Operate Your Company in Thailand Smoothly & Worry-Free
In practice, not all factories are equal. While, some factory operators may need to merely notify the authorities, others would not be permitted to start any operations until a factory license is issued. You can find more information below.
What Is a Factory?
The description of a factory is given as
a building, place or vehicle that uses machinery with an engine higher than or equivalent to five horsepower, or which employs seven or more workers with or without any machine 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 the Ministerial Regulations, and that is not owned or operated by government agencies for the purpose of national security or safety.
Under the Factory Act B.E. 2535, the Ministry of Industry is responsible for regulating the construction, operations, expansions, issuance of licenses, and overseeing of all related matters such as pollution and safety in relation with factories in Thailand.
License duties of each factory largely depend on what it manufactures and a host of other factors. Those that come into play are:
- Size and type of factory
- Probability of causing pollution
- Environmental protection methods
- Type, quality, source of origin, and ratio of raw materials to be used
- Type of energy to be used or produced in a factory
- Nature, type and quality of the products manufactured in the factory and so forth
Categorisation of Factories
Factory License Renewal
The consideration period for a factory license is at a minimum of 90 days, during which time an official will drop by the factory premises for an inspection. Once issued, the license is valid for five years at a time and must be renewed prior to expiry.