Factory and Industrial Estates Licensing
The construction and operation of a factory in Thailand is strictly regulated by Thai laws. The Factory Act of Thailand stipulates the regulations for the construction, operation, expansion and safety of factories in Thailand, and also controls the levels of industrial pollution released through factory activities.
A factory is any enterprise that employs 7 or more workers to manufacture, assemble, pack, repair, produce, test, maintain, process, improve, store or destroy any items or materials listed by Thailand's Department of Industrial Works (Ministry of Industry) regulations.
Before you can open and operate a factory in Thailand, you will likely need to apply for a Factory license or receive approval from the Ministry of Industry in Thailand. Certain types of factories do not require licensing or approval, and the level of regulation the government maintains factories depends on the perceived amount of environmental impact and the level of protection deemed necessary.
The Thai Ministry of Industry decides regulations for the following:
- Type, category and description of machinery or equipment used in the factory functions
- Where the factory is located, the interior and description of the factory and the environment of the factory
- Requirements for workers who will work in specific duties or positions in a factory due to specialized skills
- Safety procedures and standards for any equipment used at the factory to help prevent or reduce danger or damage that could occur to the factory property or to public places located near to the factory
- The release of pollution, waste or any other harmful substance from the factory that could affect the environment
- Ensure that any information and documents by the owners of the factory comply with Thai laws.
- Ensuring the safety of factory operations
Once a factory license is granted, it is valid only for a fixed period of time and applications for renewal must be filed within the relevant time limitations.