• What kind of license is needed for selling home made products

We would like to sell ingredients needed to make home-made skin care products. For example we will make Kits that will contain container, ingredients, measuring cups to make skincare products at home. We will NOT sell complete skincare product but a kit to make it at home. Please what kind of laws govern it and what kind of licences we might need,
Asked 7 years ago in Business Law

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10 Answers

1.The laws governing the sale of this type has no difference with sale of complete product either.

2.Only you need not have approval of Drugs controller.

3.However you do need to have Trade License and VAT Registration.

Devajyoti Barman
Advocate, Kolkata
22920 Answers
498 Consultations

5.0 on 5.0

you should get a drug licence under the drugs and cosmetics act 1940. you have to give details about your product and method of manufacturing. you have to pay excise duty under tariff item 14-E on its production.

Shivendra Pratap Singh
Advocate, Lucknow
5127 Answers
78 Consultations

4.9 on 5.0

sfor taking VAT licence you have to Submit an application for VAT in Form 1 along with the sales tax registration certificates to the local VAT office and these documents:

Professional tax registration certificate(Form 2)

Copy of important documents such as the address proof, ID proof of the Proprietor/Partner/Director

Four PP size photographs of the Proprietor/Partner/Director

PAN No. & Bank Account No of the Proprietor/Partner/Director

Copy of the rental agreement of the business place

Details of business activities

Partnership deed (in case of a partnership firm)

Memorandum of Association and Articles of Association (in case of a Private Limited company)

Shivendra Pratap Singh
Advocate, Lucknow
5127 Answers
78 Consultations

4.9 on 5.0

1. In your case if the product is mostly herbal in nature and not a completed cosmetic product the Drug Controller permission is not required.

2.Consult a local tax professional who would guide you for VAT registration.

Devajyoti Barman
Advocate, Kolkata
22920 Answers
498 Consultations

5.0 on 5.0

1) you would need licence under shops and establishment act

2) for VAT regsitration you cna apply online

3)Proof of constitution of business–

a) Proprietorship – No proof required

b) Partnership – Partnership deed

c) Limited Liability Partnership (LLP) – Copy of the Certification of Incorporation and LLP Agreement

d) Company – Copy of the Certification of Incorporation, Memorandum and Articles of Association of the company

2) Proof of permanent residential address of all directors/Partners/Proprietor

(Please provide at least 2 documents out of the following documents containing the name and present address plus Copy of Electricity bill is mandatory- if living with somebody else consent letter is required )

3) Copy of Electricity bill is mandatory if not in your name additionally maintenance receipt is also required

Copy of passport/driving license/election photo identity card/ration card (Any 2 documents)

4) Proof of place of business

If let out – a) Rent Agreement b) NOC from owner c) ID proof containing signature of owner

Owned – Purchase agreement

Rent Free – consent letter

Electricity Bill – Compulsory in all case

Maintenance Bill if electricity bill is not in name of concerned person

5)) Two latest passport size photograph of the applicant **

5) Copy of PAN card of Company

6) Copy of PAN card of all Directors/ Partners/ Proprietors

7) Demand Draft from Nationalize Bank

Ajay Sethi
Advocate, Mumbai
95208 Answers
7610 Consultations

5.0 on 5.0

you cna apply for VAT licence online . the documents required for licence has been mentioned herein above

you can do it on your own and dont need services of CA

Ajay Sethi
Advocate, Mumbai
95208 Answers
7610 Consultations

5.0 on 5.0

1. If the said ingredient proposed to be sold by you is chemical which will be used for making skin care products which will fall under the category of drug and medicine, you ghall have to avail a drug license for dealing with the said product.

2. Apart from the above license, you shall have to collect approval/license/registration which are generally required for carrying out business in India like sale tax and shops and establishment registration, VAT registration, Bank account, PAN Card, business place owned or taken on rent etc.

Krishna Kishore Ganguly
Advocate, Kolkata
27245 Answers
726 Consultations

5.0 on 5.0

1. You shall have to apply before the drug controller in prescribed form and pursue with the department thereafter for quick processing of your application.

2. it may take around 4 to 6 months to get the said drug license.

3. There are agents available at all the concerned departments for getting all your required registration/license who will expedite your matter. You shall have to visit the concerned departments personally to catch hold of the right person to engage for doing your job.

Krishna Kishore Ganguly
Advocate, Kolkata
27245 Answers
726 Consultations

5.0 on 5.0

If what you state comes under small and medium scale industry then Small and medium scale enterprises (SMEs) are understood in India as enterprises where the investment in plant and machinery or equipment is between Rs. 25 lakhs.

This definition is provided in Section 7 of Micro, Small & Medium Enterprises Development Act, 2006

The enterprises can take any form - proprietorship, company, cooperative, association of persons, Hindu Undivided Family[1] , partnership etc. Further, this definition is not restricted by the number of persons employed by the firm nor the electricity consumed by the firm, as was the case in the past.

Small scale industries are mostly located in urban centres as separate units, but the cottage industries are normally associated with agriculture and provide subsidiary employment in rural areas.

Thus since your proposed small industry do not involve health care issues or food and safety measures, it can be treated or considered as small industry and you may proceed on that line for following further procedures aas envisaged.

T Kalaiselvan
Advocate, Vellore
85409 Answers
2237 Consultations

5.0 on 5.0

Obtaining a license is set to get seamless and quick with the state Food and Drug Administration (FDA) making the process completely paperless. Applicants will no longer need to physically visit the office as every step — right from applying for the license, payment of fees to submission of documents — can be done online now.

The drug regulatory body has also made it mandatory for its officers to grant the licenses, wholesale as well as retail, within 30 days. Aimed at curbing red tape and corruption within the department, it is the first such initiative by any drug regulator in the country.

i. Submit an application for VAT in Form 1 along with the following documents to the local VAT office:

• Central Sales Tax registration certificate(Form A)

• Professional tax registration certificate(Form 2)

• Copy of important documents such as the address proof, ID proof of the Proprietor/Partner/Director

• Four PP size photographs of the Proprietor/Partner/Director

• PAN No. & Bank Account No of the Proprietor/Partner/Director

• Copy of the rental agreement of the business place

• Details of business activities

• Partnership deed (in case of a partnership firm)

• Memorandum of Association and Articles of Association (in case of a Private Limited company)

ii. The authorities from the local VAT office will inspect the premises of where you conduct business within a prescribed time

iii. Once the inspection is over, you will have to pay a specified fee to the local office for your VAT registration

iv. On payment of the fee, a TIN number will be allotted to you for your business and you will also be given the VAT registration Certificate.

T Kalaiselvan
Advocate, Vellore
85409 Answers
2237 Consultations

5.0 on 5.0

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