Starting a pharmacy under a Hindu Undivided Family (HUF) account can be a viable option for doctors, but it comes with important legal, ethical, and tax considerations. If structured properly, a pharmacy owned by a HUF and operated by a qualified pharmacist can comply with medical regulations and tax laws while maintaining professional ethics.
Legal & Professional Considerations
Ownership & Licensing:
- A pharmacy must be registered under the Drugs & Cosmetics Act, of 1940.
- The HUF can own the pharmacy, but a licensed pharmacist must be employed to dispense medicines.
Professional Code of Conduct (MCI/NMC Guidelines):
- Doctors are prohibited from directly running a pharmaceutical business.
- If the HUF owns the pharmacy (not in the doctor’s name) and a qualified pharmacist manages operations, it may comply with regulations.
- There should be no conflict of interest, such as compelling patients to buy medicines from the pharmacy.
Ethical & Tax Aspects
- Income from the pharmacy will be taxed under HUF provisions.
- Doctors must avoid direct involvement in daily operations to maintain ethical standards.
Best Approach for Doctors
✅ Consult a legal expert to ensure compliance with business and tax laws.
✅ Follow professional ethics to prevent regulatory issues.
✅ Hire a qualified pharmacist to manage daily pharmacy operations.
If you are a doctor considering opening a pharmacy through your HUF, consult legal and tax professionals to ensure proper structuring. Stay compliant with medical ethics and licensing regulations while optimizing your business setup.
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