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Thailand Factory License

The Factory Act regulates the factory construction, the business operations, a possible factory expansion and all safety and pollution requirements.

 

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According to the Factory Act of 1992, "A factory is defined as any premise that uses machinery equivalent to five horsepower or more, or that employs seven or more, with or without any machine, for manufacturing, producing, assembling, packing, repairing, maintaining, testing, improving, processing, conveying, storing or destroying anything included in the classes or types of factories presently listed in the Ministerial Regulations".

Not all factories need a license and some will only need to notify the relevant officials beforehand to start their business as soon as they receive an approval letter from the Ministry.

The factory may always be inspected to ensure continuous compliance with the Factory Act. This can be done by government officials or by a private body. If the factory would be endangering the public, the Ministry can oblige the license holder to make improvements or even cease business. A violation of the Factory Act’s provisions may also result in penalties such as fines or imprisonment.

The license is valid for five years and, before its expiration, of the, a renewal must be requested. The license is personal, which means that a new one will be necessary should the factory is transferred or leased.

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Our lawyers, accountants and business consultants will be glad to discuss your needs and answer any questions you may have.

 

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