A Cosmetic Loan License allows a business to manufacture cosmetics using the manufacturing premises, equipment and facilities of an existing licensed cosmetic manufacturer, instead of operating its own manufacturing facility.
Under the Cosmetics Rules, 2020, a loan licence is granted by the State Licensing Authority to a person who intends to use the manufacturing site of another licensee. The application is made in Form COS-6, while the loan licence is issued in Form COS-9.
This route is useful for cosmetic brands that want to manufacture their products without establishing a separate plant, provided the regulatory and contractual requirements are properly addressed.
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COS-6 | Application for the loan licence | gold
COS-9 | Loan licence granted | orange
State Licensing Authority | Grants the licence | blue
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Quick Facts
| Particular | Details |
|---|---|
| Application form | Form COS-6 |
| Licence form | Form COS-9 |
| Self-declaration | Form COS-7 (GMP and premises) |
| Licensing authority | State Licensing Authority |
| Manufacturing at | Another licensee’s manufacturing site |
| Timeline | 45 days after scrutiny (Rule 23) |
| Inspection | Within 30 days of grant |
| Validity | Perpetual, subject to retention fee every 5 years |
| New cosmetic | Prior permission in Form COS-3 |
What is a Cosmetic Loan License?
A Cosmetic Loan License is permission granted to a business to manufacture cosmetics at the premises of an existing licensed cosmetic manufacturing facility.
In simple terms: your business owns or markets the cosmetic product, an existing licensed manufacturer provides its approved manufacturing facility, and the loan licence allows manufacturing under the applicable regulatory framework.
The arrangement is commonly relevant to:
- Cosmetic brands and start-up cosmetic companies
- Private-label businesses
- Skincare, hair-care and personal-care brands
- Beauty product companies
- Contract manufacturing arrangements
- Businesses launching new cosmetic product lines
Who Needs a Cosmetic Loan License?
A business may consider a loan licence when it wants to manufacture cosmetics but does not have its own licensed manufacturing premises. Typical applicants include cosmetic brand owners, start-ups, private-label companies, beauty and skincare brands, hair-care and personal-care businesses, entrepreneurs entering the cosmetic market, and businesses using third-party manufacturing facilities.
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The applicant must still comply with the applicable requirements under the Cosmetics Rules, 2020. A loan licence does not remove the applicant’s regulatory responsibilities.
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Who Grants the Cosmetic Loan License?
The State Licensing Authority is responsible for licensing the manufacture of cosmetics for sale or distribution. The Cosmetics Rules, 2020 provide that State Licensing Authorities handle the manufacture of cosmetics, while the Central Licensing Authority deals with matters such as cosmetic imports. A Cosmetic Loan License is therefore not the same as Cosmetic Import Registration.
Important Forms for Cosmetic Loan License
| Form | Purpose |
|---|---|
| COS-6 | Application for Cosmetic Loan License |
| COS-7 | Self-certificate for GMP and premises requirements |
| COS-9 | Cosmetic Loan License |
| COS-3 | Prior permission for a new cosmetic, where applicable |
| COS-10 | Intimation relating to samples taken by an Inspector |
Why is a Cosmetic Loan License Important?
It provides a regulatory route for businesses that want to manufacture cosmetics using another licensed manufacturer’s facility — avoiding a separate plant, but still requiring proper documentation and compliance.
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Licensed Premises | Manufacturing at a facility that already holds the licence. | globe
Clear Arrangement | A documented manufacturing agreement between both parties. | file
Product Control | Formulations, specifications and labels stay documented. | check
GMP Requirements | COS-7 self-certificate and Seventh Schedule compliance. | shield
Technical Staff | Named technical personnel for manufacturing and testing. | users
Records | Batch records, testing records and inspection readiness. | search
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Cosmetic Loan License Eligibility
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Licensed manufacturing facility | Manufacturing should be carried out at a facility holding the relevant cosmetic manufacturing licence.
Manufacturing arrangement | An appropriate arrangement with the manufacturing concern whose facilities will be used.
