LEGALITIES REQUIRED TO START A SKIN CARE BUSINESS

The fashion and beauty industry is one that has seen many developments and evolvement especially in recent times. In fact, this industry is seriously booming and also very lucrative and new vendors keeps coming up almost every day. This is one of the reasons why I can confidently say that the fashion business is really a very lucrative business. There are also many successful brands in this industry.

Although, the fashion and beauty industry consist of the hair business, the spa business, makeup and artistry, clothing lines, shoe line, skin care brands, hair growth brands etc, I would focus more on the skin care brand in the article.

What is a Skin Care Brand?

A Skin Care Brand/Business is the types of business into the sale of products relating to skin care to maintain the health condition of the skin. Basically, to make the skin more healthy, glowing and looking good in its entirety.

It is important to understand that to produce these products, there had to be some combination of natural ingredients and even chemicals. This means that the brand must ensure that these chemicals are used in moderation to avoid causing harm to the human body.

I understand that most skin care vendors think that to start this business, all they need was to learn how to add these mixtures, package the mixtures and start marketing especially on social media but I need to let you know that, you are so wrong.

See, I totally understand that all your products are mixtures of ingredients that are not harmful to the human body. But starting and growing a Skin care brand and business takes more than just mixtures, hard work, reviews and marketing. There are certain important legalities you must follow if you intend to start and grow a skin care brand/business in Nigeria.

These legalities are as follows;

1. Registration with the Corporate Affairs Commission: The Corporate Affairs Commission is the commission saddled with the responsibility of regulating, monitoring and supervising the establishment of companies and businesses in Nigeria. This is your first step. The first thing after you have learnt about the skin care business is to register with the CAC. There are so many benefits associated with doing this registration like corporate personality, legitimacy of business, opportunities for growth and expansion etc. You can decide to register the business as Business name or incorporate it as a Company.
2. Intellectual Property Protection (Trademark Registration): This is the next step you should take after you register with the CAC. I believe that as a business owner, you have something unique that would differentiate your products from that of your competitors. This unique thing could be a mark, a name, a sign or symbol, a logo or a tagline. It is basically what makes your customers know your products immediately they see it. This is your intellectual property and it should be protected jealousy. There are about 4 methods of this protection but the most suitable for your kind of business is "Trademark registration". Register your unique identity as a trademark. This would prevent other competitors from using that unique identity. This is also a pre-requisite to get your NAFDAC registration number.
3. Regulatory Compliance (NAFDAC registration): The next step you should take is to register your business with NAFDAC. NAFDAC is the National Agency for Food and Drug Administration and Control. This body also regulates the import, manufacturing, distribution, and advertisement of cosmetics. This is a very important step to take as it basically prevent you from facing any legal tussles with the government. Not registering with NAFDAC could cause unnecessary closure of business, payment of fines and even jail term in some cases depending on the situation. After registration, you would get a Unique registration number for your product.

It is important to note that apart from being on the side of the law when you follow these steps, there are also certain benefits that your business would enjoy;

• Corporate Personality.
• Legitimacy of business.
• Intellectual property protection. Protection of Unique identity.
• Easy access to grant opportunities.
• Opportunity to export products outside the company.
• Ability to sell in large quantities. Which includes displaying products in supermarkets.
• Separation of personal income from business income.
• No restrictions for advertising and marketing etc.

There are so many benefits but I would stop here.

In protecting your intellectual property, you must also consider protecting your trade secrets.

In conclusion, starting a skin care business is beyond mixtures and marketing. You must abide by all regulatory formalities to thrive and survive. If you have starting selling your products without going through all these 3 steps, trust me you are doing the wrong thing and this is not the best move for your business. Regulatory Compliance is very mandatory for this business.

Thank you for reading. I hope you find this insightful and this would be a drive to spur you to do the right thing.

Drop your thoughts in the comment section and contact me on 07030446925 (WhatsApp only) for more enquiries.

My name remains Omolayo Olorunsola and I am your go-to Business Lawyer.