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- A CDSCO hair oil manufacturing license is mandatory for all cosmetic producers and importers in India.
- Hair oils are categorized under “Hair and Scalp Care” cosmetics.
- Applications must be filed through the SUGAM Portal using Form COS-5 (manufacture) or COS-6 (loan license).
- Required documents include factory layout, staff details, product composition, and regulatory NOCs.
- Diligence Certifications offers expert consulting to secure your license quickly and ensure 100% compliance.
Introduction
When Arav Herbal Naturals, a small Ayurvedic brand from Pune, launched its first hair oil range in 2022, it was an instant hit among local salons and e-commerce platforms. But within months, the company received a compliance notice from state authorities — they had skipped one critical step: obtaining a hair oil manufacturing license from the Central Drugs Standard Control Organization (CDSCO).
Their products were temporarily pulled off shelves. It took three months of documentation, testing, and regulatory corrections before they could relaunch.
This is not an isolated case. Many start-ups and even established wellness brands underestimate how crucial CDSCO licensing is for cosmetics like hair oil. Whether you’re a new entrepreneur or a contract manufacturer, this license ensures your product meets India’s Drugs and Cosmetics Act, 1940 requirements — and legally protects your brand.
Understanding What a Hair Oil Manufacturing License Means
A hair oil manufacturing license authorizes a company to legally produce, package, and sell hair oil under Indian cosmetic regulations. The approval is granted by the CDSCO, which functions under the Ministry of Health & Family Welfare.
Hair oils, although sold as beauty or wellness products, fall under the cosmetics category as per the Drugs and Cosmetics Act, 1940, and Rules, 1945.
According to Section 3(aaa) of the Act, cosmetics include:
“Any article intended to be rubbed, poured, sprinkled, sprayed, applied, or introduced to the human body for cleansing, beautifying, promoting attractiveness, or altering the appearance.”
This definition directly covers hair oil, making it mandatory for manufacturers to obtain CDSCO permission before production or sale.
Why Licensing Matters More Than Ever
India’s hair care market is expanding rapidly — with the hair oil segment expected to grow from USD 1.69 billion in 2023 to USD 2.25 billion by 2028 (CAGR: 5.8%).
With the rise of natural and Ayurvedic formulations, more brands are emerging, and so are cases of non-compliance.
A CDSCO license ensures:
- Product safety and quality validation
- Legal eligibility for sale (online and offline)
- Access to pan-India and export markets
- Trust from retailers and consumers
- Protection against legal penalties and recalls
Many leading companies like Marico (Parachute) and Dabur (Amla Hair Oil) maintain strict CDSCO compliance as part of their brand credibility. Small brands often overlook it — until penalties hit.
Hair Oil Classification Under CDSCO
Unlike drugs or medical devices, cosmetics in India aren’t classified by risk level. Instead, they are categorized based on intended use. Hair oils fall under the “Hair and Scalp Care” category, which includes:
- Hair cleansers
- Conditioners
- Hair growth oils
- Anti-dandruff formulations
- Scalp-nourishing treatments
Even if you market your product as “herbal,” “natural,” or “Ayurvedic,” it still needs licensing under the cosmetics category if its purpose is beautification or nourishment.
Types of Hair Oil Manufacturers in India
- Own Manufacturing Units – Companies with their own setup and technical staff.
- Loan License (Third-Party) Manufacturers – Entrepreneurs who outsource production but maintain ownership of the brand.
- Contract Manufacturers – Established factories manufacturing for multiple labels.
Each type needs a relevant CDSCO form submission.
Required CDSCO Forms for Hair Oil Manufacturing
| Purpose | Application Form | Approval Form | Validity | Authority |
| Manufacturing of Cosmetics (Own Unit) | Form COS-5 | Form COS-8 | 5 years | CDSCO |
| Loan License Manufacturing (Third-Party) | Form COS-6 | Form COS-9 | 5 years | CDSCO |
| Import of Cosmetics | Form COS-1 | Form COS-2 | 5 years | CDSCO |
Each application is submitted via the SUGAM Portal, CDSCO’s official online regulatory platform.
Documents Required for Hair Oil Manufacturing License
For Manufacturing Units
- Form COS–5 (Application Form)
- Factory layout plan and approved premises blueprint
- List of manufacturing machinery with calibration details
- Water system report and laboratory testing setup
- Technical staff details (qualification certificates, experience letters)
- Pollution Control and Fire Safety NOCs
- Manufacturing process flowchart and batch formula
- List of proposed cosmetic products with composition
- Product labels and packaging artwork
- DIC registration certificate
For Importers
- Free Sale Certificate (FSC) and GMP certificate from manufacturer
- Product composition and COA
- Ingredient testing methodology
- Declaration of non-animal testing and absence of heavy metals
- Power of Attorney for the Indian authorized agent
- Brand ownership documents
- Translated copies of foreign documents (if applicable)
Any changes in label, formulation, or manufacturer details must be notified to CDSCO within 30–60 days.
Step-by-Step Process for Obtaining Hair Oil Manufacturing License
Step 1: Determine the Product Category
Classify your product correctly under “Hair and Scalp Care.” Misclassification can delay approvals.
Step 2: Prepare Technical and Legal Documents
Compile the manufacturing, testing, and compliance documents mentioned above. Missing any mandatory annexure often leads to rejections.
Step 3: Apply Online via CDSCO SUGAM Portal
Register your organization and submit Form COS-5 (manufacturing) or COS-6 (loan license). Attach all documents in PDF format, duly signed and sealed.
