Do You Need a Licence to Sell Cosmetics in India?
Every founder asks this early, and the honest answer has a few layers. The Cosmetics Rules, 2020 regulate how cosmetics are made, imported and labelled, and State Licensing Authorities issue the licences. Here is what the rules say, and the parts you must confirm with your own authority.
What the rules say in plain words
In India, cosmetics are regulated under the Drugs and Cosmetics Act, 1940 and the Cosmetics Rules, 2020. Two points from the official sources matter most to a new brand.
So the product you sell must be made by someone holding the right licence. The questions that remain are whether you, as a brand owner who does not run a factory, also need to hold something, and what must appear on your label. We cover both below.
Manufacturing licence and loan licence
The rules provide for a manufacturing licence for a company that makes cosmetics in its own premises and a loan licence for a company that has its products made at another licensee’s premises. According to CDSCO’s FAQs, the application forms are COS-5 for a licence and COS-6 for a loan licence, and licences are valid in perpetuity subject to payment of a retention fee at the intervals the rules set. Check the current forms and fees on your state’s drug control website.
| Manufacturing licence | Loan licence | |
|---|---|---|
| Who it is for | A company that makes cosmetics in its own premises | A company that has products made at another licensee’s premises |
| Where you apply | State Licensing Authority | State Licensing Authority |
| Application form (per CDSCO FAQ) | COS-5 | COS-6 |
| Premises | Your own, inspected | Manufacturer’s licensed premises |
Rules 23 and 25 of the Cosmetics Rules, 2020 are the starting points for these licences. Read them on the CDSCO site rather than relying on a summary.
What about a brand that outsources manufacturing?
This is where founders get confused. The FAQs and rules we reviewed make clear that the product must be made by a licensed manufacturer. They do not state in one line whether every brand owner must hold its own licence. Practice varies between states, and agents often say different things.
Our general suggestion, which our own skincare launch guide also gives, is to ask your State Licensing Authority directly whether a loan licence is required for your arrangement, and to get the answer in writing. Do this before you print labels.
Choose a licensed manufacturer
Ask to see the licence and confirm the premises and product categories it covers.
Write an agreement
Cover formula, responsibilities, batches and records.
Ask your authority
Which licence applies to your arrangement, and what documents it needs.
Apply if required
Using the forms and fees your state publishes.
Keep the paperwork
You will show it to marketplaces, retailers and auditors.
Formuluxe can share its licence details and batch records on request. See our quality page and compliance checklist.
What the label must show about who made the product
Rule 34 of the Cosmetics Rules, 2020 sets out label contents. Key items include the product name, the name and address of the manufacturer, the month and year of expiry or a use-before date, the batch number (with limited exemptions for very small packs), the manufacturing licence number, and the net contents. The ingredient list has its own requirements.
If the product is not made in the brand’s own factory, the CDSCO FAQ says the label should show the actual manufacturer’s name and address. The FAQ also describes an option, on the consignee’s request, to use a code number approved by the State Licensing Authority in place of the manufacturer’s name and address. Ask your authority whether and how this applies.
Our label requirements guide and packaging and label design turn these rules into a checklist.
Two special cases
If your formula includes ingredients with special rules, ask your manufacturer early. Standards such as the BIS IS 4707 series cover colourants, restricted substances and preservatives. See the BIS website.
A simple licence checklist before launch
Licensing is the part of a launch where a wrong guess can stop your sales. Ask in writing, keep the replies and move on only when you are sure.
Documents to ask a manufacturer for
Formuluxe shares licence details and batch records with brands who ask. Our quality page lists what we document. If a manufacturer is unwilling to show a licence, look elsewhere.
Who will ask to see your licence
Marketplaces, retail chains and export buyers often ask for licence details before they list or import your product. They may want the licence number, a copy, the product list it covers and sometimes your own documents as the brand owner. Having them ready speeds up onboarding.
Plan this in the same week you finalise your label. See where to sell cosmetics first for what each channel asks.
Five myths about cosmetic licensing
‘CDSCO gives my manufacturing licence’
Per CDSCO’s FAQs, State Licensing Authorities grant manufacturing licences.
‘A GST number is a cosmetic licence’
GST is a tax registration. It says nothing about product legality.
‘Udyam covers cosmetics’
Udyam is an MSME registration, not a cosmetic licence.
‘My manufacturer’s licence means I have nothing to do’
The brand owner still has duties for labels, claims and its own licence position.
‘Natural or herbal products are exempt’
Herbal does not mean unregulated. See launching an Ayurvedic or herbal brand.
When in doubt, ask in writing and keep the replies.
What a typical conversation with the licensing authority looks like
Contacting a licensing office for the first time can feel intimidating. Go prepared and polite. Say what you sell, that a licensed manufacturer will make it, and that you want to understand your obligations as the brand owner.
Find the office
Look up your state’s drug control department and the officer responsible for cosmetics.
Prepare a short note
Your business details, product types and the manufacturer’s name and licence number.
Ask specific questions
Is a loan licence required for my arrangement? What documents, fees and timelines apply? Can I use a code number instead of the manufacturer’s address on the label?
Ask for the answer in writing
Email is fine. Keep it.
Follow the instructions exactly
Forms, copies and fees.
Offices differ in how quickly they reply, so start early. See the launch checklist for where this sits in your timeline.
Do You Need a Licence to Sell Cosmetics in India?: common questions
Does CDSCO issue the manufacturing licence for cosmetics?
No. According to CDSCO’s FAQs, State Licensing Authorities grant manufacturing licences for cosmetics. CDSCO handles areas such as import registration and publishes the national rules.
What is a loan licence?
A loan licence is for a company that has its cosmetics made at another licensee’s premises. Applications are made to the State Licensing Authority, using form COS-6 according to CDSCO’s FAQs.
Does a brand owner need a licence if the manufacturer already has one?
The sources we reviewed do not answer this in a single line, and practice can differ. Ask your State Licensing Authority and get the answer in writing.
Can I sell cosmetics made by an unlicensed person?
No. Rule 33 of the Cosmetics Rules, 2020 says Indian-origin cosmetics cannot be sold unless made by a licensed manufacturer and labelled per the rules.
What must the label show if I outsource manufacturing?
Per the CDSCO FAQ, the actual manufacturer’s name and address, along with the other Rule 34 items such as licence number, batch number and expiry. Check the code-number option with your authority.
Where do I find my state’s licensing authority?
On your state’s drug control department website. The CDSCO site lists the national framework and links to related resources.
Does the retention fee apply to cosmetic licences?
CDSCO’s FAQs say licences are valid in perpetuity subject to payment of a retention fee at the intervals the rules set. Check the current rule and fee with your authority.
Need to see our licence details?
Ask for our licence number and batch records so you can complete your own application. Samples are free; you pay shipping only.