Starting a cosmetic manufacturing unit in India requires much more than purchasing mixers, filling machines and packaging equipment.

A commercial cosmetic unit must be established under the:

• Drugs and Cosmetics Act, 1940
• Cosmetics Rules, 2020
• Applicable Bureau of Indian Standards specifications
• State pollution-control requirements
• Factory and workplace-safety laws
• Legal Metrology requirements
• GST laws
• Local fire, industrial and municipal regulations

The correct process is:

Select products
→ Classify them correctly
→ Prepare a business plan
→ Select an industrial premises
→ Design the unit under the Seventh Schedule
→ Recruit competent technical staff
→ Install machinery and testing facilities
→ Apply in Form COS-5 or COS-6
→ Obtain Form COS-8 or COS-9
→ Approve product formulas and labels
→ Begin licensed production

What Is a Cosmetic?

A cosmetic is generally an article intended to be:

• Rubbed
• Poured
• Sprinkled
• Sprayed
• Introduced into
• Otherwise applied to

the human body or any part of it for:

• Cleansing
• Beautifying
• Promoting attractiveness
• Altering appearance

It also includes an article intended for use as a component of a cosmetic.

Common cosmetic products include:

• Face creams
• Body lotions
• Shampoos
• Hair oils
• Conditioners
• Face washes
• Sunscreens
• Lipsticks
• Lip balms
• Kajal
• Eyeliners
• Nail polish
• Perfumes
• Deodorants
• Toothpaste
• Tooth powder
• Toilet soaps
• Shaving creams
• Hair dyes

The product must comply with the applicable standards and cannot carry false or misleading claims.

Cosmetic, Ayurvedic Medicine or Drug?

A cosmetic-like product does not automatically fall under the Cosmetics Rules.

Classification depends on:

• Ingredients
• Intended purpose
• Product claims
• Mode of action
• Label presentation
• Licence category
• Applicable regulatory definition

For example:

Cosmetic Claim

“Moisturizes dry skin and improves appearance.”

This may fall within cosmetic use.

Medicinal Claim

“Treats eczema and cures fungal infection.”

Such claims may move the product into a medicinal or drug category and cannot ordinarily be made under a cosmetic licence.

Ayurvedic Product

An Ayurvedic proprietary or classical product must meet the applicable AYUSH requirements. A manufacturer cannot freely choose an Ayurvedic licence merely because the formula contains herbs.

The product category should be finalized before:

• Formula development
• Licence application
• Packaging design
• Advertising
• Manufacturing

Can Cosmetics Be Manufactured at Home?

Commercial cosmetics cannot ordinarily be manufactured from an unlicensed residential kitchen, bedroom or household room.

The Cosmetics Rules require a licensed manufacturing premises. The Seventh Schedule states that the factory should:

• Be situated in a sanitary location
• Maintain hygienic conditions
• Be clean and well ventilated
• Not be used as a residence
• Not be interconnected with residential areas
• Prevent entry of insects, rodents and flies

Small-scale production does not create an automatic exemption from manufacturing licensing.

The requirements apply whether products are sold through:

• Local shops
• Instagram
• Social media
• Amazon
• Own website
• Salons
• Exhibitions
• Distributors
• Direct-to-consumer channels

Select the Manufacturing Model

There are three practical ways to enter cosmetic manufacturing.

1. Own Cosmetic Manufacturing Unit

Under this model, the company establishes its own:

• Premises
• Machinery
• Production team
• Quality-control system
• Manufacturing licence
• Inventory
• Packaging operations

The manufacturing licence is granted in Form COS-8.

This model provides greater production control but requires substantial investment and daily compliance.

2. Cosmetic Loan Licence

Under a loan licence, the applicant manufactures approved cosmetics using the facilities of another licensed cosmetic manufacturer.

The application is made in Form COS-6, and the loan licence is granted in Form COS-9.

A loan licence is different from an ordinary third-party purchase arrangement because the loan-licensee operates under a specific regulatory licence.

