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Production (factory) license

A license or approval is required to manufacture products. The factory Act regulates factory construction, business operations, possible factory expansion, and all safety and pollution requirements.

Licensing assistance

Production characteristics

The following issues are within the competence of the Ministry of Industry:

☑ Plant (factory) size.

☑ The number of factories of each type, with the ability to prohibit the creation of certain types if there are too many of them in Thailand.

☑ type, quality, source of origin, and the ratio of raw materials used in the plant.

☑ The type or quality of the products produced at the plant, with the option to oblige wholly or partly to export their products.

☑ The type of energy that will be used in production.

A factory is defined as a building, place, or vehicle that uses a machine of five horsepower or more or its equivalent or employs seven or more workers to manufacture, produce, assemble, package, repair, maintain, test, improvements, process' and 'that are not owned or operated by government agencies for national security purposes.'

Not all factories require a license. For some, it is enough to notify officials in advance and start a business as soon as they receive a letter from the Ministry about a positive decision.

Production control

The intensity of control is based on the likelihood of contamination and the required environmental protection, which in turn is based on the productivity of the plant:

☑ Factories that use 5 to 20 horsepower equipment and employ 7 to 20 people do not require a license. However, the manufacturer must follow the regulations of the Ministry.

☑ Factories using equipment with more than 20 horsepower but less than 50, and/or employing more than 20 but less than 50 people for production: the manufacturer must inform the office before starting a business and, of course, must comply with ministerial regulations.

☑ Plants that pollute the environment use equipment with more than 50 horsepower and/or employ more than 50 people for production must obtain a license before starting operations.

The issuance of a factory license is at the discretion of the Ministry. Since, in most cases, start-ups are limited in time, obtaining a certificate allows the construction of parts of the plant to begin before the end of the license.

Obligations of the licensee

☑ Each license holder is obliged to additionally inform the Ministry in case of the following changes and/or incidents:

☑ Plants that use 5 to 20 horsepower equipment and/or employ 7 to 20 people do not require a license. However, the manufacturer must follow the regulations of the Ministry.

☑ An accident resulting in Death, injury, or illness that results in the worker being unable to work for more than 72 hours: obligation to notify the Ministry within three days of the date of the accident.

☑ An accident resulting in a factory shutdown for more than seven days: obligation to notify the Ministry within ten days from the date of the accident.

☑ Removal of equipment or factory to another site for temporary operation: obligation to notify the Ministry within seven days.

☑ Death of licensee: The heir or administrator must apply to transfer the license within 90 days.

☑ Expansion of the factory (increasing the number or capacity of machines. If part of the factory building is to be extended or modified to accommodate a foundation load of 500 kg or more), an additional permit is required and must be requested within seven days. This is subject to a fee of 100,000 baht.

Production may be subject to inspection to ensure compliance with the Factory Act. Both government officials and private individuals can do this.

If a factory poses a danger to the public, the Ministry may oblige the license holder to make improvements or even stop operations. Violation of the provisions of the Factory Act may also result in fines or imprisonment (for the company and/or its directors).

Terms of consideration and validity of the license

Deadline for consideration of the application

Within 30 days of requesting a license, an official must arrive to inspect the site and report their findings.

Approval or rejection will be communicated to the owner within 60 days.

License period

The license is valid for five years.

Before the (first) license expires, a renewal must be requested. The payment is again 100,000 baht.

The license is personal because when transferring or renting a factory, it will be necessary to request a new one.

In addition to the notice or license, note the fact that the Ministry of Industry has issued regulations for many different matters, such as:

☑ Description, category, or type of machinery and equipment to be used in the operation of the factory business;

☑ Factory location and environment (for example, you can not build factories in residential areas or within 50 meters of public places);

☑ Interior and Description of the factory;

☑ Requirements for employees;

☑ The process of manufacturing and supplying equipment.

More info
Update: 19-02-2023
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