START NOW – Cosmetic business licensing is very important for players in this industry. This is to ensure that the products meet the required safety and quality standards.

In Indonesia, the regulations governing about cosmetic business licensing cover several important aspects. It also discusses penalties for failing to fulfill them.

The Procedure of Cosmetic Business Licensing 

It is important for entrepreneurs in the beauty industry to understand the process of applying for a cosmetic business licensing. 

The procedure includes a number of stages as follows: 

Company Registration

Entrepreneurs must start by establishing a legitimate legal entity, such as a Limited Liability Company (PT) or Commanditaire Vennootschap (CV).

This is important to ensure that the business being run has a clear legal basis. That way, it will have legal protection and capable credibility. 

Obtaining a Business Identification Number (NIB)

After the legal entity is established, the next step is to obtain a Business Identification Number (NIB).

NIB functions as an official business identity and is required for various administrative purposes and further licensing.

That means, it is the very basic cosmetic business licensing that every cosmetic business owners need to apply. 

The other license may a bit vary, depends on the type of business. For example, you may need to consider a KBLI beauty salons.  

To obtain NIB, entrepreneurs need to register the business with the Ministry of Law and Human Rights (Kemenkumham). 

Submission of Business License to DPMPTSP

Next, entrepreneurs must apply for a business permit to the local Investment and One-Stop Integrated Services Agency (DPMPTSP).

At this stage, entrepreneurs are required to complete the necessary documents, such as:

Trade Business License (SIUP)

This document proves that the entrepreneur has a permit to carry out trading activities.

Business Domicile Certificate

This document shows the registered business address, making it easier for authorities to monitor.

Business Plan

This document contains information about the cosmetic products  marketing strategies and market analysis. This provides a comprehensive overview of the business plan to be executed.

Obtaining Distribution Permit from BPOM

The next cosmetic business licensing that needed are the distribution permit from the Food and Drug Supervisory Agency (BPOM).

This permit is very important to ensure that the products are safe and meet the established health standards.

With a distribution permit, cosmetic products can be marketed legally and provide more confidence to consumers.

The Importance of Having a Distribution Permit from BPOM

A distribution permit from BPOM is a mandatory requirement for every cosmetic product to be marketed in Indonesia because: 

Ensuring Product Safety

Before giving this permit, BPOM will check whether the ingredients used are safe for use by consumers.

With this permit, consumers can feel more at ease when using registered products that have passed the evaluation process. 

Ensuring Product Quality

Apart from safety, distribution permits also guarantee the quality of cosmetic products.

BPOM will first assesses whether the product meets the established quality standards.

This is important to maintain the reputation of the cosmetics industry. It also provide assurance to consumers that they are using a good quality products.

Strict Submission Process

The process of obtaining a distribution permit from BPOM requires entrepreneurs must submit various documents, including product formulation, labels, etc

All of this information will be evaluated by BPOM. If all requirements are met, a distribution permit will be issued.

Legal Risks for Unlicensed Businesses

Cosmetic products that do not have a distribution permit from BPOM are at risk of not being marketed legally.

Businesses who violate these regulations may be subject to sanctions. Therefore, having a distribution permit is very important to protect the business from legal risks.

Increasing Consumer Confidence

With a BPOM distribution permit, entrepreneurs can prove that their products have gone through a strict inspection process.

This will give more confidence to consumers, which in turn can increase sales and business sustainability.

Sanctions for Failure to Comply with Cosmetic Business Licensing

Running a cosmetics business without a completing cosmetic business licensing is a serious offense that can result in severe sanctions.

BPOM has the authority to take strict action against businesses that do not comply with regulations, including:

Fine

This fine aims to provide a deterrent effect on business actors so that they do not repeat the same violation.

The amount of the fine varies depending on the level of violation committed. The more serious the violation, the greater the fine.  

Product Confiscation

All cosmetic products that have no license may be confiscated by the authorities. Its purpose is to protect consumers from potentially harmful products..

This confiscated products will not only harm the companies financially, but also seriously damage their business reputation.

Business Closure

In some cases when there is serious violations, the cosmetic businesses can be closed permanently by the auhorities. 

This is the final action taken by BPOM after they going through some inspection and evaluation process.

Business closures may occur if violations are not corrected or if there is a serious threat to public health.

This sanction may not only apply to business actors, but also to all of its distributors or agents

Therefore, it is important for every cosmetic entrepreneur to ensure that they meet all licensing requirements before marketing their products.

Complying with the regulations will not only protects the consumers, but also maintains the sustainability of the cosmetics business.

By understanding the importance of cosmetic business licensing, entrepreneurs can bring more effort to fullfil their responsibilitty about licensing.

Moreover, the government has now made the procedure and method of making this business license easier for the busy entrepreneurs. 

Apart from coming directly to the relevant office with the complete registration documents, you can also make this license online.

For that, you can use Online Single Submission (OSS) site. It has an integrated system that can make various types of business licenses at once.

So, are you interested in joining this booming beauty industry? If so, don’t forget to complete it with a proper business license.

If you still have any confusion about this cosmetic business licensing, we at the Start Now are ready to help.