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How To Start A Cosmetic Business At Home In India?

How To Start A Cosmetic Business At Home In India
Steps To Start Your Own Cosmetic Manufacturing Company In India – The above list of items and categories define different requirements for manufacturing of each. The liquid, solid and semi-liquid etc preparation requires a different set of machines. This differs with the state to state needs. We have summed up the procedure for you to follow:

  1. Start by choosing a unique name for your company. It should be attractive and eye catching.
  2. A location for company premises and factory set up should be ready.
  3. Register on the GST network. You can apply it now.
  4. Register your company with the Registrar of Companies under Companies Act, 1956 or 2013.
  5. Select and finalize the brand name.
  6. Meet the requirements, documents and fulfilment for a cosmetic license in India. Compliances are made according to Schedule M-II of Drugs and Cosmetic Act, 1945. (Discussed below)
  7. Once you get the cosmetic manufacturing license number, you can start your company workings.

Is it legal to sell homemade cosmetics in India?

Cosmetics market in India is growing at a rapid pace. The demand for cosmetics products has been growing, particularly in urban centres owing to several factors such as greater purchasing power because of higher incomes, increasing influence of western culture, desire to look better and more attractive etc.

A cosmetic is also a sector that needs to be strictly regulated. Cosmetic Regulation in India According to the Drugs & Cosmetics Act, 1940, a ‘cosmetic’ is defined as an article that can be used in any part of the human body. It may be rubbed, poured, sprinkled or sprayed on. Cosmetic is applied to any part of human body to clean, beautify, promote attractiveness, or to alterthe appearance.

The Drugs and Cosmetics Rules, 1945 elaborates the procedure to manufacture cosmetics in India.Cosmetics can be classified, under Schedule M-II, into 11 broad product categories:

  1. Powders,
  2. Creams, lotions, emulsions, pastes, cleansing milks, shampoos, pomade, brilliantine, shaving creams, hair oils etc.,
  3. Nail Polishes and Nail Lacquers,
  4. Lipsticks & Lip Gloss etc.,
  5. Depilatories,
  6. Preparations used for eyes,
  7. Aerosol,
  8. Alcoholic Fragrance Solutions (Cologne),
  9. Hair Dyes,
  10. Tooth Powders and Tooth Pastes etc.,
  11. Toilet Soaps.

Types of Cosmetic License in India There are two types of license for setting up a cosmetic business in India. The license depends upon the nature of the cosmetic business. Hence, the following are two kinds of cosmetic license in India:

  1. Manufacturing, and
  2. Importing.

Requirements for getting License of Cosmetic Business Submission of Form for the License : The State Government appoints a Licensing Authority for manufacturing the products. Any individual or company has to obtain a license from the Licensing Authority to manufacture any products.According to Drug and Cosmetics Act, 1940, in India, for the manufacturing of cosmetic product, the following licenses are required:

  1. License on form 32 is issued for manufacture/ sale distribute of cosmetics and,Form no.31 should be submitted.
  2. License on form 32-A is issued for loan license for manufacture/ sale distribute of cosmetics, and Form no.31-A should be submitted.
  3. License on form 37 is issued for grant or renewal of approval for carrying out tests on drugs/cosmetics or raw material used in the manufacture thereof on behalf of licenses for manufacture for sale of drugs/cosmetics, and Form no.36 should be submitted.

The applicant must submit the required form to get the license. The applicant is also supposed to submit Rs.2500 as the fee for license and Rs.1000 as the fee for inspection. The applicant is required to submit the said fee through bank challan. In case, if the application is made through online, the applicant will receive an e-mail.

  1. The stuff should hold a Diploma in Pharmacy which must be approved by the Pharmacy Council of India under the Pharmacy Act, 1948; or
  2. The stuff can be registered under the Pharmacy Act, 1948; or
  3. The stuff shouldpassthe intermediate examination with Chemistry as one of the subjects or any other examination as recognized by the Licensing Authority as equivalent to it.

Inspection before Granting License : Before granting or refusing the license, the Licensing Authority is supposed to order forinspecting the whole processof the operations. The appointment of the inspectorsshould be done under the Act. Then the inspectors are supposed to submit a detailed report about the operations to the Licensing Authority.

