- by Admin
The herbal product market in India is growing fast. From Ayurvedic medicines to herbal cosmetics and wellness products, demand is rising every year. If you are planning to manufacture, sell, or distribute herbal products, one important question comes first: what license is required for herbal products in India?
This blog explains the main licenses, who needs them, and why they matter, so you can start your herbal business the right way.
Why Licensing Is Important for Herbal Products
Licensing is not just a legal formality. It protects consumers and businesses.
Proper licenses help to:
Ensure product safety and quality
Build trust with doctors, retailers, and customers
Avoid legal penalties and business shutdowns
Prove that products follow government rules
Any serious herbal business must follow licensing norms before entering the market.
Who Needs a License for Herbal Products?
You need licenses if you are involved in:
Manufacturing herbal or Ayurvedic products
Selling herbal medicines or supplements
Distributing herbal products to retailers
Marketing herbal formulations under your brand
Even if products are natural, they are still regulated.
Main License Required for Herbal Products in India
Ayurvedic Manufacturing License
The most important license for herbal and Ayurvedic medicines is the Ayurvedic Manufacturing License.
This license is issued by:
The State AYUSH Department
It is required if you:
Manufacture Ayurvedic or herbal medicines
Produce classical or proprietary formulations
The license confirms that products are made according to approved Ayurvedic standards.
Requirements to Get an Ayurvedic Manufacturing License
To apply for this license, the following are usually required:
Approved manufacturing premises
Qualified technical staff
Quality control arrangements
List of products and formulations
Many businesses work with an Ayurvedic Medicine Manufacturer in India that already holds these approvals, which makes the process easier.
Drug License for Selling Herbal Products
If you are selling herbal medicines, you may need a drug license depending on the product category.
Common types include:
Retail Drug License
Wholesale Drug License
State drug authorities decide whether this license is needed based on local rules and product types.
AYUSH Product Approval
Herbal medicines must comply with AYUSH guidelines.
This includes:
Approved ingredients
Correct labeling
Proper dosage information
AYUSH compliance ensures products are safe and legally accepted in the market.
GST Registration
GST registration is mandatory for most herbal businesses.
GST is needed for:
Legal billing and invoicing
Inter-state supply of goods
Smooth business transactions
Without GST, large-scale operations become difficult.
FSSAI License (When Applicable)
Some herbal products are sold as health supplements or food products.
In such cases, an FSSAI license may be required.
This applies to:
Herbal nutrition products
Wellness powders and drinks
Products classified as food supplements
Correct classification is important to avoid legal issues.
Labeling and Packaging Approval
Herbal product labels must follow specific rules.
Labels should include:
Product name and category
Ingredient list
Manufacturer details
Batch number and expiry date
Incorrect labeling can lead to product rejection or penalties.
Role of Third-Party Manufacturing in Licensing
Many brands choose not to manufacture on their own. They partner with a third-party manufacturing company that already has all the required licenses.
This model:
Reduces legal and financial burden
Saves time and investment
Ensures regulatory compliance
The manufacturing partner takes responsibility for production licenses and quality standards.
Licenses for Herbal PCD and Distribution Business
If you plan to work as a Herbal PCD franchise or distributor, documentation is simpler.
Usually required:
Drug license (if applicable)
GST registration
Business registration documents
Manufacturing licenses are not required for franchise partners.
Common Mistakes to Avoid
To stay safe legally, avoid these mistakes:
Selling products without proper approval
Using incorrect product claims
Ignoring labeling rules
Working with unlicensed manufacturers
Choosing the right partners prevents most issues.
How to Stay Compliant Long-Term
Licensing is not a one-time task.
You should:
Renew licenses on time
Keep records updated
Follow changes in regulations
Maintain product quality
Compliance builds long-term trust and business stability.
Final Thoughts
Herbal products are natural, but they are still regulated. The required license depends on whether you manufacture, sell, or distribute the products. Ayurvedic manufacturing licenses, drug licenses, GST registration, and proper labeling are key parts of legal compliance.
If you want a safe and guided entry into the herbal business, Contact India’s best Herbal PCD franchise and work with experts who understand licensing, quality, and long-term growth.
To explore more, you can also check our group websites: Zoic Biotech for nutraceuticals, softgels, gummies, cosmetics, and chemical formulations, Biozoc for allopathic and drug PCD franchise opportunities, and Zocveda for Ayurvedic and herbal PCD franchise solutions.
Frequently Asked Questions
Is a license mandatory for herbal products in India?
Yes. Manufacturing and selling herbal medicines requires proper approval.
Can I sell herbal products without a manufacturing license?
Yes, if you are a distributor or franchise partner and work with a licensed manufacturer.
Is AYUSH approval compulsory?
For Ayurvedic and herbal medicines, AYUSH compliance is essential.
Do herbal supplements need FSSAI approval?
Yes, if the product is classified as a food or health supplement.
Which is the easiest way to start a herbal business?
Partnering with a licensed manufacturer or Herbal PCD franchise is the simplest option.
