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AYUSH License for Sale of Herbal Products

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In recent years, given the rising demand for traditional medicines and wellness items, there is a high demand for an AYUSH license among businesses manufacturing, selling, or distributing such items. As more and more people are opting Ayurvedic medicines, herbal supplements and cosmetic products in the market, to ensure the safety of the consumers getting an AYUSH license is a must. It ensures that the product complies with the stringent rules and regulations established by the Ministry of AYUSH and also assures consumers that products are safe and effective for public use.

What is the Ayush License?

AYUSH license is the regulatory permission provided to a company or an individual to lawfully manufacture and distribute Ayurveda, Yoga, Unani, Siddha, and Homeopathy products collectively termed as AYUSH. These traditional Indian systems of medicine will have to strictly follow safety, efficacy, and quality parameters for products being formulated under their banners set by the Ministry of AYUSH. This license is required among businesses manufacturing, selling, or distributing of herbal products that fall under the categories of Ayurveda, Yoga, Unani, Siddha, or Homeopathy (AYUSH systems).

This includes being in compliance with the law of the regulatory body within the AYUSH sector, allowing businesses to operate within the framework established for traditional practices of medicines. The license not only increases consumer confidence but also opens up the markets through which AYUSH products gain market access, and hence become healthy. 

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Why is the Ayush License Important?

An AYUSH license is important for enterprises that manufacture and/or trade traditional medicines in India.

  • Ensures Product Quality and Safety: Herbs products are largely unregulated and quality and safety are always a concern. Therefore, obtaining an AYUSH license necessitate for herbal product manufacturers to follow strict guidelines. Which means guaranteeing that the raw ingredients used are of high quality, the manufacturing process is hygienic and standardized, and the ultimate manufactured goods meets the essential safety standards.
  • Legal Requirement: Selling of any Herbal Products without having an AYUSH license is illegal in India. That's why it’s vital for a business dealing in herbal products (medication) to get an AYUSH license and follow the given rules. Starting a business without getting the license may result in penalties and suspension of your business.
  • Increases Customer Trust: As a result of an AYUSH license, customers feel comfortable with the safe and effective offerings, thus increasing loyalty and more repeat purchases for satisfied consumers. Customers are more concerned about the authenticity and safety of the goods they use today. Ayush license ensures customers that they are buying real herbal products which are tested and approved by the government organizations.
  • Market Access: An AYUSH license gives the business enhanced credibility through consumer trust in the use of traditional medicine and building a brand name. An AYUSH license allows entry to the domestic as well as global markets, garnering an increasingly popular market for traditional medicinal products around the world.
  • Competitiveness: Since an AYUSH license distinguishes any business from unlicensed competitors it gives a marked advantage in today's marketplace more and more concerned about verified health-related products.
  • Legitimate Recognition: The AYUSH license provides legitimacy to operate the business under the auspices of traditional medicines in India to avoid penalties and operational shutdown due to non-adherence to legal compliance.

Who Needs an Ayush License?

An AYUSH license is required for any manufacturing, distribution, or selling of Ayurvedic, Unani, Siddha, or Homeopathic medicines in India. If you are involved in the production, packaging, or sale of herbal products, particularly those that come under the AYUSH systems then you need to obtain the license.

  • Manufacturers of Herbal Products: Any manufacturing company dealing with Ayurvedic, Unani, Siddha, or Homeopathic drugs needs an AYUSH license. 
  • Retailers and Distributors: Organizations that sell and distribute AYUSH products also need this license for legal operation. And, organizations that sell Ayurvedic and other related products to consumers directly must obtain a retail AYUSH license.
  • Importers of Herbal Products: Companies or individuals who import herbal products from other countries must obtain an Ayush License to ensure that the products meet the required standards set by Indian authorities.
  • Ayurvedic and Herbal Clinics: Persons who want to establish clinics or start practicing Ayurveda need to be a registered practitioner and need to satisfy the licensing conditions specific to the practice.
  • Loan License Applicants: Organisations that desire to manufacture AYUSH products by using the facilities of another licensed manufacturer may apply for an AYUSH loan license.

