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Hand Made Soaps

(Querist) 28 April 2011 This query is : Resolved 
Hi,

I want to start a small soap manufacturing unit and have some queries:

a. My initial fixed assets are under Rs. 6,00,000. Do I need a small scale industries license?

b. I live in Delhi, can I start up the unit within my residence? Are there any permits I need for this?

c. Do I need a cosmetics license to start up the unit? What happens if I start up the unit without one?

I would appreciate all the help from this forum.

Regards,
Akash
Guest (Expert) 29 April 2011
Not the fixed assets is the criteria for limit of small scale industry, liquid assets also form part of the limit.
Guest (Expert) 29 April 2011
In Delhi, you can't open a soap factory in your house. Not only you may need license, but also you will have to locate your industry in some industrial area.
Guest (Expert) 29 April 2011
You may however approach Director of Small Scale Industries at Delhi. Besides, you may also need to have clearance from the Pollution Board of the the State.
akash@4ds.in (Querist) 29 April 2011
Do I need a cosmetics license as well?
Guest (Expert) 29 April 2011
For your complete guidance, better download and read the 30 pages document available at the following link:
http://consumereducation.in/cosmeticeng.pdf
Sarvesh Kumar Sharma Advocate (Expert) 29 April 2011
agree with the view of mr. dhingra!
akash@4ds.in (Querist) 29 April 2011
Thanks so much will go through this in detail.

Regards,
Akash
akash@4ds.in (Querist) 02 May 2011
I've seen some of the handmade soap makers that are registered with the handicrafts and textiles ministry and the SSI. These people don't have a cosmetics license. Is this legal?

Also, can you get a cosmetics license in a commercial premises or a lal dora land?

Regards,
Akash
Guest (Expert) 02 May 2011
Dear Akash,

Registring with Handicrafts & Textiles Ministry or SSI does not exempt some one from following the provisions of the laws of the land. In fact you can find even 80 percent of the cottage industries not following the provisions of law due to ignorance. The legal complications come to fore when some accident occurs in the premises of the industry. During investigation the first thing is seen whether the industry is set up according to the provisions of law or not.

In your case since your business will be dealing in chemicals, specially the custic soda, which is a dangerous chemical.

So, if you feel any doubt, you may better check with the Drugs and Cosmetic authorities. If there is no requirement of any license, you can proceed ahead with your project without any license.
Guest (Expert) 02 May 2011
You can get the license in both Commercial place as well as lal dora land, but subject to clearance from the Department of Environments, whether your industry would be pollution free or not.


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