Difference Between Cosmetic Manufacturing License and Wholesale License

Do you know the difference between cosmetic manufacturing license and wholesale license, if you don’t then you are at the right place and if you do then you can get more details here. These licences are important for anyone who is planning to start a cosmetic business in India. Even if you want to manufacture, distribute or sell cosmetic act, 1940 and rules 1945. Also you can manufacture cosmetics with these licenses, and you can also distribute them in the market with the other. Since many of these two confuse new business owners; let’s look at their definitions, requirements, and differences.

What is a Cosmetic Manufacturing License?

In India, a company or individual requires a Cosmetic Manufacturing License in order to produce or develop cosmetics. This license ensures that all products are produced in compliance with the 1945 Drugs and Cosmetics Rules’ Rule 138, which specifies safety, quality, and sanitary standards.

The manufacturing license covers activities such as:

• Packing, labelling, and storing completed cosmetics.
• Confirming that all production procedures and raw materials adhere to Schedule M-II requirements.
• Depending on the location of the production facility, either the State Licensing Authority (SLA) or the State Drugs Control Department issues this license.

Who Can Apply for a Cosmetic Manufacturing License?

The following entities can apply:

• Registered companies or partnership firms involved in cosmetics manufacturing.
• Entrepreneurs having a proper production facility meeting Schedule M-II requirements.
• Businesses that employ qualified technical staff with a degree in pharmacy, science, or chemical engineering.

Documents Required for Cosmetic Manufacturing License

To obtain a Cosmetic Manufacturing License, the applicant must submit:

• Application Form 31
• Details of manufacturing premises and machinery
• List of cosmetic products to be manufactured
• Qualification proof of technical staff
• Layout plan of the premises
• NOC from the local authority and pollution board
• Affidavit of responsible person for operations
• Once the inspection is conducted and requirements are met, the license is issued under Form 32.

What is a Cosmetic Wholesale License?

A Cosmetic Wholesale License is required if a firm or distributor wants to sell, store, or distribute cosmetics manufactured by licensed companies. Manufacturing is not allowed; however, wholesale or distribution operations are allowed for the license holder. It assures that all of the distributor’s cosmetics are sourced from approved manufacturers and follow labelling guidelines.

Documents Required for Cosmetic Wholesale License 

To obtain a Cosmetic Wholesale License, applicants must submit:

• Application Form 31-A
• Details of storage premises
• List of cosmetics to be sold or distributed
• Proof of business ownership (GST certificate, incorporation proof)
• Address proof and identity of the responsible person
• NOC from the local authority
• Undertaking that cosmetics will only be sourced from licensed manufacturers

Once verified, the license is issued in Form 32-A.

Difference Between Cosmetic Manufacturing License and Wholesale License

Understand the difference between cosmetic manufacturing license and wholesale license:-

S.No.	Particulars	Cosmetic Manufacturing License	Cosmetic Wholesale License
1.	Purpose	To manufacture and produce cosmetic products.	To sell, store, and distribute cosmetic products
2.	Issued By	State Drugs Control Department / SLA	State Licensing Authority
3.	Application Form	Form 31	Form 31-A
4.	License Issued In	Form 32	Form 32-A
5.	Facility Requirement	Must have a manufacturing unit as per Schedule M-II.	Must have a storage facility or godown.
6.	Eligibility	Manufacturers, entrepreneurs, or companies producing cosmetics.	Traders, distributors, or wholesalers of cosmetics.
7.	Technical Staff	A qualified person with a pharmacy or science degree is required.	Not mandatory for all states, but a responsible person is required.
8.	Regulatory Reference	Rule 138 of the Drugs and Cosmetics Rules, 1945.	Rule 138-A of the Drugs and Cosmetics Rules, 1945.
9.	Labeling & Testing	Involves product testing, labelling, and safety compliance.	Involves verification of licensed sources and labelling compliance.

Why is Understanding the Difference Between a Cosmetic Manufacturing License and Wholesale License?

Businesses can stay in compliance and avoid trouble under the 1940 Drugs and Cosmetics Act by understanding the distinction between a wholesale license and a cosmetic manufacturing license. Operating without the proper license might result in items being seized, business activities being suspended, or even legal action.

How to Apply for These Licenses?

Both licenses can be applied for online through the State Drugs Control Department portal or manually at the respective state office. The steps include:

• Filling the prescribed application form (Form 31 or Form 31-A).
• Submit the required documents and pay the government fees.
• Scheduling an inspection by a Drug Inspector.
• Rectifying any non-compliance raised during inspection.
• Receiving the license (Form 32 or 32-A) upon approval.

How ELT Corporate Can Help You?

ELT Corporate, one of India’s best regulatory consultancies, assists businesses in obtaining both Cosmetic Manufacturing Licenses and Wholesale Licenses efficiently. Their services include:

• Document preparation and review.
• Guidance on compliance with the Drugs and Cosmetics Rules.
• Coordination with State Licensing Authorities.
• Inspection preparation and corrective action support.
• Fast-track licensing assistance for startups and established companies.

By partnering with ELT Corporate, you can ensure your cosmetic business stays compliant and grows without legal obstacles.

Conclusion

The difference between the Cosmetic Manufacturing License and the Wholesale License lies mainly in their purpose – one allows production, and the other allows distribution. Both are essential components of India’s cosmetic regulatory system, ensuring product safety, traceability, and compliance. Whether you plan to manufacture your own brand or distribute existing ones, having the right license is crucial for a legal and successful business journey.