3. Third-Party or Private-Label Manufacturing

Under third-party manufacturing:

• The licensed manufacturer produces the product.
• The brand owner markets it under an agreed brand.
• The manufacturer holds the manufacturing licence.
• The commercial and quality responsibilities should be defined in an agreement.

This is usually the easiest model for a startup that wants to build a cosmetic brand without investing in a factory.

Cosmetic Manufacturing Licence Forms

Purpose	Application	Approval
Own manufacturing licence	Form COS-5	Form COS-8
Loan licence	Form COS-6	Form COS-9
GMP self-declaration	Form COS-7	Submitted with application
Permission for new cosmetic	Form COS-12	Form COS-3
Cosmetic testing laboratory	Form COS-22	Form COS-23

A separate manufacturing licence is required for each manufacturing premises.

Who Issues the Cosmetic Manufacturing Licence?

Manufacture of cosmetics in India is regulated by the respective State Licensing Authorities.

The Central Licensing Authority primarily handles matters such as:

• Import registration
• Permission for new cosmetics
• Certain central regulatory functions

An own manufacturing licence is normally obtained from the State Drug Control or State Licensing Authority where the factory is located.

Application Fee

Under the Cosmetics Rules, the prescribed central fee structure includes:

• ₹10,000 for Form COS-8 covering up to ten products in one cosmetic category
• ₹500 for each additional product in that category
• ₹10,000 for up to ten products in each additional category
• Similar basic fee structure for a Form COS-9 loan licence

The licence remains valid in perpetuity, subject to:

• Continued compliance
• Payment of the prescribed retention fee before completion of every five-year period
• No suspension or cancellation

State portal, inspection, professional and other approval expenses may be additional.

New Cosmetic Permission

A “new cosmetic” requires prior permission from the Central Licensing Authority.

The applicant must submit:

• Form COS-12
• Prescribed fee
• Safety information
• Effectiveness information
• Proposed composition
• Test methods
• Supporting technical data

If approved, permission is issued in Form COS-3.

The State Licensing Authority should not grant permission to manufacture that new cosmetic without the prior central approval.

Business-Entity Registration

The manufacturing business may be formed as:

• Proprietorship
• Partnership
• LLP
• Private Limited Company

The entity selected for the manufacturing licence should have lawful control of the premises.

Prepare suitable documents such as:

• Proprietorship declaration
• Partnership deed
• LLP agreement
• Certificate of incorporation
• Memorandum and Articles
• PAN
• Authorized-signatory documents
• Board resolution, where applicable

Registrations and Approvals Commonly Required

Depending on the state, factory and products, the unit may require:

• Cosmetic manufacturing licence
• GST registration
• Factory or establishment registration
• Consent to Establish
• Consent to Operate
• Fire NOC
• Local trade licence
• Electricity approval
• Boiler approval, where applicable
• Professional-tax and labour registrations
• Legal Metrology registration
• Udyam registration, where applicable
• Trademark registration
• Import Export Code for exports or imports

Not every approval applies to every unit. Applicability should be checked according to the state, machinery, employee strength and production process.

Selecting the Factory Location

Prefer an approved industrial area.

Before finalizing the premises, check:

• Permitted land use
• Commercial or industrial approval
• Pollution category
• Water availability
• Electricity load
• Drainage
• Fire access
• Road connectivity
• Worker availability
• Loading and unloading
• Future expansion

Do not sign a long-term lease before confirming that the premises is acceptable to:

• State Licensing Authority
• Pollution Control Board
• Factory authority
• Fire department
• Local authority

Owned or Rented Premises

A cosmetic manufacturing unit may operate from:

• Owned premises
• Rented premises
• Leased premises

For rented premises, common documents include:

• Rent or lease agreement
• Owner’s NOC
• Ownership proof
• Utility bill
• Property documents
• Site plan
• Authorization for industrial alterations

The lease should be long enough to justify investment in:

