In India, the demand for natural haircare products is increasing rapidly. Start a hair oil business, as it can be highly profitable. With increasing familiarity with self-care, most consumers want hair oil that gives nourishment and growth and protects hair from damage. Whether you are an entrepreneur or an existing beauty business, starting a hair oil business can be a smart move.
As per the CDSCO, hair oil falls into the cosmetics product category that mandates registration to ensure safety and efficacy. In this article, we will walk you through everything you need to know about starting an oil brand, including licensing, registration, types, and the process.
Who Can Register Hair Oil In India?
Individuals or entities can register the product under the Drugs and Cosmetics Act of 1940 to start a hair oil manufacturing business in India. This ensures that hair oil meets the necessary safety and quality standards established by a regulatory authority.
Steps-By-Step Guide To Start A Hair Oil Business In India
To set up a hair oil company in India, it is required to follow the steps mentioned:
Conduct Market Research
Before getting into the market, researching the market is the primary step. This involves identifying your target audience and studying what types of hair oils are in demand. Based on this analysis, you can choose what type of hair oil to manufacture to earn maximum profit.
Choose Your Product Type
The next step is choosing the type of hair oil after the research is done. This step includes identifying the type (anti-hair-fall, hair growth, dandruff control, kids oil) and picking ingredients (Ayurvedic, organic, essential oils).
Set Up Manufacturing Space
If you want to start a manufacturing business of hair oil, then setting up your manufacturing space is an essential step. The manufacturing unit must have the necessary space and be equipped with essential machinery.
Buy Raw Material
To start a Hair oil business, buying raw materials for manufacturing is a necessary step. While formulating hair oil, make sure to use high-quality raw materials.
Get License And Registration
Once you have set up the business space, it is mandatory to obtain the necessary licenses and register the business as a sole proprietorship, LLP, or Pvt. Ltd.). Licenses can vary depending on whether you are a manufacturer, importer, or seller.
Conduct Testing
Once the product is formulated, conduct the necessary testing to ensure that the product is safe for consumers to use. Testing is conducted by the CDSCO to ensure products do not contain any harmful content. As per Indian regulations, Animal testing of cosmetic products is banned, so make sure you do not perform animal testing.
Market Your Product
Marketing your product is the final step to grabbing consumers’ attention toward your product. In this step, launch the product on various platforms, whether online or offline, so that you can reach the customers easily
Documents Required To Obtain Cosmetic License For Hair-Oil
The following are the documents you may require to apply for a cosmetic license to start a hair oil business, such as:
- Covering letter
- Form 42
- Treasury Challan
- Power of Attorney by the manufacturer
- Schedule D (III)
- Original or a copy of the Label of the product.
- Free Sale Certificate (FSC)/Marketing Authorization letter/Manufacturing License for all variants need to be submitted.
- Product specification and testing protocol of the product.
- The list of countries where Market Authorization or import permission, or registration was granted.
- Package inserts of the product.
- Soft copies of the information about the brands, products, and manufacturers of the product.
Note: Above, we have provided you with a list of common documents that all businesses may require to obtain a license to start hair oil business. Documents can vary for multiple licenses; it is recommended to consult with the regulatory consultant to understand the documentation in depth.
Which Licenses & Registrations Are Required To Start A Cosmetic Hair Oil Business?
To start a cosmetic hair oil business in India, one needs to obtain several licenses & registrations to ensure compliance with legal and safety requirements. These requirements include:
- Cosmetic Manufacturing License: It is a legal document issued by the state licensing authority to manufacture hair oil. If you are a manufacturer of hair oil, then it is mandatory to obtain a cosmetic manufacturing license to ensure product safety.
- Cosmetic Import License: It is required to import cosmetics, including hair oil from outside to legally sell in the market.
- MSME Udyog Adhaar Registration: registering a business under the Micro, Small, and Medium Enterprises Act gives a unique identity to your business. This registration is beneficial if you are a sole proprietor and seeking recognition.
- Firm Registration: Based on the firm’s structure, it is required to register the business with the appropriate authority to establish legal existence.
- GST Registration: Goods and services tax registration is mandatory for businesses involved in buying and selling haircare products.
- Trademark Registration: To protect the brand name and logo, registering a trademark is necessary. This guarantees the prevention of unauthorized use of your brand identity.
- Trade Licence: Obtain a trade license to legally operate in the market without facing hurdles.
Types Of Hair Oil You Can Manufacture
To solve different hair problems, there are multiple types of hair oil you can manufacture to cover the needs of all consumers. Here is the list of different types of hair oil, businesses can manufacture:
- Amla hair oil
- Coconut hair oil
- Almond hair oil
- Onion hair oil
- Castor hair oil
- Multi-ingredient hair oil
Benefits Of Starting A Haircare Business Of Hair Oil
Starting a haircare business can give you several benefits as given below:
- High demand for haircare products in the market.
- The manufacturing cost of hair oil is very low, so it requires less capital to start a hair oil business.
- Starting a Hair oil business includes a high-profit margin, as the cost of manufacturing is low.
- The target audience can be vast as it includes demand for various types of hair oil.
- There is a great opportunity to enter into the E-commerce & Export business.
- Compliance of the hair oil business with the regulatory terms is simple.
Why You Should Invest In The Hair Oil Business In India?
It is predicted that the hair care market will grow between 2023-2028 at a CAGR of 5.34 percent. In India, the climate is very harsh, as a result, demand for hair oil is increasing to protect hair from dryness and damage. So, investing in the hair oil business can be highly profitable and generate high revenue
Why Choose ELT Corporate Pvt. Ltd.?
To start a hair oil business you must follow various steps including registration and documentation. These steps can be overwhelming and may lead to mistakes and omission of necessary documents, which can cause you heavy fines & penalties.
To avoid these mistakes it is recommended to consult with a regulatory compliance consultant. ELT Corporate Pvt. Ltd. is the legal service provider that gives you end-to-end support and makes your registration and documentation seamless.
What License Is Needed To Sell Hair Oil?
To sell hair oil in the market legally you must secure the necessary licenses like MSME Udyog Aadhar, Firm Registration, IEC Code, Trade Mark, GST Registration, and Trade License.
Is Hair Oil A Cosmetic Product?
Yes, hair oil is usually classified as a cosmetic product, but with some variations depending on its intended use and the regulatory framework of the country.
What Category Is Hair Oil Under?
The category of hair oil depends on its intended use and claims, especially in regulatory and marketing contexts. Here’s how it breaks down:
