What Is a Factory?
A factory is defined as a structure, location, or vehicle that employs seven or more people, with or without the use of machinery, and that uses machinery with an engine greater than or equivalent to five horsepower for the manufacture, production, assembly, packing, repair, maintenance, testing, improvement, processing, conveying, storing, or destruction of anything included in the classes or types of factories currently listed in the Ministerial Regulations.
According to the Factory Act B.E. 2535, the Ministry of Industry is in charge of regulating the establishment, operation, expansion, issuing of permits, and supervision of all associated issues relating to factories in Thailand, such as pollution and safety.
Each factory’s license obligations are mostly based on the products it produces as well as a variety of other considerations. The following factors are relevant:
- Size and type of factory
- Probability of causing pollution
- Environmental protection methods
- Type, quality, source of origin, and ratio of raw materials to be used
- Type of energy to be used or produced in a factory
- Nature, type and quality of the products manufactured in the factory and so forth
Categorisation of Factories
If you are running a small manufacturing, you do not need a license, but you still need to abide by the ministerial rules. Small-sized factories are those that do not produce pollution, use equipment with an engine of no more than 20 horsepower, and/or only employ 20 people or less. Industrial License: Compliance Is Necessary .
Medium-sized factories are required to inform the Ministry of their existence and can start functioning after they receive a letter confirming that their report has been acknowledged. The definition of a medium-sized factory is one that emits little to no pollution, has no more than 50 horsepower in its machinery, and/or employs no more than 50 people. Factory Licensing: Notice Is Necessary .
Due to the fact that they create pollution or other environmental risks, operate machinery with more than 50 horsepower, and/or employ more than 50 people, large factories are needed to apply for a factory license from the relevant government agencies prior to starting operations. Industrial License: License necessary .
Factory License Renewal
An official will visit the factory premises for an inspection within the minimum 90-day consideration period for a manufacturing license. The license must be renewed before it expires after being granted and is good for five years at a time. .