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This is Chapter 2 with regards to the supervision of the factory in Thailand. Speak to us if you wish to register a factory in Thailand as it does become very complicated. Our factory license attorney will be able to assist you with this registration. This is a basic overview of the law and not the completed Act, but a very brief summary of the process of starting a factory in Thailand. Likewise see also the Thailand business registration process as well as the article that we wrote on our Thai accountant as well. Lastly there is also the article that we wrote on VAT registration in Thailand as well.
Note that Section 7 covers the factory types in Thailand.
Group 1 Factory is factory of the type, kind, and size as capable of engaging in a factory business immediately upon desire of a person engaging in a factory business.
Group 2 Factory is factory of the type, kind, and size as, when engaging in a factory business, must be notified in advance to the Grantor.
Group 3 Factory is factory of the type, kind, and size as to be granted a factory permit prior to the engagement.
The Minister, with Cabinet approval, has broad authority to regulate factories for reasons of economy, environmental conservation, and public safety. This includes:
1. Limiting Factory Numbers and Sizes: Establishing or denying factory expansions in certain areas.
2. Raw Materials and Energy Sources: Specify what type of material, its quality, as well as proportions of raw materials and energy to be used.
3. Product Quality: Determine the type as well as quality of products manufactured. See also the Public Health Act as well.
4. Application of Products: Regulate how products are used in local industry or for export.
Operators of Group 2 and Group 3 factories must notify authorities in writing if operations cease for over a year. Before resuming, they must inform the authority, with Group 3 factories requiring explicit permission to restart.
The factory must report significant accidents that may have caused the following:
1. Injuries or Deaths: Additionally any incident which has resulted in incapacitation for over 72 hours must be reported within 3 days.
2. Factory Shutdowns: Likewise if operations are halted for more than 7 days. Then there needs to be notification must be made within ten days.
Authorities have the right to inspect and take action after the reporting of accidents or shut downs.
Inspector are allowed to:
1. Inspect Factories: They may enter and inspect factories during specified times.
2. Sample Products: Likewise they may collect samples for quality testing.
3. Seize Materials: Additionally confiscate products or documents if there’s reasonable suspicion of violation.
4. Summon Individuals: Finally they may require testimony or documentation from relevant parties.
Note that authorized officials may arrest individuals suspected of violating factory regulations for further legal action.
Should there be any violations which harm people or property. The inspector can order cessation of those activities. Likewise they may also secure machines to prevent operation during compliance.
Likewise orders must be served in person or via registered mail. If the individual cannot be found. Then the order can be posted visibly at the factory. This will be deemed as received.
Should there be intentional non-compliance with orders or serious risk is identified. Likewise the authorities can temporarily suspend operations. This until such time that corrections are made. Additionally, failure to comply may lead to permanent closure. This is especially for Group 3 type factories. See also the article on Fraud in Thailand as well.
Note that closure orders must be visibly posted at the factory. This will prohibit any further work at the factory until such time that compliance is achieved.
Likewise you may appeal orders within 30 days. This does not however stop the need for complying with the law in the meantime.
Should non-compliance still persist. The government may then intervene to rectify the situation at the owner’s expense. These may include penalties and reimbursements from the Environment Fund if applicable.
The operators and owners of Group 2 and Group 3 factories must pay annual fees. Note that late payments incur penalties. Should this persistent non-payment can lead to cessation of business activities.
Inspectors must present identification upon request. This while performing their duties at the factory. These must conform to a specified format.
Likewise also see the articles on translation in Thailand as the forms and applications are in the Thai language. Likewise the translation of legal documents also have an article on it. Lastly starting a factory business in Thailand is not as complicated as say starting a marijuana business in Thailand.
The information contained in our website is for general information purposes only and does not constitute legal advices. For further information, please contact us.
