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Factory license For Renting a Factory in Thailand
When renting a warehouse or factory in Thailand, the documentation and licenses are a MUST preparation work earlier than you start your business. A factory license, for instance, is without doubt one of the essential paperwork for conducting an operation in Thailand. You might have a number of questions, one in every of which is, "Do I need a license for my enterprise?" This article will summarize all you must know about factory licenses in Thailand, from the definition, preparation, and application!
1. What's a factory license for renting a factory in Thailand ?
In Thailand, there's a regulation to control and manage the factory development, operation, air pollution management, and expansion, known as the Thailand Factory Act of 1992. This regulation has categorized a factory as "any building or place which makes use of 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 functions (manufacturing, packaging, testing, processing, and so forth). The objective of getting a factory license is to ensure that businesses in Thailand are operated with safe conduct and authorized activities under the Thailand Factory Act of 1992.
Usually, 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 federal government should examine and investigate the operational process for improvement and safety purposes 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 small business operation, you might or could not want to apply for the factory license. According to the Factory Act of 1992, companies that set up factories in Thailand are subjected to completely different rules and license types primarily based on the factory scale, industrial output, potential air pollution emission, and environmental impact. There are 3 types of factories categorized under the Factory Act of 1992 as follows:
1. Factories that can operate without factory license
Factories that may operate without license are small scale operation which makes use of machines at 5-20 horsepower with/without staff capacity between 7-20 staffs.
2. Factories that need to notify the government officials previous to the start of operation
Factories that do not require a license but should notify authorities officials prior to commencing operations under the limit of utilizing machines at 20-50 horsepower with/without employees’ capacity between 20-50 staffs.
3. Factories that require a license
Factories that produce identifiable air 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 previous to the start of operation.
3. The best way to acquire a factory license in Thailand?
For factories that require to use and obtain a factory license in Thailand, there are application processes and doc requirement, you need to put together which are as follows:
An entire factory license application form
A company affidavit.
A factory building plan, approved and authorized 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 particular person designated by the Ministry of Industry.
A complete description of the proposed safety measures. This proposal provides element measures and plans concerning potential physical hazard, danger in operation, waste management, air pollution and any side-impact toward environment.
Once all documents are ready, the corporate must submit the application form and documents to the Provincial Industrial Office. As soon as submitted with the application charge, an official authorities consultant will examine the premises and check the construction, equipment condition, and pollution control.
After the investigation, the officers 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 additionally (businesses) permit changing the application element or factory plan within this timeframe. As soon as 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 legitimate for five years and requires a license renewal request before the expiration date. In any other case, it may halt the entire operation. There will be a renewal charge and the time frame for the renewal process is a minimum of 90 days, and within this period, the official representative 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 should they have any significant change or leasing the premise to a 3rd party.
To sum up, it is essential for companies in Thailand who're planning to set up their factory to know more in regards to the factory license and find out how 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 apply for a factory license in Thailand, so please make certain to understand three types of factory classification under Thai regulations. And, keep in mind! All the documentation processes could be sorted out after renting a warehouse or factory, so planning is advised
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Website: https://www.thaiindustrialproperty.com/city/samutprakan/
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