Product information | Product names, ingredients and applicable specifications prepared in advance.
Technical staff | The COS-6 form asks for names, qualifications and experience of technical staff.
GMP compliance | The COS-7 self-certificate concerning GMP and premises, plant and equipment.
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The loan licence route lets you manufacture at an already licensed facility. We can review the arrangement and documents before you file COS-6.
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Documents Required for Cosmetic Loan License
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- Certificate of incorporation or business registration
- PAN and GST documents, where applicable
- Partnership deed or LLP agreement, where applicable
- Memorandum and Articles of Association, where applicable
- Authorisation documents
- Identity and address details of relevant persons
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- Existing manufacturing licence
- Manufacturing premises details and address
- Layout plan
- Machinery and equipment details
- Storage-area details
- Testing facility details
- GMP-related documents
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- Letter from the applicant to the manufacturing concern
- Letter from the manufacturing concern agreeing to provide its expert staff, equipment and premises
- Arrangements for analysis of batches
- Maintenance of relevant registers and analysis reports
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- Product name and category
- Complete formulation, ingredients and percentages
- Ingredient specifications and function of ingredients
- Manufacturing process and product specifications
- Testing details
- Proposed labels and carton or packaging details
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Cosmetic Loan License Process in India
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Understand the product | Identify the proposed products and their applicable category and requirements.
Select a licensed manufacturer | Identify an existing licensed manufacturer whose premises and capacity can be used.
Review the manufacturing facility | Premises, equipment, storage, manufacturing areas, testing arrangements, technical staff and GMP.
Prepare the manufacturing arrangement | Documentation confirming the arrangement for using the facility.
Prepare product documents | Formulations, ingredients, specifications, manufacturing details and labels.
Prepare COS-6 | The loan licence application with the prescribed fee and supporting documents.
Submit COS-7 | The self-certificate concerning GMP, premises, plant and equipment.
Regulatory scrutiny | The State Licensing Authority reviews the application and documents.
Inspection or verification | The authority inspects or authorises inspection within 30 days of the grant.
Grant of COS-9 | The loan licence is issued once the requirements are fulfilled.
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How Long Does a Cosmetic Loan License Take?
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45 days | Grant after scrutiny (Rule 23)
Form COS-6 | Application form
Form COS-9 | Loan licence granted
30 days | Inspection after grant
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Under Rule 23, the State Licensing Authority is required to grant a licence or loan licence within 45 days from the date of application when, after scrutiny, it is satisfied that the requirements have been fulfilled. If requirements are not fulfilled, the deficiencies are to be communicated within the same period.
The overall project timeline can vary with document preparation, facility readiness, product complexity, regulatory queries, inspection requirements and state-level procedures — so the 45-day statutory period should not be treated as a guaranteed business timeline.
Government Fee for Cosmetic Loan License
The Third Schedule of the Cosmetics Rules, 2020 specifies the fees. For Form COS-9, the prescribed fee includes:
- ₹10,000 for up to 10 items of each category of cosmetics
- ₹500 for each additional item in the category
- ₹10,000 for up to 10 items of an additional category
The Third Schedule also specifies retention fees for COS-9 at the applicable rates.
Validity of Cosmetic Loan License
A loan licence issued in Form COS-9 remains valid in perpetuity, subject to payment of the prescribed retention fee before completion of five years from the date of issue, unless suspended or cancelled. If the retention fee is not paid on time, a late fee applies, and continued non-payment within the prescribed period can result in the licence being deemed cancelled.
Role of the Existing Cosmetic Manufacturer
The existing licensed manufacturer provides the approved premises and manufacturing capacity. The COS-6 documentation specifically contemplates an agreement under which the manufacturing concern provides its:
- Expert staff
- Equipment
- Manufacturing premises
- Batch-analysis arrangements
- Relevant records and registers
The official form also requires the manufacturing concern to agree to analyse every batch and maintain relevant records as specified.
