What is MD 41 & MD 42 License? Fees, Requirements & More

India’s medical device sector has been undergoing rapid transformation to ensure safety, quality, and regulatory compliance. The introduction of the Medical Devices Rules, 2017 (MDR 2017), by the Central Drugs Standard Control Organisation (CDSCO) brought much-needed clarity and structure to the licensing process of medical devices. Two significant licenses under these rules are the MD 41 license and MD 42 license, which pertain to the sale and distribution of medical devices.

If you're a distributor, wholesaler, or retailer in the medical device supply chain, understanding MD 41 and MD 42 licenses is critical for legal compliance and business continuity.

Understanding MD 41 and MD 42 Licenses

What is MD 41 License?

MD 41 refers to the application form for obtaining a license to sell, stock, exhibit, offer for sale, or distribute medical devices classified under MDR 2017.

This application is submitted to the concerned State Licensing Authority or Central Licensing Authority (depending on the class of the device), by a business entity that intends to sell medical devices.

What is MD 42 License?

MD 42 is the actual license that is issued by the competent authority after the completion of the approval process of Form MD 41. It authorizes the applicant to legally sell and distribute medical devices as prescribed in the license.

Medical Devices Classification and Licensing Requirement

Medical devices in India are classified into four categories based on risk level:-

• Class A – Low risk (e.g., tongue depressors, thermometers)
• Class B – Low-moderate risk (e.g., hypodermic needles)
• Class C – Moderate-high risk (e.g., bone fixation plates)
• Class D – High risk (e.g., heart valves)

The MD 41/42 licensing regime generally applies to Class A and B devices, and in some cases Class C and D when sale/distribution is involved at wholesale or retail levels.

Who Needs MD 41 and MD 42 Licenses?

• You require these licenses if your business:
• Stocks and sells medical devices
• Exhibits or offers medical devices for sale
• Acts as a distributor, stockist, wholesaler, or retailer of devices notified under MDR 2017

Entities like hospitals and clinics purchasing for internal use only (not for resale or distribution) typically do not require this license.

Applicability and Timeline

From October 1, 2022, licensing under Form MD 41/42 became mandatory for all of Class A & B medical devices. For Class C & D devices, October 1, 2023, is the effective date.

Hence, from the respective effective dates, it is compulsory for any business involved in the sale, stock, or distribution of notified Class A, B, C, or D medical devices to obtain these licenses before commencing operations.

Documents Required for MD 41 License Application

To apply for MD 41, the following documents are typically needed:-

1. Covering Letter on the company’s letterhead.
2. Duly filled Form MD 41.
3. Declaration of Site Ownership or Rent Agreement.
4. Details of Competent Technical Staff:-
        - Qualification certificates (Degree/Diploma in Pharmacy or Life Sciences)
        -  Appointment letter
5. Layout plan of the premises
6. List of medical devices proposed to be sold or distributed
7. Cold storage details (if applicable)
8. Proof of GST registration
9. Photo ID and registered address proof of the authorized person
10. Purchase invoice copy of medical devices (if already acquired)

Qualification Criteria for Technical Staff

As per MDR, 2017, the applicant must employ qualified personnel to handle medical devices. The key requirements include:-

• A graduate in pharmacy, science, or life sciences; or
• A graduate in any field with at least one year of experience in medical device sales/distribution; or
• A diploma holder with at least two years of relevant experience.

Procedure for Obtaining MD 41 and 42 Licenses

Step-by-step procedure for securing an MD 41/42 license is outlined below:-

Step 1: Registration on CDSCO SUGAM Portal

All applicants must register themselves and create a login on the CDSCO’s SUGAM portal.

Step 2: Prepare Documents

Collate all documents, technical staff details, and information about the premises.

Step 3: Fill and Submit Form MD 41

Log in to the SUGAM portal, select MD 41 application and upload necessary documents. Pay the applicable fees...!

Step 4: Site Inspection

The Licensing Authority may conduct a physical inspection of the premises to verify the storage conditions, recordkeeping and availability of qualified staff.

Step 5: Issuance of MD 42 License

If all conditions are met and the site inspection is satisfactory (if conducted), the State Licensing Authority issues the MD 42 license, authorizing the business to legally sell or distribute medical devices.

MD 41 and 42 License Validity & Renewal

• The MD 42 license is valid in perpetuity, subject to payment of a retention fee every five years.
• Failure to pay the retention fee may lead to cancellation of the license.

Compliance and Record Maintenance

After obtaining the MD 42 license, the licensee needs to comply with ongoing obligations such as:-

• Maintain sales and purchase records.
• Store devices as per manufacturer instructions.
• Report any serious adverse events to the Licensing Authority.
• Allow periodic inspection by authorities.
• Employ qualified personnel at all times.

Non-compliance may lead to suspension, cancellation or legal action under the Drugs and Cosmetics Act, 1940.

Fees Structure

The license fee as per the medical devices Rules, 2017 is as follows:

• Registration certificate for sale of medical devices: ₹3,000 per location
• Inspection Fee: As per Second Schedule of the Medical Devices Rules, 2017 (amended), the inspection fee is:
• For Medical device class A &B - ₹5,000 if inspection is conducted within India by CDSCO or State Licensing Authority (this can vary based on device category and size of facility).
• For Medical device class C&D- ₹50,000 if inspection is conducted within India by CDSCO or State Licensing Authority (this can vary based on device category and size of facility).
• Inspection of the overseas manufacturing site- $6000 i.e. Approx. ₹5,00,000 (INR 5 lakh) - If the inspection is conducted by a foreign regulatory body or authorized third-party inspection agency as per CDSCO guidelines.
• Retention/Renewal Fee for registration certificate: ₹3,000 every five years as retention fee (same as initial application)

These fees may vary slightly by state, so it’s advisable to check with the local State Licensing Authority or on the SUGAM portal.

Note: Professional/consultancy fees may apply if using a service provider.

Difference Between Drug License and MD 42 License

Penalties for Non-Compliance

To engaging in sale or distribution of medical devices without a valid MD 42 license is a punishable offence, which may result in:

• Confiscation of medical devices.
• Suspension of business activities.
• Monetary fines and prosecution.
• Cancellation of license. (if previously granted)

Key Takeaways

• Mandatory License: MD 41/42 licenses are now mandatory for all medical device distributors, wholesalers, and retailers.
• SUGAM Portal: All applications must be filed online via CDSCO's SUGAM platform.
• Qualified Staff: Only businesses employing qualified technical staff are eligible.
• Five-Year Validity: Licenses are valid for five years and are renewable.
• Avoid Legal Risk: Operating without the license may lead to severe legal and the financial consequences.

Conclusion

With medical devices playing a vital role in healthcare, regulatory compliance is more important than ever. The MD 41 and MD 42 licenses are not just bureaucratic formalities rather they are important tools to ensure safety, traceability and accountability in the medical device distribution ecosystem. By securing these licenses and staying compliant, businesses not only gain credibility but also contribute to the nation’s goal of safe and efficient healthcare delivery. If you need professional assistance, do contact to CRSPL Business Consultants, they will guide you with their experience and knowledge.