  • After that, the Licensing Authority will decide whether to grant the license or not.
  • Requirements for Factory Premises The essential conditions of the factory premises for setting up a cosmetic business have been elaborated underSchedule M-II.
  • The following premises are required: Location and Surroundings: It is supposed that the areashould be having all the facilities for seating up a cosmetic manufacturing business.

The matter of the location should be strongly viewed before starting the construction. The vicinity should be hygienic with proper sanitary conditions. The operationmust not be taken place within or near any residential area. Building: The building should be free from rodents, insects etc.

  • Which can hamper the whole operation or product.There are several conditions for the rooms of the building.
  • The height of the room should not be less than 6 feet from the floor.
  • The rooms should be kept smooth, waterproof and also capable of being kept clean.
  • The floors should also be smooth, washable,¹¹ and dust-free.
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Disposal of used water: The stuffs should make proper arrangements and they should also be careful about proper discharge or disposal of waste water. Staff: The staffs, appointed for the manufacturing, should free from any communicable or infectious disease.

  1. The stuffs are required to use the necessary tools such as hand gloves, masks, uniforms etc.
  2. The availability of first aid facility inside the factory premises should also be there.
  3. Requirements pertaining to Labelling of Products The labelling of cosmeticshas been elaborated under the Drugs and Cosmetics Rules, 1945.

The rules are as follows:

  1. Both the inner and the outer labels contain the name of the product and the address of its manufacturing. In case, if the size of thecontainer is small, the Principal place of manufacturing and the pin code is enough according to the cosmetic labelling instruction.
  2. The outer label should contain and clearly mention the list of ingredients which are being used in the manufacturing of the product.
  3. To avoid any risk, the ‘Directions for use’, any warning or caution must be specified on the inner label. Manufacturer is also supposed to mention the names and quantities of ingredients which are of hazardous nature.
  4. According to the Drugs and Cosmetics Rules, the cosmetic labelling instruction says to mention a distinctive batch number preceded by letter “B” and manufacturing batch with “M”,Manufacturing Date, Best Before along with manufacturing license number (if any) on the label.
  5. In January, 2001, the Indian government has made some compulsion for all the imported cosmetics. The pre-packaged goods must contain all the above features along with its Maximum retail sales price (MRP). All taxes, total transport charges, commission payable to dealers, and all charges towards advertising, delivery and packingshould be included in the MRP.
  6. The import of pre-packaged commodities such as raw materials, bulk imports, etc., that need to undergo further processing before they are sold to end consumers are not included under this labelling requirement.

Quality standards in case of the aforementioned categories of products must conform to the Indian standards laid down and revised by the Bureau of Indian Standards (BIS) from time to time. Requirement forTesting of Cosmetic Sample According to the Bureau of Indian Standards (BIS) requirements, the testing of cosmetic product should be done.

  • Physical and chemical analysis of raw materials and active ingredients;
  • Safety tests to assess the presence of heavy metals in cosmetics, banned colours and chemicals;
  • Microbiological quality check to ensure the absence of microbial counts and pathogens;
  • Qualitative and quantitative estimation of active ingredients;
  • Physical testing which includes parameters such as viscosity, spread-ability, scratch test, pay-off test;
  • Estimation of sun protection factor;
  • Skin irritation and sensitivity studies;
  • Stability testing, shelf life determination, etc.

Documents required for Cosmetic Registration in India For the cosmetic registration, the required documents are as follows:

  • Original copy of Power of Attorney in case of Importer,
  • Certificate of free sale, marketing authorization letter,
  • Form 42 duly signed and filed and the list of products to be renewed,
  • Fees as mentioned,
  • A self-declaration that there are no changes in earlier shred information,
  • NOC from Pollution Control Board,
  • Plan the layout of the premises,
  • Rent agreement in case of rented premises,
  • List of laboratory equipment,
  • Affidavit of Applicant,
  • List of machines installed for manufacturing,

The Importer needs to apply for cosmetic registration products by

  • An authorized agent of the manufacturer,
  • A Subsidiary of the manufacturer,
  • A manufacturer having registered premises in India,
  • Any other importer.

It should me remembered that each and every product, that is manufactured or import, should deal with the Drugs and Cosmetics Rules, 1945and the registration is valid for the period of three years. The Drugs and Cosmetics Act, 1940 is a punitive Act. If any of the provisions or rules under the Act with respect to Cosmetics is/are not complied with, imprisonment upto one year or fine upto Rs.1000 or both can be imposed on first conviction and on subsequent convictions, imprisonment can be extended to two years and fine to Rs.2000.

