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Factory Licenses Laws in Thailand.
Business Set Up: Registration and Licensing
The Factory Act B.E. 2535 (1992) sets out regulations for factory construction and operation, factory expansion, and safety requirements. The Act is administered by the Department of Industrial Works of the Ministry of Industry. The Act does not overtly govern factories owned or operated by government agencies for purposes of national security and safety, but states that these factories must use procedures under the Act as guidelines for their operations. A factory is defined as any premise that uses machinery equivalent to five horsepower or more; or that employs seven or more workers for manufacturing, producing, assembling, packing, repairing, maintaining, testing, improving, processing, conveying, storing, or destroying anything included in the classes or types of factories presently listed in Ministerial Regulations.
Officers of the Ministry of Industry are authorized to carry out factory inspections and can order a factory to close, modify or repair machinery, or to undertake necessary actions if it is deemed that the factory’s operations are endangering factory workers or the public.
Types of factories are divided into 3 classes and 107 types, and not all types of factories require licensing. The level of government control generally depends on the level of pollution and required environmental protection measures.
classes (1) Factories that do not require licensing.
classes (2) Factories that require only a notification to officials of the Ministry of Industry in advance prior to start of operations. Factory operations may commence as soon as the factory operators receive a receipt form from the Ministry of Industry stating that their report has been received.
Classes (3) Factories that require licenses from the Department of Industrial Works, Ministry of Industry, prior to operation. Subject to the Ministry’s discretion, factory operators may be granted a certificate allowing them to build parts of the factory prior to the license. For factory types and classifications regarding licensing, see the Department of Industrial Works links provided at the end of the section.
For Class 3 factories, there are two types of licenses required to build and operate a factory: Factory Establishment License Factory Operations License
Factory Establishment License a Factory Establishment License must be obtained from the local officer, Ministry of Industry before a factory can be built, this is the best way. But with new laws you can build the factory before getting the licensees. License applications require details on the factory and machinery including investments in factory construction and operations; factory employees, production details; and blueprints of structures and machinery. License fees vary depending on the horsepower rating of the machines, and the number of employees.
Factory Operations License On completion of factory construction, the factory operator must obtain a Factory Operations License before starting manufacturing operations. The license is generally issued automatically once an authorized government representative deems that the factory and machinery comply with approved plans and specifications. Class 3 factory operators must also notify competent authorities at least 15 days before a factory test-run commences, and again 15 days before actual manufacturing begins. Factory Operations Licenses are valid up to the end of the fifth calendar year from the year the business operations commence. However, in cases where the factory is transferred, leased or subject to hire purchase, or ceases operations, the license is not expired on the date the factory’s new operators are issued a license, or the date the factory stops operations must inform. The license is not expired but must renewals and pay a fee every year to are subject to house power for pay the fee. Licenses must also gain permission from the Ministry of Industry for factory expansions, machinery transfers to a different site, and transfer of the factory site. Permission is also required to transfer, lease, assign, or sell a factory operation.
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