INTRODUCTION

The personal care and cosmetics industry in India have expanded dramatically in recent years. Selling cosmetics on your own website or through e-commerce platforms seems very appealing, especially since more people are making purchases online and new beauty businesses are opening up frequently. But like most attractive ventures, it has legal implications. New sellers frequently overlook the necessity of regulatory licensing, such as an import registration under Indian regulations, a manufacturing license, or a cosmetic e-commerce license.

At Lawfinity, we believe that understanding the licensing requirements early can save entrepreneurs huge trouble — delays, penalties, product recalls, or even being shut down. This blog sets out what licence or certificate is needed when selling cosmetics online; who issues it; eligibility; how to obtain it; penalties; and how Lawfinity helps simplify the process.

DEFINITION OF COSMETICS

The act defines cosmetic as an article used on the human skin. Section 3(aaa) of the act defines cosmetics as an article intended to be poured, rubbed, sprayed, sprinkled, introduced or applied to the human body for promoting attractiveness, beautifying, cleansing or altering the appearance. it also included an article intended for use as a component of a cosmetic.

The state licence authority selected by the individual state government or licensing authority for cosmetic manufacturing. The central licensing authority appointed by the central government regulates the import of cosmetic items. The Drugs controller General serves as the central Licensing Authority, issuing import registration certificates.

TYPE OF COSMETICS REGISTRATION IN INDIA

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There are two type of registration in India, i.e. manufacturing license and importing license:

MANUFACTURING LICENSE

When an entity intends to manufacture cosmetics, it must obtain a cosmetic manufacturing license. Cosmetic manufacturing licenses are valid for five years from the grant date. The entity can apply for any of the following manufacturing licenses to produce and market cosmetic products in India.

License for manufacturing cosmetics for sale or distribution

According to the rules, a manufacturer can apply for a license to manufacture cosmetics for sale or distribution (Form 32) by submitting Form 31 (application for grant of license to manufacture cosmetics for sale or distribution) to the state government-appointed licensing authority.

For each category of cosmetics listed in Schedule MII of the Rules, a manufacturer may submit an application for a license to manufacture up to ten items.

Loan license for manufacturing cosmetics for sale or distribution

According to the rules, a manufacturer can apply for a loan license to manufacture cosmetics for sale or distribution (Form 32-A) by submitting Form 31-A (application for grant of loan license to manufacture cosmetics for sale or distribution) to the state government-appointed licensing authority.

Up to ten items of each category of cosmetics listed in Schedule MII of the Rules may be manufactured for sale by a manufacturer who applies for a loan license.

License for grant of approval for carrying out tests on cosmetics

According to the Rules, a manufacturer may apply for permission to conduct tests on cosmetics and the raw materials used in their production on behalf of licensees in order to manufacture and sell cosmetics (Form 37).

The manufacturer should submit Form 36 to the state licensing authority, which is an application for approval to conduct tests on cosmetics used in manufacturing on behalf of licensees for cosmetics manufacturing and sale.

IMPORT LICENSE

When a company imports and resells cosmetics in India without manufacturing them, they must have a license as a cosmetic importer. To obtain a license to import cosmetics, importers must submit Form 42, which is an application to the central licensing authority for the issuance of a registration certificate. According to the Rules, Form 43 is used to issue a registration certificate for the importation of cosmetics from other countries into India.

For each cosmetic brand, a fee of USD 250 or its equivalent in Indian rupees must be submitted with the application. After it is issued, the registration certificate (Form 43) is good for three years. A certificate of registration for the import of cosmetics may be applied for by the following individuals:

A manufacturer having a registered office in India
An authorised agent of the manufacturer
A subsidiary of the manufacturer
Any other importer

LICENSING REQUIREMENTS FOR SELLING COSMETICS ONLINE INDIA

The documents required to apply for a manufacturing licence are:

Declaration form
Blueprint of key and site plan
Proof of ownership of the manufacturing premises
Proof of registration/constitution of the firm
Affidavit of non-conviction of partners, proprietor or directors under the Act
Certified copy of registration certificate of Pharmacy Council of India, experience certificate of the registered pharmacist or competent person and their qualification certificates
Bio-data form
Affidavit of a registered pharmacist or competent person regarding full time working with the firm duly attested by a Notary public
Appointment letter of the registered pharmacist or competent person in charge
Downloaded PDF of the filled application form (Form 31, 31-A or 36)

The documents required to apply for importing licence are:

