-linked instruments - Up to Rs. 50 Lakh
• Once incubated, physical infrastructure, testing support, mentoring for prototype or commercialization, human resources, and legal compliances are provided to the startups, all by the incubators.
• For eligible startups, income tax and capital gains tax exemptions are available.

Post funding process

Each incubator must track specific criteria for each beneficiary startup. Every beneficiary startup must present the reports to its incubators periodically. The data is submitted to Startup India in real-time via their web dashboards and further to the EAC quarterly. Each Startup’s return on investment is also reported by the designated incubator.

• Proof of concept
• Prototype development
• Progress of product development & field trials
• Turnover of startup
• Progress of market launch
• Quantum of loan, angel, or VC funding raised
• Jobs created by startup

Frequently Asked Questions

What is Form STK-2, and When is it Used?

Form STK-2 is prescribed under Section 248(2) of the Companies Act, 2013, allowing a company to apply for voluntary strike-off. It is used by companies that are:

• Not carrying on any business for the last two consecutive financial years, or
• Have not sought the status of a dormant company, and
• Do not have any outstanding liabilities.

For example, consider a startup that launched operations but never scaled up. Instead of continuing to maintain compliance (like audits, annual filings, and tax submissions) with no business activity, the founders can choose to file Form STK-2 and officially close the company.

What are the Benefits of Filing STK-2?

Filing Form STK-2 provides several benefits:

• Quick and cost-effective closure compared to liquidation.
• Savings on audits and compliance costs that continue even if the company has no operations.
• Faster process – usually completed within a few months.
• Protection of directors and shareholders from future penalties or liabilities.

This makes STK-2 a practical option for small companies and startups that wish to wind up smoothly.

What are the Eligibility Criteria to File STK-2?

Not every company is eligible to file STK-2. The key criteria are:

• Applicable to Private Limited Companies, One Person Companies (OPC), and Unlisted Public Companies.
• The company should have no pending liabilities and must clear all dues before applying.
• The business must not have carried on any activity for at least two consecutive years.
• Board and special resolutions (approved by at least 75% of shareholders) are mandatory.

Companies that are listed, under inspection, or involved in ongoing litigation are not eligible for strike-off.

What Documents Are Required for STK-2?

The following documents must be attached while filing STK-2:

• Board resolution and special resolution approving strike-off.
• Affidavit by directors (Form STK-4) declaring no pending liabilities.
• Indemnity bond by directors (Form STK-3), ensuring liability coverage.
• The company's latest audited financial statements.
• Directors’ PAN, Aadhaar, and digital signatures (DSC).
• Incorporation documents like Certificate of Incorporation, MoA, and AoA.

How to File the STK-2 Form? Step-by-Step Guide

Here’s a step-by-step guide to filing Form STK-2:

1. Board Approval: Conduct a board meeting and pass a resolution for closure.
2. Shareholder Consent: Obtain a special resolution with 75% shareholder approval.
3. Clear Liabilities: Pay off loans, creditors, and statutory dues.
4. Prepare Documents: Collect Forms STK-2, STK-3, STK-4, audited accounts, MoA, AoA, and ID proofs.
5. Online Filing: File Form STK-2 on the MCA portal along with attachments.
6. Pay Government Fee: ₹10,000 is payable at the time of filing.
7. ROC Review: The Registrar verifies documents and issues a public notice.
8. Strike-Off Approval: Once satisfied, the ROC strikes the company name from the register.

Voluntarily Removing Company Name using Form STK-2

Companies can voluntarily apply for strike-off by:

• Clearing all debts and liabilities.
• Passing a special resolution with the approval of at least 75% members.
• Seeking NOC/approval from regulatory bodies (if the company is under their regulation).

Effect of Removing Name from Register of Companies

Once the company’s name is removed under Section 248:

• The company is dissolved and ceases to exist legally.
• The Certificate of Incorporation is cancelled.
• The company cannot carry on any business operations.

However, directors, managers, and shareholders remain liable for any past dues, fraud, or pending obligations as if the company had not been dissolved.

Closing of Company by Filing Form STK-2

The closure process through STK-2 involves:

• ROC verification of pending liabilities.
• Publication of a public notice inviting objections.
• Striking off the company’s name from the register.
• Publishing the strike-off notification in the Official Gazette.

Once published, the company is considered officially dissolved.

What are the Consequences of Not Filing STK-2?

Failing to close an inactive company can lead to several consequences:

• Director disqualification under the Companies Act.
• Heavy penalties and fines for non-filing of annual returns and financial statements.
• Government-initiated strike-off without the company’s consent.
• Restrictions on starting new companies for disqualified directors.
• Continued obligations for tax filings and ROC compliance despite no business activity.

What Challenges Can You Face While Filing STK-2?

Some common challenges include:

• Delays in obtaining tax or GST clearance.
• Errors in affidavits or indemnity bonds.
• Issues with expired DSCs of directors.
• Non-cooperation from shareholders or directors.
• ROC objections due to mismatched or incomplete details.

What is the Cost Involved in STK-2?

The cost of filing Form STK-2 includes:

• Government fee
• Professional charges
• Notary and affidavit charges
• DSC renewal costs, if applicable