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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 without doubt one of the crucial documents for conducting an operation in Thailand. You might need a number of questions, considered one of which is, "Do I need a license for my enterprise?" This article will summarize all it is advisable 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's a regulation to regulate and handle the factory construction, operation, pollution control, and enlargement, known as the Thailand Factory Act of 1992. This regulation has categorised a factory as "any building or place which uses a machine from 5 horsepower or more or employs at the very least seven workers or more with or without using machinery for the operational purposes (manufacturing, packaging, testing, processing, and many others). The objective of getting a factory license is to make sure 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 should notify the Department of Industrial Works and the Ministry of Trade in Thailand for inspection and apply for the Factory License before the start of operation. The government must examine 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

 

 

Relying on the dimensions and nature of what you are promoting operation, you could or may not want to use for the factory license. According to the Factory Act of 1992, companies that set up factories in Thailand are subjected to different rules and license types based mostly on the factory scale, industrial output, potential air pollution emission, and environmental impact. There are three types of factories labeled under the Factory Act of 1992 as follows:

 

 

1. Factories that can operate without factory license

 

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

 

 

2. Factories that must notify the federal government officials previous to the start of operation

 

Factories that do not require a license but should notify government officers 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 air 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. Tips on how to obtain 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 must put together which are as follows:

 

 

A whole factory license application form

 

A company 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 certified 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, hazard in operation, waste control, pollution and any side-impact toward environment.

 

As soon as all documents are ready, the company should submit the application form and paperwork to the Provincial Industrial Office. Once submitted with the application payment, an official government representative will examine the premises and check the structure, equipment condition, and air 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 (companies) permit changing the application detail or factory plan within this timeframe. As soon as 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 in the factory plan or factory leasing.

 

 

 

4. Renewal of factory license

 

 

Then, when granted, what concerning the license renewal? Folks have asked, "Do I must renew my factory license?" Sure, the factory license in Thailand is legitimate for 5 years and requires a license renewal request before the expiration date. Otherwise, it may halt the whole operation. There will be a renewal payment and the time frame for the renewal process is a minimal of ninety days, and within this interval, the official representative will examine 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 3rd 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 methods 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 certain to understand three types of factory classification under Thai regulations. And, keep in mind! All the documentation processes could be sorted out after renting a warehouse or factory, so planning is advised

 

 

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