• Flooring
• Partitions
• Electrical work
• Water systems
• Machinery
• Exhaust systems
• Fire controls

Factory Layout

The layout should provide a controlled flow of:

• Personnel
• Raw materials
• Packing materials
• Bulk products
• Finished goods
• Waste
• Returned stock

A basic cosmetic unit may need separate areas for:

1. Raw-material receiving
2. Raw-material quarantine
3. Approved raw-material storage
4. Packing-material storage
5. Dispensing and weighing
6. Manufacturing
7. Bulk-product holding
8. Filling and sealing
9. Labelling and packing
10. Finished-goods quarantine
11. Released finished goods
12. Rejected materials
13. Returned products
14. Quality control
15. Washing
16. Change room
17. Office and documentation
18. Waste storage

Seventh Schedule GMP Requirements

The factory should comply with the Seventh Schedule of the Cosmetics Rules, 2020.

Important requirements include:

• Sanitary location
• Hygienic building
• Smooth and washable surfaces
• Adequate ventilation
• Pest prevention
• Suitable lighting
• Adequate personnel
• Potable-quality water
• Proper waste disposal
• Protective clothing
• First-aid facilities
• Equipment maintenance
• Calibration
• Quality-control procedures
• Suitable storage
• Washable work benches
• Container-washing arrangements where required

Wastewater, sewage and other effluents must comply with Pollution Control Board requirements.

Recommended Manufacturing Areas

The Seventh Schedule provides recommended basic areas for specified categories.

Category	Recommended Basic Area
Face powders and similar powders	15 m²
Infant skin powder	15 m²
Creams, lotions, shampoos, hair oils and similar products	25 m²
Nail polish and nail lacquer	15 m²
Lipsticks and lip gloss	15 m²
Depilatories	10 m²
Eyeliner and similar eye preparations	10 m²
Kajal and surma	10 m² plus 5 m² for base sterilization
Aerosols	15 m²
Alcoholic fragrance solutions	15 m²
Hair dyes	15 m²
Tooth powder	15 m²
Toothpaste	Additional 15 m²
Small-scale toilet-soap production	100 m²

These areas cover basic manufacturing only.

Additional space is required for:

• Raw-material storage
• Packing-material storage
• Finished goods
• Quality control
• Washing
• Change rooms
• Quarantine
• Rejected stock
• Packaging
• Office operations

The Licensing Authority may modify the requirement according to the nature and extent of manufacturing.

Technical Staff Requirement

Manufacture should be conducted under the direction and personal supervision of at least one whole-time competent technical employee.

The person should possess one of the prescribed qualifications, such as:

• Diploma in Pharmacy approved by the Pharmacy Council of India
• Registration under the Pharmacy Act
• Intermediate examination with Chemistry as a subject or an equivalent qualification accepted by the Licensing Authority
• Bachelor’s degree in Cosmetic Technology from a recognized university

The person should be:

• Genuinely employed full-time
• Available at the factory
• Properly appointed
• Trained in the approved processes
• Responsible for manufacturing supervision

Quality-Control Arrangements

The manufacturer must either:

Maintain an In-House Laboratory

This requires adequate:

• Technical staff
• Laboratory premises
• Instruments
• Test methods
• Reference standards
• Specifications
• Records

or:

Use an Approved Outside Laboratory

Testing may be arranged through a laboratory that:

• Is approved in Form COS-23
• Meets the applicable regulatory requirements
• Is accredited by NABL for the relevant testing scope

Outsourcing testing does not remove the manufacturer’s responsibility for product quality.

Batch Testing

The manufacturer should maintain proper systems for testing and release of:

• Raw materials
• Packing materials
• In-process material
• Bulk cosmetics
• Finished products

Testing may include, depending on the product:

• Appearance
• Colour
• Odour
• pH
• Viscosity
• Specific gravity
• Fill volume
• Net weight
• Microbial limits
• Heavy metals
• Active-content testing
• Stability
• Preservative effectiveness
• Packaging compatibility

Eye products, lipsticks and dental products require particularly careful quality controls.

