Tips and Steps to Register a Cosmetic Company in the U.S. Revealed

How to Register a Cosmetic Company in the U.S. - Tips, Steps, and Insights!

As the global beauty market continues to grow, more entrepreneurs and brands are setting their sights on the United States. As one of the largest cosmetic consumer markets in the world, the U.S. offers a mature regulatory framework, a large consumer base, and a well-developed business environment - making it an attractive destination for international brands to establish a company and launch operations. So, what are the key steps and strategies for registering a cosmetic company in the U.S.? This article explores the latest industry developments and practical insights to help you navigate the process.

1. Understand the U.S. Cosmetic Regulatory Framework

The U.S. Food and Drug Administration FDA is primarily responsible for regulating cosmetics. Unlike drugs, cosmetics do not require pre-market approval from the FDA. However, all cosmetic brands must comply with the Federal Food, Drug, and Cosmetic Act FDC Act, as well as the Fair Packaging and Labeling Act FPLA.

According to FDA guidelines, cosmetic products must be safe for use, free from harmful ingredients, and accurately labeled. False or misleading claims about a product are strictly prohibited. Additionally, all brands selling cosmetics in the U.S. - regardless of where the company is registered - must appoint a U.S. Agent to serve as a liaison with the FDA.

2. Choose the Right Business Structure and Registration State

When registering a company in the U.S., the first step is to determine the appropriate legal structure

Limited Liability Company LLC Ideal for small to medium-sized businesses, offering tax flexibility and liability protection.

Corporation Suitable for companies planning to raise capital or scale, though it involves more complex tax structures.

S Corporation S Corp Offers pass-through taxation benefits, making it a good option for smaller businesses.

Choosing the right state for registration is also crucial. While many companies opt for Delaware due to its favorable business laws and tax incentives, if you plan to operate in the U.S., it’s often more practical to register in the state where your business will be based - to avoid additional compliance costs.

3. Key Steps in the Registration Process

1. Choose a Company Name and Conduct a Trademark Search

Before registering, ensure that your company and brand names are not already trademarked. A search through the U.S. Patent and Trademark Office USPTO can help avoid future legal disputes.

2. Register the Company and Obtain an EIN

After registering your company with the state, apply for an Employer Identification Number EIN from the Internal Revenue Service IRS. This number is essential for opening a bank account, filing taxes, and conducting business in the U.S.

3. FDA Cosmetic Establishment Registration CER

Starting December 2025, under the Modernization of Cosmetics Regulation Act MoCRA, all cosmetic companies must register with the FDA and submit product formulations and safety assessments. This marks a significant increase in compliance requirements for cosmetic brands.

4. Appoint a U.S. Agent

As mentioned, all foreign companies selling cosmetics in the U.S. must designate a U.S. Agent who is familiar with FDA regulations and can assist with regulatory compliance.

5. Prepare Product Labels and Safety Reports

Product labels must include a list of ingredients, net quantity, manufacturer information, and usage instructions. Additionally, brands must prepare a Cosmetic Product Safety Report CPSR to confirm that the product meets FDA safety standards.

6. Open a U.S. Bank Account and Register for Taxes

For long-term operations, it’s advisable to open a U.S. bank account and complete tax registration according to the requirements of your chosen state.

4. Leverage Professional Services for Efficiency

Given the complexity of U.S. regulations, many startups and international brands opt for professional service providers to streamline the registration process. These services can assist with FDA registration, label review, and U.S. Agent designation - significantly reducing time and cost.

According to 2025 industry reports, an increasing number of Chinese beauty brands are turning to third-party compliance agencies to enter the U.S. market and meet MoCRA requirements. This trend highlights the importance of compliance and the value of expert support in the registration process.

5. Brand Positioning and Market Strategy Matter

Registering the company is just the beginning. Successfully entering the U.S. market also requires strong brand positioning and a solid marketing strategy. American consumers are highly receptive to natural, organic, eco-friendly, and personalized products. Incorporating these elements into your product development and marketing can enhance your competitive edge.

Social media plays a crucial role in brand promotion in the U.S. Platforms like Instagram, TikTok, and YouTube offer powerful channels for reaching consumers. Collaborating with Key Opinion Leaders KOLs and leveraging customer reviews can help boost brand awareness and credibility.

6. Addressing Challenges and Looking Ahead

While the U.S. market offers tremendous potential, it also presents challenges - including fierce competition, high marketing costs, and complex regulatory requirements. Brands must also prepare for supply chain management, product recall procedures, and customer service protocols.

However, with the global beauty market continuing to expand, the U.S. remains one of the most attractive markets. According to Statista, the U.S. cosmetic market is projected to reach $100 billion in 2025 and maintain steady growth in the coming years.

Conclusion

Registering a cosmetic company in the U.S. requires a clear understanding of legal procedures, compliance standards, and market dynamics. By choosing the right business structure, leveraging professional support, and crafting a strategic market approach, brands can successfully establish themselves in the U.S. and achieve long-term growth in one of the world’s most competitive beauty markets.