Types of Ayush Licenses

The AYUSH License can be categorized into two types based on the businesses dealing with the manufacturing and distribution of Ayurvedic, Yoga, Naturopathy, Unani, Siddha, and Homeopathy products. Following are the types: 

  • Manufacturing License of AYUSH: This license is granted to companies which manufacture’s AYUSH products within its facility. It is crucial for any organization that wishes to manufacture and sell these products to abide by the safety and quality parameters set by the Ministry of AYUSH. There are two main categories within manufacturing licenses:
  1. GMP (Good Manufacturing Practices) License: This is applicable to herbal medicine manufacturers who follow GMP standards for quality control.
  2. Non-GMP License: For small-scale herbal product manufacturers that do not require GMP standards but still need to meet basic manufacturing guidelines.
  • AYUSH Loan License: This license permits a company to manufacture AYUSH products under the facilities of another licensed manufacturer. This is very beneficial for those companies that do not have their manufacturing units, thereby allowing them to produce products under a third-party GMP-certified facility.

Also Read: How to Get an AYUSH Manufacturing License?

Steps to Obtain an Ayush License

The process for obtaining an Ayush License, are as follows:

  • Identify the Type of License You Need: First step is to identify which type of license you need as per your requirements such as- manufacturing license or a sale/distribution license.
  • Collect all relevant Documents: Obtain all the needed documents to ensure compliance with regulatory requirements.
  1. Correctly filled application form
  2. A valid identity proof of the applicant
  3. Address proof of the premises
  4. Details of the manufacturing process (for manufacturers)
  5. A list of herbal ingredients and formulations
  6. Manufacturing license (if applicable)
  7. Product composition and safety information
  8. Quality control documents (such as GMP certification for manufacturers)
  • Submit Your Application: Fill out the form in all details and complete your application along with submitting all required documents via the online AYUSH department service. Include any applicable fees with the submission since such fees are used to pay for processing and inspecting costs.
  • Inspection and Evaluation: After the submission of application form, the AYUSH department will carry out detailed verification. To ensure that it meets all regulatory standards and requirements set by the authorities, an inspection of your manufacturing facility may also be involved.
  • License Issuance: If your application gets verified and approved, you will be issued an AYUSH manufacturing license. It will legally authorize you to manufacture and distribute AYUSH products, thus adding to the field of traditional medicine.
  • Validity and Renewal of License: The AYUSH manufacturing license is issued for the period of 5 years. The licensee has to maintain all the regulatory standards during this period. The license holders are required to ensure that they comply with the regulatory standards throughout this period. To ensure that your business does not stop, the licensee must apply for the renewal before the license expires. 

Also Read: How to apply for an AYUSH License Online in India

Key Requirements for Obtaining an Ayush License for Sale of Herbal Products 

  • Registered Premises: The place where the herbal medicine production is prepared is required to be registered with the Ministry of AYUSH.
  • Competent Employees: Companies involved in Herbal Production Manufacturing must have eligible employees, including, Licensed Pharmacist, Chemist, Ayurvedic Practitioner, etc. Competent staff should be hired. 
  • Compliance with Good Manufacturing Practices (GMP): Producers must comply with GMP standards. These standards rule all parts of production, from raw material acquisition to packaging and labeling.
  • Quality Control and Testing: Quality control and testing must be performed before launching the brands in the market space to ensure the safety and surety of the products. And, the documentation related to testing and quality assurance must be available for inspection.

For more Specific Details and Assistance with your License, Contact Us. 

Conclusion

Acquiring an AYUSH manufacturing license is a broad process, requiring careful preparation and strict adherence to regulatory standards. It starts with the procurement of all the necessary documentation: collecting necessary documents and details regarding the manufacturing layout, demonstrating that the place meets safety and quality regulations set by the Ministry of AYUSH. Getting an AYUSH license, customers feel comfortable with the safe and effective offerings, thus increasing loyalty and more repeat purchases for satisfied consumers. With the designed steps and resultant paperwork, an application process can be transacted much more effectively. In addition, this includes understanding the validity and renewal requirements to ensure operations are not disrupted. With the growing demand for natural and holistic health solutions, an AYUSH license not only legalizes a business but also provides it with greater credibility in the marketplace.

This portion of the site is for informational purposes only. The content is not legal advice. The statements and opinions are the expression of author, not corpseed, and have not been evaluated by corpseed for accuracy, completeness, or changes in the law.

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Parul Bohral, a BALLB graduate and experienced legal researcher and content writer with expertise in various legal areas, including corporate law and intellectual property. I have gained valuable experience in esteemed legal environments, where...

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