When renting a warehouse or factory in Thailand, the documentation and licenses are a MUST preparation work before you start your business. A factory license, for instance, is without doubt one of the crucial paperwork for conducting an operation in Thailand. You might need several questions, one of which is, "Do I would like a license for my business?" This article will summarize all you have to know about factory licenses in Thailand, from the definition, preparation, and application!
1. What is a factory license for renting a factory in Thailand ?
In Thailand, there is a regulation to manage and handle the factory construction, operation, air pollution control, and expansion, known as the Thailand Factory Act of 1992. This regulation has classified a factory as "any building or place which uses a machine from five horsepower or more or employs no less than seven workers or more with or without the usage of machinery for the operational purposes (manufacturing, packaging, testing, processing, etc). The objective of having a factory license is to ensure that businesses in Thailand are operated with safe conduct and legal activities under the Thailand Factory Act of 1992.
Usually, the companies in Thailand that set up a factory in Thailand must notify the Department of Industrial Works and the Ministry of Business in Thailand for inspection and apply for the Factory License earlier than the start of operation. The federal government should inspect and investigate the operational process for improvement and safety functions and shall make use of a fine or lawsuit if deemed necessary.
2. Criteria for making use of for a factory license in Thailand
Depending on the dimensions and nature of your small business operation, chances are you'll or may not need to use for the factory license. According to the Factory Act of 1992, businesses that set up factories in Thailand are subjected to totally different guidelines and license types based mostly on the factory scale, industrial output, potential air pollution emission, and environmental impact. There are three types of factories classified under the Factory Act of 1992 as follows:
1. Factories that can operate without factory license
Factories that may operate without license are small scale operation which makes use of machines at 5-20 horsepower with/without staff capacity between 7-20 staffs.
2. Factories that have to notify the federal government officials previous to the start of operation
Factories that don't require a license however must notify government officials prior to commencing operations under the limit of using machines at 20-50 horsepower with/without employees’ capacity between 20-50 staffs.
3. Factories that require a license
Factories that produce identifiable pollution and use machines with more than 50 horsepower with/without more than 50 staffs within the operation, which they require a factory license from the Department of Industrial Works previous to the start of operation.
3. How one can receive a factory license in Thailand?
For factories that require to apply and obtain a factory license in Thailand, there are application processes and document requirement, you could put together which are as follows:
A whole factory license application form
An organization affidavit.
A factory building plan, approved and certified by a professional engineer or an official particular person designated by the Ministry of Industry.
A list of factory equipment and machinery, approved and authorized by a professional engineer, an official’s particular person designated by the Ministry of Industry.
A whole description of the proposed safety measures. This proposal provides detail measures and plans regarding potential physical hazard, danger in operation, waste management, air pollution and any side-effect toward environment.
Once all paperwork are ready, the company should submit the application form and paperwork to the Provincial Industrial Office. As soon as submitted with the application fee, an official government consultant will examine the premises and check the construction, equipment condition, and air pollution control.
After the investigation, the officials will submit the report to the department within 30 days after receiving a factory license. The official’s representative shall consider the application and either grant or reject the license application within 50 days. The applicants additionally (companies) enable altering the application element or factory plan within this timeframe. As soon as granted and acquired, this license restricts to the requested premises only, so new factories (under the same property or premise) must request a new license request, ought to there be any change within the factory plan or factory leasing.
4. Renewal of factory license
Then, when granted, what about the license renewal? People have asked, "Do I must renew my factory license?" Sure, the factory license in Thailand is legitimate for five years and requires a license renewal request earlier than the expiration date. Otherwise, it may halt the complete operation. There will be a renewal price and the time frame for the renewal process is a minimum of ninety days, and within this period, the official representative will examine the factory and operation premises as per the inspection procedure. Once renewed and granted, the new factory license is valid for another 5 years and required to submit a new license request should they have any significant change or leasing the premise to a third party.
To sum up, it is essential for businesses in Thailand who're planning to set up their factory to know more concerning the factory license and learn how to apply. The license was created under the Thailand Factory Act of 1992, which regulates factory operation in this country. NOT every factory is required to apply for a factory license in Thailand, so please make sure to understand three types of factory classification under Thai regulations. And, keep in mind! All the documentation processes can be sorted out after renting a warehouse or factory, so planning is advised
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1. What is a factory license for renting a factory in Thailand ?
