India’s medical device industry is expanding rapidly, driven by growing healthcare demand, technological innovation, and regulatory reforms. To participate legally in this ecosystem—especially for businesses involved in stocking, exhibiting, or distributing medical devices—obtaining the MD-42 license is mandatory.
Below is a detailed, easy-to-follow guide explaining what the MD-42 license is, why it’s essential, and how to obtain it successfully in 2025.
What is the MD-42 License?
The MD-42 license is issued by the State Licensing Authority (SLA) under the Central Drugs Standard Control Organization (CDSCO). It grants permission to stock, exhibit, or distribute notified medical devices across India. This licence ensures that distributors and wholesalers handle devices according to quality, safety, and regulatory standards specified under the Medical Devices Rules, 2017.
Pointwise Summary:
Issued by the State Licensing Authority under CDSCO.
Allows stocking, exhibiting, or distributing medical devices.
Ensures compliance with Medical Devices Rules, 2017.
Applies to wholesalers, distributors, and agents of medical devices.
Importance of the MD-42 License
The MD-42 license isn’t just a legal formality—it’s a cornerstone for trust and business credibility in India’s regulated medical device sector. Operating without this license may lead to severe penalties, product seizures, and reputational damage. Beyond compliance, it also opens doors to new partnerships, institutional contracts, and national distribution opportunities.
Regulatory compliance under the Drugs and Cosmetics Act, 1940.
Business credibility among manufacturers, hospitals, and healthcare buyers.
Market access for pan-India distribution and tenders.
Quality assurance in storage and handling.
Avoidance of penalties and product seizures.
Eligibility Criteria for MD-42 License
To qualify for an MD-42 license, your business must be a legally registered entity with proper infrastructure and qualified personnel. The distribution premises must meet prescribed standards for cleanliness, storage, and environmental control. A technically qualified person, such as a pharmacist or engineer familiar with medical devices, should oversee the operations.
Must be a registered business entity (Proprietorship, LLP, Pvt. Ltd., etc.).
Must possess GST registration and PAN.
Storage premises should be compliant with CDSCO norms.
Qualified technical person (pharmacist/engineer/science graduate) required.
Manufacturer authorization letter (if distributing third-party products).
Documents Required for MD-42 Application
Proper documentation is crucial for smooth approval. Missing or incorrect paperwork is the most common cause of rejection. Applicants must prepare and submit all supporting documents, including proof of premises, qualification certificates, and manufacturer authorization.
Business registration certificate or incorporation proof.
GST certificate and PAN of the business.
Ownership/lease document of storage premises.
Site Master File detailing layout, operations, and SOPs.
Authorization letter from the manufacturer (if applicable).
Affidavit of compliance with Medical Device Rules, 2017.
Qualification and experience certificates of technical personnel.
CDSCO registration certificates for notified devices.
Step-by-Step Process for MD-42 License
Applying for the MD-42 license involves a sequence of online and offline actions. The applicant needs to fill out Form MD-41 and submit it to the respective State Licensing Authority along with supporting documents and fees. The SLA conducts an inspection, and upon successful verification, issues the MD-42 license.
Fill Form MD-41 on the state drug control portal/CDSCO website.
Attach all supporting documents and declarations.
Pay the prescribed fee (amount varies by state).
Inspection by the State Licensing Authority to verify compliance.
Approval and issuance of the MD-42 license (within 30–45 days).
License validity: five years, renewable before expiry.
Compliance and Post-License Obligations
Once granted, the MD-42 license comes with ongoing compliance duties. Licensees must maintain detailed sales and stock records, ensure device labeling accuracy, and uphold environmental and safety standards. Regular audits and prompt renewals are mandatory to avoid suspension or cancellation.
Maintain sales, purchase, and distribution records.
Ensure proper labeling with batch, expiry, and storage information.
Comply with ISO 13485 or relevant quality standards.
Keep import records (if importing medical devices).
Facilitate SLA audits and renew license on time.
Common Mistakes to Avoid
Many applications face delays due to incomplete forms, incorrect site information, or missing authorizations. Avoiding these errors can help fast-track your approval and ensure long-term compliance.
Submitting incomplete or outdated documents.
Ignoring environmental control (temperature/humidity) requirements.
Missing manufacturer authorization letters.
Employing unqualified personnel.
Failing to update the SLA on address or ownership changes.
Best Practices for Faster Approval
Businesses can streamline their MD-42 approval by preparing well in advance. Drafting a detailed Site Master File, hiring a qualified compliance consultant, and maintaining organized documentation can significantly reduce approval time.
Prepare a complete Site Master File (SMF) before inspection.
Hire or designate an experienced technical person.
Maintain transparent manufacturer-distributor agreements.
Conduct internal audits to ensure readiness.
Stay updated with CDSCO notifications and amendments.
Renewal and Amendment of MD-42 License
The MD-42 license is valid for five years. Renewal must be initiated at least 45 days before expiry to ensure uninterrupted operations. Any changes in business structure, ownership, or premises should be immediately reported to the State Licensing Authority.
Validity: 5 years from the date of issue.
Renewal timeline: Apply 45 days before expiry.
Amendments required for changes in premises, ownership, or scope.
Late renewal may result in suspension or cancellation.
Impact of MD-42 License on Business Growth
Having the MD-42 license strengthens your reputation as a compliant, quality-focused distributor. It opens opportunities to work with hospitals, healthcare chains, and government tenders, and it enhances your eligibility for manufacturer partnerships.
Builds credibility in the healthcare market.
Expands business opportunities nationwide.
Improves supply chain transparency.
Enables participation in public procurement and tenders.
Positions your business for long-term regulatory success.
Final Thoughts
In India’s regulated healthcare ecosystem, MD-42 licensing is the gateway to a compliant and successful medical device distribution business. Whether you’re a startup entering the healthcare supply chain or an established enterprise expanding your reach, obtaining and maintaining this license ensures credibility, safety, and operational continuity.
By understanding the process, preparing proper documentation, and aligning with CDSCO guidelines, your business can thrive in the evolving world of medical device distribution. As India’s medical device market continues to surge, compliance today sets the foundation for sustainable growth tomorrow.
How PSR Compliance Can Help
Expert guidance on eligibility, documentation, and filing.
Assistance in Form MD-41 preparation and submission.
Coordination with CDSCO and State Licensing Authorities.
Support for site inspection readiness and compliance audits.
Help with renewals, amendments, and post-licence maintenance.
Whether you’re a new distributor or an established company, PSR Compliance ensures your MD-42 licence journey is efficient, compliant, and Smoothly.
For more information visit : https://www.psrcompliance.com/blog/md-42-license-in-india
