Hong Kong Drug Licence Applications and Acquisitions · RGYS|Global Licensing and Compliance Service Provider
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HONG KONG DRUG LICENSING

If premises need to be modified during the licence application process, how should the engineering costs be estimated?

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

Q263 · Category F: Fees, Budget and Financial Planning (Q251-Q300)
Premises renovation costs are one variable in start-up costs, and depend on the gap between the property’s original condition and the requirements of the target licence. Estimates should take account of the following key items: 1. “Heating, ventilation and air-conditioning system (HVAC)”: a separate commercial air-conditioning system may need to be installed or upgraded to meet temperature and humidity control requirements. 2. “Partitions and layout”: walls or partitions may need to be built or installed to provide functional areas (such as receiving, storage, dispensing and office areas). 3. “Power and lighting”: ensure adequate electrical load and compliant lighting. 4. “Security facilities”: including CCTV, burglar alarms and cabinets for storing hazardous materials. 5. “Floors and walls”: seamless, easy-to-clean epoxy flooring may need to be installed. Renovation costs for a small or medium-sized pharmacy or warehouse may range from tens of thousands to hundreds of thousands of Hong Kong dollars.

📘 Regulatory basis

Both the Guidelines on Licensing of Wholesale Dealers in Medicines and the Code of Practice for Authorised Sellers of Poisons set out clear requirements for the physical conditions of premises. These requirements provide the blueprint and acceptance criteria for your premises renovation and design.

📗 Drew Tang's recommendations

Before signing a lease, be sure to ask a professional adviser such as us or an experienced building contractor to inspect and assess the site. We also strongly recommend adding an additional 15% to 20% contingency allowance to your renovation budget to cover unexpected issues that may arise during construction.

📕 Risk notice

The biggest financial pitfall is starting fitting-out work without obtaining a professional assessment. If the property is ultimately found unable to meet regulatory requirements because of structural issues, such as fire safety or ventilation, all fitting-out costs may be wasted. Make “passing the Department of Health inspection” the final acceptance criterion for the works.

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