In Thailand, there is a regulation to manage and handle the factory construction, operation, air pollution control, and expansion, known as the Thailand Factory Act of 1992. This regulation has classified a factory as "any building or place which uses a machine from five horsepower or more or employs no less than seven workers or more with or without the usage of machinery for the operational purposes (manufacturing, packaging, testing, processing, etc). The objective of having a factory license is to ensure that businesses in Thailand are operated with safe conduct and legal activities under the Thailand Factory Act of 1992.
Usually, the companies in Thailand that set up a factory in Thailand must notify the Department of Industrial Works and the Ministry of Business in Thailand for inspection and apply for the Factory License earlier than the start of operation. The federal government should inspect and investigate the operational process for improvement and safety functions and shall make use of a fine or lawsuit if deemed necessary.
2. Criteria for making use of for a factory license in Thailand
Depending on the dimensions and nature of your small business operation, chances are you'll or may not need to use for the factory license. According to the Factory Act of 1992, businesses that set up factories in Thailand are subjected to totally different guidelines and license types based mostly on the factory scale, industrial output, potential air pollution emission, and environmental impact. There are three types of factories classified under the Factory Act of 1992 as follows:
1. Factories that can operate without factory license
Factories that may operate without license are small scale operation which makes use of machines at 5-20 horsepower with/without staff capacity between 7-20 staffs.
2. Factories that have to notify the federal government officials previous to the start of operation
Factories that don't require a license however must notify government officials prior to commencing operations under the limit of using machines at 20-50 horsepower with/without employees’ capacity between 20-50 staffs.
3. Factories that require a license
Factories that produce identifiable pollution and use machines with more than 50 horsepower with/without more than 50 staffs within the operation, which they require a factory license from the Department of Industrial Works previous to the start of operation.
3. How one can receive a factory license in Thailand?
For factories that require to apply and obtain a factory license in Thailand, there are application processes and document requirement, you could put together which are as follows:
A whole factory license application form
An organization affidavit.
A factory building plan, approved and certified by a professional engineer or an official particular person designated by the Ministry of Industry.
A list of factory equipment and machinery, approved and authorized by a professional engineer, an official’s particular person designated by the Ministry of Industry.
A whole description of the proposed safety measures. This proposal provides detail measures and plans regarding potential physical hazard, danger in operation, waste management, air pollution and any side-effect toward environment.
Once all paperwork are ready, the company should submit the application form and paperwork to the Provincial Industrial Office. As soon as submitted with the application fee, an official government consultant will examine the premises and check the construction, equipment condition, and air pollution control.
After the investigation, the officials will submit the report to the department within 30 days after receiving a factory license. The official’s representative shall consider the application and either grant or reject the license application within 50 days. The applicants additionally (companies) enable altering the application element or factory plan within this timeframe. As soon as granted and acquired, this license restricts to the requested premises only, so new factories (under the same property or premise) must request a new license request, ought to there be any change within the factory plan or factory leasing.
4. Renewal of factory license
Then, when granted, what about the license renewal? People have asked, "Do I must renew my factory license?" Sure, the factory license in Thailand is legitimate for five years and requires a license renewal request earlier than the expiration date. Otherwise, it may halt the complete operation. There will be a renewal price and the time frame for the renewal process is a minimum of ninety days, and within this period, the official representative will examine the factory and operation premises as per the inspection procedure. Once renewed and granted, the new factory license is valid for another 5 years and required to submit a new license request should they have any significant change or leasing the premise to a third party.
To sum up, it is essential for businesses in Thailand who're planning to set up their factory to know more concerning the factory license and learn how to apply. The license was created under the Thailand Factory Act of 1992, which regulates factory operation in this country. NOT every factory is required to apply for a factory license in Thailand, so please make sure to understand three types of factory classification under Thai regulations. And, keep in mind! All the documentation processes can be sorted out after renting a warehouse or factory, so planning is advised
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