FACTORY LICENSE
A building or place that uses a machine from five horsepower or has more than seven workers with or without any machine for manufacturing, producing, assembling, packing, repairing, maintaining, testing, improving, processing, conveying, storing or destroying is considered a factory by the Ministry of Industry.
MINISTRY OF INDUSTRY
The Factory Act was introduced to regulate the factory construction, factory expansion, business operations and safety measure. The Ministry of Industry can decide on the following:
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Size and type of factory
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Quantity of each type of factory with the power to disallow the establishment of certain factories if there are an abundance in Thailand
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The quality, type, and ratio of raw materials that will be used in the factory
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Nature, type, and quality of the goods that will be produced in the factory
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The kind of energy that will used in the factory
TYPES OF FACTORY
CATEGORY 1
The first type of factory can manufacture or operate at any time. They do not require any permission before operating. However, they will still have to follow the rules and regulations under the ministerial regulations. The factory which have one of the following is considered as Category 1 factory:
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5 to 20 horsepower and/or
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7 to 20 workers
Factory License: Compliance Required
CATEGORY 2
The second type of factory does not require any permission but the manufacturer must inform the office first. They must also comply with ministerial regulations. The factory which have one of the following is considered as Category 2 factory:
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20 to 50 horsepower and/or
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20 to 50 workers
Factory License: Notification Required
CATEGORY 3
The second type of factory does not require any permission but the manufacturer must inform the office first. They must also comply with ministerial regulations. The factory which have one of the following is considered as Category 2 factory:
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20 to 50 horsepower and/or
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20 to 50 workers
Factory License: License Required
REQUIREMENTS
Obtaining a factory license, an applicant must follow the general requirements:
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Application form
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Company Affidavit
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Location and environment of the factory
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Requirements for workers
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Complete plan related to buildings that must be built within the area of the factory
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Complete plan listing the factory equipment and machinery that must be certified by an expertise engineer. If the machinery is not certified, the Ministry of Industry will designate a person to do so
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Complete plan regarding the safety measures. The must must be written and explain the measures relating to nuisances, dangers, pollution and/or waste control.
TIMEFRAME
Within 30 days after the request of the license, an official will come to investigate the factory site and report their findings. Along with the site, the structure, component and pollution control measures will be checked.
An official will either grant or reject the license application within 50 days. During this 50 day time period, the applicant can change the application or factory plan.
VALIDITY AND RENEWAL OF LICENSE
A factory license in Thailand is valid for 5 years. Before the expiration of the (first) license, a renewal needs to be requested. If the renewal is requested within 60 days prior to the expiration date, the application will be processed normally. The renewal fee for the license is 100,000THB.