The beauty and cosmetics industry in India is booming at an unprecedented pace. From skincare startups to organic beauty brands, more and more entrepreneurs are entering this lucrative sector. But the truth is that starting a cosmetic manufacturing business is not as simple as mixing ingredients at home and selling online. You have to comply with legal requirements, licenses, and safety standards to protect both your customers and your brand.
As someone who has interacted with countless small business owners and aspiring beauty entrepreneurs, I've seen one question arise over and over again:
Can I start making cosmetics at home without a license?
The simple answer is no. As per Indian law, you cannot manufacture cosmetic products without the proper license, no matter how small your batch or how natural your ingredients.
So, if you are really interested in building your beauty brand from the ground up, this beginner’s roadmap to starting a cosmetic manufacturing business and growing your beauty brand online will guide you through the entire process.
What exactly are cosmetics?
Before we discuss the business aspect, let’s clarify what exactly cosmetic products mean under Indian law. According to the Drugs and Cosmetics Act, cosmetics include:
Any article intended to be rubbed, poured, sprinkled or sprayed upon, inserted into or applied to the human body or any part thereof, for the purpose of cleansing, beautifying, enhancing attractiveness or altering the appearance.
So, whether it’s a lip balm, face cream, shampoo, eyeliner, deodorant or nail polish—they all fall under cosmetics, and each product requires approval before it can be manufactured.
How to Legally Start Cosmetic Manufacturing in India
- Ayurvedic (Herbal) Cosmetic License – For products using Ayurvedic formulations
- Cosmetic Manufacturing License (Allopathic) – For standard cosmetic formulations
Since this guide is about starting a cosmetic manufacturing business from scratch, let’s focus on the cosmetic manufacturing license.
Key Requirements to Start Your Cosmetic Manufacturing Business
1. Factory Location and Area
Cosmetic production requires a dedicated space, preferably in an industrial area. The law strictly prohibits running a cosmetic manufacturing unit in residential premises.
Each product category has its own minimum area requirements:
Product Type Minimum Area (in sq.m)
Creams, Lotions, Shampoos, Hair Oils 25
Powders (Face Powder, etc.) 15
Lipsticks and Lip Gloss 15
Nail Polishes 15 (Fire Safety Area)
Eye Products (Kajal, Eyeliner) 10 (Clean Area)
Aerosols (Deodorants, Perfumes) 15 (Fire Safety Area)
Toilet Soaps 100
Additionally, you’ll need separate sections for:
- Raw material storage
- Packaging and labeling
- Quality control laboratory
- Finished goods storage
- Office space
2. Competent Technical Staff
- A Diploma in Pharmacy (D.Pharm) holder registered with the state pharmacy council to supervise manufacturing.
- A B.Sc. in Chemistry graduate to handle quality control (unless your pharmacist is also qualified for analytical testing).
If you have a B.Pharm degree, you’re eligible to oversee both manufacturing and quality control.
3. Licenses and Registrations
- Company Registration (Proprietorship, Partnership, LLP, or Private Limited)
- Cosmetic Manufacturing License (Form 32 issued by State Drug Control Office)
- Factory Act Registration
- GST Registration
Step-by-Step Process to Get Your Cosmetic Manufacturing License
Create a business plan – Decide what products you want to make and list their formulas.
Decide on the location – Choose an industrial premises that complies with the zone guidelines.
Visit the State Drug Control Office – Discuss land, building layout, and technical staff requirements.
Set up the facility – Install machines, create divided sections, and follow good manufacturing practices (GMP).
Submit the application – Prepare your documents, including:
- Premises layout & blueprint
- Ownership documents or rental agreement
- List of products with formulas
- Technical staff qualifications
- List of machinery and lab equipment
- NOC from Fire Department (for aerosol and flammable products)
Inspection by Authorities – Officials will inspect your premises before approving your license.
Product-wise Approval – Each product you manufacture needs separate approval.
What Products Can You Manufacture?
Under a cosmetic license, you can make:
- Face powder and compact powder
- Lipstick, lip balm, lip gloss
- Toothpaste and tooth powder
- Skin cream and lotion
- Shaving cream and after-shave lotion
- Hair oil, shampoo and hair dye
- Nail polish and nail lacquer
- Kajal, Surma, eyeliner
- Deodorant, perfume and aerosol spray
- Soap and cleansing products
Investment Required for Starting a Cosmetic Manufacturing Plant
Starting a cosmetic factory is capital intensive, but it’s not impossible for beginners if you plan wisely.
Approximate Investment (in India):
Investment Head Cost (₹)
Land & Building (Owned) 80 Lakh
HVAC System 8 Lakh
Machinery & Equipment 20–40 Lakh
Compressed Air System 5 Lakh
Licenses & Compliance 2–5 Lakh
Other Expenses 5 Lakh
Total Cost (excluding land): Around ₹40–50 Lakh
How to Sell Your Cosmetic Products?
Once you have a license, you have several ways to market your products:
Own Brand & Online Store – Build your beauty brand and sell via Shopify, WooCommerce, or your website.
Third-Party Manufacturing – Make products for other brands.
Loan License Manufacturing – Use another licensed facility to make your products while you handle marketing.
Marketplace Selling – Sell on Amazon, Flipkart, Nykaa, and other e-commerce platforms.
Final Thoughts: Starting Your Beauty Brand Journey
Starting your own cosmetic brand from scratch is exciting, but it also comes with responsibilities. Licensing, quality control, safety, and compliance are non-negotiable. If you approach this business professionally, you will not only be legally protected, but also gain customer trust—which is invaluable in the beauty industry.
By following this beginner’s roadmap: starting a cosmetic manufacturing business from scratch and growing your beauty brand online, you’ll be on the right path to turning your dream into a reality.
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