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The 9 Most Essential Info About Thailand’s New Factory Act, B.E. 2562
Do I would like to apply factory license previous to renting a factory in Thailand?
For anyone interested in setting up a factory in Thailand or starting a enterprise in the factory enterprise, you must know some information regarding Thailand’s New Factory Act, which goes into effect on October 27, 2019. The following is a summary of the significant particulars of the new Act as well because the differences 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. As a result, each small and huge factories will be able to operate more agilely, while regulation relaxation when it comes to rigorous environmental issues 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 at the very least 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 no less than 50 employees or makes use of machinery with a total power of fifty horsepower or more.
Persons are still totally protected, just as they have been under the former Act
Although Thailand’s New Factory Act will benefit the factory businesses to be able to operate smoothly as mentioned above, the folks and residents across the factory will still receive 100% protection, just as they received 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 general factories or small and medium enterprises (SME) with machinery less than 50 horsepower (or 50 workers), they do not have to renew the factory operation permit each 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 officers
The new Act authorizes private inspection companies that have been licensed or accredited by the federal government agency to inspect factory businesses. Because of this, factory businesses should not have to wait to be inspected by just government officers.
ualifications of private auditors
Although the revised Thailand Factory Act allows 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 practice in engineering, science, or technology.
The auditor must have a minimum of five years of experience in electrical, environmental safety, chemical, mechanical, civil engineering, or other relevant fields.
Though Thailand’s new Factory Act will assist to accelerate audits by employing private auditors, the auditors must have qualifications and expertise as specified by the Department of Industrial Works. This is to maintain 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 interval to guarantee that their operations are in accordance with the law.
The right way to transfer a factory operation permit to another 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 acquiring a factory operation permit in Thailand and the conditions as follows:
A factory operator that desires to transfer a factory operation permit should submit a request for the license switch within 30 days after buying, 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 turn into a licensee.
Every time the factory operation permit is switchred, the original licensee will now not have the right 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 similar time, the new Act can oversee company operations in order that they are safe for the atmosphere, the public, and the country’s economic stability.
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