Mini Drugstore / Retail Pharmacy Business Guide (Philippines)
Clear, practical step-by-step checklist with typical fees to start a mini drugstore in the Philippines, focusing on the regulatory path, required people/documents, and realistic startup cost ranges so you can budget and act.
What you'll learn in this mini drugstore guide
This mini drugstore / retail pharmacy business guide walks you through choosing a structure, hiring a licensed pharmacist, securing LGU permits, obtaining an FDA License to Operate (LTO), and estimating fit-out, inventory, and compliance costs.
For more detailed background, you may also want to read our DTI Business Name Registration Guide, BIR Business Registration Guide, and Barangay/LGU Business Permit Guide.
Para ma-model ang equipment, inventory, at buwanang gastos, puwede mong gamitin ang Budget Calculator para sa capital at recurring bills, ang Stock Management System para sa gamot at medical supplies, at ang Task Management System para sa daily SOPs, expiries, at compliance tasks.
1) Decide business structure & name
Choose whether to operate as a sole proprietorship (DTI), partnership, or corporation (SEC). This affects your tax type, BIR registration, and investor options.
Cost notes:
- DTI business name registration often around ₱230–₱530 depending on area/term.
- SEC fees for corporations are higher and depend on authorized capital.
2) Hire / assign a licensed Pharmacist-in-Charge (PIC)
FDA and RA 10918 require a licensed pharmacist (PRC-registered) as Pharmacist-in-Charge (PIC). Many FDA forms and SOPs must bear the pharmacist’s name and signature, and the pharmacist has legal responsibilities for dispensing and storage.
Estimated cost:
Full-time pharmacist salaries in urban areas commonly fall in the ₱25,000–₱50,000+ per month range, depending on experience and workload. Rates vary by city.
3) Secure premises & meet facility requirements
FDA guidelines list minimum floor area and layout requirements: dispensing counter, storage areas, reference corner, proper shelving, and controlled temperature conditions for certain meds.
Cost items to budget:
- Lease deposit and monthly rent (easily ₱10,000–₱80,000+ depending on location and size).
- Fit-out: shelves, counter, refrigeration for certain medicines, lighting, signage, and security features.
- Overall fit-out can range from around ₱40,000–₱300,000+ depending on how large and polished you want the drugstore to be.
You will later need a floor plan and vicinity map for the FDA License to Operate (LTO) application.
4) Register business with local & national agencies
Typical basic sequence:
- Barangay Clearance — from the barangay hall; typical fees around ₱300–₱1,000 depending on LGU.
- Mayor’s / Business Permit — from city/municipal licensing. Annual permit; fees vary widely (₱500–₱10,000+ for micro/small shops, depending on LGU, location, and assessed taxes).
- BIR registration (Form 1901/1903) — to obtain COR, tax types, and authority to print receipts; expect printing of receipts and books of accounts to cost around ₱2,000–₱6,000.
- SSS / PhilHealth / Pag-IBIG employer registration if you plan to hire staff.
Exact Mayor’s permit and local taxes are in your LGU’s revenue code; confirm with the city/municipality or its business one-stop shop.
5) Apply for FDA License to Operate (LTO) for a drugstore
A valid FDA License to Operate (LTO) is mandatory before selling medicines and certain medical supplies. Applications are filed through the FDA eServices portal using official forms and checklists.
Typical documentary requirements (summary):
- Completed application forms and petition/joint affidavit of undertaking (notarized).
- Pharmacist’s PRC ID, certificate, and appointment letter.
- Proof of business registration (DTI/SEC), lease/ownership documents.
- Floor plan, vicinity map, photos of premises and equipment.
- List of products and suppliers, reference books, SOPs, and required record books.
FDA fees:
The FDA fee schedule (Annex) lists specific LTO fees for drugstores/retail pharmacies and RONPDs. Public examples show LTO fees from around ₱2,000 up to tens of thousands of pesos depending on classification and validity period. Always check the latest FDA Annex and eServices portal for the exact amount for your category.
6) If stocking controlled / dangerous drugs
Controlled drugs (narcotics, psychotropics) are covered by DDB/PDEA/FDA rules. Extra licensing, storage, and recordkeeping requirements apply.
Expect:
- Secure locked cabinets and restricted access areas.
- Special logbooks and controlled drug registers.
- Additional clearances and inspections by the relevant agencies.
Extra costs can range anywhere from ₱10,000–₱100,000+ depending on the level of controlled stock and security.
7) Prepare SOPs, records, and staff training
FDA expects documented Standard Operating Procedures (SOPs) for dispensing, prescription handling, controlled drugs, complaint handling, product recall, waste disposal, and quality control. The PIC normally owns/drafts these SOPs.
Cost notes:
- Printing, binders, and logbooks can run ₱1,000–₱10,000.
- POS and basic inventory systems can start around ₱10,000+ or monthly SaaS fees.
8) Inspection & LTO issuance
After you submit your application and pay fees, FDA will schedule an inspection. Inspectors will check premises, equipment, records, SOPs, and pharmacist credentials.
Timelines vary but can range from several weeks to a few months, depending on completeness of your documents and FDA’s workload.
9) Stock, initial inventory, and suppliers
Plan an initial inventory of OTC meds, basic generics, vitamins, first-aid and wound care items, and common medical supplies.
Typical range:
₱100,000–₱500,000+ for initial stock, depending on store size and product mix.
Work with FDA-registered distributors and wholesalers; request their authorization documents and ensure your product list aligns with your LTO scope.
10) Ongoing costs & compliance
- Annual Mayor’s permit renewals and LGU fees.
- Quarterly/annual BIR tax filings and payment.
- FDA LTO renewals based on your LTO validity period and current fee schedule.
- SSS, PhilHealth, Pag-IBIG contributions for staff.
- Rent, utilities, salaries (including pharmacist), and inventory replenishment.
Quick estimated startup cost summary (ballpark)
| Item | Estimated range |
|---|---|
| Business registration & local permits (first year) | ₱3,000–₱20,000 |
| FDA LTO initial fee | ₱2,000–₱30,000+ |
| Fit-out (shelves, counters, signage, fixtures) | ₱40,000–₱300,000 |
| Initial inventory | ₱100,000–₱500,000+ |
| Pharmacist monthly salary | ₱25,000–₱50,000+ |
| POS / receipts / books printing | ₱2,000–₱8,000 |
A lean mini drugstore can sometimes start around ₱170,000 with careful choices, but more realistic setups with better location, inventory, and fit-out can run up to ₱1,000,000+. Actual amounts will depend heavily on your chosen city, store size, and whether you franchise or build independently.
Where to get official forms & references
- Philippine FDA — for LTO forms, downloadable checklists, and fee schedules; use the FDA eServices portal to apply.
- PRC / RA 10918 — for pharmacist licensing rules and responsibilities.
- DTI / BIR — for detailed business name and tax registration guidance.
- Local LGU (City/Municipal) revenue code — for exact Mayor’s permit and local fee breakdowns.