Product Standards

Cosmetics must comply with:

• Applicable standards listed in the Ninth Schedule
• Other relevant BIS standards
• Safety requirements
• Ingredient restrictions
• Colour restrictions
• Product-specific specifications

Materials prohibited under the applicable BIS standards should not be used.

Only permitted dyes, colours and pigments should be incorporated.

Cosmetic animal testing is prohibited under the Rules.

Raw-Material Control

Each raw material should have:

• Approved supplier
• Purchase specification
• Supplier certificate
• Internal control number
• Receipt record
• Sampling record
• Test or approval status
• Storage condition
• Retest or expiry date
• Issue record

Do not purchase cosmetic ingredients only on the basis of:

• Low price
• WhatsApp quotation
• Verbal purity claims
• Unverified certificate of analysis

Water Quality

Water used in manufacturing should be of potable quality under the Seventh Schedule.

Depending on the product, the manufacturer may establish additional internal water specifications for:

• Microbial quality
• Conductivity
• Total dissolved solids
• Hardness
• pH

Water systems should be:

• Cleaned
• Sanitized
• Tested
• Maintained
• Documented

Machinery for Creams, Lotions, Shampoo and Hair Oil

A common skincare and haircare section may use:

• Mixing vessels
• Storage vessels
• Heating kettle
• Agitator
• Homogenizer
• Colloid mill
• Transfer pump
• Filtration system
• Filling machine
• Capping or sealing machine
• Labelling machine
• Weighing balances

The correct equipment depends on:

• Batch size
• Product viscosity
• Heating requirement
• Filling container
• Production volume
• Formula

Machinery for Powder Cosmetics

Possible equipment includes:

• Powder mixer
• Dust collector
• Perfume and colour blender
• Sifter
• Grinder or ball mill
• Stainless-steel trays and scoops
• Powder filling machine
• Sealing machine
• Compact press
• Weighing equipment

Dust extraction should be properly designed.

Machinery for Lipstick and Lip Gloss

Possible equipment includes:

• Vertical mixer
• Jacketed kettle
• Stainless-steel mixing vessel
• Triple roller mill
• Ball mill
• Moulds
• Cooling or refrigeration facility
• Filling equipment
• Weighing equipment

Machinery for Toothpaste

Possible equipment includes:

• Weighing balances
• Heating kettle
• Planetary mixer
• De-aerator
• Stainless-steel tanks
• Tube-filling machine
• Tube-sealing or crimping machine
• Coding machine

Nail Polish and Solvent-Based Products

Nail-polish and lacquer sections require stronger fire controls.

Requirements include:

• Industrial location
• Separate section
• Fire-resistant construction
• Flameproof equipment
• Concealed electrical connections
• Exhaust system
• Controlled solvent storage
• Outward-opening doors
• Fire-fighting equipment
• Fire NOC

Do not use ordinary electrical mixers or filling machines in a flammable-solvent area.

Aerosol Products

Aerosol manufacturing may require:

• Mixing tanks
• Liquid filling equipment
• Propellant filling
• Crimping equipment
• Leak testing
• Suitable air compressor
• Filtration
• Fire protection
• Ventilation
• Approved storage

A fire NOC is specifically relevant to this category.

Manufacturing Documentation

A licensed unit should maintain controlled documents such as:

• Product master formula
• Batch manufacturing record
• Batch packing record
• Raw-material specifications
• Packing-material specifications
• Finished-product specifications
• Standard operating procedures
• Equipment logbooks
• Cleaning records
• Calibration records
• Maintenance records
• Training records
• Testing reports
• Distribution records
• Complaint records
• Recall records

Batch Manufacturing Records

The Eighth Schedule requires details including:

• Product name
• Batch size
• Batch number
• Manufacturing start and completion dates
• Ingredients
• Required quantities
• Actual quantities used
• Raw-material control numbers
• Analytical-report references
• Actual production
• Packing details
• Release date
• Signature of responsible technical staff

Manufacturing records should remain traceable for the prescribed period.

