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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 anybody enthusiastic about setting up a factory in Thailand or starting a business in the factory enterprise, it is best to know some information relating to Thailand’s New Factory Act, which goes into impact on October 27, 2019. The next is a summary of the significant details of the new Act as well because the variations from the earlier one:
How is the new Act better than the former one?
The Thailand Factory Act was amended to increase the flexibility of the factory sector. As a result, both small and large factories will be able to operate more agilely, while regulation rest by way of rigorous environmental concerns and risks stays unchanged.
The scope of the word "factory" within the new Act.
In the former Act, a factory refers to a building, place, or vehicle that has not less than 7 employees or uses 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 workers or makes use of machinery with a total energy of fifty horsepower or more.
People are still fully protected, just as they were under the former Act
Though Thailand’s New Factory Act will benefit the factory companies to be able to operate smoothly as mentioned above, the individuals and residents around the factory will still receive 100% protection, just as they obtained under the former Act.
Is the renewal of the factory operation permit (Ror. Ngor. 4) still required?
According to the new Act, the criteria for making use of for a factory permit in Thailand, whether or not operators operate common factories or small and medium enterprises (SME) with machinery less than 50 horsepower (or 50 staff), they do not have to renew the factory operation permit every 5 years.
A factory that already has a factory operation permit doesn't need to use for a new one.
According to Thailand’s New Factory Act, a factory that already has a factory operation permit, even when 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 until it notifies the termination of the factory operation.
Utilizing private auditors instead of government officials
The new Act authorizes private inspection agencies which were licensed or accredited by the government company to inspect factory businesses. In consequence, factory businesses do not need to wait to be inspected by just government officers.
ualifications of private auditors
Though the revised Thailand Factory Act permits private auditors to audit the factory, the private auditors need to have a valid license with the next qualifications:
The auditor should have a license for professional follow in engineering, science, or technology.
The auditor should have not less than five years of expertise in electrical, environmental safety, chemical, mechanical, civil engineering, or other related fields.
Although Thailand’s new Factory Act will help 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 keep up standards and strictness when it comes to safety.
Increasing 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 guarantee that their operations are in accordance with the law.
How one can 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 transfer 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 making use of the application for the licensee within 30 days can proceed to operate the factory immediately. Even when it is pending approval, it is deemed that the applicant has change into a licensee.
At any time when the factory operation permit is switchred, the original licensee will no longer have the correct to lease or purchase 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 handy and flexible. On the similar time, the new Act can oversee company operations so that they're safe for the atmosphere, the public, and the country’s economic stability.
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