The cosmetics business is one of the world’s most lucrative and fast-growing industries. Dubai, being a cosmopolitan city, presents immense opportunities for cosmetic firms. The cosmetic business in Dubai is an industry that deals with manufacturing or selling beauty products and services. It includes different types of products such as skincare, make-up, hair care, etc.
As a cosmetics manufacturing business in Dubai, you can manufacture a wide variety of products; body creams, lotions, various types of eye make-ups, and facial cosmetics are some of the most popular. You can also specialize in the manufacturing of certain cosmetic products.
2023.97 Cosmetics Manufacturing (Not available for selection in Meydan Free Zone)
Apply for a business license under Manufacture of chemicals and chemical products and choose the business activity – Cosmetics Manufacturing with business activity code 2023.97
The cosmetics manufacturing business in Dubai refers to producing cosmetics, such as body creams and lotions, as well as various types of eye make-ups and facial cosmetics. You can formulate, develop, manufacture, and package cosmetics such as skincare, makeup, hair care, fragrances, toiletries, and other beauty items with your trade license. However, this business license is subject to Dubai Municipality rules and regulations.
In a cosmetics manufacturing business, you can also formulate and create your own product formulations or may offer contract manufacturing services where they produce products for your or other brands. The process involves sourcing raw materials, conducting research and development, testing the products for safety and efficacy, and manufacturing them in large quantities. You may also have quality control processes to ensure the products meet regulatory standards and customer expectations.
While UAE permits business activity 2023.97 Cosmetics Manufacturing, it is not available for selection in Meydan Free Zone.
Inclusions
As a cosmetics manufacturing business, you can involve in the manufacture/ production of cosmetics, such as body creams and lotions, as well as various types of eye make-ups and facial cosmetics.
Third-Party Approvals – Post License
Upon issuance of your license, you will have to get approval from the Environment Department of Dubai Municipality (DM) before starting your Cosmetics Manufacturing business.
You will also need to register your cosmetic products with Dubai Municipality. The registration process allows the Consumer Products Safety Section (CPSS) of Dubai Municipality adequate information for assessing the safety of products. Products cannot be manufactured, imported, exported, advertised, sold, or distributed in Dubai unless they are registered with the DM.
The Dubai government regulates products’ manufacture, sale, and import and requires them to be registered with DM before selling in Dubai. According to the Local Order No. 11 / 2003. Dubai Municipality regulates the manufacture, sale, and importation of cosmetics and Personal care.
2023.99 Cosmetics & Personal Care Preservatives Manufacturing (Not available for selection in Meydan Free Zone)
 Apply for a business license under Manufacture of Chemicals and Chemical Products and choose the business activity – Cosmetics & Personal Care Preservatives Manufacturing with activity code 2023.99.
Cosmetics & Personal Care Preservatives Manufacturing is a vital industry that supplies chemicals used to protect cosmetic and personal care products from microbial contamination.
As a Cosmetics & Personal Care Preservatives Manufacturing business, you can produce various chemicals extensively used by the cosmetic and pharmaceutical industries. These chemicals include preservatives, which play a crucial role in protecting products from microbial contamination.
Some common preservatives you can manufacture with this license include parabens, sodium benzoate, optiphen, and suttocide. These preservatives are carefully formulated to inhibit the growth of bacteria, yeast, mold, and fungi, which can degrade the quality, efficacy, and safety of cosmetic and personal care products.
These preservatives should be manufactured by carefully selecting and sourcing raw materials, formulating and mixing ingredients according to industry standards and regulations, and performing quality control tests. In addition, you must also adhere to strict guidelines and good manufacturing practices to maintain the efficacy and safety of the preservatives they produce.
While UAE permits business activity 2023.99 Cosmetics & Personal Care Preservatives Manufacturing, it is not available for selection in Meydan Free Zone.
