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Starting a private practice as a healthcare service provider requires licensing and regulatory criteria, be it a doctor’s clinic, individual practice, laboratory facilities, a single speciality hospital or a multi-speciality hospital. Therefore, it is imperative for you to be aware of the different legal requirements before starting a clinic/hospital.

Prepare a Business Plan

The first step in any business is to create a thorough and comprehensive plan that allows for flexibility in response to unexpected events, and unforeseen challenges.


It would be ideal if you could project and estimate various costs, ranging from the purchase of clinic equipment to the rent of the space you currently occupy. You must set a revenue goal and a target for the amount of disposable income you want to earn, as well as a detailed plan to achieve these two important goals.


Every detail of the business should be documented and planned in an organised manner. In the event of unforeseen events or disasters, you should make plans for managing the clinic and day-to-day expenses. This would include insurance as well as a business continuity plan.

Approvals Relating To Infrastructure

You would need a consultation room with a minimum of 100 square feet to operate a small doctor’s clinic. Naturally, the room requirements can also vary depending on the services you offer. Bear in mind, that the space requirement will be multiplied for each specialization you give and regulated under the respective laws. If the clinic is owned by you, the basic approvals needed for the building are:

  • Certificate for occupancy.

  • Certificate of completion.

  • If the building where the clinic/hospital is set up is more than 15 meters tall, a copy of Fire NOC is required.

If the building/space is taken on lease/rent, a lease deed/rent agreement will be required, which will be renewed at the expiry of the lease. You must ensure that the owner has received the required building permits.

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Clinical Registration

You need a registration certificate under the Clinical Establishments (Registration and Regulation) Act, 2010, regardless of whether you are a small single practitioner clinic or a multi-speciality hospital. Each state has its own rules, and the process followed to obtain the license often varies accordingly.

Pollution Approvals

If your clinic/hospital produces any waste such as soiled waste, linen, sharp waste, etc., you will need to obtain consent from the State Pollution Control Board for the generation of bio-medical waste. This authorisation shall be granted in respect of a non-bedded category, i.e. if only outpatient consultation is offered. Such permissions are typically valid until they are revoked, i.e. for life. Nevertheless, if there is any change in the amount of waste being generated, then a revised consent must be obtained.

Approvals Related To Medical Professionals & Employees

The doctor, nurses and other medical practitioners you hire will need to have the proper registration in addition to permits and licenses for the clinic, such as:

  • Registration for physicians by the State Medical Council.

  • Registration of the Nursing Council for the nurses employed.

  • Registration for the Dental Council, for dentists.

  • Registration from the Pharmacy Board for Pharmacists.

  • Clinical psychologists' enrollment with the Rehabilitation Council of India.

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Drug License

If you have an attached pharmacy in your clinic/hospital, or you dispense medications from your clinic/hospital to your patients, then you need:

  • Retail license for drugs acquired under the Drugs and Cosmetics Act, 1940, from the Drug Controller.

  • If narcotic medications are used or sold by the clinic/hospital in the form of injections or tablets or patches, then special permission must be sought from the district collector.

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It is necessary to adhere to guidelines set by the government, to open a clinic or hospital in India. With the ever-growing Indian population, there is a need for more clinics and hospitals.  A Professional Loan for Doctors available on Bajaj Markets is a great option if you are thinking of taking out a loan to grow your clinic. The whole process of application and approval is easy, fast and can be completed entirely online. Other benefits of availing a professional loan through Bajaj Markets include minimal documentation, flexible repayment tenure and much more.

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