Factory License Service in Bangkok, Thailand

According to Factory act 2535 (1992), “FACTORY” means building, premises or vehicle using machine or machines with total or an equivalent of five (5) horse power or more or which employs seven workers or more with or without machinery to manufacture, produce, assemble, pack, repair, maintain, test, improve, process, convey, keep or destroy anything.

The issuance of permit to operate commence and operate factory is controlled under factory act 2535 under which the factory type has been categorized three different groups on basis of machinery horse power and number of workers in the factory outlined as follows

1. Group 1:  The factory of ≤ 20 horse power and ≤ 20 workers
2. Group 2:  The factory of ≤ 50 horse power and ≤ 50 workers
3. Group 3:  The factory of > 50 horse power and > 50 workers

License requirement for each group type

Group 1: Factory establishment under Group 1 does not require permit to commence the factory operation. Operation can start immediately however, should comply with criteria or regulation regarding factory location, building, machinery and pollution control.

Group 2: Factory can be set up without factory permit (License) however shall comply with regulation regarding location, building, machinery and pollution control. Notification request has to be submitted to the competent official before the commencement of operation of factory. Upon the receipt of notification receipt from competent officer the operation commencement can begin from the date of receipt of notification receipt date.

Group 3: Factory has to obtain license before setting up and commencement of factory operation in compliance with the regulation regarding location, building, machinery, pollution control, specialized worker requirement, production process.

The Ministry of industry has authority to decide upon following requisite matters of factory establishment and operation:

1. The size of the factory
2. The quantity of factory type in each category that should be established limiting or disallowing certain category of factory which already have ample presence in certain locality in Thailand.
3. The type, quality, source of origin and ratio of raw material to be used or produced in a factory.
4. The type and quality of products to be manufactured in a factory.
5. The energy to be used in a factory.
6. The application of produces from factory being establish in certain types of industry or the export of all or part of such produces.

Factory permit and Annual fee:
The Group 2 has to pay an annual fee and Group 3 factory has to pay license fee as well as annual fee. Annual fee has to be paid 15 days prior to commencement date and yearly basis on a date of commencement.

Permit fee and annual fee for the license may vary with respect to size and horse power used in the factory.

Standard process and Time frame for factory license:

• Before applying for Group 3 factory permit, an Industrial business operator must submit documents for public hearing before applying for license to the licensing authority in the locality where the factory is to be located. Standard time for this process to complete is 35 days.
• Entrepreneurs apply for a license including supporting documents and documents of the public hearing to the concerned department with in 45 days of announcement of public hearing.
• Competent will consider the documents. Investigation on location of the plant, operation, production, preventing trouble and pollution treatment will be performed and summary report of audit is prepared.
• Final decision is given to factory operator and Operator can obtain factor permit after paying appropriate fee.

The total time frame to complete the license application and getting one might take upto 90 days.

Renewal of factory license:

Factory permit or License is valid for the period of 5 calendar year. The renewal of license should be filed prior to expiration of license.

If renewal application is submitted after the expiration date but nor more than 60 days, a fine of 20% of the fee is charged. If 60 days period has lapsed has also lapse while applying for renewal then current license is considered void and new license has to be applied.

Apart from the procedures above inspection of factory and granting of factory licensed is considered on the basis of regulations relating to:

1. Factory location, its environment, the nature of building and its interior
2. Nature, type, or kind of machinery, equipment or such other things to be used in factory operation.
3. Requirement for specialized workers based on the type, kind, or size of the factory for the performance of duty in the factory
4. Criteria to comply with, production process and acquisition of any equipment or tools to prevent or stop or mitigate the damage, injuries, or distress that may happen to people of property in the factory or its vicinity.
5. Standard and methods of controlling the discharge of waste, pollutants or anything affecting the environment as a result of factory operation.
6. Requirements for documents necessary to have available at the factory for the purpose of controlling and inspecting the compliance with the law.
7. Requirement for necessary information relating to the factory operation which the factory operator shall have to furnish from time to time or at specific period of time
8. Requirements for protection of safety in the factory operation in order to prevent or stop or mitigate the dangers and injuries that may result from the factory operation.

Its License holders’ obligation to notify the competent government official under following circumstances:

1. If operation discontinues for more than 1 year written notification has to be sent to competent official within 7 days from the date one-year period expires. If factory operator wishes to continue the operation written notification has to be submitted to competent official and written permission has to be obtained as well before commencing operation.
2. In case of accident in the factory causing death, illness or injury to a person and who after 72 hours cannot report back to his duty the factory operator should notify competent official within 3 days from the date of death or expiration of 72 hours.
3. In case of accident causing halt in operation for more than 7 days factory operator should modify competent official within 10 days from the date of the accident.
4. In case of death of licensee, the heir or the administrator should file an application for the transfer of license within 90 days from the date of licensee deceased.
5. In case of change of the factory or name of the licensee, the licensee should notify the competent official in writing within 15 days from the date of such change.
6. In case of removing machinery or its parts to another location for temporary factory operation factory operator should filled application seeking permission from competent official.

General requirement for the application of factory License

1. The application form.
2. The company affidavit (of the applicant’s company)
3. A plan or layout indicating the buildings to be constructed within the factory area
4. A plan detailing the factory machinery, which must be certified by a professional engineer or other person designated by the Ministry of Industry
5. A plan detailing the factory building, which must be certified by a professional engineer or other person designated by the Ministry of Industry
6. A plan, layout and detailed written explanation of measures relating to nuisances, potential damages, dangers, waste control, pollution or any material that may cause damage to the environment as a result of factory operations. These documents must be certified by a professional engineer or other person designated by the Ministry of Industry.