Covering letter by the importer
Original copy of power of attorney showing the connection between the importer and manufacturer
Certificate of free sale, manufacturing licence or marketing authorisation letter
Copy of the label of the product
Downloaded PDF filled form 42
Schedule D III signed by the manufacturer or authorised agent
Product specification and testing protocols
NOC from the pollution control board
Layout plan of the premises
Rental agreement, in case of rented premises
List of laboratory equipment
List of machines installed for manufacturing, if any

STEP‑BY‑STEP PROCESSES

Below is a step‑by‑step guide to obtaining the appropriate licence or certificate in the context of cosmetic e‑commerce:

Decide what kind of licence/certificate you need

Are you manufacturing in India? Then you need a manufacture licence (COS‑5 & then COS‑8 etc.) and overall compliance.
Importing cosmetics to sell in India? Then import registration via CDSCO (COS‑1 etc.).
Just reselling stock from manufacturers who already have all licenses? You might still need proof of their licences, label compliance, and ensure your source is legal.

Business registration & setup

Incorporate your firm (Private Limited, LLP, etc.)
Register for GST, get a registered office/premises.
If manufacturing, set up premises with requisite infrastructure, lab or tie‑ups.

Identify Form(s) needed

For import: Form COS‑1 → leads to Import Registration Certificate (COS‑2).
For manufacture: Form COS‑5 (application for licence) → COS‑8 (grant of license).

Collect / prepare documents (as above: company docs, technical staff qualifications, product formula, labels, site plan, lab test reports etc.)
Apply via online portal

CDSCO’s SUGAM portal is used for many of these applications under Cosmetics Rules, 2020.
State Licensing Authorities may have their own submission portals or offline + online mix.

Pay fees

There are prescribed fees depending on category of cosmetics, number of variants, number of manufacturing sites etc.

Inspection (if applicable)

For manufacturing licence in India, officers inspect the factory premises, lab, staff etc.
For imports of already registered cosmetics, there might not be inspection of foreign site, but documents will be scrutinized.

Grant of licence or registration certificate

On satisfying all requirements, CDSCO or State Licensing Authority issues the licence or certificate. Validity often around five years, subject to renewal or retention fee.

Renewal / retention / changes compliance

Before expiry, apply for retention or renewal.
Any change in name, address, manufacturing site, label changes etc. must be notified.
Maintain records, do periodic compliance and ensure labelling etc. always in order.

Start selling online

With licence in hand, ensure product displays required licence number, batch number, expiry, etc.
Ensure your marketplace or your site shows proper labelling, compliance.
Ensure packaging, shipment, storage comply.

HOW LAWFINITY SIMPLIFIES SUCH LICENCE/CERTIFICATE PROCEDURE?

Our goal at Lawfinity is to make this licensing process easier for you. Here's how:

Expert Assistance: Depending on your model, we advise you on whether you require a manufacturing license, import registration, or cosmetic e-commerce license.
Document Checklist & Review: Lawfinity helps you prevent back-and-forth with authorities by making sure all documents (lab reports, labels, technical staff credentials, company registration, etc.) are prepared accurately the first time.
Help with Filing and Forms: We assist you in filling out the appropriate COS forms (COS 1, COS 2, COS 5, etc.) and uploading them through SUGAM or other portals.
Coordination with Authorities: We assist in scheduling and preparing your space to satisfy the necessary standards (lab, layout, cleanliness, and safety) if an inspection is necessary.
Renewals & Amendments: We help with the legal paperwork and filings when your license or registration is about to expire, or when your location, employees, or address changes.
Training & Knowledge Transfer: We provide you with practical checklists and "common pitfalls" to help you avoid unapproved ingredients, incorrect labelling, missing test reports, and batch numbers, among other things.
Cost and Time Estimation: We assist you in estimating costs and schedules so that you can plan and budget for the launch of your online cosmetics business without unpleasant surprises.

MUSINGS FROM THE AUTHOR’S INK

I started writing this because I see a lot of small businesses, maybe owned by committed people, who want to open an online store for skincare products or cosmetics. They spend money on attractive packaging, social media influencers, and photography, but they frequently overlook the legal foundation. And typically, ignorance rather than malice is the cause of that: "Will anyone check?" turns into "Why bother?" until it's too late.

A cosmetic e-commerce license is more than just paperwork, in my opinion. It is trust. "Yes, we have done due diligence so we are serious, not fly-by-night," it tells your customers. Recalls, customer complaints, and legal notices are all avoided.

From the standpoint of Lawfinity, we think that creativity and compliance can coexist. You can still innovate and introduce new shades and formulations without being inflexible or bureaucratic, as long as your legal basis remains unaltered.