§1Ways to get started

  • Own brand made under loan licence at a licensed contract manufacturer
  • Handmade soap, hair oil or herbal products (needs cosmetic or AYUSH licence)
  • Salon-professional products for local salons
  • D2C online brand with a small range
  • Packaging and labelling services for cosmetic brands

See the Business Encyclopedia

§2Hubs and clusters

    §3Licences and registration

    1. Cosmetic manufacturing licence from the State Licensing Authority under the Cosmetics Rules, 2020 (own unit or loan licence at a contract manufacturer)
    2. Import registration certificate from CDSCO for imported cosmetics (Cosmetics Rules, 2020)
    3. AYUSH manufacturing licence for Ayurvedic / herbal products sold as drugs
    4. Legal Metrology packer registration
    5. Udyam Registration (MSME) - free, online, PAN + Aadhaar based
    6. GST registration (mandatory above turnover threshold or for inter-state supply)
    7. Shops & Establishments registration or Factory Licence (Factories Act) depending on set-up
    8. State Pollution Control Board Consent to Establish / Operate per CPCB 2025 Red/Orange/Green/White/Blue category (White exempt)
    9. IEC - Importer Exporter Code from DGFT (only if importing or exporting)

    §4Regulators

    • CDSCO / State Licensing Authority - Cosmetics Rules, 2020 under the Drugs and Cosmetics Act, 1940 (manufacture and import of cosmetics)
    • Ministry of AYUSH / State AYUSH Licensing Authority - Ayurvedic, Siddha, Unani personal-care products made as drugs
    • BIS - Indian Standards for cosmetics (referred to in the Cosmetics Rules)
    • Legal Metrology (Packaged Commodities) Rules - labelling
    • ASCI and Consumer Protection Act - advertising claims

    §5Government help

    • No sector-specific central scheme or PLI found
    • Cross-sector schemes: Udyam-linked MSME benefits, PMEGP, CGTMSE credit guarantee, Stand-Up India, Startup India (DPIIT recognition), RoDTEP / duty drawback and Export Promotion Mission for exporters

    All schemes

    §6For exports

    • CHEMEXCIL (Basic Chemicals, Cosmetics and Dyes Export Promotion Council)
    • Pharmexcil (for AYUSH / herbal products)
    • DGFT

    §7Pros and cons

    Merits

    • Contract manufacturing lets a founder launch a brand without owning a factory
    • Low unit cost and online selling make small launches possible

    Demerits

    • Every product needs a cosmetic or AYUSH licence before sale; imports need CDSCO registration
    • Product claims are policed (ASCI, consumer law) - 'herbal' and 'clinically proven' claims need proof
    • Crowded market; marketing spend decides survival
    • No dedicated central scheme for the sector

    Sources