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The 9 Most Essential Details About Thailand’s New Factory Act, B.E. 2562
Do I need to apply factory license prior to renting a factory in Thailand?
For anyone inquisitive about setting up a factory in Thailand or starting a business 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 next is a summary of the significant particulars of the new Act as well as the differences from the previous one:
How is the new Act higher than the former one?
The Thailand Factory Act was amended to extend the flexibility of the factory sector. Consequently, both small and enormous factories will be able to operate more agilely, while regulation leisure in terms of rigorous environmental concerns and risks remains unchanged.
The scope of the word "factory" within the new Act.
Within the former Act, a factory refers to a building, place, or vehicle that has no less than 7 workers or makes use of machinery with a total energy of 5 horsepower or more. According to the new Act, the definition of a factory is a building, place, or vehicle that has at the least 50 employees or makes use of machinery with a total energy of 50 horsepower or more.
Individuals are still totally protected, just as they have been under the former Act
Though Thailand’s New Factory Act will benefit the factory companies to be able to operate smoothly as talked about above, the folks and residents across the factory will still obtain one hundred% protection, just as they received 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 basic 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 workers is reduced to less than 50, is still considered as a factory licensed under the criteria for applying for a factory permit in Thailand till it notifies the termination of the factory operation.
Using private auditors instead of presidency officers
The new Act authorizes private inspection agencies which have been licensed or accredited by the government company to examine factory businesses. In consequence, factory businesses wouldn't have to wait to be inspected by just authorities officers.
ualifications of private auditors
Though the revised Thailand Factory Act allows private auditors to audit the factory, the private auditors need to have a sound license with the next qualifications:
The auditor must have a license for professional practice in engineering, science, or technology.
The auditor should have at the very least five years of expertise in electrical, environmental safety, chemical, mechanical, civil engineering, or different related fields.
Although Thailand’s new Factory Act will assist to accelerate audits by using private auditors, the auditors should have qualifications and expertise as specified by the Department of Industrial Works. This is to take care of standards and strictness in terms of safety.
Rising the rigor of self-certification
Thailand’s New Factory Act requires factory operators to perform self-declared, known as self-certification, for a specified period to guarantee that their operations are in accordance with the law.
Methods to switch a factory operation permit to a different factory operator?
A factory operator that is unable to operate its factory after obtaining a factory operation permit can transfer thefactory operation permit to a different factory operator following the procedures for obtaining a factory operation permit in Thailand and the conditions as follows:
A factory operator that desires to switch a factory operation permit must submit a request for the license transfer 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 applying 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 develop into a licensee.
At any time when the factory operation permit is switchred, the original licensee will not have the fitting to lease or buy the factory.
In conclusion, the Factory Act (No. 2), which is the new amendment that has been in impact since 2019, can facilitate obtaining a factory operation permit in Thailand to be more convenient and flexible. At the similar time, the new Act can oversee company operations in order that they're safe for the setting, the public, and the country’s economic stability.
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Website: https://www.thaiindustrialproperty.com/factory-for-sale/
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