Licence Application Documents

Documents commonly required include:

• Form COS-5 or COS-6
• Fee receipt
• Approved layout plan
• Premises-possession documents
• Rent or lease agreement
• Owner’s NOC
• Entity documents
• Machinery list
• Equipment list
• Technical-staff documents
• Qualification certificates
• Experience documents where requested
• Full-time employment consent
• Product list
• Product compositions
• Proposed labels
• Brand-ownership documents
• Testing arrangements
• Form COS-7 self-declaration
• Pollution and fire documents where applicable

The State Licensing Authority may request further state-specific documents.

Application Process

Step 1: Finalize Product Categories

Decide whether the unit will manufacture:

• Creams and lotions
• Shampoo and hair oil
• Powders
• Lip products
• Eye products
• Toothpaste
• Soap
• Aerosols
• Fragrances

Step 2: Prepare the Project Report

Include:

• Proposed products
• Batch sizes
• Machinery
• Layout
• Utilities
• Staff
• Quality control
• Investment
• Market plan

Step 3: Discuss the Site with Authorities

Confirm whether the premises is suitable before major construction.

Step 4: Establish the Legal Entity

Complete the proprietorship, partnership, LLP or company setup.

Step 5: Obtain Preliminary Approvals

Arrange pollution, fire, factory and building approvals where applicable.

Step 6: Develop the Layout

Design separate areas for manufacturing, storage, packing, testing and rejected stock.

Step 7: Install Machinery

Purchase equipment suitable for the approved categories and capacities.

Step 8: Recruit Technical Staff

Complete full-time appointment and qualification documentation.

Step 9: Develop Products and Labels

Prepare:

• Formulas
• Specifications
• Test methods
• Labels
• Packaging
• Safety information

Step 10: Submit the Application

Apply in:

• Form COS-5 for own manufacturing
• Form COS-6 for loan licensing

Submit the COS-7 GMP self-certification.

Step 11: Receive Licence

The Rules prescribe a 45-day period for scrutiny and grant or communication of deficiencies when the application is complete.

The licence is issued in:

• Form COS-8
• Form COS-9 for a loan licence

Step 12: Inspection

The Rules provide for inspection and verification of the COS-7 self-declaration after grant. Practical processing and inspection may depend on the state authority and application completeness.

Step 13: Begin Production

Commercial production should begin only after:

• Licence grant
• Product endorsement
• Formula approval
• Label approval
• Testing arrangements
• Batch documentation
• Release procedure

Cosmetic Labelling Requirements

A cosmetic label generally needs to include applicable particulars such as:

• Name of the cosmetic
• Manufacturer’s name
• Complete manufacturing-premises address
• Expiry or use-before declaration
• Batch or lot number
• Manufacturing-licence number
• Net contents
• Ingredient list
• Directions for safe use
• Warnings and cautions
• Product-specific declarations

Ingredients above 1% should generally be listed in descending order, followed by ingredients at or below 1% in any order.

False or misleading cosmetic claims are prohibited.

Legal Metrology Requirements

Retail cosmetic packages may also require declarations under the Legal Metrology framework, including applicable details such as:

• Generic product name
• Net quantity
• Month and year
• MRP inclusive of taxes
• Manufacturer or packer details
• Consumer-care details

Cosmetic Rules and Legal Metrology requirements should be reviewed together before printing packaging.

GST on Cosmetic and Personal-Care Products

GST should be confirmed product-wise through the applicable HSN.

From 22 September 2025, several daily-use personal-care products were reduced to 5%, including specified products such as:

• Hair oil
• Toilet soap bars
• Shampoo
• Toothpaste
• Toothbrushes

Other beauty, make-up, perfume and cosmetic preparations may continue 18% or as prescribed under the standard rate according to their exact HSN classification.

