The Factory Act regulates factory construction, business operations, factory expansion as well as all safety and pollution requirements.
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.
A factory may be inspected at any time to ensure continuous compliance with the Factory Act. Inspections can be performed by government officials or by a designated private body. If the factory is deemed to be endangering the public, the Ministry can oblige the license holder to make improvements or even cease operations. A violation of the Factory Act’s provisions may also result in fines or imprisonment.
The license is valid for five years and, before its expiration, a renewal must be requested. The license is granted to a company, meaning that a new license will be necessary should the factory be transferred or leased.