License for selling Skincare and Haircare products in India

In India, making and selling of cosmetics is regulated. One would need license to make products and sell. The Cosmetics Rules 2020 are regulations that govern the import, manufacture, testing, distribution, sale, and labeling of cosmetics in India. The rules came into effect on December 15, 2020, and replaced the Drug and Cosmetics Rules 1945

Is license required only in India? No. Every county has their own regulations. Some countries need their products to be tested in lab while some need license.

What are the licenses available? 1. Third party manufacturing license (loan license). We can get the products made by third party company at a defined moq (minimum order quantity) like 500/1000. 2. Manufacturing license needs manufacturing equipment, area, testing lab and professionals. Manufacturing equipment Include mixers, homogenisers, rollers etc. Area Should be in industrial area. There are certain rules and limits on area required like 25 Sqft for making a product. No matter the quantity, one would need license.

There are many people who sell online. Do they all have license? No, many dont have license but they sell without license. It will cause legal trouble if caught. Also retail stores like Nykaa, Amazon ask for CDSCO license.

What is CDSCO? The Central Drugs Standard control Organisation is the governing body for drug and cosmetic license in India.

How much does licensing cost? Licensing doesn't cost so much(May be 1-2L) but the manufacturing area and maintenance cost high. Every product needs to be lab tested .

Which article or section cover cosmetic licensing?

• Cosmetic act 2020. Here is some info below. There is more info related to labelling, licensing forms and import restrictions in the act.

• Application for grant of license or loan license to manufacture cosmetics for sale or for distribution.—(1) Any person who intends to manufacture cosmetics shall make an application for grant of a licence or loan licence to manufacture for sale or for distribution to the state Licensing Authority.

• (2) Application under sub-rule (1) shall be made through an identified online portal in Form COS- 5 for licence or in Form COS- 6 for loan licence accompanied with a fee, as specified in the Third Schedule along with respective documents as specified in Part II of the Second Schedule.

  Check the link for the complete information- https://cdsco.gov.in/opencms/opencms/en/Acts-and-rules/Cosmetics-Rules/

Is MSME or Trade License enough? These are required for any license. Manufacturing or loan license is must for cosmetic products
Documents required: For Loan license: Following documents (same is applicable to cosmetics) are required by the Loanee and Host firm to ger a Loan License for Medicine Manufacturing.
Loanee firm –

1. Adhar card and PAN Card of all directors

2. GST certificate

3. Loan License Agreement

4. Form 20B 21B

5. Host firm

6. Manufacturing license form 25,28

7. Technical staff documents

8. Site master file

9. Stability study data

10. Product approval copy

https://pharmadocx.com/loan-license-for-drug-manufacturing/

For company

1. Company registration

2. Trademark of company name

3. Company website registration

4. GST license

5. Trade license

6. Apply as small scale business in UDHYAM/MSME

Do we need license for Herbal Products which doesn't include any chemicals? Yes, Ayush license. It is similar to manufacturing license but under different governing body.

Do we need license when making from home? Yes and all the manufacturing licensing conditions apply

Do I need background in Cosmetics for license? No, you can have someone in your team who is qualified ( Check Cosmetic act for qualification details)

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