Do not apply one GST rate to the entire cosmetic catalogue.

Stability and Shelf-Life Studies

The manufacturer should establish a justified shelf life for each product.

Stability work may examine:

• Appearance
• Colour
• Odour
• pH
• Viscosity
• Separation
• Microbial quality
• Packaging interaction
• Leakage
• Weight loss
• Preservative performance

Do not print an arbitrary three-year expiry merely because similar products use it.

Product Claims

Cosmetic claims should remain:

• Truthful
• Supported
• Non-misleading
• Appropriate to cosmetic use
• Consistent with test evidence

Examples of cosmetic claims may include:

• Cleanses skin
• Moisturizes
• Improves appearance
• Helps reduce visible dryness
• Provides shine
• Conditions hair

Claims such as the following may create regulatory concerns:

• Cures psoriasis
• Treats eczema
• Eliminates fungal infection
• Regrows hair permanently
• Repairs damaged cells medically
• Treats acne as a disease
• Changes hormonal activity

Quality Complaints and Recall

The unit should maintain procedures for:

• Receiving complaints
• Recording the batch
• Obtaining samples
• Investigating manufacturing records
• Reviewing test results
• Identifying distributed quantities
• Blocking affected stock
• Recalling products where necessary
• Taking corrective action

Distribution records should allow every affected batch to be traced.

Investment Required

There is no fixed statutory investment amount.

Investment depends on:

• Product category
• Batch capacity
• Machinery
• Automation
• Factory location
• Own or rented premises
• Fire controls
• Laboratory
• Packaging
• Working capital
• Marketing plan

Illustrative Planning Ranges

Type of Unit	Broad Illustrative Investment
Small leased cream, lotion, shampoo or hair-oil unit	₹25–60 lakh
Multi-product skincare and haircare unit	₹60 lakh–₹1.5 crore
Larger semi-automatic multi-category facility	₹1.5–₹5 crore or more
Small toilet-soap production line	₹75 lakh–₹3 crore or more
Aerosol, perfume or solvent-heavy facility	₹1–₹5 crore or more

Land and building purchase may be additional.

These figures are planning estimates, not government-prescribed minimums.

Main Investment Heads

Fixed Capital

• Premises deposit
• Civil work
• Flooring
• Partitions
• Machinery
• Filling equipment
• Water system
• Exhaust system
• Laboratory
• Electrical installation
• Fire safety
• Computers and software

Pre-Operating Expenses

• Licence work
• Product development
• Formula development
• Testing
• Stability
• Artwork
• Trademark
• Trial batches
• Technical consultancy
• Staff recruitment

Inventory

• Raw materials
• Fragrances
• Preservatives
• Colourants
• Bottles
• Tubes
• Jars
• Labels
• Cartons
• Shipping boxes

Working Capital

• Rent
• Salaries
• Electricity
• Marketing
• Freight
• Distributor credit
• Raw-material reorder
• Packaging reorder
• Laboratory testing
• Maintenance

Illustrative Small-Unit Budget

For a leased cream, lotion, shampoo and hair-oil unit:

Investment Head	Illustrative Amount
Premises deposit and initial rent	₹3,00,000
Civil work and partitions	₹6,00,000
Mixing, heating and homogenizing equipment	₹12,00,000
Filling, sealing and labelling equipment	₹5,00,000
Water, electrical and utility setup	₹4,00,000
Laboratory and testing setup	₹4,00,000
Licence, consultancy and pre-operative work	₹2,00,000
Initial raw and packing materials	₹6,00,000
Operating reserve	₹6,00,000
Contingency	₹4,00,000
Illustrative Total	₹52,00,000

Actual quotations may be lower or substantially higher.

