The Factory Act regulates the factory construction, the business operations, a possible factory expansion and all safety and pollution requirements.
The Ministry of Industry can thus decide upon the following items:
A factory is defined as “a building, place or vehicle that uses a machine from five horsepower or more or an equivalent, or which employs seven or more workers for manufacturing, producing, assembling, packing, repairing, maintaining, testing, improving, processing, conveying, storing or destroying anything included in the classes or types of factories presently listed in the Ministerial Regulations, and that are not owned or operated by government agencies for the purpose of national security or safety.”
Not all factories, as described here above, need a license. Some just need to notify the officials beforehand and can start a business as soon as they receive a letter from the Ministry stating that their report has been received well.
The intensity of the control is based upon the probability of pollution and the required protection of the environment, which is at its turn based upon the output of the factory:
The issuance of the factory license is subject to the Ministry’s discretion. Since, in most cases, the start-up is time sensitive, one may be granted a certificate allowing them to already start building parts of the factory.
Every license holder is obliged to additionally inform the Ministry in case of the following changes and/or incidents:
Factories that use machinery equivalent to 5-20 horsepower and/or that employ 7-20 people for manufacturing do not require a license. However, the manufacturer has to follow the ministerial regulations
The factory may always be inspected to ensure continuous compliance with the Factory Act. This can be done by government officials or by a private body. If the factory would be endangering the public, the Ministry can oblige the license holder to make improvements or even cease business. A violation of the Factory Act’s provision may also incur penalties such as fines or imprisonment (for the company and/or its directors).
Within 30 days after the request of the license, an official will come to investigate the location and report his findings. The approval or rejection will be announced to the owner of the factory within the following 60 days.
The license is valid for five years. Before the expiration of the (first) license, a renewal should be requested. The fee, therefore, is again 100,000 THB. It is a personal license in the sense that a new one will have to be requested if the factory is transferred or leased.
Apart from a notification or license, please take note of the fact that the Ministry of Industry has issued regulations for many different items such as:
Ashmin, Acclime business services coordinator
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