How To Start A Clinic

How To Start A Clinic – The healthcare sector is one of India’s key industries, with a market size of 6.5 Lakh CRORES and an annual growth rate of 22.9 per cent. Prosperity, lifespan, population growth, and medical progress are all important drivers of medical sector growth. Because of a robust network of hospitals and health infrastructure, the availability of medical facilities in Tier 2 cities, towns, and villages has decreased in large cities.

Start A Clinic

How To Start A Clinic 

As a result, almost 70% of rural Indians have unmet health needs. Healthcare Clinic is an important channel that ensures the bulk of technical assistance between Tier 2 or Tier 3 cities and the rural population. A health clinic that requires little infrastructure and equipment is a fantastic small company for doctors and medical practitioners.

Business Entity 

A company should be established as a legal organisation such that its founder has limited liability protection and may be easily transferred to another person in the future. In such cases, we recommend creating a limited liability partnership to operate a health clinic (LLP). To provide the needed services, one or more LLP partners may be medical practitioners, while investors or other stakeholders may be involved in roles other than healthcare.

This might continue. Limited liability companies are recommended for investments in large clinics and equipment valued more than Rs.25 lakhs. Ownership is preferred for really tiny clinics with annual sales of less than 10 lakhs.

Trademark For Clinics

Clinics with their own brand names may pursue trademark registration for the same brand name in order to generate intangible assets and long-term goodwill. Through branding and expansion, several healthcare chains have successfully established themselves in today’s market. As a result, you must protect your brand and intellectual property investment from the start.

Drug License

If your clinic /hospital has an affiliated pharmacy, or if you want to dispense medicines to your patients from the clinic /hospital, you will need the following: 

  • A drug retail license is obtained from a drug administrator under the Drugs and Cosmetics Act of 1940. 
  • If the clinic /hospital uses or sells narcotics in the form of injections, tablets, or bandages, special permission must be obtained from the district collector.

Service Tax Registration 

 The following types of medical services are not taxed under the service tax system: 

 • The service provider must not be a hospital, nursing home, or multi-specialist clinic; 

 • Services are provided by an independent doctor or hospital resident’s doctor

 • Precautionary measures provided to the insured. 

 • Payments made by the person for the medical services received. 

Other healthcare providers, including clinics that do not meet the above requirements, are required to obtain a service tax registration if they exceed Rs. 9 lakhs It is subject to paying service tax.

The Other Important License Required is:

How To Start A Clinic

  • Regulations Building Permit and Licenses (From the Municipality)
  • No objection certificate from the Chief Fire Officer “License under Bio-Medical Management and Handling Rules, 1998.
  • No objection certificate under Pollution Control Act.
  • Narcotics and Psychotropic substances Act, 1985
  • Vehicle Registration Certificates (For all hospital vehicles.)
  • Atomic energy regulatory body approvals (For the structural facility of radiology dept, TLD badges, etc)
  • Boilers Act, 1923(If applicable)
  • MTP Act, 1971 (MTP stands for Medical termination of pregnancy. To be displayed in the Gynaec and Obs department)
  • License for the Blood Bank (To be displayed in the Blood Bank)
  • Transplantation of Human Organs Act 1994(If applicable)
  • PNDT Act, 1996 (PNDT stands for Prenatal diagnostics test. To be displayed in the Radiology department that this is followed. )
  • Dentist Regulations, 1976
  • Drugs & Cosmetics Act, 1940
  • Electricity Act, 1998
  • ESI Act, 1948 (For contract employees)
  • Environment Protection Act, 1986
  • Fatal Accidents Act 1855
  • Guardians and Wards Act, 1890
  • Indian Lunacy Act, 1912 (Applicable only if a Psychiatry dept is there in the hospital)
  • Indian Nursing Council Act 1947 (Whether nurses are registered with NCI).
  • Also one must check whether pharmacists are registered with the Pharmacy Council of India.)
  • Insecticides Act, 1968.
  • Lepers Act Maternity Benefit Act, 1961.
  • Minimum wages act, 1948 (For contract employees).
  • Pharmacy Act, 1948.
  • SC and ST Act, 1989.
  • Protection of Human Rights Act, 1993.
  • Registration of Births and Deaths Act, 1969
  • Urban Land Act, 1976.
  • Right to Information Act 2005.