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The 9 Most Necessary Info About Thailand’s New Factory Act, B.E. 2562
Do I need to apply factory license prior to renting a factory in Thailand?
For anybody taken with setting up a factory in Thailand or starting a business in the factory business, you need to know some information regarding Thailand’s New Factory Act, which goes into impact on October 27, 2019. The next is a abstract of the significant particulars of the new Act as well because the differences from the previous one:
How is the new Act higher than the former one?
The Thailand Factory Act was amended to increase the flexibility of the factory sector. As a result, both small and enormous factories will be able to operate more agilely, while regulation relaxation when it comes to rigorous environmental considerations 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 at the very least 7 staff or uses 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 very least 50 staff or makes use of machinery with a total energy of fifty horsepower or more.
Persons are still absolutely protected, just as they have been under the former Act
Although Thailand’s New Factory Act will benefit the factory companies to be able to operate smoothly as mentioned above, the people and residents across the factory will still receive 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 applying 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 do not have to renew the factory operation permit each 5 years.
A factory that already has a factory operation permit does not need to use 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 government officers
The new Act authorizes private inspection companies which were licensed or accredited by the federal government agency to examine factory businesses. In consequence, factory companies 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 have to have a valid license with the next qualifications:
The auditor should have a license for professional practice in engineering, science, or technology.
The auditor should have at the very least five years of experience in electrical, environmental safety, chemical, mechanical, civil engineering, or different relevant fields.
Although Thailand’s new Factory Act will assist to accelerate audits by using private auditors, the auditors will need to have qualifications and expertise as specified by the Department of Industrial Works. This is to take care of standards and strictness when it comes to 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 guarantee that their operations are in accordance with the law.
How to transfer 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 switch 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 wishes to switch a factory operation permit should 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 when it is pending approval, it is deemed that the applicant has become a licensee.
Every time the factory operation permit is switchred, the unique licensee will not 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 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 company operations so that they're safe for the setting, the public, and the country’s financial stability.
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