FACTORY LICENSE
Factories in Thailand are divided into three types, of which only one requires a license prior to operation.
3 Types of Factories
According to the Factory Act (1992), a factory is defined as any place that uses machinery with a minimum of 5 horse powers or employing 7 or more workers for factory related activities such as producing, assembling, processing, storing or transporting anything included in the classes or factory types listed in the Ministerial Regulations.
The three types of factories are categorized as follows:
Category 1
The factory has 5 to 20 horse powers or 7 to 20 workers.
Factory must not produce any pollution.
Must be located at least 50 meters away from public places such as schools, government offices, hospitals etc.
No license required.
Category 2
The factory has 20 to 50 horse powers or 20 to 50 workers.
Factory must nor produce any pollution.
Must be located at least 50 meters away from public places such as schools, government offices, hospitals etc.
No license required, however the relevant authorities have to be notified before beginning operations.
Category 3
The factory has more than 50 horse powers or 50 workers.
Category 1 and 2 factories that produce pollution.
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Must be located at least 100 meters away from public places such as schools, government offices, hospitals etc. The area must be appropriate without causing any nuisance to people surrounding the factory.
License required.
Timeframe, Validity and Renewal of the Factory License
It takes a minimum of 90 days for the officer to process the license application. Once approved a factory license is valid for 5 years. Renewal should take place prior to the expiration date.
If submitted after the expiration date but not later than 60 days a fine of 20.000 Baht has to be paid. After the 60 days have passed, the license cannot be renewed and a new application has to be filed.
The process of getting a license is very complex and can take a long time. We advise our clients to consult with our experienced team of lawyers prior to applying for such as license.