How to Reduce Investment

A startup can reduce capital requirement by:

• Beginning with one category
• Taking a compliant leased premises
• Selecting semi-automatic equipment
• Outsourcing specialized testing
• Using standard packaging
• Avoiding excessive product launches
• Using third-party manufacturing first
• Expanding after repeat demand

Do not reduce investment by compromising:

• Licensing
• Fire safety
• Hygiene
• Testing
• Product stability
• Technical staff
• Waste disposal
• Record keeping

Third-Party Manufacturing vs Own Unit

Choose Third-Party Manufacturing When:

• You mainly want to build a brand.
• Sales volume is not yet established.
• Capital is limited.
• You need several product categories.
• You want a faster launch.
• You do not have technical manufacturing experience.

Consider an Own Unit When:

• Demand is proven.
• Regular production volume exists.
• You have technical staff.
• You have long-term capital.
• You intend to manufacture for other brands.
• You can manage daily compliance.

Common Mistakes

Avoid:

• Manufacturing commercially from home
• Applying under obsolete Form 32
• Selecting products after constructing the plant
• Making medicinal claims under a cosmetic licence
• Choosing a residential premises
• Depending only on the recommended production-room area
• Ignoring storage and quarantine space
• Appointing technical staff only on paper
• Using unapproved colours or ingredients
• Printing labels before review
• Ignoring Legal Metrology declarations
• Using one GST rate for every product
• Launching products without stability support
• Mixing returned goods with saleable stock
• Operating flammable sections without fire controls
• Starting production before licence and product approval

Frequently Asked Questions

1. Which licence is required for cosmetic manufacturing?

An own manufacturing licence is granted in Form COS-8 after application in Form COS-5.

2. What is a cosmetic loan licence?

A loan licence is applied for in Form COS-6 and granted in Form COS-9 for manufacturing through another licensed facility.

3. Can I manufacture cosmetics at home?

Commercial manufacturing requires a licensed, compliant premises that is not used as or interconnected with a residence.

4. Is a pharmacist compulsory?

At least one whole-time competent technical person meeting any of the qualifications specified in Rule 26 is required. A Diploma in Pharmacy is one option, but it is not the only route.

5. Is an in-house laboratory compulsory?

The manufacturer may establish an adequate in-house laboratory or use an approved Form COS-23, NABL-accredited laboratory for applicable tests.

6. What is the minimum area?

The Seventh Schedule provides category-wise recommended basic areas. Additional storage, packing, laboratory and support areas are required.

7. Can one licence cover several products?

Yes, products may be endorsed under the approved categories. The fee structure covers up to ten items per category, with additional fees for more products and categories.

8. Is the licence renewed every five years?

The licence remains valid in perpetuity, subject to timely payment of the retention fee every five years and continued compliance.

9. Do new ingredients require approval?

A product meeting the definition of a new cosmetic requires prior central permission through Form COS-12 and Form COS-3.

10. Can cosmetic testing be performed on animals?

The Cosmetics Rules prohibit animal testing of cosmetics.

11. What GST applies to cosmetics?

The rate depends on HSN classification. Some daily-use personal-care products now attract 5%, while other beauty and cosmetic products may attract the standard rate.

12. Is third-party cosmetic manufacturing legal?

Yes, when the actual manufacturer holds the applicable licence and the product, label, testing and commercial agreements comply with the law.

Final Thoughts

Starting a cosmetic manufacturing unit requires the integration of:

**Correct product classification

• Industrial premises
• COS-8 or COS-9 licence
• Seventh Schedule GMP
• Competent technical staff
• Quality testing
• BIS compliance
• Correct labelling
• Fire and environmental safety
• Adequate working capital**

The safest sequence is:

Finalize products
→ Confirm regulatory category
→ Design the factory
→ Obtain supporting approvals
→ Install equipment
→ Recruit staff
→ Apply for the licence
→ Approve formulas and labels
→ Manufacture controlled batches
→ Release products through quality control

Entrepreneurs whose main objective is to establish a cosmetic brand should compare the cost and responsibility of an own unit with private-label or third-party manufacturing before investing in land and machinery.

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