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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 earlier than you start your business. A factory license, for example, is one of the essential documents for conducting an operation in Thailand. You might need a number of questions, certainly one of which is, "Do I need a license for my enterprise?" 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's a regulation to regulate and manage the factory construction, operation, air pollution management, and enlargement, known as the Thailand Factory Act of 1992. This regulation has labeled a factory as "any building or place which uses a machine from 5 horsepower or more or employs not less than seven workers or more with or without the usage of machinery for the operational functions (manufacturing, packaging, testing, processing, and so forth). The objective 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 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 federal 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 making use of for a factory license in Thailand
Relying on the dimensions and nature of your online business operation, you might or might not want to apply for the factory license. According to the Factory Act of 1992, businesses that set up factories in Thailand are subjected to different rules and license types based mostly on the factory scale, industrial output, potential pollution emission, and environmental impact. There are 3 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 makes use of machines at 5-20 horsepower with/without staff capacity between 7-20 staffs.
2. Factories that need to notify the federal government officers previous to the start of operation
Factories that don't require a license however should notify government officers prior to commencing operations under the limit of utilizing 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 you can receive a factory license in Thailand?
For factories that require to apply and procure a factory license in Thailand, there are application processes and document requirement, it's essential to prepare which are as follows:
A complete 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 licensed by a professional engineer, an official’s individual designated by the Ministry of Industry.
A complete description of the proposed safety measures. This proposal provides detail measures and plans concerning potential physical hazard, danger in operation, waste control, air pollution and any side-effect toward environment.
Once all documents are ready, the company must submit the application form and paperwork to the Provincial Industrial Office. Once submitted with the application payment, an official authorities representative will investigate the premises and check the construction, 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 representative shall consider the application and either grant or reject the license application within 50 days. The applicants also (companies) allow changing the application detail or factory plan within this timeframe. Once granted and acquired, this license restricts to the requested premises only, so new factories (under the same property or premise) should 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 concerning the license renewal? Folks have asked, "Do I need 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 could halt the 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 consultant will examine the factory and operation premises as per the inspection procedure. Once 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 companies in Thailand who are planning to set up their factory to know more in regards to the factory license and find out 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 positive to understand three types of factory classification under Thai regulations. And, keep in mind! All the documentation processes will be sorted out after renting a warehouse or factory, so planning is advised
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