When renting a warehouse or factory in Thailand, the documentation and licenses are a MUST preparation work before you start your business. A factory license, for instance, is one of the essential documents for conducting an operation in Thailand. You might need several questions, one in all which is, "Do I would like a license for my enterprise?" This article will summarize all it's essential 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 manage and manage the factory construction, operation, pollution control, and enlargement, known because the Thailand Factory Act of 1992. This regulation has categorised a factory as "any building or place which uses a machine from 5 horsepower or more or employs no less than seven workers or more with or without the usage of machinery for the operational purposes (manufacturing, packaging, testing, processing, and many others). The target of getting a factory license is to ensure that businesses in Thailand are operated with safe conduct and legal activities under the Thailand Factory Act of 1992.
Typically, 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 government must inspect and examine the operational process for improvement and safety functions and shall employ 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 could not want to use for the factory license. According to the Factory Act of 1992, businesses that set up factories in Thailand are subjected to totally different guidelines and license types based on the factory scale, industrial output, potential air pollution emission, and environmental impact. There are three types of factories categorized under the Factory Act of 1992 as follows:
1. Factories that may operate without factory license
Factories that may operate without license are small scale operation which uses machines at 5-20 horsepower with/without employees capacity between 7-20 staffs.
2. Factories that must notify the government officers previous to the start of operation
Factories that do not require a license however must notify government officials prior to commencing operations under the limit of using machines at 20-50 horsepower with/without staff’ capacity between 20-50 staffs.
3. Factories that require a license
Factories that produce identifiable pollution and use machines with more than 50 horsepower with/without more than 50 staffs within the operation, which they require a factory license from the Department of Industrial Works prior to the start of operation.
3. Find out how to acquire a factory license in Thailand?
For factories that require to apply and obtain a factory license in Thailand, there are application processes and doc requirement, you have to put together which are as follows:
A complete factory license application form
A company affidavit.
A factory building plan, approved and certified by a professional engineer or an official individual designated by the Ministry of Industry.
A list of factory equipment and machinery, approved and authorized 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 regarding potential physical hazard, hazard in operation, waste management, air pollution and any side-impact toward environment.
Once all documents are ready, the company must submit the application form and paperwork to the Provincial Industrial Office. As soon as submitted with the application payment, an official authorities representative will examine the premises and check the construction, equipment condition, and pollution control.
After the investigation, the officials 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 (businesses) enable altering the application element or factory plan within this timeframe. Once granted and received, this license restricts to the requested premises only, so new factories (under the same property or premise) should request a new license request, ought to there be any change within the factory plan or factory leasing.
4. Renewal of factory license
Then, when granted, what concerning the license renewal? Individuals have asked, "Do I must renew my factory license?" Yes, the factory license in Thailand is valid for 5 years and requires a license renewal request earlier than the expiration date. Otherwise, it might halt the entire operation. There will be a renewal payment and the time frame for the renewal process is a minimum of 90 days, and within this period, the official consultant will investigate the factory and operation premises as per the inspection procedure. Once renewed and granted, the new factory license is valid for another 5 years and required to submit a new license request ought to they have any significant change or leasing the premise to a third party.
To sum up, it is crucial for companies in Thailand who are planning to set up their factory to know more in regards to the factory license and easy methods 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 use for a factory license in Thailand, so please make certain to understand three types of factory classification under Thai regulations. And, bear in mind! All the documentation processes could be sorted out after renting a warehouse or factory, so planning is advised
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