How much does it cost to start a beauty brand in India?

Ans: It requires an initial investment of around ₹1-2 lakh to start a cosmetics business in India.

How much is customs duty in India for cosmetics?

If the items you have imported are cosmetics, the total Customs duty and IGST will be 40.8% on the landing cost. Landing cost includes the freight, insurance and handling charges and as such, calculate your landing cost. It may be informed that gift items, including cosmetics for personal use up to the value of Rs.

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Can I export cosmetics from India?

India exports most of it’s Cosmetic to United States, Nepal and United Arab Emirates and is the 3rd largest exporter of Cosmetic in the World. The top 3 exporters of Cosmetic are China with 329,025 shipments followed by France with 316,373 and India at the 3rd spot with 315,606 shipments.

What is import license for cosmetics in India?

Helping global cosmetics manufacturers and brand owners comply with the registration requirements under the Drugs and Cosmetics Act and the Cosmetics Rules 2020. On 29 November 2018, the Government of India’s Ministry of Health and Family Welfare (MHFW) published the Draft Cosmetics Rules 2018,

  1. The Draft Cosmetics Rules 2018 aimed to update the requirements relating to the manufacture, import, and labelling of cosmetic products in India.
  2. Copies of the Official Gazette containing the Draft Cosmetics Rules 2018 were made available to stakeholders for comment.
  3. Under section 12 and 33 of the Drugs and Cosmetics Act, 1940 (23 of 1940), the MHFW subsequently updated and enforced a new Rule, Cosmetics Rules 2020, based on feedback received from the public.

How are Cosmetics Manufacturers and Brand Owners Impacted? Under the provisions of the D rugs and Cosmetic Act, 1940 and the Cosmetics Rules 2020, it is mandatory for cosmetics manufacturers, brand owners, and importers to submit Cosmetics Import Registrations, including information like pack size, variants, and manufacturing premises, in order to place their cosmetics products on the Indian market.

  1. Cosmetics Import Registration Certificate The import of cosmetics products into India is regulated through a registration system (online portal) by the Central Drugs Standard Control Organisation (CDSCO) to ensure the safety and quality of products placed on the market.
  2. Once a cosmetic product is successfully registered via the online portal (the “SUGAM” portal), an Import Registration Certificate will be issued by the Central Licensing Authority, under Rule 13 of the Cosmetics Rules 2020, for the product’s import into and use in India.

How can Intertek help? Our regulatory experts support cosmetics manufacturers and brand owners with the cosmetic import registration process. We provide the expertise needed to properly review all documentation required for the import registration process, and we support clients in product testing per the Bureau of Indian Standards (BIS) in approved laboratories.

Cosmetics Import Registration Support Labelling and Packaging Compliance Cosmetic Product Safety Assessments Formula ReviewsTraining Advisory Support

Need help or have a question?

Which makeup brand is expensive in India?

1. Chanel – How To Start A Cosmetic Business At Home In India Founded by the very popular Coco Chanel, Chanel is a renowned French cosmetics company and one of the most expensive makeup brands in the world. Chanel is well-known for its high quality and luxurious products that are a preferred choice of women across the globe.

Which product business is most profitable in India?

The Most Profitable Businesses in India – Marg ERP India is a land of immense opportunities, and entrepreneurship is on the rise in the country. The Indian economy has been growing steadily over the years, and with a population of over 1.3 billion people, there is a huge market for goods and services.

  1. In this blog, we will take a look at the most profitable business ideas in India.
  2. E-commerce: E-commerce is booming in India, and it is one of the most profitable business ideas in the country.
  3. With the increasing use of the internet and the growing number of smartphone users, e-commerce is expected to grow at a rapid pace in the coming years.

Starting an e-commerce store is relatively easy and can be done with a small investment. Food and Beverage: Food is a basic necessity, and the food and beverage industry is one of the most profitable in India. The demand for healthy and organic food is on the rise, and there is a huge market for international cuisines as well.

Starting a restaurant or a food delivery service can be a great business idea. Healthcare: The healthcare industry in India is growing at a rapid pace, and there is a huge demand for healthcare services. With an increasing number of people suffering from lifestyle diseases, there is a need for quality healthcare services.

