Navigating Compliance for a Smooth Factory Launch
Before beginning operations in your rented or owned factory in Thailand, securing the proper factory license is a legal requirement. Whether you’re a local or foreign investor, understanding the licensing process ensures you avoid operational delays, penalties, or even shutdowns.
Thailand’s Factory Act B.E. 2535 (1992) governs the licensing process. It classifies factories into three categories based on type and capacity. Identifying your category is the first step toward licensing compliance.
Factory Types and License Categories in Thailand
Factory classification determines whether you need a license, prior notification, or neither:
Category 1:
Factories that are low-risk and small in scale. No license or notification required. Operations can begin immediately.
Category 2:
Medium-sized factories that may pose some environmental or safety risks. You must notify the Ministry of Industry before starting operations.
Category 3:
Larger-scale factories or those handling hazardous materials. These require a Factory License (Ror. Ngor. 4) from the Department of Industrial Works (DIW) before any operations begin.
Most foreign-owned or large manufacturing operations fall under Category 3, meaning a formal license is required.
Key Steps in the Factory Licensing Process
To apply for a factory license (for Category 3), follow these steps:
1. Prepare Site and Building Plans
Submit factory layout drawings, machinery lists, and site information. Compliance with zoning and environmental laws is required.
2. Conduct Environmental Impact Assessment (if applicable)
For industries with potential environmental risks (chemical, food processing, etc.), an EIA report may be required before license approval.
3. Submit Application to the DIW
File your application with supporting documents to the Department of Industrial Works or local provincial industry office. Required documents may include:
- Factory design and layout
- List of machinery and power usage
- Fire prevention plan
- Waste treatment plan
- Land ownership or lease agreement
4. Inspection and Review
Authorities will inspect your factory premises and assess whether your operations align with safety, health, and environmental standards.
5. Obtain Factory License
Once approved, you will be issued a Factory License (Ror. Ngor. 4), valid for the continued operation of your facility. Changes in factory ownership, location, or production type may require a license update.
Timeline and Considerations
- Average processing time: 45–90 days
- Application fees vary based on factory size and industry
- Early coordination with local officials helps avoid delays
- Approval delays often occur due to incomplete documents or site non-compliance
Final Thoughts: Get Licensed Right the First Time
Navigating Thailand’s factory licensing regulations is a critical part of your setup process. A clear understanding of factory classifications, early planning, and proper documentation will help avoid delays and ensure full compliance.
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