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HONG KONG DRUG LICENSING

When opening a licensed pharmacy (Authorised Seller of Poisons), what initial one-off costs should you consider besides the licence application fee?

A complete explanation of the regulatory basis, Drew Tang’s recommendations and risk alerts. The original material dates from 2025; read it alongside the latest official requirements.

Original guide, 2025 edition: These FAQs are provided for topic-based reference and have not all been individually checked against current rules. Please confirm fees, personnel, renewal, changes and product requirements against the professional in-depth guide for the relevant licence type and the official requirements in force at the time.

Drug Office, Department of Health Chinese Medicines Board

Q252 · Category F: Fees, Budget and Financial Planning (Q251-Q300)
The initial one-off costs of opening a licensed pharmacy are far greater than the licence application fee alone. You should focus on budgeting for the following: first, premises renovation and equipment. The shop must be laid out in strict accordance with the Department of Health’s requirements, including a separate dispensing area, a dangerous goods storage cabinet, and air-conditioning and refrigeration equipment that meet temperature and humidity control requirements. Second, security systems. A 24-hour CCTV surveillance system and an alarm system connected to a security company must be installed. Third, the initial medicine procurement, which requires a substantial amount of working capital. Finally, you should also budget for computer software for inventory management and sales records, and the consultancy service fee for engaging specialists such as us.

📘 Regulatory basis

The Code of Practice for Authorised Sellers of Poisons issued by the Pharmacy and Poisons Board (PPB) of Hong Kong contains detailed and mandatory requirements for pharmacy premises layout, facilities, storage conditions and security measures. These are statutory standards that must be met at the outset.

📗 Drew Tang's recommendations

Based on our experience assisting clients, we recommend setting aside at least 6 to 12 months of operating funds as a reserve. The largest initial capital expenses are often premises renovation and the first stock of medicines. When selecting premises, carefully assess their renovation potential and costs to avoid choosing a unit that is difficult to bring into compliance.

📕 Risk notice

Seriously underestimating initial investment is one of the most common reasons for the failure of a new pharmacy. If cash flow runs short soon after opening, you may be unable to maintain normal operations even if you have successfully obtained a licence. The regulator may ultimately suspend or revoke the licence, and all your initial investment may be lost.

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