Factory License For Renting A Factory In Thailand

Factory License For Renting A Factory In Thailand

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 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 might want to 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 handle the factory building, operation, pollution control, and enlargement, known because the Thailand Factory Act of 1992. This regulation has classified a factory as "any building or place which uses a machine from 5 horsepower or more or employs a minimum of seven workers or more with or without the usage of machinery for the operational functions (manufacturing, packaging, testing, processing, etc). The objective of getting a factory license is to make sure that companies in Thailand are operated with safe conduct and legal activities under the Thailand Factory Act of 1992.

Usually, the businesses in Thailand that set up a factory in Thailand should 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 must 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 scale and nature of your corporation operation, you might or may not need to apply for the factory license. According to the Factory Act of 1992, businesses that set up factories in Thailand are subjected to completely different rules and license types based mostly on the factory scale, industrial output, potential pollution emission, and environmental impact. There are three types of factories categorized under the Factory Act of 1992 as follows:

1. Factories that may operate without factory license
Factories that may operate without license are small scale operation which uses machines at 5-20 horsepower with/without workers capacity between 7-20 staffs.

2. Factories that need to notify the government officers prior to the start of operation
Factories that don't require a license however must notify government officers previous to commencing operations under the limit of utilizing machines at 20-50 horsepower with/without employees’ 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 previous 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 must prepare which are as follows:

A complete factory license application form
An organization affidavit.
A factory building plan, approved and authorized by a professional engineer or an official individual designated by the Ministry of Industry.
A list of factory equipment and machinery, approved and certified by a professional engineer, an official’s particular person designated by the Ministry of Industry.
An entire description of the proposed safety measures. This proposal provides element measures and plans concerning potential physical hazard, danger in operation, waste control, pollution and any side-effect toward environment.
As soon as all paperwork are ready, the corporate should submit the application form and paperwork to the Provincial Industrial Office. As soon as submitted with the application payment, an official authorities representative will examine the premises and check the construction, equipment condition, and pollution control.

After the investigation, the officers will submit the report to the department within 30 days after receiving a factory license. The official’s consultant shall consider the application and either grant or reject the license application within 50 days. The candidates additionally (businesses) enable altering the application detail or factory plan within this timeframe. Once granted and obtained, this license restricts to the requested premises only, so new factories (under the same property or premise) must request a new license request, should 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 need to renew my factory license?" Sure, the factory license in Thailand is valid for five years and requires a license renewal request before the expiration date. Otherwise, it could halt your complete operation. There will be a renewal payment 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. Once renewed and granted, the new factory license is legitimate for an additional 5 years and required to submit a new license request ought to they have any significant change or leasing the premise to a third party.

To sum up, it is essential for companies in Thailand who're planning to set up their factory to know more about the factory license and the right way to apply. The license was created under the Thailand Factory Act of 1992, which regulates factory operation in this country. NOT each factory is required to use for a factory license in Thailand, so please make sure to understand three types of factory classification under Thai regulations. And, bear in mind! All the documentation processes might be sorted out after renting a warehouse or factory, so planning is advised

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