Inclusions
Cosmetics & Personal Care Preservatives Manufacturing licenses cover the production of chemicals that are widely used by cosmetic and pharmaceutical industries. This includes chemicals such as parabens, sodium benzoate, optiphen, and suttocide, used for the protection of the products from contamination by bacteria, yeast, mold, and fungus. Â Â Â Â Â Â Â Â Â Â Â Â Â
Third-Party Approvals – Post License
After obtaining your license, it is necessary to seek approval from Dubai Municipality’s Environment Department before commencing your Cosmetics Manufacturing business. Additionally, you must register your cosmetic products with Dubai Municipality. This registration process provides the Consumer Products Safety Section (CPSS) of Dubai Municipality with the necessary information to evaluate the safety of the products. Products must be registered with the DM to be manufactured, imported, exported, advertised, sold, or distributed in Dubai.
Registration of Cosmetic & Personal Care Products
Since consumer safety is the primary principle of Cosmetics registration, its process allows the Registration and Permits Section to gather adequate information to assess the safety of cosmetic & personal care products. It is necessary to emphasize that no Cosmetic product shall be manufactured, imported, exported, advertised, sold, or distributed in Dubai unless it has been registered in the Montaji system following Dubai Municipality regulations.
According to the Local Order No. 11 / 2003. Dubai Municipality regulates the manufacture, sale, and importation of cosmetics and Personal care by requiring that all products be registered before placing in the Dubai market and by requiring the individuals running the activities related to Cosmetics to be licensed in Dubai or other emirates.
Who Should Apply for Registration?
Individuals who import or locally manufacture Cosmetic products & Personal care, or have products imported or manufactured on their behalf are responsible for applying to have their products registered. The following should make an application for registration of a Cosmetic product:
Local Manufactures: Local manufacturers in Dubai are advised to contact the Registration & Permits Section for proper registration of Cosmetic & Personal care; agents of local manufacturers are to take the necessary steps to ensure that the products intended for the Local market are registered before the manufactured products are placed into Dubai market.
Foreign Manufactures: The importer is responsible for all matters pertaining to the product registration and is advised to contact Health and Safety Department – Registration and Permits Section at Dubai Municipality for registration.
Agents
Agents of foreign manufacturers are to take the necessary steps to ensure that Cosmetics intended for the local market are registered before consignments of such products are imported to Dubai.
Criteria of the Applicant
Product registration applicants must be a company incorporated in Dubai or have a warehouse in Dubai and a trade license in Dubai indicating activities related to Cosmetics.
Laboratory Test Report
A document to declare in detail the laboratory test result for Cosmetic products. This report needs to be issued from certified lab and accredited test methods.
Other documents:
Any other document may be requested during the registration process when necessary. Examples:
- The HALAL certificate needs to be issued from recognized Islamic society in the country of origin.Â
Note: This certificate is mandatory if the Halal logo is on the label and must be valid at the time of submission.
- Organic/Vegan certificate to indicate the source ingredient and needs to be issued to recognized bodies in the country of origin.
- Clinical studies to prove specific claims or statistics are mentioned on the label and need to be issued from recognized bodies in the country of origin.
- Safety assessment report for a specific ingredient in the combination and/or for the overall product.
Technical Guidelines for Manufacturing Cosmetics
In addition, as a  Cosmetics Manufacturer or a Cosmetics & Personal Care Preservatives Manufacturer, you need to get registration and permits from the Health and safety department of Dubai Municipality and follow their technical guidelines for Cosmetic and personal care products.Â
By cosmetic product, the Health and safety department of Dubai Municipality means any substance or preparation intended to be placed in contact with the various external parts of the human body (epidermis, hair system, nails, lips, and external genital organs) or with the teeth and the mucous membranes of the oral cavity with a view exclusively or mainly to cleaning them, perfuming them, changing their appearance and/or correcting body odors and/or protecting them or keeping them in good condition.
The following categories are under the scope of the Guidelines of the Health and safety department of Dubai Municipality.
Skincare Products:–Â
- Body care preparations: Body Creams, emulsions, lotions, gels and oils, bath, and shower preparations (salts, foams, oils, gels, etc.), Deodorants and antiperspirants & Products for external intimate hygiene.
- Face & Neck Preparations: Face cream, serum, oil, gel, mask, foam, and mist for the following purpose: anti-aging & lifting, Skin-whitening, purifying, glowing, moisturizing, hydrating, nose strips, aftershave products, after-sun products, ,etc.