Starting a healthcare clinic or a diagnostic center can be a profitable business idea. Education: Education is a sector that is always in demand, and there is a huge market for educational services in India. With the rise of e-learning platforms, starting an online educational platform can be a great business idea.

  1. There is also a huge demand for vocational training programs and coaching classes.
  2. Real Estate: Real estate is one of the most profitable business ideas in India.
  3. With the growing population, there is a huge demand for housing and commercial spaces.
  4. Starting a real estate business can be a great way to tap into this market.

Renewable Energy: India is one of the fastest-growing renewable energy markets in the world, and there is a huge demand for renewable energy solutions. Starting a renewable energy business, such as solar panel installation or wind turbine manufacturing, can be a great business idea.

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What is the future of cosmetic business in India?

The Indian market for personal care and cosmetics is predicted to grow by 3.86 percent yearly and by 143 percent in terms of volume year over year. The worldwide health and beauty retail business, and cosmetics in particular, have shown rapid and consistent growth since the pandemic in 2020.

Can I sell online without a business license in India?

Once you’ve decided to launch an online store and selected one of the top business ventures, you must obtain a licence. Like a driver’s licence, operating an online business in India without one might get you in trouble. Like eCommerce accounting, getting a company licence might seem complicated, but it’s much easier than you think! Read on to find out more about how to set up an online business in India and get an e-commerce license.

What permission and licenses required to make a product in India?

Licenses required to start a food business in India: – Any business involved in any of the above-mentioned activities is a Food Business Operator and needs to obtain the following licenses to start a food business in India: FSSAI License : FSSAI stands for Food Safety and Standards Authority of India. It is mandatory to obtain a license from the FSSAI to run a food business in India.

A food business that has an annual turnover of up to Rs.12 lakhs, only a basic FSSAI registration is needed. A food business that has an annual turnover of up to Rs.20 crores and operates in only one state, a State FSSAI license is needed. A food business that has an annual turnover of more than Rs.20 crores and operates in multiple states, a Central FSSAI license is needed.

An application form is sent to the Licensing Authority along with registration fees, which can now be paid online as well. On registration, a FSSAI number is given to the business. This number is printed on every food package manufactured or processed by the business.

Registration under the Shops and Establishments Act : A food business has to register under the Shop and Establishments Act of the State in which its business is located. A Shop and Establishment Certificate can be obtained by filling out a form, paying the requisite fees and attaching relevant documents to it.

Health Trade License : A health trade license allows a business to trade in any items or services which have a direct impact on public health. A food business that has this license from the Municipal Corporation, is certified to be in compliance with hygiene and safety standards.A Health Trade license is issued by the Municipal Corporation or the health department of the State in which the business carries out its trade activities.

Liquor License : If the business wishes to serve alcohol within its premises, then it needs to apply for a liquor license by filling out the relevant forms. The local Excise Commissioner grants this license to any food business that wants to serve any drinks containing liquor. NOC from the Chief Fire Officer : To obtain a NOC- No Objection Certificate, the business has to submit its building plans, model of the building and certificate of an Architect, and fill out a questionnaire with the Chief Fire Officer.

Eating House License : An Eating House license is required for any business where the general public is admitted and any kind of food or drink is served for the public’s consumption. An eating-house license can be obtained from the State Police Commissioner.

Environmental Clearance : This license can be obtained from the State or City Pollution Board. This license is granted once the authority evaluates the scope and impact of the business on the environment. Signage License : A signage license allows a food business to advertise it by putting up any words, signs or pictures.

Your food business is required to file an application with the local Municipal body to obtain a signage license in India and publicly display signs outside its business premises. License for playing music or videos : To ensure that the business doesn’t breach the Copyright inherited in pre-recorded music or songs, the business requires a license to play music or videos.

This license is obtained from the Phonographic Performance Limited. A food business opening a restaurant or cafe needs this permit to play music or videos. The legal formalities required to start a food business in India are highly complicated and tend to confuse food business aspirants! It is advised to consult a startup lawyer in India who can take care of every registration and licenses required to start a food business in India.

Get connected to the best lawyers in India through, Email us at or call us at +919811782573. : How to start a Food Business: Registration and Licenses Needed