A factory is defined as any premise that uses machinery equivalent to five horsepower or more, or that employs seven or more, with or without any machine, for manufacturing, producing, assembling, packing, repairing, maintaining, testing, improving, processing, conveying, storing or destroying anything included in the classes or types of factories presenting listed in the Ministerial Regulations.
Factories are divided into three categories:
- Factories that do not require licenses.
- Factories that only require notification in advance of the commencement of operations. The operators may commerce operations as soon as they receive a receipt form from the Ministry stating that their report has been received.
- Factories that require license from the Department of Industrial Works, Ministry of Industry, piror to operation. Subject to the Ministry’s discretion, the operations may be granted, prior to the license, a certificate allowing them to build parts of the factory.
The operator of a factory in Category 3 must notify the competent authority at least 15 days before factory test-run commences, and again at least 15 days before actual manufacturing begins.
Licenses granted are valid until the end of the fifth calendar year from the year in which the business starts operations, except in the case of the relocation of the factory or of the dissolution of the operation in the factory business. In these cases, the licenses are regarded as having expired on the date of issuance of a license to the factory’s new operators, or on the date of dissolution of factory business.
Applications for renewal of license must be submitted to the date of expiration, along with a fee of 100,00 baht. Following submission, renewal is considered to have been extended unless there is a specific order otherwise. If the application is submitted within 60 days of the expiration date, it will be processed normally, but an additional fine of 20,000 baht will be levied. Once the expiry date is reached, an application for a renewal must be made within 60 days. Upon expiration of the sixty-day period, the application will be treated as if it were a new application.