Step 4: Site Inspection by State Drugs Authority
CDSCO or state inspectors review your facility for hygiene, safety, and process validation. Ensure your premises meet Schedule M-II (cosmetic manufacturing) standards.
Step 5: License Issuance
If everything is satisfactory, CDSCO issues a Form COS-8 or COS-9 license valid for five years. Renewal is required thereafter.
Common Challenges During Application
- Submitting incomplete or mismatched documents (e.g., composition not matching label)
- Failing to provide technical staff qualification proofs
- Missing machinery calibration reports
- Using unapproved claims like “treats baldness” (which classify as drugs, not cosmetics)
- Poor-quality images or unreadable scanned documents
At Diligence Certifications, we often receive clients whose earlier applications were rejected due to avoidable technical errors. Having an expert handle your submission not only saves time but also prevents costly delays.
Post-License Obligations
Once you receive your hair oil manufacturing license, compliance doesn’t stop.
You must ensure:
- Batch testing and record maintenance
- No alteration of formula without CDSCO notification
- Proper labeling (as per Rule 148 of Drugs and Cosmetics Rules, 1945)
- Annual renewal tracking and audit readiness
Failure to comply may lead to suspension or cancellation of your license.
Penalties for Non-Compliance
The Drugs and Cosmetics Act prescribes strict penalties for unlicensed manufacturing:
- Up to 1 year imprisonment or ₹1,000 fine for unauthorized cosmetic manufacturing
- Up to 3 years imprisonment or ₹5,000 fine for illegal import or distribution
Beyond legal fines, reputational damage can be severe — especially for e-commerce sellers, as marketplaces like Amazon and Nykaa now demand valid CDSCO documentation for listing cosmetic SKUs.
How Diligence Certifications Simplifies the Process
Diligence Certifications (formerly NKG) has guided hundreds of cosmetic and healthcare companies through India’s complex regulatory maze for over 20 years.
As a CDSCO-approved consultant, our team ensures end-to-end compliance for your hair oil manufacturing license — from documentation to final approval.
Our Services Include:
- Product classification and regulatory pathway assessment
- Documentation and dossier preparation
- Application submission via SUGAM Portal
- Factory audit readiness and compliance checks
- Post-approval guidance and renewal management
Our experts have supported brands ranging from boutique Ayurvedic startups to large FMCG groups. Recently, a Delhi-based herbal company obtained its CDSCO license in just 45 working days through our assistance — a record turnaround in its category
Why Compliance Builds Consumer Trust
Today’s consumers are more informed than ever. With stricter enforcement and BIS standardization, regulatory transparency has become a competitive advantage.
When a brand displays “CDSCO Licensed Manufacturer” on its label, it signals authenticity — much like FSSAI numbers on food packaging.
It reassures buyers that the product they’re applying to their hair is tested, traceable, and manufactured under approved hygiene conditions.
For example, premium Ayurvedic labels such as Forest Essentials and Kama Ayurveda proudly maintain CDSCO compliance for every formulation — a major reason they gained both domestic and global credibility.
Conclusion
In India’s booming beauty and wellness industry, compliance is not a bureaucratic burden — it’s a badge of trust. A valid hair oil manufacturing license from CDSCO legitimizes your operations, enhances consumer confidence, and opens export opportunities.
If you’re planning to launch or expand your hair care line, partner with Diligence Certifications, India’s trusted regulatory consultant, to make your licensing journey smooth, compliant, and timely.
Contact Diligence Certifications today a CDSCO Consultant to begin your CDSCO application and position your brand for sustainable growth.
Frequently Asked Questions
Who is responsible for issuing the hair oil manufacturing license ?
Under the Drugs and Cosmetics Act, 1940, the Central Drugs Standard Control Organization (CDSCO) is responsible for issuing hair oil manufacturing licenses.
Is it expected to have a license to manufacture hair oil ?
Yes. All manufacturers or brand owners are expected to obtain a CDSCO cosmetic manufacturing license before manufacturing or selling hair oil in India.
How long is a CDSCO cosmetic manufacturing license for hair oil valid?
The manufacturing license for hair oil is valid for five years from the date of issuance and must be renewed prior to its expiry date.
What documentation do I need for a hair oil manufacturing license?
Some of the key documentation needed includes Form COS-5, layout plan, product composition, details of technical staff, NOCs, and a flowchart of the manufacturing process.
How can Diligence Certifications help with the CDSCO approval?
Diligence Certifications will help you with documentation, submission on the portal, and with your site inspection - all in an effort to help you obtain your hair oil manufacturing license quickly and lawfully.
What is Form COS-5?
Form COS-5 is the application form for CDSCO used for obtaining a cosmetic manufacturing license for hair oils.
How long does it take to obtain a license for hair oil?
It generally takes approximately 45-60 working days to obtain an approval of your hair oil manufacturing license, depending on the completeness of your documentation and your facility's readiness for a site inspection.
Is it possible to produce hair oil by a third party?
Yes. You can produce hair oil (or any other cosmetic) through a loan license using Form COS-6 if you do not own a factory.
Are cosmetics like herbal hair oils or ayurvedic hair oils exempt from CDSCO?
No. CDSCO licensing is required for all cosmetic hair oils, including herbal or ayurvedic hair oils.
What is the punishment for manufacturing hair oil without a license?
If someone does not produce hair oil with a CDSCO license, it can result in up to 1 year in jail or a fine of ₹1,000.