Loan License vs Manufacturing License
| Particular | Manufacturing License | Loan License |
|---|---|---|
| Main purpose | Manufacture at own licensed facility | Manufacture using another licensee’s facility |
| Application | COS-5 | COS-6 |
| Licence | COS-8 | COS-9 |
| Manufacturing premises | Applicant’s licensed facility | Another licensed manufacturer’s facility |
| GMP requirements | Applicable | Applicable |
| Authority | State Licensing Authority | State Licensing Authority |
Loan License vs Contract Manufacturing
These terms are often used interchangeably, but they are not identical from a regulatory perspective. Contract manufacturing generally describes a commercial arrangement where one business manufactures products for another. A Cosmetic Loan License is the specific regulatory licence framework under the Cosmetics Rules for using another licensee’s manufacturing site. The commercial agreement and the regulatory licensing requirement should be considered separately.
New Cosmetic and COS-3 Permission
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A person intending to manufacture a new cosmetic must apply to the Central Licensing Authority in Form COS-12 with the required information and safety or effectiveness data. Prior permission is issued in Form COS-3 when the requirements are satisfied — so determine whether your product qualifies as a new cosmetic before submitting a COS-6 application.
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Post-License Compliance
- Maintaining manufacturing and testing records
- Following approved manufacturing procedures
- Maintaining appropriate quality controls
- Complying with labelling requirements
- Maintaining technical staff
- Allowing regulatory inspection
- Maintaining batch information
- Reporting applicable changes to the authority
- Paying the prescribed retention fee
The rules require records relating to batches and raw materials to be maintained for specified periods, and provide inspection powers for regulatory authorities.
Common Reasons for Delay
- Incomplete COS-6 application or incorrect product information
- Missing manufacturing agreement
- Issues with the existing manufacturer’s licence
- Incomplete formulation details or missing ingredient specifications
- Incomplete label information
- Technical staff documentation gaps and GMP deficiencies
- Incomplete testing arrangements or incorrect fee payment
- Mismatch between applicant and manufacturer information
Why Choose ELT Corporate?
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Product Assessment | Cosmetic product and regulatory requirement review. | search
Facility Review | Manufacturing facility document review. | globe
COS-6 and COS-7 | Application and GMP documentation support. | file
Agreement Support | Manufacturing arrangement documentation guidance. | users
Labels and Formulation | Formulation, label and packaging review. | shield
After Licence | COS-9 process and post-licence compliance support. | clock
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Frequently Asked Questions
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What is a Cosmetic Loan License? | It allows a business to manufacture cosmetics using the premises and facilities of another licensed cosmetic manufacturer, subject to the applicable requirements.
Which form is used for the application? | The application is made in Form COS-6.
Which form is the loan licence issued in? | The loan licence is issued in Form COS-9.
Who grants the Cosmetic Loan License? | The State Licensing Authority grants the licence for manufacturing cosmetics for sale or distribution.
Is COS-7 required? | Yes. Form COS-7 is the self-certificate concerning GMP and requirements for premises, plant and equipment, submitted with the application.
Can a start-up apply? | A business can use the loan-licence route where the applicable requirements are fulfilled and an eligible licensed manufacturing facility is available.
Does the applicant need its own factory? | No. A loan licence is specifically designed for manufacturing at another licensee’s manufacturing site.
What is the government fee for COS-9? | The Third Schedule prescribes ₹10,000 for up to 10 items of each category, ₹500 for each additional item, along with applicable fees for additional categories.
How long is a COS-9 licence valid? | It remains valid in perpetuity, subject to payment of the prescribed retention fee every five years and continuing compliance, unless suspended or cancelled.
Is prior permission required for a new cosmetic? | Yes. Where the product qualifies as a new cosmetic, prior permission in Form COS-3 is required before the licence can be granted.
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Need a Cosmetic Loan License?
A Cosmetic Loan License provides a regulatory route for businesses that want to manufacture cosmetics using the facilities of an existing licensed manufacturer. The process involves Forms COS-6, COS-7 and COS-9, along with product documentation, manufacturing arrangements and GMP compliance.
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Share your product and manufacturing plan, and our regulatory team will guide you from COS-6 to COS-9.
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