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When renting a warehouse or factory in Thailand, the documentation and licenses are a MUST preparation work earlier than you start your business. A factory license, for instance, is one of the essential paperwork for conducting an operation in Thailand. You might have a number of questions, one in all which is, "Do I need a license for my enterprise?" This article will summarize all you should know about factory licenses in Thailand, from the definition, preparation, and application!

1. What's a factory license for renting a factory in Thailand ?
In Thailand, there is a regulation to regulate and manage the factory development, operation, pollution control, and expansion, known because the Thailand Factory Act of 1992. This regulation has labeled a factory as "any building or place which uses a machine from five horsepower or more or employs at the least seven workers or more with or without the use of machinery for the operational functions (manufacturing, packaging, testing, processing, and many others). The target of having a factory license is to ensure that companies in Thailand are operated with safe conduct and authorized activities under the Thailand Factory Act of 1992.

Usually, the businesses in Thailand that set up a factory in Thailand must notify the Department of Industrial Works and the Ministry of Industry in Thailand for inspection and apply for the Factory License earlier than the start of operation. The government should inspect and investigate the operational process for improvement and safety purposes and shall make use of a fine or lawsuit if deemed necessary.

2. Criteria for applying for a factory license in Thailand

Depending on the size and nature of your enterprise operation, you could or could not need to apply for the factory license. According to the Factory Act of 1992, companies that set up factories in Thailand are subjected to completely 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 may operate without factory license
Factories that can operate without license are small scale operation which makes use of machines at 5-20 horsepower with/without employees capacity between 7-20 staffs.

2. Factories that have to notify the federal government officers previous to the start of operation
Factories that do not require a license but must notify authorities officials previous to commencing operations under the limit of using machines at 20-50 horsepower with/without staff’ capacity between 20-50 staffs.

3. Factories that require a license
Factories that produce identifiable air pollution and use machines with more than 50 horsepower with/without more than 50 staffs in the operation, which they require a factory license from the Department of Industrial Works prior to the start of operation.

3. How to receive a factory license in Thailand?

For factories that require to apply and obtain a factory license in Thailand, there are application processes and doc requirement, you should prepare which are as follows:

A whole factory license application form
A company affidavit.
A factory building plan, approved and authorized 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 complete description of the proposed safety measures. This proposal provides detail measures and plans regarding potential physical hazard, hazard in operation, waste management, pollution and any side-impact toward environment.
As soon as all paperwork are ready, the corporate should submit the application form and documents to the Provincial Industrial Office. As soon as submitted with the application price, an official government representative will examine the premises and check the structure, 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 also (companies) permit changing the application detail 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 identical property or premise) should 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? Individuals have asked, "Do I have to renew my factory license?" Yes, the factory license in Thailand is legitimate for five years and requires a license renewal request before the expiration date. In any other case, it might halt the entire operation. There will be a renewal fee and the time frame for the renewal process is a minimal of 90 days, and within this interval, the official representative will investigate the factory and operation premises as per the inspection procedure. As soon as renewed and granted, the new factory license is valid for one more 5 years and required to submit a new license request ought to they've any significant change or leasing the premise to a third party.

To sum up, it is essential for businesses in Thailand who are planning to set up their factory to know more in regards to the factory license and how you can 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 positive to understand three types of factory classification under Thai regulations. And, remember! All the documentation processes may be sorted out after renting a warehouse or factory, so planning is advised

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