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The 9 Most Necessary Details About Thailand’s New Factory Act, B.E. 2562
Do I need to apply factory license previous to renting a factory in Thailand?
For anyone interested by setting up a factory in Thailand or starting a enterprise in the factory business, you need to know some information relating to Thailand’s New Factory Act, which goes into effect on October 27, 2019. The following is a abstract of the significant particulars of the new Act as well as the variations from the earlier one:
How is the new Act better than the former one?
The Thailand Factory Act was amended to extend the flexibility of the factory sector. In consequence, both small and enormous factories will be able to operate more agilely, while regulation rest by way of rigorous environmental considerations and risks stays unchanged.
The scope of the word "factory" in the new Act.
In the former Act, a factory refers to a building, place, or vehicle that has not less than 7 workers or makes use of machinery with a total power of 5 horsepower or more. According to the new Act, the definition of a factory is a building, place, or vehicle that has not less than 50 staff or makes use of machinery with a total power of fifty horsepower or more.
Individuals are still absolutely protected, just as they have been under the former Act
Though Thailand’s New Factory Act will benefit the factory businesses to be able to operate smoothly as talked about above, the people and residents across the factory will still obtain one hundred% protection, just as they obtained under the former Act.
Is the renewal of the factory operation permit (Ror. Ngor. four) still required?
According to the new Act, the criteria for making use of for a factory permit in Thailand, whether operators operate normal factories or small and medium enterprises (SME) with machinery less than 50 horsepower (or 50 workers), they don't have to renew the factory operation permit each 5 years.
A factory that already has a factory operation permit doesn't want to apply for a new one.
According to Thailand’s New Factory Act, a factory that already has a factory operation permit, even if the horsepower or number of employees is reduced to less than 50, is still considered as a factory licensed under the criteria for making use of for a factory permit in Thailand till it notifies the termination of the factory operation.
Utilizing private auditors instead of presidency officers
The new Act authorizes private inspection companies that have been licensed or accredited by the federal government company to inspect factory businesses. In consequence, factory businesses do not need to wait to be inspected by just authorities officers.
ualifications of private auditors
Though the revised Thailand Factory Act permits private auditors to audit the factory, the private auditors must have a sound license with the next qualifications:
The auditor must have a license for professional apply in engineering, science, or technology.
The auditor should have at the least five years of experience in electrical, environmental safety, chemical, mechanical, civil engineering, or different related fields.
Though Thailand’s new Factory Act will help to accelerate audits by employing private auditors, the auditors should have qualifications and experience as specified by the Department of Industrial Works. This is to maintain standards and strictness in terms of safety.
Growing the rigor of self-certification
Thailand’s New Factory Act requires factory operators to perform self-declared, known as self-certification, for a specified interval to ensure that their operations are in accordance with the law.
Learn how to transfer a factory operation permit to a different factory operator?
A factory operator that's unable to operate its factory after acquiring a factory operation permit can transfer thefactory operation permit to another factory operator following the procedures for obtaining a factory operation permit in Thailand and the conditions as follows:
A factory operator that wishes to transfer a factory operation permit must submit a request for the license switch within 30 days after shopping for, selling, or renting a factory has been approved.
The request will be entitled to be a licensee pending consideration.
A factory operator making use of the application for the licensee within 30 days can continue to operate the factory immediately. Even if it is pending approval, it is deemed that the applicant has grow to be a licensee.
Each time the factory operation permit is switchred, the original licensee will no longer have the correct to lease or buy the factory.
In conclusion, the Factory Act (No. 2), which is the new modification that has been in effect since 2019, can facilitate acquiring a factory operation permit in Thailand to be more convenient and flexible. On the same time, the new Act can oversee firm operations so that they are safe for the surroundings, the general public, and the country’s financial stability.
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