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The 9 Most Necessary Details About Thailand’s New Factory Act, B.E. 2562
Do I want to apply factory license previous to renting a factory in Thailand?
For anybody fascinated by setting up a factory in Thailand or starting a enterprise in the factory business, you must know some information regarding Thailand’s New Factory Act, which goes into impact on October 27, 2019. The next is a abstract of the significant particulars of the new Act as well because the variations from the previous one:
How is the new Act better than the former one?
The Thailand Factory Act was amended to increase the flexibility of the factory sector. Because of this, both small and large factories will be able to operate more agilely, while regulation leisure in terms of rigorous environmental considerations and risks stays unchanged.
The scope of the word "factory" within the new Act.
Within the former Act, a factory refers to a building, place, or vehicle that has at least 7 workers or makes use of machinery with a total energy of 5 horsepower or more. According to the new Act, the definition of a factory is a building, place, or vehicle that has at the very least 50 employees or makes use of machinery with a total energy of fifty horsepower or more.
Persons are still totally protected, just as they have been under the former Act
Although Thailand’s New Factory Act will benefit the factory companies to be able to operate smoothly as mentioned above, the folks and residents across the factory will still receive 100% protection, just as they received under the former Act.
Is the renewal of the factory operation permit (Ror. Ngor. four) still required?
According to the new Act, the criteria for making use of for a factory permit in Thailand, whether or not operators operate basic factories or small and medium enterprises (SME) with machinery less than 50 horsepower (or 50 staff), they do not have to renew the factory operation permit every 5 years.
A factory that already has a factory operation permit doesn't want to apply for a new one.
According to Thailand’s New Factory Act, a factory that already has a factory operation permit, even if the horsepower or number of workers is reduced to less than 50, is still considered as a factory licensed under the criteria for applying for a factory permit in Thailand till it notifies the termination of the factory operation.
Using private auditors instead of presidency officials
The new Act authorizes private inspection businesses which have been licensed or accredited by the government company to inspect factory businesses. In consequence, factory businesses should not have to wait to be inspected by just authorities officers.
ualifications of private auditors
Although the revised Thailand Factory Act permits private auditors to audit the factory, the private auditors must have a legitimate license with the next qualifications:
The auditor should have a license for professional practice in engineering, science, or technology.
The auditor must have at the very least five years of expertise in electrical, environmental safety, chemical, mechanical, civil engineering, or different relevant fields.
Though Thailand’s new Factory Act will help to accelerate audits by employing private auditors, the auditors will need to have qualifications and expertise as specified by the Department of Industrial Works. This is to maintain standards and strictness when it comes to safety.
Increasing the rigor of self-certification
Thailand’s New Factory Act requires factory operators to perform self-declared, known as self-certification, for a specified interval to guarantee that their operations are in accordance with the law.
Easy methods to switch a factory operation permit to another factory operator?
A factory operator that's unable to operate its factory after acquiring a factory operation permit can switch thefactory operation permit to a different factory operator following the procedures for acquiring a factory operation permit in Thailand and the conditions as follows:
A factory operator that wishes to transfer a factory operation permit must submit a request for the license transfer within 30 days after buying, selling, or renting a factory has been approved.
The request will be entitled to be a licensee pending consideration.
A factory operator applying the application for the licensee within 30 days can proceed to operate the factory immediately. Even if it is pending approval, it is deemed that the applicant has turn out to be a licensee.
Every time the factory operation permit is switchred, the original licensee will no longer have the best to lease or buy the factory.
In conclusion, the Factory Act (No. 2), which is the new amendment that has been in impact since 2019, can facilitate obtaining a factory operation permit in Thailand to be more handy and flexible. At the identical time, the new Act can oversee company operations in order that they are safe for the setting, the public, and the country’s economic stability.
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