- Hand care: Â Hand soap, cream, serum, mask, oil for the following purpose: cleansing, skin-whitening, moisturizing, hydrating, nourishing, etc.
- Foot care: Foot soap, cream, mask, and salt for the following purpose: cleansing, peeling, skin-whitening, moisturizing, hydrating, nourishing., etc.
- Eye care: Eye cream, serum, a mask for the following purpose: moisturizing, hydrating, antiaging, dark circle cream. & Eye makeup remover.
- Lip care: Lip balm, lip mask, lip tint ..etc.
- Makeup products: Primer, Tinted foundation/powder, setting powder, setting spray, eye shadow, eyeliner, eyebrow tint, eyebrow pencil, lip liner, lipstick, lip gloss, highlighter, bronzer,etc.
- Sunscreen & suntan preparations: Face & body sunscreen cream, lotion, spray, tanning lotion, after sun products.
- Shaving products: Shaving gel, cream& foam.
- Depilatories: wax strips, hair remover cream, hair removal spray & wax.
Nail & cuticle products:
Nail polish, gel, dip gel, nail oils, cuticle oil & nail polish remover.
Oral Hygiene products:
Mouth & tooth wash, paste, and spray for the following purpose: cleansing, whitening, refreshing, and protection.
Baby products:
Baby shampoo, lotion, cream, oil, powder, wipes, etc.
Hair & scalp products:
- Hair shampoo, dry shampoo, conditioner, mask & oil
- Scalp exfoliate
- Hairdressing products (lotions, brilliantines, spray, wax)
- Hair dyes & bleaching products
- Product for straightening hair (hair Botox, keratin, protein., etc.)
- Hair waving products.
Safety & Quality Specifications
The Health and Safety Department of Dubai Municipality has also set forth several Safety & Quality Specifications for cosmetics. These specifications outline several requirements that must be met. As a precondition, cosmetics should only contain active substances listed on the product label and must not include any human body-derived substances. Additionally, they must adhere to limits for microbial contamination and toxic heavy metals, as outlined in Annex 1. Moreover, cosmetics should not contain substances surpassing the limit specified in the list of restricted substances. Furthermore, they must meet acceptable quality standards, including product stability, an adequate shelf-life, appropriate packaging and labeling, and adherence to Good Manufacturing Practice (GMP) standards. Finally, cosmetics must not be manufactured or stored in unsanitary conditions that could render them harmful or contaminated with impurities.
Advertisement
Any related advertisement or promotional activity needs pre-approval through (the Montaji system), for example brochures, newspapers & magazines, promotional campaigns, social media, and TV outdoor and indoor advertisements.
The following cases do not require Dubai Municipality approval:
- Product sales are subject to conditions, gifts, prizes, discount coupons, etc.
- Free distribution of products or samples of registered products.
ESRÂ Â
The UAE government has implemented the Economic Substance Test (EST) to ensure that specific types of businesses are managed or guided from within the country. This entails having an adequate number of full-time employees situated in the UAE, generating the majority of their income within the UAE, and maintaining sufficient assets and operational expenses in the UAE. Companies must report their assessment by submitting an Economic Substance Return (ESR) within one year from the end of their fiscal year.
For example, companies with fiscal years commencing on or after January 1, 2023, and concluding on or before December 31, 2023, must submit the notification. Even newly established companies are required to file an ESR the following year if their activities fall under the scope of this requirement. Business activities 2023.99, and 2023.97 are exempt from the ESR requirement.
AML
In the UAE, certain sectors known as Designated Non-Financial Businesses and Professions (DNFBPs) are required to adhere to anti-money laundering regulations and actively prevent the financing of terrorism and illegal entities. Failure to meet the prescribed requirements within the given timeframe will lead to penalties imposed by the Ministry of Economy. Business activities 2023.99, and 2023.97 are not subject to AML regulations.
Please note that while the UAE allows business activities under codes 2023.99 and 2023.97, these are not available for selection within the Meydan Free Zone.
