How To Start A Hair Oil Business In India?
To begin a hair oil business in India, you need to understand the basics. Given the increasing focus on self-care, information regarding hair oils that offer nourishment, growth, and protection is expanding too. Whether you are an aspiring entrepreneur or own an existing beauty business, launching a hair oil brand is definitely a wise choice.
As per the CDSCO, hair oils are classified as cosmetic products requiring a submission for registration due to the need for safety and effectiveness. In this article, we will guide you on starting an oil brand with licencing, registration, and types of oils to prepare, along with the manufacturing process.
Who Can Register Hair Oil In India?
Any person or company is permitted to register the product under the Drugs and Cosmetics Act of 1940 to set up a hair oil manufacturing business in India. This ensures that the hair oil is compliant with the prescribed safety and quality requirements of a governing body.
Step-by-Step Guide to Starting a Hair Oil Business in India
Establishing a hair oil business in India requires a few basic steps, which include:
- Conduct Market Research: You should understand your customers and which kinds of hair oils are currently popular in the market. You will find the research useful for making determinations related to what hair oil to manufacture for maximum profits.
- Choose Your Product Type: You may select the hair oil anti-hair fall, hair growth, dandruff control, or kids’ oil after completing the research to understand customer preferences. Determine the ingredients whether they are Ayurvedic, organic or essential oils.
- Set Up Manufacturing Space: Manufacturing will require you to create an appropriate space with suitable production equipment. This area should be safe and have enough room for the fruitful completion of the work being carried out.
- Buy Raw Materials: Find out what ingredients are essential to your formulation and buy high-grade herbal items. Using safe and effective hair oil products requires proper quality standards.
- Obtain Licenses and Registration: Once your setup is ready, acquire all necessary licenses and register your business. This may include registering as a sole proprietorship, LLP, or Pvt. Ltd., with licenses varying based on whether you’re a manufacturer, importer, or seller.
- Conduct Testing: Create your product and make sure to complete all the tests to ensure each step of the safety and legal requirements is met. The CDSCO performs these tests. And remember, testing on animals for cosmetic products is illegal in India.
- Market Your Product: Increase interest in your product to gain potential customers. Make sure to launch it both digitally and physically to widen the audience and improve exposure.
Documents Required To Obtain A Cosmetic License For Hair-Oil
Here is a list of the documents needed to apply for a cosmetic license and start a hair oil business:
- Covering letter
- Form 42
- Treasury Challan
- Power of Attorney by the manufacturer
- Schedule D (III)
- Product Label: either original or reproduction
- Free Sale Certificate (FSC)/Marketing Authorization letter/Manufacturing License of all variants are required
What Are The Necessary Licenses & Registrations Needed For Starting A Cosmetic Hair Oil Business?
There are numerous licenses and registrations that need to be complied with in order to start a business in hair oil business in India. These include:
- A Cosmetic Manufacturing License usually approved by the state granting the license. If you are a manufacturer of hair oil, then it is mandatory to obtain a cosmetic manufacturing license to ensure product safety.
- Cosmetic Import Licenses are a prerequisite to selling hair oil as they permit the legal importation of the product from overseas.
- MSME Udyog Adhaar Registration provides businesses with a number that they must register with under the Micro, Small, and Medium Enterprises Act. This registration is advantageous if you are a sole proprietor and looking for an identity.
- Firm Registration: The appropriate organization must be located to legally register the business, based on its structure.
- GST Registration: If a business firm is engaged in the selling and purchasing of haircare items, it is mandatory for them to have a goods and Services Tax registration.
- Trademark Registration: Safeguarding the brand name and logo warrants trademark registration. With this registration comes the guarantee that no unauthorized usage of the trademarked identity will happen.
- Trade Licence: A trade license should be obtained to be able to operate in the market legally without encountering obstacles.
Types Of Hair Oil You Can Manufacture
Looking to create hair oils for the consumers? There are different types of hair oil that can cater to the requirements of various hair problems for different people. Following is some of the hair oils that businesses may 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
A few benefits of starting a haircare business are as follows:
- There is great demand for haircare products.
- Starting a hair oil business doesn’t require a lot of money since the manufacturing cost of the oil is low.
- Opening a hair oil business has a broader profit margin compared to other businesses because it is inexpensive to produce.
- Everyone that requires different types of hair oil can be largely targeted as the audience.
- There is a great chance to tap into the E-Commerce & Export market.
- Compliance with the regulations for the hair oil business is straightforward.
Why Invest in the Hair Oil Business in India?
It is estimated that the haircare industry will expand between 2023 and 2028 with a compound annual growth rate of 5.34 percent. Due to the harsh Indian climates, there is a greater need for hair oil to protect hair from dryness and damage. This makes investing in hair oil production very profitable.
Why ELT Corporate Pvt. Ltd?
Starting a hair oil business requires you to undertake a lot of procedures such as registration and documentation. These processes can be cumbersome and lead to oversights of necessary documents which will attract hefty fines.
To avoid issues, it is best to speak with a regulatory compliance consultant. For your legal service needs, ELT Corporate Pvt. Ltd. offers comprehensive support, ensuring smooth registration and documentation processes.
